Conference on Security of Gas Supply in Bosnia and Herzegovina

USAID Energy Investment Activity

Security of Natural Gas Supply in

BiH

Hotel Termag, Jahorina, July 2 – 3, 2018

Dušan Gvozdenac

Topics:

1. Trans-European and Regional Natural Gas Pipeline

Projects

2. Gas Pipelines that Can Increase the Security of

Supply in BiH

3. Possible and Desirable Directions of Gas Supply in

BiH

4. Conclusions

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Origin of Gas Supply in 2015 for the Area of EU284

Global LNG

market

- Qatar

- Nigeria

- USA

- Russia

etc

Southern corridor

pipeline

Possible Sources of Supply for European Gas Import Demand5

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Projects of Energy Community Interest (PECI)

GAS 09 Gas Interconnector Bulgaria – Serbia (IBS)

GAS 11 Gas Interconnector Serbia FYR of Macedonia

GAS 25 Trans-Balkan Corridor Bi-Directional Flow between Moldova and Ukraine

GAS 20, 21

and 22

Caspian Region, crossing Azerbaijan, Georgia and Turkey and reaching

markets in Georgia and Albania (via Trans-Adriatic Pipeline).

GAS 13 Albania-Kosovo Gas Pipeline (ALKOGAP)

Projects of Mutual Interest (PMI)

GAS 01 Interconnection Pipeline BiH-HR North (Slobodnica-Brod-Zenica)

GAS 02 Interconnection Pipeline BiH-HR West (Lička Jesenica-Tržac-

Bosanska Krupa)

GAS 03 Interconnector BiH-HR South (Ploče-Mostar-Sarajevo; Zagvozd-

Posušje-Travnik

GAS 04 B Gas Interconnection Greece –FYR of Macedonia (IGF)

GAS 08 Gas Interconnection Serbia – Romania

GAS 10 Gas Interconnection Serbia - Croatia

GAS 14 Gas Interconnection Poland – Ukraine

GAS 18 Romania – Moldova Gas Interconnector (Ungheni – Chisianau)

GAS 23 White stream Gas Pipeline

GAS 16 Ionian Adriatic Pipeline (IAP)

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Events since spring 2017 have greatly accelerated the

development of the White Stream and Trans-Caspian Pipeline

(TCP) projects, which are key building blocks for the wider

Southern Gas Corridor bringing gas from Central Asia to Europe.

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• With the route of 1,850 km, TANAP is the longest of three segments of

the so called Southern Gas Corridor that will, for the first time, supply

gas from Azerbaijan to Europe directly.

• Annual capacity of TANAP will be 16 bcm/y. Out of that, Turkey will use

6 bcm/y and the remaining ten billion will be delivered to the European

market.

• It is planned to increase the capacity of the TANAP Gas Pipeline until

2023 to 23 bcm/y and to 31 bcm/y until 2026

• The costs for the construction of TANAP are about USD 8.5

billion

TANAP (Trans-Anatolian Natural Gas Pipeline)

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TAP (Trans Adriatic Pipeline) +

IAP (Ionian Adriatic Pipeline)

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• Design capacity of the TAP gas pipeline is about 10 bcm/y. This

capacity has been leased by Azerbaijan.

• The commissioning of this gas pipeline is expected in 2019 – 2020.

• The gas pipeline will also have additional capacity of 10 bcm/y.

Possible leaseholder of this capacity is Russian GASPROM.

• This will require installation of additional compressor stations.

TAP is 867 km long pipeline for the transport of gas from Azerbaijan.

TAP transports gas from the Greek border over Albania and the Adriatic

Sea to Italy and further on to Europe,

TAP (Trans Adriatic Pipeline)

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• The IAP conects the existing Croatian gas transmission system, via

Montenegro and Albania with the TAP system.

• The total length of the gas pipeline from the Croatian town Split to

Albanian town Fieri is 511 km.

• Its 5 bcm/y capacity provides the natural gas supply of Albania (1

bcm), Montenegro (0.5 bcm), the south of Bosnia and Herzegovina (1

bcm) and Croatia (2.5 bcm).

• The implementation of the entire Ionian Adriatic Pipeline project

enables opening of the new energy corridor for the SEE region within

the fourth EU transmission corridor, with the aim to establish a new

natural gas supply direction from the Middle East and Caspian region.

• The IAP will have a bidirectional gas flow possibility i.e., it will be able

to provide natural gas supply to SEE from other sources, one of them

the future LNG solution on the island of Krk.

IAP (Ionian Adriatic Pipeline)

Turkish Stream

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Lenght 1,100 km

Diameter

Out diameter of 32“

(813 mm) and will

be installed in water

depth up to 2,200 m

Capacity

Two streches: Each

will have capacity of

15.75 bcm/y

Anticipated

Operational

Date

2020

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Greek Regional Gas Project

The Tesla pipeline is a

proposed natural

gas pipeline which would

connect the

planned Turkish

Stream pipeline (extending

from Russia across

the Black Sea to Turkey)

further on to Central

Europe,

via Greece, Macedonia, Ser

bia and Hungary, ending at

the Baumgarten gas

hub near Vienna, Austria.

BRUA (Bulgaria, Romania, Hungary and Austria)

• The most important connection for the BRUA pipeline is made

within the Greek section of the TAP pipeline where the Greece-

Bulgaria Interconnector (IGB) will enable transport of gas into

Bulgaria and thus the start of the pipeline infrastructure for BRUA.

• Another pipeline that can be connected to the BRUA pipeline is

proposed to run from the recently found gas reserves located

offshore in the Black Sea. If plans go ahead to build offshore gas wells,

the transportation of this gas will be carried via new pipeline running

from Constanta to the BRUA GCS at Podisor. The bi-directional

ability of the Project will allow for the Black Sea gas to be quickly

distributed to both North and South Europe.

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16BRUA (Bulgaria, Romania, Hungary and Austria)

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Existing pipelines

Studies ongoing

Potential projects – not coordinated yet

The Gas Ring

Observing wider the

position of BiH and

neighboring countries, the

construction of planned

gas pipelines will create

the gas ring that will

undoubtedly increase the

security of supply of all

parts within that ring.

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Infrastructure in Serbia and

the Supply of BiH from the

Direction of Serbia19

For Serbia, interconnections with Bulgaria and Romania are especially important. However, these

interconnections are also important for BiH because it can buy gas from countries other than

Russia over these interconnections. Basic data about these interconnections are as follows:

GAS INTERCONNECTOR SERBIA-BULGARIA –section on the territory of Serbia

Pipeline length 109 km

Pipeline diameter DN 700

Commission year 2022

Investment cost 85 M€

Project Status: FS and CBA implemented. Ongoing design and expropriation

activities. Geo exploration works in progress.

GAS INTERCONNECTOR SERBIA-ROMANIA–section on the territory of Serbia

Pipeline length 10 km

Pipeline diameter DN 500

Commission year 2020

Investment cost 10 M€

Project status: Joint Serbian and Romanian TSO. Pre FS and ongoing analyzes

for optimum technical solution of the Project. Spatial Plan is in the phase of

preparation

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Infrastructure in Croatia and Possible Supply of BiH

from the Direction of Croatia

The transportation system

managed by the transportation

system operator, Plinacro d.o.o.,

consists of international, major,

regional and terminal gas pipelines

and facilities on the gas pipeline,

measuring reduction stations

(MRS) with different capacities

and other facilities and systems

that enable reliable and safe

operations of the transportation

system.

Especially favorable position of BiH in relation to the gas

system of Croatia can easily be noticed, as well as

numerous possibilities for the connection to this system. 21

Total Future Capacity: 4.9 bcm/y

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Existing and future

gas pipeline in BiH

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1. If we talk about planned and possible interconnections of gas

for BiH then, possible future consumption of gas is 4.9

bcm/y

2. The potential of current and planned gas pipelines in the

closer and remoter vicinity will certainly ensure secure gas

supply in BiH.

3. Gas consumption in BiH is very low (0.22 bcm/y) which

indicates the need to intensify works on the promotion of

the use of natural gas in BiH.

4. Perhaps, the best way is to follow offered scenarios for the

development of energy sector envisaged in the EU Energy

Roadmap 2050.

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