INITIATIVE FOR GAS HUB CREATION IN SOUTH EASTERN EUROPE

SOFIA, 09.02.2015 г.

Russia

North Sea

Russia

Algeria Libya Qatar

LNG

Domestic productionFgreat Britain

DenmarkHollandNorway

LNG

Domestic production

Potential Domestic

fields Black Sea

LNGYemenPeru

EgyptNigeria LNG

AlgeriaNigeriaQatar

56 %Share of Russian Gas

ЕС 32 %Share of Russian Gas

Дял на вноса на газ от Русия спрямо общото потребление по държави за 2013 г

Внос на газ от Русия по държави за 2013 г., bcm/y

Slova

kia

Bulgaria

Czech

Republic

Slove

nia

Hungary

Greece

Austria

Poland

Serb

iaIta

ly

Romania

Croatia

0,0%10,0%20,0%30,0%40,0%50,0%60,0%70,0%80,0%90,0%

100,0%

Share of the gas import from Russia toward the total consumption by states for 2013

Gas import from Russia by states for 2013, bcm/y

Slovakia 5,30

Slovenia 0,53

Hungary 5,90

Greece 2,40Austria 5,10

Poland 9,60

Serbia 1,15

Italy 24,90

Czech Republic 7,20

Romania 1,10

BULGARIA KEY FACTOR ON THE REGIONAL GAS MARKET

• The geographic location of Bulgaria defines it as a strategic partner

• Well designed national gas infrastructure

• Well balanced national transit system related with underground gas storage capacity

• Exploration of Oil and gas fields in the region

• Low domestic consumption - spare capacity for transit

• Transparent public procurement procedures and construction at fair prices

• Long and short term capacity

• Bulgaria will use gained European experience in the development of trading platforms

• Unified system for managing gas flows , previously agreed with the European gas partners

• Investment opportunities - estimated investment costs Euro 2.2 billion

NCG+Gaspool

BAGA

PSV

LNG

South Stream

CEGH

Domestic

Southern Gas Corridor

CS Chiren

South Stream 63 bcm

South Stream 63 bcm

20 bcm/y

20 bcm/y

3 bcm/y3 bcm/y

0,8 bcm/y0,8 bcm/y

3,3 bcm/y (Bulgaria)

3,3 bcm/y (Bulgaria)

Central Europe

ITB, 3 bcm

ITB, 3 bcm

Bulgaria Domestic(Black Sea)

2 bcm/y

Bulgaria Domestic(Black Sea)

2 bcm/y

IBS, 1,8 bcm

1,5 bcm1,5 bcm

Zajčer42,6 bcm/y

Zajčer42,6 bcm/y

Oriahovo42,6 bcm/y

Oriahovo42,6 bcm/y1 a1 a

1 b1 b

IGB, 3 bcm

IGB, 3 bcm

GMSGMS

GMSGMS

CS Lozenets

CS Lozenets

New UGSNew UGS

CS 2, 130 MWCS 2, 130 MW

CS NV 1CS NV 1

CS NV 2, 3

CS NV 2, 3

CS Provadia

CS Provadia VARNA

VARNA

CS 1, 130 MWCS 1, 130 MW

Romania Domestic(Black Sea)

2 bcm/y

Romania Domestic(Black Sea)

2 bcm/y

BG Domestic (Black Sea, Future)

BG Domestic (Black Sea, Future)

CS Strandja

CS Strandja

CS P. Senovets

CS P. Senovets

CS V.DolCS V.Dol

CS PetrichCS Petrich

CS

21,1 bcm intermittennt

21,1 bcm intermittennt

0 bcm0 bcm

BULGARIA – GAS HUB

TAP

TAP TANAPTANAPLN

G

LNG

LNG

LNG

Necessary infrastructure on the territory of Bulgaria – preliminary estimate

GAS HUB – PILOT PROJECT FOR ENERGY UNION

• Key mechanism to improve security of gas supply to Europe - a key objective of the European Energy Union, enhancing the negotiating power of the EU and its economic partners vis-à-vis the external gas suppliers

• Key project for the implementation of the Internal energy market - to overcome the energy dependence of the region of Southeast Europe, liberalization by creating a competitive gas market in compliance with EU legislation. Improving trans-border grid.

• Gas infrastructure, securing the Member States with natural gas at a competitive price, energy-efficient, environmentally friendly energy source - improving energy efficiency. Energy Union should be designed to maximize the benefits of energy efficiency and managing demand.

• In addition to energy efficiency, gas infrastructure allows reducing emissions in comparison to production from coal power plants alongside with this Bulgaria has achieved its targets for renewable energy sector.

• Modernization of the gas transmission network will allow the use of innovative new technologies, switching to automatic control mode and well balanced transmission system.

• Key mechanism to improve security of gas supply to Europe - a key objective of the European Energy Union, enhancing the negotiating power of the EU and its economic partners vis-à-vis the external gas suppliers

• Key project for the implementation of the Internal energy market - to overcome the energy dependence of the region of Southeast Europe, liberalization by creating a competitive gas market in compliance with EU legislation. Improving trans-border grid.

• Gas infrastructure, securing the Member States with natural gas at a competitive price, energy-efficient, environmentally friendly energy source - improving energy efficiency. Energy Union should be designed to maximize the benefits of energy efficiency and managing demand.

• In addition to energy efficiency, gas infrastructure allows reducing emissions in comparison to production from coal power plants alongside with this Bulgaria has achieved its targets for renewable energy sector.

• Modernization of the gas transmission network will allow the use of innovative new technologies, switching to automatic control mode and well balanced transmission system.

INITIATIVE FOR GAS HUB CREATION IN SOUTH EASTERN EUROPE

THANK YOU FOR YOUR ATTENTION !