Oil & Gas

Transgaz getting ready to transport Black Sea gas

Transgaz has obtained the Construction Permit for the gas transmission pipeline Black Sea Coast – Podisor.

 

As Intermediate Body for Energy, the Ministry of Energy issued the Construction Permit through which it authorizes the execution of construction works for the project ‘Gas transmission pipeline Black Sea Coast – Podişor’, including electricity supply, cathodic protection and optical fibre, Transgaz informs in a press release.

The project involves the execution of the following investment works: gas transmission pipeline with a total length of approximately 308.16 km, consisting of two sections: section I Black Sea – Amzacea (32.7 km; Dn 1200) and section II Amzacea – Podisor (275.4 km, Dn 1000); pig launching-trap station Amzacea area; interconnection with T1 transit pipeline; Technological Node for Interconnection to NTS in the area of Vlasin; interconnection with Podisor Gas Compressor Station; site organization and storage of tubular goods.

This investment objective will ensure the connection between the gas resources available at the Black Sea coast and BRUA corridor, as well as interconnection with the international gas pipeline T1. The value of works is estimated at RON 1.22 billion (excluding VAT).

The validity of the Construction Permit is 36 months from the date of issue, provided that works are executed within 12 months from the date of issue.

Transgaz also informs that the incremental capacity booking process in the expected entry point in the NTS from the Black Sea – Tuzla MP – the Binding Stage – has been successfully completed.

Transgaz expected binding bids from companies for booking capacity in Tuzla MP, to see whether the interest of companies justifies investment in the future point in Tuzla. The procedure carried out by Transgaz aims at capacity allocation for 16 years, from 1 July 2021 until 1 October 2036. The companies have submitted firm bids for capacity booking, which validates the fact that operators are preparing to extract gas from the Black Sea.

Transgaz estimates that, in the 16 years, it will gain almost RON 3 billion from the tariff charged to companies extracting gas from the Black Sea for gas injection into the network.

“Within the analysis carried out by SNTGN Transgaz SA, it was found that the minimum capacity threshold mentioned in the documentation related to the Binding Stage of the incremental capacity process for Tuzla entry point in the NTS has been reached. The total value during the offered period of the allocated capacity is 1,278,084,480 MWh, higher than the minimum threshold of 1,277,213,582 MWh. The total value of commitments of applicants awarded winner is RON 2,949,358.14 thousand, by RON 2,011.78 thousand higher than the current value of the estimated growth of the allowed revenue, associated to the incremental capacity offered within this procedure (RON 2,947,346.36 thousand),” the quoted document mentions.

Up to Tuzla, it is the obligation of companies that will extract gas from the Black Sea to build the transmission infrastructure. From here, onshore, it is Transgaz’s obligation to build the gas transmission infrastructure, in this case the Tuzla-Podisor pipeline (308.16 km).

Yet, in order to finance this project, Transgaz had to make sure there was gas for it.

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