romanian case study on interconnection agreements · tasaul - proiect filipeŞti pm vintu-sebes -...

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE Romanian Case Study on Interconnection Agreements Cristian Selavărdeanu Gas Expert Romanian Energy Regulatory Authority - ANRE 3 rd Technical Workshop on Gas Market Design and Natural Gas Transmission Grid Codes May 21-23, 2018 Vilnius, Lithuania

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Page 1: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANREROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

Romanian Case Study on Interconnection Agreements

Cristian Selavărdeanu Gas Expert

Romanian Energy Regulatory Authority - ANRE

3rd Technical Workshop on Gas Market Design and Natural Gas Transmission Grid Codes

May 21-23, 2018

Vilnius, Lithuania

Page 2: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE

DESCRIPTION OF THE ROMANIAN NATIONAL GAS TRANSMISSION SYSTEM

NETWORK TOPOLOGY

ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

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Page 3: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

DESCRIPTION OF THE ROMANIAN NATIONAL GAS TRANSMISSION SYSTEM

The main characteristics of theNational Gas TransmissionSystem are:

• 13,303 km of maintransmission pipelines andconnections for gas supply, ofwhich 553 km of pipelines arededicated to internationaltransmission of gas;

• 1,132 gas regulating - meteringstations for domestic points;

• 6 gas metering stations forinternational transmission;

• 3 compressor stations (Sinca,Onesti, Silistea)

Page 4: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

DESCRIPTION OF THE ROMANIAN NATIONAL GAS TRANSMISSI ON SYSTEM

• The system was developed during the 60’s-80’s when its main task was to connect theproduction fields located mostly in the central part of the country with the large industrialconsumers.

• Two import point where developed in order to cover the supply gap with Russian importsat GMS Isaccea import and GMS Mediesu Aurit.

Due to such system philosophy, currently the border areas of the system are faced with low pressures!

Points operated by producers/storage operators: Poin ts operated by the TSO:

• 137 physical entry points from production; - 870 physical exit pointsconnected to 39 DSs;

• 7 physical entry/exit points from/to storages; - 232 physical exit pointsconnected to direct consumers.

Page 5: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINTS

Interconnection points:

EU neighbours1. RO-HU: Arad-Szeged2. RO-BG: Ruse-Giurgiu3. RO-BG: Negru Vodă-Kardam (I, II, III)

Non-EU neighbours4. RO-MD: Iaşi-Ungheni5. RO-UA: Medieşu Aurit-Tekovo6. RO-UA: Isaccea import-Orlovka7. RO-UA: Isaccea-Orlovka (I,II, III)

Page 6: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINT 1: RO-HU: ARAD-SZEGED (CSANADPALOTA)

- Commissioned:- July 2010 – only HU-RO flow- January 2014 – RO-HU flow

(bidirectional capacity)

- Transmission capacities:- HU-RO capacity: 1.75 bcm/y- RO-HU capacity: 0.09 bcm/y

- Planned extension of capacities inboth directions (to 4.4 bcm/y), afterimplementing the BRUA project(phases I and II)

- First Interconnection Agreement (IA)concluded between TRANSGAZ andFGSZ in 2015

Page 7: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Structure of the IA (I)

1. Definitions

2. Scope of the IA, general provisions

3. Transfer of Risk of Loss

4. Flow control

5. Gas quantity and quality measurementQuantity and Quality MeasurementGas quality specificationRights of access

6. Business rulesBusiness data matchingHandling of Trade notificationsHandling of Single Sided Nomination (SSNHandling of Double Sided Nominations (DSN)Renomination of DSN

Page 8: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Structure of the IA (II)

7. Allocation

8. Operational Balancing Account

9. Settlement of the Operational Balancing Account in case of termination

10. Monthly Allocation and Report

11. Technical RulesBorder pressureTemporary border pressureBorder capacityValues of capacity for publicationInterruption

12. Maintenance

13. Constraints and communication procedures in case of exceptional events

14. Communication and online data transmission

15. Process of amendment of IA

Page 9: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Structure of the IA (III)

16. Entry Into Force, Duration and Termination

17. Liability

18. Governing law and dispute resolution

19. Waiver of sovereign immunity

20. Force MajeureForce MajeureNotification requirementsMitigation

21. Confidential information

22. Miscellaneous

Page 10: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - I

Flow control

� FGSZ controls the gas flow in cooperation with TRANSGAZ in order to ensure that thedifference of the sum of all confirmed nominations and the total gas quantity measuredshall at all times be as close to zero as possible.

� Parties consider the latest confirmed (matched) daily quantity for the bundled and theunbundled booked capacities as delivery task for the given Gas Day.

� Parties consider the daily delivery task must be delivered equally during the Gas Dayindependently from the matched profile, unless the parties agree to use different flowprofile.

� The parties shall make their best endeavours to keep the flow rate above 20,000 m3/h(s)(at normal conditions) at any direction. If the matched daily delivery schedule results inlower flow rate, the Parties shall agree on intermittent delivery schedule, which shallkeep the nominated daily quantity unchanged.

� Parties are entitled to reduce the deliveries scheduled in the framework of interruptiblecapacity any time during the Gas-Day.

Page 11: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - II

Gas quantity and quality measurement (I)

� Quantity and quality measurement of custody transfer is carried out at Csanadpalotameasuring station by the equipment owned, controlled and operated by FGSZ.

� The Measuring Station at Csanadpalota is operated according to the TechnicalOperating Manual of Csanadpalota Measuring Station specified in an Annex to the IA.

� FGSZ carries out the main control and calibration operations in presence of arepresentative of TRANSGAZ. FGSZ informs TRANSGAZ about the calibration works ina prior written notice form to ensure the effectiveness of this action.

� FGSZ informs TRANSGAZ of any modifications which have an effect on energydetermination (for example, but not exclusively: modifications to the piping, primaryelements, instrumentation, calculation methodology, control procedures and frequencies)and the Operating Manual shall be updated accordingly after prior agreement betweenthe Parties.

� All equipment for the commercial measurement of the quantity and quality of natural gasshould have valid type approval certificate and certificate of calibration according toHungarian legislation.

Page 12: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - III

Gas quantity and quality measurement (II)

Gas Quality Specification

Chemical composition (in mol percent)Methane (C1) minimum 70.0Ethane (C2) maximum 10.0Propane (C3) maximum 3.5Butane (C4) maximum 1.5Pentane (C5) maximum 0.5Hexane (C6 +) maximum 0.2Nitrogen (N2) maximum 10.0Carbon dioxide (C02) maximum 8.0Oxygen (02) maximum 0.02

Sulphur contentHydrogen sulphide (H2S) maximum 6.8 mg/irr(n)Mercaptan sulphur (RSH) maximum 8.0 mg/m3(n)Total sulphur maximum 100.0 mg/m3(n)

Gross Calorific value Minimum 10.14 kWh/m3/(n) Maximum 12.79 kWh/m3/(n)

Hydrocarbon dew pointNo hydrocarbons shall condensate at a temperature of zero degrees Celsius (0°C) at a pressure (27.0) bar absolute.

Water dew pointNot higher than minus 8 degrees Celsius (-8°C) at a pressure of 41.0 bar absolute.

ImpuritiesContent of mechanic impurity: max. 0.05 g/m3(s)

Temperature max. plus 50°C

Page 13: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - IV

Business rules (I)

� At the Csanadpalota IP, (HU>RO) or (RO>HU) bundled trade notifications are not available. Tradenotifications rules on unbundled capacity point may be determined by the parties complying with the relevantprovisions of BAL NC.

� All Single Sided Nominations (SSN) shall be submitted by Network Users to FGSZ. After receiving SSN,FGSZ shall carry out a process on each nomination to ensure that it respects all validation conditions. Allprocessed SSN shall be passed by FGSZ to the Transgaz for local processing. This shall be done as soonas technically possible and feasabie but no later than 15 minutes after the full hour of the nomination and therenomination was submitted by the Network Users. TRANSGAZ has to process all the SSN that have beenreceived from FGSZ as if it would be a nomination sent by his own Registered Network User, to ensure thatthe validation rules are respected.

� Validation conditions for SSN and Renomination of SSN:i. Only the registered network users have rights to submit SSN:ii. Submitted nomination must contain the;

a. code of the network point,b. direction of flow,c. demanded quantity in kWh/h of each gas hour of the Gas Day,d. code of Network User,e. code of counter Network User.

iii. The submitted demanded quantity must not exceed the sum of bookedbundled standard capacities and bilaterally acquired bundled capacity

Page 14: Romanian Case Study on Interconnection Agreements · TASAUL - proiect FILIPEŞTI PM VINTU-SEBES - proiect 16 Balta Alba gr 22 Ghergheasa Balta Alba (Boldu) Ghergheasa Galbenu Rosioru

ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - V

Business rules (II)

� Double sided nominations shall be handled on the IP, Network User - to - counter party Network User,a flow direction and hourly basis.

� In case of delivery demand from Hungary to Romania and/or from Romania to Hungary by UTC 13:30(in winter time) and UTC 12:30 (in summer time) of the Gas Day D-1, TRANSGAZ shall communicateto FGSZ the quantities nominated on the IP by using Annex “Matching Schedule - TGN”.

� FGSZ shall check if the quantities nominated on the IP using the FGSZ System correspond with thequantities sent by TRANSGAZ System.

i. If, as a result of the above mentioned check a mismatch is noticed in the hourly data, thenthe “lesser rule” shall be applied for the respective hour(s).

ii. If there is no difference the matching shall be deemed satisfactory and FGSZ shallcommunicate to TRANSGAZ the positive outcome of the matching for Gas Day D.

� FGSZ shall communicate the outcome to TRANSGAZ no later than UTC 14:00 (in winter time) andUTC 13:00 (in summer time) of the Gas Day D-1 by using Annex “Matching Schedule – FGSZ”.

� Renomination(s) of Network Users shall be possible at latest with two (2) hours lead time prior to theintended change between UTC 15:00 in winter time and UTC 14:00 in summer time on D-1 and UTC02:00 in winter time and UTC 01:00 in summer time on D.

� Response time on renominations is 30 minutes (maximum) in case of renomination on TRANSGAZsystem and 1 hour (maximum) in case of renomination on FGSZ system.

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - VI

Allocation

� The allocation of the quantities delivered and/or received by the relevant Network User(s) shall becarried out based on the matched quantities. The unit of allocation is in kWh (25°C/0°C), Dailyallocation report containing the daily quantities and related GCV (25°C/0°C) data shall be sent byFGSZ to TRANSGAZ every day until UTC 8:30 in winter time and UTC 7:30 in summer time.

� The allocated daily quantity for the Network Users is equal with the latest matched quantities inkWh(n) (25°C/ 0°C).

� By the establishment of the Operational Balancing Account, the Parties aim to ensure that in case ofi) change of the gas flow,ii) flow below the minimum capacity, oriii) steering differencesiv) gas flow agreed by parties (e.g. maintenance, pipe cleaning)v) emergency situation

the quantities of gas properly nominated and confirmed will be allocated to the Network Users withoutinterruptions or reductions.

� Any imbalance occurred by a difference between the metered quantities for a given gas day and thequantities of the matched daily delivery schedule for the same gas day shall result in an operationalimbalance to be charged or credited in kind to the Operational Balancing Account.

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - VII

Communication procedures in case of exceptional events

� If during any Gas Day (D) an unforeseen emergency event occurs, which causes capacity reductions,(e.g. compressor outage, or leakage) FGSZ and TRANSGAZ shall react promptly in order to minimizethe impact of such an emergency event by using best efforts and all reasonable measures.

� Both Parties shall undertake to assure prompt exchange of all relevant information (exchange within30 minutes after occurrence of an emergency), which may affect the quantity of gas being transportedin the future and the quality parameters of the gas.

� The communication shall be performed by means of telephone call for information, followed by awritten confirmation.

� Where an exceptional event occurs on a contracting party’s network affecting the interconnectionpoint, the relevant contracting party shall without delay inform and keep informed the othercontracting party in respect of the possible impact on the quantities of gas that can be transportedover the interconnection point.

� Where a contracting party considers there is an evident danger to system security and/or stability andan exceptional event may have an impact on the confirmed quantities of its network users, as soon asreasonably practicable, each contracting party shall inform its respective affected network users thatare active at the concerned interconnection point of the consequences for the confirmed quantities.

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - VIII

Process of amendment of IA

� If any essential economic, technical and/or legal conditions should change in a way to affectsignificantly the terms of this IA, then each Party shall be entitled to request by written notice that theIA be amended to the new situation.

� Following a request for amendment under this Article, the Parties shall meet to discuss in good faith[whether or not an amendment of the IA is justified and] the means of amending IA to the newsituation. Failing to reach an agreement within a period of 90 days from the request for amendment,any Party shall be entitled to terminate this IA. In this case the Parties start immediately negotiate ona new interconnection agreement between themselves in order to ensure the undisturbed cooperationin operating their systems.

� In the event that one of the provisions of this IA is or becomes ineffective, invalid or unlawful, this shallnot affect the validity of the other provisions herein.

� The Parties undertake to replace any of such ineffective, invalid or unlawful provision with a newprovision that shall have as much as possible the same effect as the ineffective, invalid or unlawfulprovision.

� Any modification or amendment of this IA shall be valid only if executed in writing and signed by dulyauthorised representatives of each Party.

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - IX

Governing law and dispute resolution

� The IA is governed by and construed in accordance with Swiss law.� Any dispute, arising out of or in relation with the IA, including the validity, invalidity, breach thereof

shall be settled by arbitration in accordance with Swiss Rules of International Arbitration of the SwissChamber of Commerce in force on the date when the notice of arbitration is submitted in accordancewith the rules set by the IA. The seat of arbitration proceedings shall be conducted in Zürich,Switzerland.

� Any arbitration shall take place before a panel of three arbitrators. Out of the three (3) arbitrators onearbitrator shall be appointed by FGSZ, one by TRANSGAZ and the third arbitrator shall be mutuallyagreed by the Parties. If the Parties are unable to agree upon the identity of such third arbitratorwithin ten (10) days from the date of referral of the Dispute to arbitration, such arbitrator shall beappointed by the previously appointed two arbitrators. In the event that one of the provisions of this IAis or becomes ineffective, invalid or unlawful, this shall not affect the validity of the other provisionsherein.

� The arbitration procedure shall be conducted in English language.

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINT 2: RO-BG: GIURGIU - RUSE

- Commissioned on January 2017(bidirectional capacity)

- Transmission capacities:- BG-RO capacity: 0.46 bcm/y (all

year around)- RO-BG capacity: 0.02 bcm/y

(seasonal only – summer)

- Planned extension of capacities in bothdirections (to: 1.5 bcm/y BG-ROdirection, 0.5 bcm/y RO-BG direction, allyear around), after implementing theBRUA project (phase I)

- First IA concluded between TRANSGAZand BULGARTRANSGAZ in 2016

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND BULGARTRANSGAZ (R O-BG IP)

� The structure of the IA similar to the one of IA concluded between TRANSGAZ andFGSZ for the RO-HU IP – i.e. in line with the requirements of the EU Regulation no.703/2015

� The RO-BG flow is limited during summer due to physical constraints that exist on theRomanian NTS level. These constraints will be removed once the BRUA project – phaseI will be implemented

� Future discussions will be held by TRANSGAZ and BULGARTRANSGAZ in order tofurther improve the content of the IA and, subsequently, open the public consultationprocess in accordance with the provisions of the EU Regulation no. 703/2015

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINT 4: RO-MD: IAŞI - UNGHENI

- Commissioned on August 2014

- Transmission capacities:- RO-MD capacity only: 0.04 bcm/y

- Planned extension of capacity to 1.5bcm/y, subject to the commissioning ofUngheni-Chişinău pipeline

- No IA concluded between TRANSGAZand VESTMOLDTRANSGAZ; onlyOperational Agreement (AO), concludedin 2014

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

OA CONCLUDED BETWEEN TRANSGAZ AND VESTMOLDTRANSGAZ (RO-MD IP) Structure of the OA

1. Definitions

2. Scope of the OA

3. Transfer of Risk of Loss

4. Business rules

5. Border pressure and technical capacity

6. Duration

7. Liability

8. Governing law and dispute resolution

9. Waiver of sovereign immunity

10. Force Majeure

11. Miscellaneous

Note: RO-MD IP lies outside the scopeof EU Regulations since this is an IPwith a non-EU country

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

OA CONCLUDED BETWEEN TRANSGAZ AND VESTMOLDTRANSGAZ (RO-MD IP) Supplementary information (I)

Nevertheless, in the framework of the Energy Community, ANRE has adopted, in 2017, a Declaration stating the following:

RECOGNIZING:� the need to develop energy markets in South East and Eastern Europe in close cooperation between

Energy Community Contracting Parties and Member States of the European Union� the necessity of interconnected systems in South East and Eastern Europe to operate on common and

reciprocally binding rules for the benefit of system security, security of supply and market functioning as well as to achieve the critical liquidity

� that treating interconnections, cross-border flows or network capacities equally and irrespectively whether the border to be crossed is situated between EU Member States and/or Contracting Parties paramountly contributes to the very idea of a single regulatory space for Network Energy and abolishment of barriers to trade

� that there is no legal obstacle to treating interconnection points between Member States and third countries that are Energy Community Contracting Parties equal to interconnection points between Member States and that in certain network codes and guidelines an explicit legal basis is already provided for, namely:

• point 2.1.1.1 of Annex I to Regulation (EC) 715/2009 as amended by Commission Decision of 24 August 2012 (Guidelines for Congestion Management Procedures); and

• Article 1(2) of Commission Regulation (EU) 2015/703 of 30 April 2015 establishing a network code on interoperability and data exchange rules; and

• Article 2(1) of Commission Regulation (EU) 984/2013 of 14 October 2013 establishing a Network Code on Capacity Allocation Mechanisms in Gas Transmission Systems

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

OA CONCLUDED BETWEEN TRANSGAZ AND VESTMOLDTRANSGAZ (RO-MD IP) Supplementary information (II)

DECLARES THAT:Will apply network codes and guidelines adopted based on Article 6(11) or Article 23 of Regulation (EC)715/2009 on the points interconnecting the gas transmission system of ROMANIA with the gastransmission system of REPUBLIC OF MOLDOVA and UKRAINE equally to points interconnecting thegas transmission system of ROMANIA with the gas transmission system of other Member States of theEuropean Union, provided the Secretariat of the Energy Community has been notified by REPUBLIC OFMOLDOVA and UKRAINE of its transposition of the relevant network code(s) or guideline(s). Morespecifically this commitment relates to the interconnection points:

- Medieşu Aurit (UA)- Isaccea Import (UA)- Isaccea I (UA)- Isaccea II (UA) - Isaccea III (UA) - Ungheni (MD)

SUBJECT TO:The resolution of challenges stemming from existing legacy agreements (i.e. contracts, technicaloperation conditions).

In executing this commitment, national regulatory authorities or, where applicable, nationalauthorities should coordinate and inform each other in taking their respective decisions.

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINTS 5 AND 6: RO-UA: MEDIEŞU AURIT - TEKOVO (5) AND ISACCEA IMPORT - ORLOVKA (6)

MEDIEŞU AURIT - TEKOVO:

- Commissioned in 1999- Transmission capacities:

- UA-RO capacity only: 4.00 bcm/y- Possible reverse flow to UA, subject to the

results of market consultation process started in 2017

- No IA concluded between TRANSGAZ andUKRTRANSGAZ

ISACCEA IMPORT - ORLOVKA:

- Commissioned in 1979- Transmission capacities:

- UA-RO capacity only: 8.60 bcm/y- No IA concluded between TRANSGAZ and

UKRTRANSGAZ

Note: These 2 IPs lie outside the scope of EURegulations since these are IPs with a non-EUcountry

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINTS 3 - RO-BG: NEGRU VODĂ - KARDAM I, II, III7 - RO-UA: ISACCEA - ORLOVKA I, II, III

NEGRU VODĂ – KARDAM I and ISACCEA –ORLOVKA I (so called „transit line” - T1):-Commissioned in 1974-Transmission capacities:

- RO-BG capacity only: 6.10 bcm/y- UA-RO capacity only: 6.10 bcm/y

-No third party access until 1st of October, 2016-IAs concluded between TRANSGAZ and BULGARTRANSGAZ (for Negru Vodă-Kardam I IP) and between TRANSGAZ andUKRTRANSGAZ (for Isaccea-Orlovka I IP) in 2016 (business rules for the latter not applicable )-The pipeline connecting the two IPs forms an independent system (cannot be operated as part of the Romanian National Transmission System)-Main supply for the BG market -Supplies also two municipalities in RO-Capacity allocated on Regional Booking Platform - RBP (equal bookings between RO entry and exit IPs without flow control on Romanian sides)

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND BULGARTRANSGAZ (R O-BG IP NEGRU VODĂ I –KARDAM I – T1)

� The structure of the IA similar to the one of IA concluded between TRANSGAZ andBULGARTRANSGAZ for the RO-BG IP GIURGIU-RUSE – i.e. GENERALLY in line withthe requirements of the EU Regulation no. 703/2015, with several specificities:

� Since there is no bidirectional flow, the introduction of backhaul transmissionservices was discussed. Could not be implemented due to technical problemsencountered at RO-UA IP Isaccea I – Orlovka I

� At present, no bundled capacity is offered at this IP. Further ammendments arenecessary

� Future discussions will be held by TRANSGAZ and BULGARTRANSGAZ, in the contextof the Memorandum of Understanding signed in September 2016 in the framework ofCESEC, in order to further improve the content of the IA (especially related to theprovision of bidirectional flows) and, subsequently, open the public consultation processin accordance with the provisions of the EU Regulation no. 703/2015

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ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINTS 3 AND 7 - CONTINUED

NEGRU VODĂ – KARDAM III and ISACCEA –ORLOVKA III (so called „transit line” - T3):-Commissioned in 1999-Transmission capacities:

- RO-BG capacity only: 9.70 bcm/y- UA-RO capacity only: 9.70 bcm/y

-No third party access at present-No IAs concluded between TRANSGAZ andBULGARTRANSGAZ and UKRTRANSGAZ

NEGRU VODĂ – KARDAM II and ISACCEA –ORLOVKA II (so called „transit line” - T2):-Commissioned in 1987-Transmission capacities:

- RO-BG capacity only: 9.60 bcm/y- UA-RO capacity only: 9.60 bcm/y

-No third party access at present-No IAs concluded between TRANSGAZ andBULGARTRANSGAZ and between TRANSGAZ and UKRTRANSGAZ

- Historical contracts with Gazprom Export (GPE) valid until 2018(for T2) and 2023 (for T3)

- Issues in concluding IAs for all these 4 IPs in ord er to allocate the available capacity after 2018 based on CAM prov isions

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ANRE

Thank you for your attention!

ROMANIAN ENERGY REGULATORY AUTHORITY – ANRE

CONTACT INFORMATION

Phone: (+ 40 21) 311 22 44

Fax : (+ 40 21) 312 43 65

Email: [email protected]; [email protected]

www.anre.ro

ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE