Events
The Presentation of the Feasibility Study
20 September 2018, Bratislava
EASTRING – THE NEW PIPELINE TO CONNECT EUROPE
The presentation of the Feasibility Study for the EASTRING pipeline took place in Bratislava, in the presence of the European Commission’s vice president, Maroš Šefčovič, and the Slovak Minister of Economy, Peter Žiga.
The detailed Feasibility Study for the EASTRING pipeline has been completed. It offers unique and workable solutions for a Single European Market. Connecting the main European Gas Hubs with the Black Sea and Turkey region will secure future deliveries from new alternative natural gas sources. It will enhance the European Union’s energy security and strengthen the competitiveness of its natural gas market.
A PROJECT OF COMMON INTEREST
The Feasibility Study was co-funded by the EU’s Connecting Europe Facility program. It was elaborated by the EUROIL consulting and engineering company with the active participation of all involved gas TSOs from Slovakia (Eustream), Hungary (FGSZ Zrt.), Romania (SNTGN Transgaz SA) and Bulgaria (Bulgartransgaz AED). EASTRING is part of the Ten Year Network Development Plan, it is a Project of Common Interest.
“The positive outcomes of the feasibility study represent an important milestone in common project development and move us closer towards investment decisions. It is the outcome of more than three years of effective cooperation between four countries and four TSOs from Bulgaria, Romania, Hungary and Slovakia. It is clear that this is a project that connects Europe,” said Eustream’s general director, Rastislav Ňukovič.
THE NEW ROUTE
The objective of the Feasibility Study was to design a bi-directional pipeline interconnector between the main gas transmission corridor for Europe in Slovakia and the border of South-Eastern Europe (Black Sea or Turkey). Its main purpose was to define all the necessary technical, economical, financial and environmental details of the future pipeline, including optimal routing. A new route of 1,208 km between Veľké Zlievce (Slovakia/Hungary border) and Malkoçlar (Bulgaria/Turkey border) has been designed as the outcome of the feasibility study.
The bi-directional pipeline of a diameter of 1,400 mm and an operating pressure of 100 bar will have a capacity of up to 20 bcm/y in its first stage, with a potential upgrade up to 40 bcm/y in the next phase. The estimated CAPEX of the Phase I of the project is 2.6 bn. Eur. If a positive investment decision is made, the new pipeline can be operational at the beginning of 2025 to meet future market demands.
MISSING INFRASTRUCTURE
The project’s economic feasibility is based on a positive, non-binding market survey and analyses of future market development. EASTRING is the only project that offers direct routing between the developed EU markets and the South-East Europe region. As Turkey becomes a major gas hub with excess import capacities, it will look for a way to export surplus gas, while the same applies to the Balkan Gas Hub project in Bulgaria. New sources of natural gas (Caspian & Middle East Gas, Turkish Stream, LNG) will create an excess of natural gas in Turkey/Balkan region. However, there is currently no infrastructure to transfer this excess natural gas further into Europe. Therefore, EASTRING becomes a required infrastructure to cover the needs of this region.
The EASTRING Pipeline is planned to be bi-directional, which would not only open up alternative import routes to the EU markets for gas transmitted through Turkey, but also create a way of supplying South East Europe and Turkey in the event of gas disruptions.
Romanian Transgaz and Slovak Eustream signed Memorandum of Understanding on Eastring 9 February 2018, Bucharest
Romanian and Slovak natural gas transmission system operators Transgaz S.A. and Eustream signed the Memorandum of Understanding on the Eastring pipeline project.
The present Memorandum was signed by Mr. Ion Sterian, director general for and on behalf of Transgaz, and Mr. Rastislav Nukovic, director general for and behalf of Eustream, in the presence of HE Mr. Jan Gabor, the Ambassador of the Slovak Republic in Bucharest, HE Mr. Ambassador at Large, Pavol Hamzik, Mr. Mirek Topolanek, member of the Eustream board, and Mr Ciprian Alic, director of The EU Funds and International Relations Department, and Mr Bogdan Nicolae, adviser of the director general of Transgaz.
By signing this Memorandum both Parties declare that they will cooperate with the aim to investigate the possibility of developing the Eastring on the territory of their countries and hence, become project promoters.
Eustream and Transgaz already have a more than three year-long record of effective cooperation on the Eastring project. Today’s signature not only underlines this cooperation but is a solid base for further achievements in this project as well.
Similar Memoranda on Eastring have already been signed between Eustream and Bulgarian Bulgartransgaz as well as Memoranda on the political level between Slovak and Bulgarian/Hungarian government representatives.
Eastring is the project of bi-directional gas pipeline interconnector between Slovakia and the external border of the EU on the territory of Bulgaria. It will offer direct and most cost-effective transmission route between West EU liquid hubs and the Balkan region/Turkey – an area with a potential to be a highly liquid region offering gas from various sources.
Eastring pipeline has repeatedly obtained the status of the Project of Common Interest (PCI) for the European Union. At the beginning of last year, the European Commission approved the financial support for the Eastring project by funding its feasibility study under the Connecting Europe Facility (CEF). The main purpose of the Feasibility Study, which will be completed in June 2018, is to define all necessary technical, economical, financial and environmental details of the future pipeline including optimal routing as well as to carry on the in-depth market testing.
