Presentation on theme: "GIE Reverse Flows Study Revers Flows inside the SSE Region Vaclav Vocilka GIE Executive Secretary GRI SSE SG Vienna, 16 October."— Presentation transcript:
GIE Reverse Flows Study Revers Flows inside the SSE Region Vaclav Vocilka GIE Executive Secretary GRI SSE SG Vienna, 16 October
2 Scope of the Reverse Flow Study Objectives –starting from the lessons learned during the crisis of January 2009, find possible investments in reverse flow using the current gas infrastructure "small" projects … implementable on a short-term basis (1-2 years) … improving Security of Supply … on a coordinated way across borders –initial focus : crisis of January 2009, later extended to Europe Additional elements to take into account –possible limitations of flows due to gas quality –European Energy Programme for Recovery –legal and regulatory context for cost recovery GRI SSE IG
3 Methodology Starting point : –actual flows in January 2009 –Winter Outlook 2008-2009 Design of a revised Winter Outlook 2009-2010 –with capability to simulate different supply disruption scenarios support to assess possible technical solutions Projects proposed and described by TSOs technical feasibility checked by TSOs Coordination between TSOs to design optimal solutions across countries GRI SSE IG
4 Types of projects identified Revese flow of compression stations (border points) allow reverse flow on existing compression stations Reverse flow of metering stations (border points) allow reverse flow on existing metering stations Connections of storage designed for local market to high pressure transport grid possibility to export storage Modifications to control stations allow reverse flow on existing pipelines New pipelines to increase capacity (longer term) remove physical congestion in reverse flow, allow new sources of gas GRI SSE IG
5 Report Part I – Maps locating projects Part I provides an overview of the reverse flow projects per region Legend : –Reverse flow capacity needed (new) –Reverse flow capacity (new) at other places –Pipelines needed (new) –Pipelines (new) at other places Comments : Most of the reverse flow projects are described; however not all projects are included Not all countries are eligible for funding under EEPR Some projects include pipelines that are out of scope for pure "reverse flow projects"; however they contribute the improvement of European Security of Supply This report is preliminary and subject to change GRI SSE IG
Issue – Gas quality Unusual sources of gas are transported in reverse flow –Gas quality of gas in reverse flow should be compatible with specifications of new downstream country –Lack of time did not allow to study the compatibility of gas quality in reverse flow country by country to check by adjacent TSOs Consequence : some projects may not be useful if non- compatible gas is brought in reverse flow
Issue – Cost recovery For most projects envisaged, there is no interest from the market for reverse flow capacity cost recovery under national regulatory regime may be difficult need for an appropriate cost recovery mechanism European Energy Programme for Recovery –allows 80 M€ for reverse flow projects –assessment of individual projects result by end 2009 –up to 50% project financed how to finance the remaining part ? Broader question : How to recover costs for infrastructure needed for Security of Supply ?