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EC and Transgaz announce that BRUA will not be affected by Hungary’s blockage
Following Hungary’s decision not to participate in the construction of the BRUA gas pipeline, the Romanian national operator Transgaz announced that the project remains standing, energynomics.ro informs.
In its turn, the European Commission has maintained its commitment to support the BRUA gas pipeline, considering that Hungary’s proposal does not affect the general objective of creating alternatives. The Commission has urged the transport operators in Hungary, Romania and Austria and national regulators to quickly discuss the proposals and adopt any changes to the concept of infrastructure to avoid any delay and ensure that the new revised concept is in line with the market needs.
Thus, Transgaz announced on Monday that “regarding the BRUA project at national, regional and European level”, the company will act in such a way that the commencement of the commercial exploitation of this gas source will not be affected in any way. From the perspective of the company, the objectives and the projects undertaken regarding the BRUA infrastructure development on the territory of Romania remain unaffected. FGSZ announced on Friday that the gas pipeline Bulgaria – Romania – Hungary – Austria (BRUA), which will interconnect the Western European countries, will stop in Hungary and will no longer reach Austria, as the project, supported and funded by the EU, foresees. The announcement surprised the involved parties and the European energy market, all the more since Austria coordinated the project, according to icis.com publication.
The Hungarian carrier FGSZ announced that it is no longer able to organize a open season on the Romanian-Hungarian-Austrian pipeline section.
“Transgaz brings to the attention of those interested the following information regarding the information from the media, of the announcement given by FGSZ – the Hungarian National Gas Transmission Operator, regarding BRUA gas phase II. On July 18th, 2017, Transgaz received a letter from the operator of the national natural gas transmission system in Hungary – FGSZ – regarding the process of open season planned to unroll for allocatting the capacities for the transport of natural gas Romania – Hungary – Austria”, shows a press release transmitted on Monday to the Bucharest Stock Exchange (BVB), according to News.ro.
Through this letter, the Transgaz officials were informed that FGSZ could not run the planned procedure due to lack of necessary approval from the company’s Supervisory Board, motivated by economic efficiency issues.
“Instead, the Hungarian side proposed performing the opening of the committed season, solely for the RO-HU the interconnection point, following that the gas volume of 4,4 billion cubic meters per year coming from Romania, to be distributed from Hungary to Slovakia, Ukraine, Croatia or Serbia”, said Transgaz.
In parallel, FGSZ would continue to talk with the Austrian transport operator (Gas Connect) to further identify the physical transport possibilities from Hungary to Austria.
“In the context of the described situation and by analyzing this project, Transgaz informs the shareholders and potential regional investors that, from the perspective of the company, the objectives and the projects assumed regarding the development of BRUA infrastructure in Romania remain unaffected”, said the Transgaz officials.
The project will make possible a capacity of 1,5 billion mc/year on the direction towards Bulgaria and transport capacity of 1,75 billion mc/year on the direction towards Hungary, in Phase I, and of 4,4 billion mc/year, in Phase II.
“At present, Transgaz is in the process of implementing the project benefiting from financial support from the European Union. Transgaz will act to achieve this project under economic efficiency conditions and in a short timeframe, in accordance with the objectives established at the level of the European Union, which is a clear confirmation that Transgaz meets its rigorous European commitments on the infrastructure development programs, including ensuring the export”, it is shown in the release.
According to icis.com, FGSZ mentioned that the only “economically viable” part of a Bulgaria-Hungary-Romania-Austria pipeline (BRUA) would be the existing interconnector between Romania and Hungary, which could be expanded from the current capacity of 4,4 billion cubic meters at 5,26 billion cubic meters per year.
At the same time, the Hungarian operator stated that it had contacted the Romanian gas transporter Transgaz for an open season procedure, which would have an almost identical project solely for the Romania-Hungary project.
The European Commission: We maintain our commitment to BRUA
Although it believes in BRUA, the EC says the transport operators in Romania, Hungary and Austria need to quickly change the infrastructure concept, according to a European Commission response.
“We maintain our commitment for the BRUA gas pipeline project linking Romania, Bulgaria, Hungary and Austria. Once completed, this gas pipeline should allow the diversification of sources in the connected member states, one of the main political objectives of the Energy Union”, say representatives of the Commission.
According to them, the BRUA project is in the interests of the Central and South-Eastern Europe region as well as of the European Union as a whole, so that the prospect of new domestic gas sources, such as those from Romania’s territorial waters, will balance the growth of the import needs of EU, according to Agerpres.
“The EU has invested 179 million euros in this project, through the Connecting Europe Facility, that will link Romania, Bulgaria and Hungary. Important efforts are required especially by the operator managing the transport system in Romania and also by the counterpart in Hungary to finalize this project. The proposal of the transport system operator in Hungary does not change the general objective of creating and providing transport routes that take gas from the Black Sea and other sources, for example LNG, from the Southern Corridor and transport it to the regional markets”, it is shown in the European executive reply.
The Commission encourages the transport system operators in Hungary, Romania and Austria as well as National Regulatory Authorities to quickly discuss new proposals and adopt any neccesary changes to the concept of infrastructure and consequently to the open season procedures in collaboration with interested carriers to avoid any delays and to ensure that the new revised concept is in line with the needs of the market.
The Commission is ready to assist the transport system operators and National Regulatory Authorities in these discussions, also said the officials from Brussels.