2. RO-HU-AT - a pilot project for incremental capacity
GRI SEE
08 July 2016, Budapest
RO-HU-AT - a pilot project for incremental capacity
How to develop functioning markets?
Infrastructure needs and initiatives for Europe
RO-HU-AT - a key project for Central and South-East Europe

3. Starting Point 2014 Network users indicated non-binding demand for
long term transportation services
potential natural gas supplies originating
from an upstream project initiative
in the Black Sea
from Romania (RO)
via/to Hungary (HU)
and further on to Austria (AT)

4. Physical gas flows in the region

5. Capacity at the IPs

6. PCI ROHUAT
Expansion and refurbishment of the existing gas transportation systems

7. New gas route - ROHUAT

8. Interconnection points
Relevant interconnection points (IP)
RO/HU Csanádpalota (IP1)
in both directions
HU/AT Mosonmagyaróvár (IP2)
just in Austrian direction

9. Incremental capacity process
To coordinate the process and to find suitable solutions in the framework of the incremental capacity
Regulatory Authorities
To express the need for new infrastructure
To support the initiative to give valuable inputs
Network users
TSOs
To prepare the open season/ incremental process
To plan the necessary construction works

10. Incremental process time line
Execution of the open season
Definition of the „rule book“ of the open season
Market survey on different capacity allocation methods was conducted by the TSOs in February 2016,
Project development
TSO coordination PCI 6.24 capacity of 4,4 bcm is expected to be available at latest in 2022
Upstream project initiative
2015
Q1 2016
Q4 2016
Q1-Q2 2017
2014
Timeline

11. The following 3 allocation methods have been consulted
Market survey
A market survey on different capacity allocation methods was conducted by the TSOs in February 2016, 13 responses were received.
The following 3 allocation methods have been consulted
13 responses form market participants

12. Method 1 Market integration
Ascending clock auction algorithm according to Art. 17 of the CAM NC
Bundled capacity offered as single years in the auctions

13. Allocation rule core logic:
Market integration
Method 2
3 allocation rounds foreseen
Allocation rule core logic:
Round 1: 15 year commitment for both IPs
Round 2: 1 year commitments for both IPs
Round 3: 1 year commitments for single IPs (same as Mechanism 1)
Round 1
Round 2

14. preferred option according to outcome of market survey
Market integration
Method 3
Bundled capacity offered as single years in the auctions (same as Mechanism 1)
If demand > offer, capacities shall be allocated on the basis of the highest individual bidder commitment in all auctions conducted throughout the period of 15 years at IP Csanádpalota and IP Mosonmagyaróvár
Allocation rule core logic:
NU contribution = price IP1 * demanded capacity IP1 * number of years
+ price IP2 * demanded capacity IP2 * number of years
Method 3
preferred option according to outcome of market survey

15. Next steps
to provide tariffs applying the new methodology acc. to TAR NC by March 2017
“Rule book” prepared by TSOs
Open season to be carried out in 2017 in parallel to the yearly auction in accordance with the CAM-auction calendar
put into operation 2nd phase (4.4 bcm/y) depending on when the FID will be taken, latest for 2022

16.  alessandro.ischia@e-control.at  www.e-control.at  
Contact

18. Open season platform?

19. RO-HU-AT – PCI 6.24 TRA-N-423 (GCA Mosonmagyarovar CS)
TRA-N-061 (Ercsi-Százhalombatta pipeline)
TRA-N-123 (Városföld CS)
TRA-N-018 (Városföld – Ercsi – Györ pipeline)

20. RO-HU-AT – PCI 6.24 TRA-N-126 (RF – Romanian section, 1st stage)
(Podisor– Horia pipeline; CS expansion Jupa, Bibesti, Podisor; phase 1 and 2)
TRA-N-377
(RF – Hungarian section, 2nd stage)
TRA-N-362 (Black Sea-Shore – Podisor pipeline)

21. Open issues
Platform to be used?