Transcript TRANSGAZ ROMANIA Headquartes: THE NATIONAL GAS TRANSMISSION

TRANSGAZ
THE NATIONAL GAS TRANSMISSION
COMPANY FROM
ROMANIA
Headquartes:
SHARE CAPITAL
117,738,440 RON
Constantin I. Motaş Street; No 1
551018 Mediaş City
Sibiu County,Romania
Tel +40/269/803333
Fax +40/269/839031
www.transgaz.ro
ECONOMY
AND
FINANCE
MINISTRY
75%
PROPRIETY
FUND
FREE
FLOAT
15%
10%
SNTGN TRANSGAZ SA
The National Gas Transmission Company
General Information
 Established in April 2000, as a result of the legal unbundling
of the former vertically integrated national gas company
“Romgaz”;
 Operates the National Gas Transmission System, which is
state owned, based on a long term Concession Agreement;
 Main activities:
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Gas transmission
International Gas Transit
Dispatching
Research and Design in the Field of Natural Gas
Transmission
SNTGN TRANSGAZ SA
The National Gas Transmission Company
Ownership:
75% - The Romanian State represented by the
Ministry of Economy and Finance
15% - The “Proprietatea” Fund
10% - Free float traded on BSE
TRANSGAZ was firstly rated BB+ with positive
perspectives by Standard & Poor’s on March 2007
and since February 2008 has been rated BBB- fact
which places Transgaz within the category of
companies with the “investment grade” .
SNTGN TRANSGAZ SA
The National Gas Transmission Company
Historic Landmarks
 First gas pipeline was built in
1912 – 1914 in Transylvania;
 1912 - Establishment of the first
company in Europe specialized in
gas transmission: “The First
Transylvanian Company for the
Transmission of Earth Gas”;
 1928- The first gas compressor
station in Europe, at Sarmasel
(Mures County).
 1956 –The basis of the National
Gas Transmission System is set,
having a radial shape, from the
center to the extremities of the
country.
MISSION AND RESPONSIBILITY
Maintain the functionality of the National Transmission System;
Provide gas transmission services under reliable and safe terms;
Securing transparent, non-discriminatory and fair access conditions
to all market participants
TRANSGAZ’S MAIN ACTIVITIES
 Domestic gas transmission – regulated activity
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TRANSGAZ operates NTS under a concession agreement valid until 2032, signed
with National Authority for mineral Resources and based on the licenses granted
by the National Energy Regulatory Authority (“ANRE”).
For using the NTS, TRANSGAZ pays a 10 % royalty fee per year of the total income
obtained from its transport (recognized in tariff) and transit activities.
ANRE sets the transmission tariffs according to “revenue cap” methodology.
 International gas transit through dedicated pipelines – non-regulated
activity

Prices set based on bilateral agreements
FINANCIAL OVERVIEW
PROFIT & LOSS ACCOUNT - thousand RON
PROFIT & LOSS
ACCOUNT
Year ended at
31.dec.2006
Year ended at
31.dec.2007
SPECIFICATION-thousand RON
2007/2006
30 June
2008
RELATIVE
CHANGES
(%)
1.200.000
1.000.000
NET TURNOVER
909.017
1.038.867
+14,28
543,078
OPERATING REVENUES
941.200
1.051.657
+11,74
549,091
OPERATING EXPENSES
675.882
780.370
+15,46
385,964
GROSS OPERATING RESULT
265.318
271.287
+2,25
163,127
FINANCIAL REVENUES
41.096
12.580
- 69,39
14,970
800.000
600.000
400.000
FINANCIAL EXPENSES
20.124
14.537
- 27,77
8,192
GROSS FINANCIAL RESULT
20.972
(1.957)
-109,34
6,778
CURRENT PROFIT
286.290
269.330
-5,93
169,905
TOTAL REVENUES
982.296
1.064.237
-8,35
564,061
TOTAL EXPENSES
696.006
794.907
+14,21
394,156
GROSS PROFIT
286.290
269.330
-5,93
169,905
TAX ON PROFIT
48.377
45.324
-6,32
26,305
NET PROFIT
237.913
224.006
-5,85
143,600
200.000
0
2006
NET TURNOVER
2007
TOTAL EXPENSES
TOTAL REVENUES
30 JUNE 2008
NET PROFIT
ROMANIAN GAS MARKET OVERVIEW
PRODUCTION
TRANSPORTATION
DISTRIBUTION
S.N.G.N.
ROMGAZ S.A.
~ 6 bcm
SC. PETROM SA
~ 5,24 bcm
RESIDENTIAL
AND DOMESTIC
CONSUMERS
(POPULATION)
TRANSGAZ S.A.
NATURAL GAS
TRANSPORTATION
NATIONAL COMPANY
LICENSED AND
AUTHORIZED
NATURAL GAS
DISTRIBUTORS
(Transportation system operator)
OTHERS
PRODUCERS
~ 1 bcm
INDUSTRIAL
CONSUMERS
(areas in
concession)
NATURAL GAS
IMPORT
SUPPLIERS
~ 6 bcm
Competitive Market
Natural gas flow
Cash flow
Regulated Market
Competitive Market
THE NATIONAL TRANSMISSION SYSTEM (NTS)
GAS CONSUMPTION VERSUS
GAS TRANSPORTED (2005- 2007)- BCM
18,00
16,00
14,00
12,00
10,00
8,00
INDICATOR- BCM
2006
2007
2008
from which:
H 01/2008
Volume of gas transported trough
NTS
15,2
14,6
14,7
7,6
Volume of gas circulated
18,3
17,0
17,3
8,9
Ordered transit capacities
23,7
23,8
23,8
11,9
Quantities of sold import gas
0,087
0,157
-
6,00
4,00
2,00
0,00
2005
Gas Consumption in Romania
2006
2007
Volume of gas transported trough NTS
THE INFRASTRUCTURE OF THE NATIONAL NATURAL GAS TRANSMISSION SYSTEM (NTS)
The NTS transport capacity is around 40 BCM per year;
Around 8,400 km of the network’s total length have useful
life of more than 25 years
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13.110 km of transmission pipelines and gas supply joints,
including over 560 km of international transit pipelines with
diameters of 1000 and 1200 mm (42’’ and 48’’) and working
pressure between 6 and 40 bars;
21 valve control stations and/or technological nodes;
961 regulating, metering- delivery stations of the gas
supplied;
2 import gas metering stations;
6 gas metering stations on the gas transit pipeline;
6 gas compressor stations located on the pipeline route;
857 cathodic protection stations of the gas transmission
pipelines;
575 gas odoration stations.
TRANSIT ACTIVITY – PIPELINES & CAPACITIES
TRANSIT CAPACITY (bcm/year)
30
25
20
15
10
5
0
2005
2005
2006
2006
2007
2007
• The transit activity is a non-regulated activity being carried out through dedicated pipelines
• Transgaz provides gas transit through 3 pipelines with total capacity of approximate 28 billion
cubic meters as of 2005
• 2 contracts on transit were concluded with GAZPROM Export, one with maturity in 2011 and the
other with maturity in 2023. Both contracts contain clauses which give the possibility to prolong
their maturity with successive 5 year periods.
• 1 contract is concluded with BULGARGAZ with maturity in 2011
THE NATIONAL TRANSPORTATION SYSTEM – MAP
Mediesu Aurit
Existing
Interconnections
Interconnection Pipeline Szeged – Arad
Isaccea
NABUCCO
Russe – Giurgiu Pipeline
New Projects
SNTGN TRANSGAZ SA
The National Gas Transmission Company
Implementation of European Energy Policies
Romania – EU member state
- member of the Energy Community of South - East Europe
The implementation of the European energy regulations is
mandatory for the achievement of the European internal energy
market.
TRANSGAZ’ actions in this regard:
- restructuring process for the unbundling of the regulated activities
from the non-regulated activities.
- implementation of a network code
ensuring the implementation
of the transparency and non-discrimination provisions of regulation
1775/2005.
TRANSGAZ is a member of Gas Infrastructure Europe
SNTGN TRANSGAZ SA
The National Gas Transmission Company
Considering the background defined by the regulatory framework
and the development tendencies at European level,
TRANSGAZ envisages the following development priorities:
1.
Rehabilitation and modernization of the national gas
transmission system:
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2.
reconsidering the main pipelines system and replacement of old
transmission pipelines;
modernization of gas metering and regulating stations;
rehabilitation and modernization of gas compressor stations;
implementation of a SCADA system
reduce pollution and assure the environmental protection by
complying with the European environmental norms
Development of the transmission system in new
consumption areas;
SNTGN TRANSGAZ SA
The National Gas Transmission Company
3.
Development of the transit activity and of new
interconnections with the neighbouring systems:
The main condition for achieving the internal European energy market is
to interconnect the national networks
TRANSGAZ is aiming to implement the following
transit/interconnection projects:
- The NABUCCO project;
- Interconnection between Hungary and Romania
- Interconnection between Bulgaria and Romania
- Interconnection between The Ukraine and Romania
Nabucco pipeline project, gas bridge between Asia and Europe
RWE
SNTGN TRANSGAZ SA
The National Gas Transmission Company
General Data about the NABUCCO Project
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Expected off-take in Transit countries :
12.0 – 15.0 bcm/y
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Total capacity to Austria-Baumgarten :
13.5 – 16.0 bcm/y
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Main potential sources :
Caspian basin, Iraq, Egypt
(Arab Gas Pipeline), Iran
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Total Investment (CAPEX) for plateau level (costs 2008):
7.9 billion EUR
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Expected investment in Romania (costs 2008) :
1.32 billion EUR
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IRR target of the project:
13% after tax
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Debt /Equity ratio:
70:30
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FEED Design:
2008-2010
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Expected construction start-up :
2010
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Expected operations start-up :
2013
Technical data of the Nabucco project
 Pipeline length
2.841 km (main line without feeders)
223 km Georgian feeder (42 inch)
218 km Iranian feeder (56 inch)
Turkey
1.558 km (main line without feeders)
Bulgaria
392 km
Romania
457 km
Hungary
388 km
Austria
46 km
 Main pipeline diameter
56 inch (1400mm)
 Steel grade
X70 according API 5L
 MAOP
90 bar
 Compression
6 or 12 compressor stations (depending on
scenario) total installed power 266-529 MW
 Transport capacity
25,5 bcm ( base case) - 31 bcm (high case),
excluding fuel gas
Nabucco pipeline route description –Romanian section
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Total length on Romanian territory:
457 km
A series of obstacles will have to
be overcome namely: 59 rivers
(including three majors: Danube,
Jiu, Mureş), 8 national roads, 22
county roads, 29 dirt roads, 8
railways
The pipeline will be fitted with the
following AGI-s:
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one compressor station with
installed power of 31-37 MW
two gas import stations (in
Craiova & Arad-Nadlac areas)
one custody transfer metering
station (in Arad-Nadlac area)
2 “pig” launching/receiving
stations
Nabucco Project current status
 Concluding a contract with Penspen Ltd from Great Britain as
owner engineer – December 2007
 Accesion of RWE Germany as a new shareholder in Nabucco
Project – February 2008
 Starting the tender procedure for selecting of the local engineers
– April 2008
 Cooperation with the new financial consultant- HSBC from Great
Britain in order to elaborate a the new updated financial –
economic model – in the view of obtaining financing for
Nabucco Project
 Actual market Survey which shows huge demand for Nabucco
capacities – August 2008
Nabucco Project – activities in progress
 To be concluded an Intergovernmental Agreement
 The Regulatory Authorities have granted the
Exemptions from EC Dir. 2003/55/EC and the next
step is to submit them for EU approvals
 The establishing of Nabucco National Companies
 Open season Process for capacity allocation- will
start after the legal framework (IGA and Exemptions)
is finally established
SNTGN TRANSGAZ SA
The National Gas Transmission Company
Route of the NABUCCO Pipeline
Benefits of Nabucco project for the Romanian
gas industry
 Diversification of gas supply sources;
 Balancing of the Romanian gas transport system through the intakes
performed via the two import points;
 Stimulation of the competition on the internal gas market;
 Enhancing of the supply security;
 Access to low production cost gas reserves;
 Strengthening the role of Romania as transit country for major energy
corridors;
 Important revenues for Transgaz from dividends & internal transportation
tariff;
 Stimulation of horizontal industries which will contribute to the
realisation of the project.
SNTGN TRANSGAZ SA
The National Gas Transmission Company
Interconnection of the Hungarian Romanian Transmission Systems;
(The Szeged – Arad pipeline)
Main Features:
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Designed capacity: 1.5 – 2.0 bcm/year
Diameter: 700 mm
Total length: 108 km
On July 2008 a joint development
agreement have been concluded
between the FGSZ Natural Gas
Transmission Company, as the owner
and operator of the Hungarian high
pressure natural gas pipeline system
and Transgaz, as the operator of the
Romanian transmission system.
SNTGN TRANSGAZ SA
The National Gas Transmission Company
The Interconnection of the
Ukrainian and Romanian Gas
Transmission Systems;
(The Cernăuţi – Siret Pipeline)
Main Features:
- Designed capacity: 1.5 bcm/year
- Diameter: 600 mm
- Total length: aprox. 30 km
SNTGN TRANSGAZ SA
The National Gas Transmission Company
The Interconnection between the
Bulgarian and Romanian
Transmission Systems;
(The Russe – Giurgiu Pipeline)
Main Features:
- Designed capacity: 1.5 bcm/year
- Diameter: 500 mm
- Total length: aprox. 8 km
Conclusions
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The Romanian gas market generally follows the trend of the European gas
market;
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The increase of domestic consumption is similar with the increase in the
European markets and is registered in the same time with the decrease of
domestic production and increase of imports;
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Unlike the states of the EU which can project part of their gas
consumption increase based on LNG imports, Romania will remain
dependant of onshore pipelines imports;
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This dependence, can be a medium and long term impediment for the
durable development of the economy;
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For Romania in particular and for the European Union in general, it seems
obvious that a diversification of the gas supply sources would be
beneficial;
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The major gas reserves of the Caspian and Middle East can become
accesible through the development of the Nabucco project.
SNTGN TRANSGAZ SA
The National Gas Transmission Company
Thank you
for your kind attention !