The Baltic Pipe: companies can bid for capacity

The Baltic Pipe: companies can bid for capacity

Polish and Danish gas transmission system operators (TSOs) have launched the Open Season 2017 Procedure on the 6th of June, inviting all potential shippers to bid for capacity in the probable new gas pipeline from Norway to Denmark and Poland, the Baltic Pipe. The purpose is to collect long-term investment signals before final investment decision is taken by TSOs, GAZ-SYSTEM and Energinet. Open Season 2017 procedure is a two-step process: Phase 1: publishing Open Season 2017 Rules and other documents about the process, and allowing shippers to book for capacity until the 25th of July 2017. Phase 2 is expected to be launched on the 5th of September 2017 and will invite shippers to submit their final bids for capacity allocation by 24th of October 2017. The shippers that have submitted a bid in Phase 1 must also submit the same bid (or higher) in Phase 2 for the bid to be valid. If shippers book a sufficient amount of capacity during Phase 1, Energinet and GAZ-SYSTEM will introduce fast track implementation of the Baltic Pipe project. The Baltic Pipe is a strategic infrastructure project, with the goal of creating a new gas supply corridor in the European market. For the first time, it will be possible to transport gas from fields in Norway to the Danish and Polish markets, as well as to customers in the neighbouring countries. At the same time, the Baltic Pipe project will enable the supply of gas from Poland to the Danish and Swedish markets. Diversification of supplies through direct access to deposits of natural gas will significantly improve the energy security level. [...]
Smoke and mirrors: Russian disinformation meets pipeline politics

Smoke and mirrors: Russian disinformation meets pipeline politics

The stakes are high for Nordstream 2—Russia’s proposed $10 billion gas pipeline to Germany. If completed, the project will become more than a conduit for Kremlin energy exports. It will divide Europe, isolate Central Europe and Ukraine, and fortify Russia’s corporate and political allies across the continent. Recognizing Moscow’s use—and abuse—of information elsewhere in the West, it is little surprise that Nordstream 2 has become the subject of an effective multi-dimensional, multi-state disinformation campaign in its own right. This campaign may well now be poised to succeed, despite the damage Nordstream does to EU supply security, EU market liberalization principles and European solidarity. Probably the only compelling threat now to Nordstream 2 is the prospect of a legal challenge in the EU courts. Only, what are the facts of the case? Across Europe, Nordstream 2 (NS2) lobbyists have proposed seven interconnected arguments. At bottom, these assert that the pipeline is a commercial, market-driven, pro-liberalization project that enhances the EU’s supply security. These arguments are gaining traction in the debate over NS2’s future. However, when examined in any detail they fall apart. These arguments are: Claim 1: Nordstream 2 is purely a commercial project. To think of NS2 purely as a commercial project, one has to ignore the fact that the Russian state is a majority shareholder of Gazprom—which is Nordstream’s owner. Russia is at war with Ukraine, and indeed has illegally annexed part of its territory; construction of the pipeline will further undermine Ukraine. With Nordstream 2 bypassing Ukraine, that country will lose $2 billion in energy transit fees, close to 10 percent of its annual budget. More worrying [...]
Saulius Bilys: We strongly support the principle of solidarity of the Energy Union

Saulius Bilys: We strongly support the principle of solidarity of the Energy Union

Amber Grid CEO, Saulius Bilys, argues that closer regional cooperation delivers very clear benefits to end-users and that the recently implemented partnerships and projects improved the security of gas supply for Lithuania and for the entire Baltic region. What do you want to accomplish as a CEEP member? Amber Grid, as part of Lithuania’s state-owned gas and electricity transportation infrastructure group EPSO-G, joined the CEEP in its endeavor to contribute to the drive of the region towards a more integrated, thus more competitive and efficient energy market across the continent, be it gas, electricity or any other energy source or route. Which should be CEEP’s priorities for the next years from your perspective? As you know, Amber Grid is in charge of national gas transportation system and it is hence natural that we are a strong believer and an advocate for an increased usage of natural gas - environmentally friendly energy resource across the region. We also feel that CEEP role is also in helping the relevant EU institutions to strike the right balance between common to all pan-European issues and national economic challenges. What is your opinion on the ongoing legislative proposals concerning the security of gas supply?  We welcome the new legislative proposals aimed at enhancing the level of energy security and providing the basis for additional measures targeted for the security of gas supply. We strongly support the principle of solidarity envisaged in a proposed update for Security of Supply Regulation that opens up more options to safeguard gas supply to protected customers in difficult climatic conditions or in the event of gas supply disruptions. Talking about [...]
Rolandas Zukas: “When talking about energy infrastructure, we have to go beyond national thinking”

Rolandas Zukas: “When talking about energy infrastructure, we have to go beyond national thinking”

In the below interview, the CEO of EPSO-G, Rolandas Zukas, explains the impact of the regional cooperation on the energy sector from Lithuania, as well as describing the achievements from the last months in terms of security of supply, gas and electricity. From the LNG terminal in Lithuania’s Klaipėda port, to under-the-sea energy bridge with Sweden NordBalt as well as electricity link with Poland. What do you want to accomplish as a CEEP member? Nowadays when the future is happening faster than ever, we all in the energy sector have no other option than to work closer to tackle shared strategic energy challenges, but opportunities as well. In this respect, we see our membership in the independent industry body, CEEP, as a way to assist the EU once it takes legislative moves towards further diversification of its energy routes and sources, particularly across Central and Eastern Europe and the Baltic countries. Which should be CEEP’s priorities for the next years from your perspective? EPSO-G, Lithuania‘s state run holding of electric energy and gas transportation systems, has long been looking for efficient ways to diversify from what it used to be a historical dependence on monopoly gas supply from the East and isolation of its electricity and gas networks from the neighboring European markets. The situation has drastically changed over the past 18 months. Lithuania welcomed the arrival of the „Independence”, a floating liquefied natural gas import (LNG) terminal that marked the end of country‘s reliance on gas supplies from a single source. That affected positively gas prices for consumers and businesses. The under-the-sea energy bridge with Sweden NordBalt as [...]

Central and Eastern Europe needs to diversify the gas supply sources, not only the routes

Diversifying the gas supplies to Central and Eastern Europe, not only by its routes, but by the sources of supply will allow the creation of a real gas market, with free competition between suppliers and freedom of choice for customers. In the light of this, the decision of the European Commission allowing Gazprom increased access to the capacity of the OPAL pipeline, as well the pursue of the Nord Stream 2 project are contrary to the Energy Union principles and detrimental to the region. These are the key messages discussed during the first edition of Central European Day of Energy, in Brussels. All European projects, according to the Energy Union rules, should increase energy security, solidarity and trust. They also have to comply with the European common rules concerning third party access and competition policy, hence without posing a threat of disruption on existing routes. The gas infrastructure in CEE is still mainly East-West oriented. Therefore, one of the main priorities for the region is the implementation of the North-South gas corridor, a key enabler for breaking the Central Europe’s dependence upon Russian gas. The North–South Corridor comprises a set of interrelated energy infrastructure projects, which would connect Central European markets, both with each other, and with the Western part of the continent. This will be the backbone of Central Europe’s energy infrastructure and will further enhance the region’s energy security. The European Commission’s Vice-President in charge of Energy Union, Maroš Šefčovič, reminded that “2016 will be remembered as a highly turbulent year, a turning point between the old and the new energy systems. With the just released “Clean [...]