Natural Gas Transmission

Highlights

  • a 5,782 km long pipeline system
  • 24 entry points, nearly 400 gas exit points
  • 6 regional centers, 6 compressor stations
  • World-class control center in Siófok

FGSZ Földgázszállító Zrt. (hereinafter FGSZ) is the largest transmission system operator in Hungary. It performs its activities under regulated market conditions. Aside from domestic natural gas transmission, FGSZ also engages in transit activities for Serbia, Bosnia-Herzegovina, Romania and Croatia, Ukraine, and towards the system of MGT Zrt./ Slovakia. In international comparison, the Company’s grid is one of those that operated according to the highest technological standards. FGSZ ranks among the companies of strategic importance within the region. Its dynamism and efficiency make the company one of Europe’s most significant natural gas TSOs.

The pipeline developments of strategic importance implemented by FGSZ in recent years serve as a solid ground for the Company’s future, the performance of the company’s role as a regional distributor, as well as Hungary’s safe, environment friendly and competitively priced gas supply. FGSZ is prepared to face the challenges, tasks and requirements arising from the establishment of a market which is liquid, integrated, diversified regarding its resources, and which is also supported by the European Union. Our strategic goals require further efficient and well-planned infrastructure developments.

The Regional Booking Platform (RBP) of FGSZ is a capacity allocation IT application developed pursuant to Regulation (EU) 984/2013 on establishing a Network Code on Capacity Allocation Mechanisms in Gas Transmission Systems and supplementing Regulation (EC) No 715/2009 of the European Parliament and of the Council. Subject to the Hungarian legal and regulatory background as from 11 May 2015 both cross-border capacity allocations and allocations on national network points in Hungary take place through the RBP. At the same time this application is suitable for conducting capacity allocation procedures under the CAM NC not only at the cross-border and domestic network points within the system of FGSZ, but also at any other network point, even those independent of the integrated national natural gas transmission system. In 2015, apart from FGSZ, the RBP was used by four other natural gas transmission companies (Eustream (Slovakia), Transgaz (Romania), Plinacro (Croatia) and MGT (Hungary)), and in 2016 further TSOs are expected to join.

OUTLOOK

European dimensions

The interests of FGSZ require a more efficient gas market which rests on several pillars to be established. Therefore, in the 10-year period between 2015 and 2024 it wishes to participate in comprehensive infrastructure developments at both Hungarian and international level to promote the creation of the domestic liquid gas market. The transformation of the gas market allows domestic consumers to access gas sources competing against each other in the region, and thus to optimise their purchasing portfolios in line with their possibilities.

As the first step of the strategic investments, between 2006 and 2010 FGSZ significantly increased its Eastern import capacity, in line with the development of the strategic storage facility. The Hungarian-Croatian and Hungarian-Romanian interconnectors have been constructed.

The second stage of the strategic investments projected for the period 2011-2020 focuses on the development of transmission route running from south-east to north-west. FGSZ has commenced the internal improvements to guarantee security of supply for the Trans-Danubia region independently of the HAG pipeline.

In 2012, the Company concluded a cooperation agreement with Ukrtransgas, as the result of which it has provided the option of interruptible natural gas transmission to Ukraine since the spring of 2013. As the first EU transmission system operator in 2015 FGSZ entered into a cooperation agreement with Ukrtransgas complying with EU regulations by this undertaking the pioneering role in natural gas distribution at the eastern borders of the European Union.

FGSZ has set the goal of guaranteeing the possibility to import natural gas from every possible direction in order to secure supply, and of becoming an integral part of the region that surrounds it by making implemented cross-border connections bi-directional. Developing the entry option for natural gas arriving from Romania was an important step in this regard. Although capacity opened in the first stage only allows for the delivery of a smaller volume, FGSZ and its Romanian partner are working together to expand such capacity significantly. Hungary’s gas supply will be set on an even more secure footing by the channeling of the southern and south-eastern, then eastern, finally northern and western gas sources.

The long-term strategic investments of FGSZ allow Hungary to leave its current peripheral role in gas transmission and to develop into a regional gas distribution center in the next decade.