Natural Gas Transmission

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 is also engaged in transmit activities to Serbia, Bosnia-Herzegovina, as well as it conducts transmission activities towards Romania, Croatia, Ukraine and – through the network of MGT Zrt. – towards 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.

HIGHLIGHTS

  • 5,782 km long pipeline system
  • 25 entry points, nearly 400 gas exit points
  • 3 regional centres with 2-2 plants, 6 compressor stations
  • High technical class control centre in Siófok

FGSZ Földgázszállító Ltd (hereinafter referred to as: FGSZ) is the largest transmission system operator in Hungary. It performs its activity under market conditions regulated by law. Beside the domestic natural gas transmission, FGSZ is also engaged in transmit activities to Serbia, Bosnia-Herzegovina, as well as it conducts transmission activities towards Romania, Croatia, Ukraine and – through the network of MGT Zrt. – towards Slovakia. The security of supply of Hungary is inseparable from the energy security of the CEE region and whole Europe. Therefore, within the framework of European gas market cooperation based on mutual advantages, we aim to ensure the interoperability of the natural gas networks of the region on the part of Hungary; we also strive to increase the volume of transmission and transit through Hungary. The developments of the pipeline and trade infrastructure implemented by FGSZ in the recent years laid down the foundations for the company’s future, the completion of the company’s role in the regional gas distribution. 

The Regional Booking Platform (RBP) of FGSZ is an IT application developed in accordance with the EU network code governing the capacity allocation mechanisms used in natural gas transmission networks and with other relevant EU and national legislation (17) The capacity allocation application enables capacity allocation procedures and secondary capacity trading among other services. Today – beyond FGSZ – seven further transmission system operators use it throughout the EU: Eustream (Slovakia), Transgaz (Romania), Plinacro (Croatia), MGT (Hungary), Bulgartransgaz (Bulgaria), DESFA (Greece) and Gas Connect Austria (Austria). RBP and all other business applications of FGSZ (most notably the Information Platform and Trading Platform) were completely renewed in 2018 as a result of a successful 3-year long development project. 

FGSZ has launched the new website and has renewed its logo and other image elements in Q4 of 2018, in order to express its strong commitment for quality and innovation.

OUTLOOK

Regional pipeline developments

FGSZ as a reliable and efficient operator of the Hungarian natural gas transmission system intends to enhance flexibility and security of supply on the regional natural gas market. Developments are aiming to establish new routes or strengthen existing connections providing access to new sources and offering trading possibilities. FGSZ supports incremental developments, which are enhancing efficient utilization of the existing grid.

Construction works on the ROHU project phase I are already ongoing. Due to the new compressor station at Csanádpalota the existing interconnection will offer an increased 1.75 bcma bidirectional capacity between Hungary and Romania from 1 Oct 2019. The Open Season regarding ROHU project phase II is still ongoing. In case of a successful economic test, further system developments can be carried out resulting in a 4.4 bcma bidirectional capacity from 1 Oct 2022 on the Romanian-Hungarian interconnection point. The possibility to deliver natural gas from the Black Sea and other southern sources could mean further diversification for the CEE region. 

The HUSIIT project aims to develop physical connection between Hungary and Slovenia, because currently Slovenia is the only neighboring country without direct pipeline connection with Hungary. As a result of this project a bidirectional 0.4 bcma and later on 1.3-1.7 bcma gas transit corridor could be established between Italy and Hungary through Slovenia offering trading possibilities on the Italian market and access to Italian LNG and other sources. The corridor also enhances regional security of supply by establishing an alternative supply route to Slovenia and providing access to Hungarian storage capacities to a wider region.

For the purpose of security of supply, FGSZ aims to ensure the transmission possibility of natural gas from every possible direction to Hungary. FGSZ also strives to become an integral part of the surrounding region by making the established cross-border interconnections reversible. FGSZ is ready to accept gas from the direction of Croatia and as soon as necessary developments are carried out on the Croatian side physical gas flows are available in both directions.