CEE gas operators begin binding capacity offer process

Market: Natural gas
02/05/24

Gas transmission system operators (TSOs) across central and eastern Europe have launched the start of binding incremental capacity processes aimed at facilitating larger gas flows from south to north.

Romanian, Bulgarian, Hungarian, Moldovan and Ukrainian operators have published joint documents outlining the necessary conditions for participating in the upcoming annual auctions on 1 July.

Bulgarian and Romanian TSOs Bulgartransgaz and Transgaz will offer an additional roughly 123 GWh/d of capacity from Bulgaria to Romania at Negru Voda 1-Kardam on top of existing available capacity of 126-142 GWh/d depending on the year (see BG-RO table). In the event of a successful auction and subsequent economic test, the TSOs hope to reach a final investment decision (FID) in the third quarter of this year and commission the upgrades in the third quarter of 2026. Commercial operations could begin in the fourth quarter, aligning with the start of the 2026-27 gas year. This timeline has been moved forward by one year from the original proposals earlier this year.

Transgaz, along with Hungary's FGSZ, will offer up to 73 GWh/d of additional capacity from Romania to Hungary at Csanadpalota on top of existing available capacity of 5-71 GWh/d depending on the year (see RO-HU table), but maintained its three-tiered approach elaborated in an earlier market consultation. Depending on the level of capacity to which firms commit at the auction, capacity could increase by 9.5 GWh/d, 47.3 GWh/d or 72.5 GWh/d. The smallest project could start commercial operations in the first quarter of 2028, the middle level in the third quarter of 2028, and the highest level in the third quarter of 2029. These timelines are pushed back by roughly one year from the originally-proposed dates in the February consultation.

And Transgaz, along with Ukraine's GTSOU, will offer an additional 77 GWh/d of capacity from Romania to Ukraine at Isaccea 1-Orlovka 1 on top of existing available capacity of 97-109 GWh/d depending on the year (see RO-UA table). The TSOs aim to reach FID in the third quarter of this year and commission the project in the fourth quarter of 2028. Commercial operations could begin in October 2028.

GTSOU and its Moldovan counterpart Vestmoldtransgaz will offer 173 GWh/d towards Moldova from Ukraine at Kaushany starting from the 2027-28 gas year, while simultaneously offering 159 GWh/d of capacity from Moldova towards Ukraine at Grebenyky.

By Brendan A'Hearn

Available and incremental capacity at Negru Voda/Kardam			GWh/d/yr
Gas year	Available existing cap	Incremental cap	Total
2024-25	141	-	141
2025-26	141	-	141
2026-27	142	123	265
2027-28	142	123	265
2028-29	142	123	265
2029-30-2042	126	123	249
— Bulgartransgaz, Transgaz; numbers rounded

Available and incremental capacity at Csanadpalota			GWh/d/yr
Gas year	Available existing cap	Incremental cap	Total
2024-25	43	-	43
2025-26	46	-	46
2026-27	71	-	71
2027-28	13	-	142
2028-29	13	-	13
2029-30	5	73	78
2030-31	34	73	107
2031-32	34	73	107
2032-33-2039	63	73	136
— FGSZ, Transgaz; numbers rounded

Available and incremental capacity at Isaccea/Orlovka			GWh/d/yr
Gas year	Available existing cap	Incremental cap	Total
2024-25	109	-	109
2025-26	109	-	109
2026-27	109	-	109
2027-28	109	-	186
2028-29	109	77	186
2029-30-2039	97	77	174
— GTSOU, Transgaz; numbers rounded

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