BRUA Gas Pipeline

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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BRUA Gas Pipeline is a proposed gas pipeline in Romania.[1]

Location

Phase I runs from Podișor, Giurgiu County, Romania to Horia, Romania. Phase 2 would have run from Horia, Romania to Recaș, Timiș County, Romania, but was called off in April 2020.[2] Phase 3 would run from Onesti, Romania to Nadlac, Romania.[3] The map below shows phases 2 and 3.

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Project Details, Phase 1

  • Operator: Transgaz[4]
  • Location: Podișor, Romania to Recas, Romania[5]
  • Current capacity: 1.75 billion cubic meters per year[2]
  • Length: 479 kilometers[6]
  • Cost: €423 million[7]
  • Status: Operating[8][9][10]
  • Start Year: 2020[11]
  • ENTSOG TYNDP: TRA-F-358[11]

Route according to ENTSOG[12] and EU.[13]

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Project Details, Phase 2

  • Operator: Transgaz
  • Location: Horia, Romania to Recaș, Romania[14][15][5]
  • Proposed capacity: 2.65 billion cubic meters per year[2]
  • Length: 50 kilometers[14][16]
  • Status: Cancelled[5]
  • Proposed Start Year: 2022
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Phase Details, Phase 3

  • Operator: Transgaz
  • Location: Onesti, Romania to Nadlac, Romania[3]
  • Current capacity: 2.65 billion cubic meters per year[2]
  • Length: 843 km / 524 mi[6]
  • Status: Proposed[5]
  • Start Year: 2023[17]
  • ENTSOG TYNDP: TRA-N-959

Route according to ENTSOG.[12]

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Background

The BRUA pipeline is a natural gas pipeline from Bucșani, Giurgiu County to Recaș, Timiș County. It is part of the future 1,318 km Bulgaria, Romania, Hungary and Austria gas interconnector.[6] The pipeline attempts to lessen Romania's dependence on Russian energy and provide a new export route for future natural gas exploitation in the Black Sea. The BRUA pipeline will be eventually linked to the Giurgiu-Ruse Gas Pipeline and the Arad-Szeged Gas Pipeline.[18] With original budgeted costs of €479 million, Phase 1 of the project was completed in 2020 at a cost of €423 million.[7]

Preparations for the project started in 2016, the financing agreements were signed in 2017 and the actual construction phase will start in the first quarter of 2018. The project is developed by Transgaz, the technical operator of the national natural gas transmission system in Romania. The first phase of the pipeline is expected to be operational by 2019 and the second phase by 2022.[19] Construction on Phase 1 began in 2016.[5] According to the European Network of Transmission System Operators for Gas (ENTSOG) phase one of the project was delayed due to "delays occurred in the tendering procedures, the promotion of pieces of laws required for the implementation, the discovery of archaeological sites along the pipeline route and the unfavourable weather conditions."[11]

An announcement was made in early 2019 that "no construction was anticipated of BRUA II (Phase 2) provided the negative results from the economic capacity test held by Transgaz and their Hungarian partner FGSZ."[20] In April 2020, Phase 2 (also called the the ROHU gas link) underwent an open season. The final round of the open season was declared unsuccessful and the procedure terminated. Apparently, no shippers wanted to commit to using the capacity without guarantees of new Romanian gas production from the Black Sea, but upstream developers are not likely to move forward with projects without a guarantee of future export capacity, resulting in a Catch-22.[2] As a result, developers called off the proposed expansion.[5] However, Transgaz did include phase two in its 2021-2030 network development plan.[21]

Phase 3 of the project consists of the rehabilitation and creation of new pipelines in the Oneşti – Coroi – Haţeg – Nădlac corridor.[11]

As of December 2020, construction had been completed on Phase I.[8] However, six months earlier, Reuters reported that owing to no progress on tapping offshore gas reserves in the Black Sea, BRUA would have little to transport in the short-term at least. According to Maria Manicuta of Romania's energy regulator ANRE, "We hope BRUA will be finalised this year, but since we did not solve Black Sea gas extraction, I am wondering what we will be transporting through this pipeline ... I am sure that ultimately BRUA will be used, but in the very near future there is some risk."[22] As of August 5, 2021, "BRUA gas pipeline phase 1 has presently its entire transport capacity reserved on the direction towards Hungary."[10]

Technical description

The general contractor of the first two sections is the Austrian company Habau and the third section is contracted by the Romanian company INSPET.[6]

According to the European Commission, BRUA Phase I includes, "Development of transmission capacity in RO from Podior to Recas, including a new DN813, 479 km pipeline Podior - Haeg - Recas with a transmission capacity of 1.75 bcm/y, as well as new compressor stations in Podisor, Bibesti and Jupa of a total power of 27.6 MW. The project will create the link between the existing interconnection points of the RO, BG and HU transmission systems."[23] Construction of Phase I began in 2018[6] and was completed in 2020.[11] The 32 -inch pipeline crosses 79 administrative units in 11 counties.[6][24] Initial proposals indicated that the capacity "will be further increased in the future to 4.4 bcm per annum."[6]

According to the European Commission, BRUA Phase II includes, "...Upgrade of Városföld compressor station (HU) (2nd phase) with 5.7 MW additional power. The project will ensure 13.6 mcm/d capacity up to AT and Vecses 4 IP (SK) and bidirectional Mosonmagyaróvár IP (AT/HU). It will improve bidirectional transmission capacity at Csanádpalota IP (RO/HU) up to 11.4 mcm/d; Expansion of the transmission capacity in RO towards HU up to 4.4 bcm/y (2nd phase) by constructing 50 km, DN800 pipeline Recas - Horia and upgrade of the compressor stations Jupa, Bibeti and Podior with total additional power of 13.8 MW; Construction of the 308 km Black Sea shore — Podior (RO) pipeline for taking over the Black Sea gas. The expected transmission capacity will be 6 bcm/y, DN1200 -1000.6); RO-HU reverse flow: HU section, 2nd stage Csanádpalota / Algy CSs (HU) (2nd phase). One 4.5 MW additional power at Csanadpalota, which will improve the bidirectional capacity of Csanádpalota IP (RO/HU) up to 11.4 mcm/d."[25]

Financing

Loans of €100 million from the European Investment Bank and €60 million from the European Bank for Reconstruction and Development were provided to Transgaz for the project in 2017. Transgaz is also making an equity contribution (undisclosed).[26][6]

The pipeline has been approved for inclusion on the European Commission's Projects of Common Interest list, making it eligible to receive public funding from the EU. Phase 1 of the pipeline was awarded a €159,449,379 public grant from the EU's Connecting Europe Facility (CEF).[27] Phase 2 of the pipeline, now cancelled, received a €640,126 CEF grant.[28]

Articles and resources

References

  1. BRUA Pipeline, Wikipedia, accessed December 2019
  2. 2.0 2.1 2.2 2.3 2.4 Romania-Hungary gas link failure augurs ill for new Black Sea projects, S&P Global, Apr. 17, 2020
  3. 3.0 3.1 European Network of Transmission System Operators for Gas (November 25, 2020). "TYNDP 2020 Annex A.2 – Project Tables". ENTSOG. Retrieved December 2, 2020.
  4. "BRUA Gas Pipeline Romanian Section First Phase | Project | IJGlobal". ijglobal.com. Retrieved 2020-08-14.
  5. 5.0 5.1 5.2 5.3 5.4 5.5 Romania, Hungary Call off Plan to Expand Gas Link, Natural Gas World, April 16, 2020
  6. 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 "BRUA Pipeline". EBRD. Retrieved January 21, 2018.
  7. 7.0 7.1 The President of Romania, His Excellency Mr. Klaus Werner Iohannis and the Prime-Minister of Romania, Mr. Ludovic Orban were present at the ceremony marking the completion of the investment objective BRUA – phase 1, TransGaz press release, Nov. 28, 2020
  8. 8.0 8.1 Kostis Geropoulos, Europe turns the tables on Russian gas, New Europe, December 11, 2020
  9. Transgaz (November 28, 2020). "The President of Romania, His Excellency Mr. Klaus Werner Iohannis and the Prime-Minister of Romania, Mr. Ludovic Orban were present at the ceremony marking the completion of the investment objective BRUA – phase 1" (PDF). transgaz.ro. Retrieved August 3, 2021.
  10. 10.0 10.1 ACTMedia - Romanian Business News. "BRUA gas pipeline project phase 1 completed with 21 pct economy over value auctioned". www.actmedia.eu. Retrieved 2021-08-31.
  11. 11.0 11.1 11.2 11.3 11.4 European Network of Transmission System Operators for Gas (November 25, 2020). "TYNDP 2020 Annex A.2 – Project Tables". ENTSOG. Retrieved December 2, 2020.
  12. 12.0 12.1 European Network of Transmission System Operators for Gas (October 2020). "TYNDP 2020 - MAP – Transmission" (PDF). ENTSOG. Retrieved December 4, 2020.
  13. INNOVATION AND NETWORKS EXECUTIVE AGENCY (December 2020). "Development on Romanian territory of the National Gas Transmission System on the Bulgaria-Romania-Hungary-Austria direction, execution works Stage 1". europa.eu. Retrieved December 9, 2020.
  14. 14.0 14.1 Transgaz. "Brosura Informativa: Brau" (PDF). Transgaz.ro. Retrieved March 17, 2021.
  15. Nazare, Laura (October 2019). "State Capture" (PDF). Bankwatch. Retrieved March 17, 2021.
  16. Evans, Rob (2017). "ROMANIAN SECTION OF THE BRUA NATURAL GAS TRANSMISSION CORRIDOR PROJECT" (PDF). Eib.org. Retrieved March 17, 2021.
  17. European Network of Transmission System Operators for Gas (July 10, 2020). "Current TYNDP : TYNDP 2020 - Annex A" (PDF). ENTSOG. Retrieved August 31, 2021.
  18. "UPDATE 1-Gas pipeline through central Europe to go ahead as planned -Romania". Reuters. Retrieved January 21, 2018.
  19. "Central-Eastern European pipeline gets go-ahead". Euractiv. Retrieved January 21, 2018.
  20. BULGARTRANSGAZ (April 23, 2019). "2019 - 2028 TEN-YEAR NETWORK DEVELOPMENT PLAN OF BULGARTRANSGAZ EAD" (PDF). Retrieved March 17, 2021.
  21. SNTGN TRANSGAZ SA MEDIAŞ (2021). "PLANUL DE DEZVOLTARE A SISTEMULUI NAȚIONAL DE TRANSPORT GAZE NATURALE" (PDF). Tranzgaz. Retrieved August 31, 2021.
  22. Delayed Romanian Black Sea gas projects pose risk to pipeline, Reuters, Jul. 21, 2020
  23. BRUA – 1st phase European Commission, November 2019
  24. "Transgaz BRUA gas interconnection project, Romania". www.hydrocarbons-technology.com. Retrieved 2021-08-03.
  25. BRUA – 2nd phase European Commission, November 2019
  26. TRANSGAZ BRUA GAS INTERCONNECTION PROJECT, European Investment Bank, accessed December 16, 2020
  27. Development on Romanian territory of the National Gas Transmission System on the Bulgaria-Romania-Hungary-Austria direction, execution works Stage 1, European Commission, accessed March 8, 2021
  28. Preparation of the Basic Engineering Documentation for the Hungarian part of the Romania-Hungary-Austria transmission corridor, European Commission, accessed March 8, 2021

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External resources

External articles

Wikipedia also has an article on Brua pipeline (BRUA Pipeline). This article may use content from the Wikipedia article under the terms of the Creative Commons Attribution-ShareAlike 3.0 Unported License].