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Benefits

Main Driver

Regulation SoS

Main Driver Explanation

In addition to those mentioned in the additional comments to the specific criteria, the project is even more important in the current rather potentially

unstable geo-political context in the far Eastern Europe in which having sufficient capacities of the gas storage facilities may become critical for ensuring

security of supply.

Benefit Description

Market Integration The Project successfully contributes to increasing resilience in case of additional demand in almost all disruption scenarios with positive

impact on Romania, Bulgaria, Hungary, Italy, Greece and Croatia. Thus, indirectly it contributes to a more integrated gas market. Sustainability It replaces

existing rather obsolete gas compression facilities with modern and high-efficiency technology (new electro-compressors etc.) which will reduce emissions

currently generated by the compression services supplied by the third party. Competition The implementation of this project would also increase the

competition on the Romanian storage market considering that currently there are only 2 players: Depomures, the private operator with ~10% market

share and Romgaz, state owned, with ~90% market share. After project COD, the market share of the private sector would increase proportionally.

Time Schedule

Grant Obtention Date

Delay Since Last TYNDP

3 years for Phase 2

Delay Explanation

The main delay encountered is related to permit granting for part of the investment (i.e. the last sector of the main gathering pipeline). The

construction of the main gathering pipeline is essential for the entire project and a pre-requisite for implementing the rest of the project

(dehydration and compression station and subsequent expansion to 600 mcm of the capacity). We are currently in the process of finding a

solution for the remaining permit and have communicated the problem to the Competent Authority as well as to the European Commission.

Specific Criteria Fulfilled Comments

Although the project meets all the criteria, the most significant contribution it brings is to the EU's security of supply. - The project is even

more important in a low infrastructure scenario, in which the N-1 indicator is below 100% and in which the additional storage capacity of

Depomures would partially compensate a malfunction at Mediesu-Aurit/ Isaccea gas entry point from Ukraine to Romania. - The remaining

flexibility indicator shows that the project successfully contributes to increasing resilience in case of additional demand in almost all scenarios

with impact on Romania, Bulgaria, Hungary, Italy, Greece and Croatia. The impact is most visible in extreme scenarios such as Ukraine

disruption with 2 week cold spell. - The project contributes to a decrease of the disrupted demand in two Members States, namely Romania

and Bulgaria, and also in the FYR of Macedonia (although not a Member State) in most scenarios.

Barriers

Barrier Type

Description

Permit Granting

The permit granting process has been delayed due to difficulties in obtaining the building permit from local administration for the last section of the main

collector pipeline, which may impact the implementation of the entire project.

Financing

Availability of funds and associated conditions

Regulatory

Low or zero-priced short-term capacity

Regulatory

Low rate of return

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Current TYNDP : TYNDP 2017 - Annex A