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BEMIP Gas Regional Investment Plan 2017
2.7 Other Influencing
Market Factors
The gas markets in the Baltic region and in Central-
Eastern Europe are mostly supplied with gas from the
Eastern direction by means of three major transmission
corridors that run through Ukraine, Belarus and the
Baltic Sea. In addition, the Baltic states and Finland can
import Russian gas through several smaller transmis-
sion corridors. In total, the technical capacity of cross-
border interconnection points from Russia to the EU
Member States amounts to approx. 267bcm/y.
The volume of Gazprom supplies to the European countries (including Turkey) was
historically at a level of 140–150 bcm/y. Even in 2016 when the level reached
167bcm, the infrastructure to export Russian gas was used globally at about 67%
capacity. Thus there was still approx. 100bcm/y of reserve technical capacity. This
shows that existing technical capacities currently far exceed the volumes of gas
delivered from Russia.
In this context, plans to put an additional 55bcm/y capacity into operation as part of
Nord Stream 2 project will have a number of negative implications for the gas
markets in the Baltic Sea region and in Central-Eastern Europe. The project may well
endanger the security of gas supply and, for instance, introduce competition by
redirecting gas flows from the existing corridors and concentrating the bulk of sup-
plies in a single one. This is likely to increase the cost of gas transportation in the
region and translate into higher gas prices for the gas customers in local markets.
In addition, Nord Stream 2 may well result in even higher dependency on Russian
gas in the European gas market. This will negatively affect assumptions, parameters
and cost-effectiveness, and thus the possibility of implementation, of infrastructure
investments planned by TSOs and other project promoters. In line with EU energy
policy objectives these projects, especially in the Baltic Sea region, aim to diversify
gas supply sources, foster competition and better integrate individual markets. What
is important from the perspective of the market players, the planned projects are
generally implemented according to European aquis and the Third Energy Package
in particular, so interested shippers may fully access infrastructures in a transparent
manner and benefit from these new developments.
The Kaliningrad region is located within the region and thus has an impact on gas
supply. In the Kaliningrad region, the yearly demand for natural gas is 22–23 TWh.
The gas to the region is supplied via Belarus and Lithuania by Gazprom. In 2013,
the first phase of the project of the Kaliningrad underground gas storage facility
(UGS) was commissioned. The capacity of the UGS might be increased in the future,
since it provides a possibility of overcoming fluctuations in gas demand, reducing
peak loads and providing flexibility and reliability of gas supply in the Kaliningrad
region. By the end of 2017, it is planned to complete the LNG project involving
FSRU.
.