As a rule, the gas markets across the eight Contracting Parties are small and fractured. Whilst Montenegro, Albania and UNMIK lack a gas market, there is a pressing need for further gasification in most of former Yugoslav Republic of Macedonia, much of southern and western Serbia, much of Bosnia and Herzegovina, southern Croatia and southern Moldova. The gasification of the region implies large up-front investments, both in the form of new pipelines and construction of new capacity for the markets.
On the occasion of the 2nd Gas Forum, the World Bank and the KfW presented the Final Report on the South East Europe: Regional Gasification Study. The point of departure was the assessment of sources of gas supply from Russia, the Caspian region and other current potential producer countries through Turkey and other transit routes. As a next step, the study puts a price tag on the costs of gasification in nine gas markets in the region of South East Europe, SEE. These are Albania, Bosnia and Herzegovina, Bulgaria, Croatia, former Yugoslav Republic of Macedonia, Montenegro, Romania, Serbia and UNMIK. As not yet a Contracting Party at that time, Moldova was included into the scope of study.
Central to the study is the development of a gasification scenario, in the form of Gas Ring concept. The concept overlays the branch pipelines that arise from each separate major import transmission pipeline, and then binds, in the form a ring, the seven ungasified or less gasified markets together. The Gas Ring concept prompts a huge long-term infrastructure project, estimated capital cost amounting to close to US$ 1 billion. Whilst the concept is based on incremental project development, streamlined national plans are prerequisite for the realization of the Gas Ring concept at regional level.
The Gas Ring concept with its mutual benefits for all gas markets and the development of the regional market as a final target could easily be extended to include the territory of Moldova. In this context, Moldova could be considered as one of the potential supply routes. Moldova could deliver gas into the RIng and parallel to it further develop its own network.
CONTENT
Building on the findings of the study, the next page describes the demand and supply situation in the Contracting Parties. The thereof following page outlines the Gas Ring concept. The last page takes a look at national investment programs and other measures, aiming at the formation of the Energy Community Gas Ring.
