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Management of the Hungarian Energy Office - Magyar Energia Hivatal

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The Gas Act allows <strong>the</strong> issuance <strong>of</strong> new licenses for one-stopshop<br />

capacity selling. The demand <strong>of</strong> enhancing <strong>the</strong> security <strong>of</strong><br />

supply makes it necessary to build a new transmission pipeline<br />

crossing several countries. The new license specifi ed in <strong>the</strong><br />

Gas Act aims to facilitate <strong>the</strong> management <strong>of</strong> <strong>the</strong> applications<br />

for <strong>the</strong> construction <strong>of</strong> international pipelines operating on <strong>the</strong><br />

basis <strong>of</strong> one-stop-shop principle by <strong>the</strong> adequate modifi cation<br />

<strong>of</strong> <strong>the</strong> regulatory environment. The one-stop-shop principle<br />

ensures signifi cant comfort for shippers and traders because<br />

<strong>the</strong>y have to contact and contract with only one company<br />

independently from how many countries <strong>the</strong>y wish to cross<br />

with <strong>the</strong>ir transport.<br />

HEO has not yet issued a one-stop-shop capacity selling<br />

license in 2009, but it has in its resolution obliged <strong>the</strong> investor<br />

and future operator <strong>of</strong> <strong>the</strong> NABUCCO pipeline – NABUCCO<br />

Gas Pipeline International GmbH – to apply for <strong>the</strong> license in<br />

<strong>the</strong> future.<br />

Allocation <strong>of</strong> cross-border capacities and congestion<br />

management<br />

Capacities <strong>of</strong> cross-border interconnection points are <strong>the</strong><br />

following:<br />

• Western entry point – Mosonmagyaróvár: 13.1 million m 3 /day<br />

• Eastern entry point - Beregdaróc: 42 million m 3 /day (until<br />

30 June 2009), <strong>the</strong>n 72 million m 3 /day (from 1 July)<br />

Gas turnover <strong>of</strong> <strong>the</strong> cross-border interconnection points:<br />

• Mosonmagyaróvár: 5.7 million m 3 /day import gas on<br />

average, for domestic use;<br />

• Beregdaróc: 21 million m 3 /day import gas for domestic<br />

use + 12 million m 3 /day transit towards Serbia and Bosnia<br />

and Herzegovina.<br />

The major part <strong>of</strong> cross-border capacities have been allocated<br />

by long term contracts.<br />

Long term natural gas import contracts and <strong>the</strong>ir duration:<br />

Panrusgas 9000 million m3 /year until 2015<br />

E.On Ruhrgas 500 million m3 /year until 2015<br />

Bothli Trade AG 900 million m3 /year until 2014<br />

Gaz de France 600 million m3 /year until 2012<br />

annual report 2009<br />

The long term transit contract concluded with Serbia, which<br />

includes a 12 million m 3 /day continuously contracted pipeline<br />

capacity, will expire in 2012. There are contracted congestions<br />

on <strong>the</strong> Eastern, Beregdaróc cross-border point. By 1 July 2009,<br />

<strong>the</strong> new pipeline development project <strong>of</strong> <strong>the</strong> transmission<br />

licensee had been fi nished, which had practically doubled <strong>the</strong><br />

import capacity from <strong>the</strong> Eastern direction. In <strong>the</strong> course <strong>of</strong><br />

<strong>the</strong> construction works in 2008, a new pipeline <strong>of</strong> 1000 mm<br />

diameter from Beregdaróc to <strong>the</strong> compressor station was<br />

built, which extends <strong>the</strong> Eastern entry capacity by 30 million<br />

m 3 /day. In addition to <strong>the</strong> dissolution <strong>of</strong> <strong>the</strong> aforementioned<br />

congestions, <strong>the</strong> primary aim <strong>of</strong> <strong>the</strong> pipeline is to ensure <strong>the</strong><br />

possibility <strong>of</strong> fi lling up <strong>the</strong> strategic natural gas storage being<br />

built in Szőreg-I level <strong>of</strong> <strong>the</strong> Algyő gas fi eld. As a result <strong>of</strong><br />

ano<strong>the</strong>r development <strong>of</strong> <strong>the</strong> transmission licensee FGSZ Földgázszállító<br />

Zrt., ano<strong>the</strong>r pipeline was built in 2009 towards<br />

Romania. The <strong>Hungarian</strong> side <strong>of</strong> <strong>the</strong> Szeged-Arad pipeline is<br />

already completed; it will feature a 700-mm-diameter pipeline<br />

with a two-directional gas transmission capacity <strong>of</strong> 12.1<br />

million m 3 /day.<br />

Regulation <strong>of</strong> <strong>the</strong> responsibilities <strong>of</strong> transmission and<br />

distribution companies<br />

The high-pressure transmission pipeline system is operated<br />

by a single company (FGSZ Földgázszállító Zrt.). FGSZ<br />

has two operational licenses issued by HEO: a natural gas<br />

transmission license and a system operation license. The<br />

Gas Act defi nes <strong>the</strong> general rules on natural gas transmission<br />

activities, and lists in details <strong>the</strong> conditions <strong>of</strong> issuing a license<br />

annual report 2009 | 31

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