Draft for consultations

PREVENTIVE ACTION PLAN
required for removing or mitigating
identified risks for providing deliveries
of natural gas in the Czech Republic

30 November 2012

Ministry of Industry and Trade of the Czech Republic
Abstract:

1. 
   Introduction
   
2. 
   Gas distribution system in the Czech Republic - summary
   
   1. 
      Transmission system
      
   2. 
      Distribution systems
      
   3. 
      Underground gas storages
      
   4. 
      Gas extraction
      
   5. 
      Deliveries from sources
      
   6. 
      Gas trade
      
   7. 
      Statistical data for 2011
      
3. 
   Results of the risk assessment
   
   1. 
      Standard for infrastructure
      
   2. 
      Scenarios of exceptionally high gas demand
      
   3. 
      Scenarios for gas supply interruption
      
   4. 
      Description of probable consequences by individual scenarios
      
   5. 
      Simulated emergency training on 12 November 2009
      
4. 
   Measures, amounts and capacities required for compliance with the standard for infrastructure and standard for supplies and their schedule
   
   1. 
      Preventive measures for mitigating identified risks
      
   2. 
      Measures for providing a security standard of supplies
      
5. 
   Obligations imposed on gas companies and other relevant entities including obligations related to the safe operation of gas systems, emergency plans and maintenance
   
   1. 
      Gas transmission and distribution
      
   2. 
      Gas storage
      
   3. 
      Gas production
      
   4. 
      Gas trade, security standard for gas supply
      
   5. 
      Method for providing a security standard
      
   6. 
      Avoiding emergencies
      
6. 
   Other preventive measures
   
   1. 
      Improved interconnection with neighbouring countries
      
   2. 
      Diversification of resources and gas transmission routes
      
   3. 
      Cross-border access to storage facilities
      
7. 
   Obligations of the public service related to providing gas supply
   
8. 
   Consideration of ten-year EU grid development plan developed by ENTSOG
   
9. 
   Impacts of preventive measures
   
   1. 
      Economic impact, efficiency and expedience of the measures
      
   2. 
      Impact on the operation of the internal gas market
      
   3. 
      Impact on customers
      
   4. 
      Impact on the environment
      
10. 
    Discussions with relevant bodies in Germany, Slovakia and Poland
    
11. 
    Conclusion
    

List of abbreviations:

MPO Ministry of Industry and Trade

ERÚ Energy Regulatory Office

OTE Energy Market Operator

TSO Transmission system operator

UGS Undeground gas storage

VO Wholesale consumption

SO Medium consumption

MO Retail consumption

DOM Households

BR Balance difference

PO Direct consumption from the transmission system

GG Green Gas
List of figures:

Fig. No. 1 – Gas system of the Czech Republic

Fig. No. 2 – NET4GAS transmission system

Fig. No. 3 – Capacities on entry and exit points of the transmission system in 2012 (at 20ºC)

Fig. No. 4 – Current reverse gas flows in the transmission system

Fig. No. 5 – Regional operators of the distribution systems

Fig. No. 6 – Underground gas storages

Fig. No. 7 – Gas deposits in the Czech Republic

List of tables:

Table No. 1 – Total installed output of compressor stations

Table No. 2 – Increasing the capacity of the transmission system to and from UGS in 2012 - 2014

Table No. 3 – Connecting individual UGS to individual linked systems

Table No. 4 – Storage capacities of individual UGS, maximum daily extraction output, maximum daily compression output

Table No. 5 – Import of natural gas by countries in million m³

Table No. 6 – Changes of gas provider at customers in 2005 – 2011

Table No. 7 – Evaluation of monthly natural gas consumption in the Czech Republic

Table No. 8 – Evaluation of daily natural gas consumption in the Czech Republic

Table No. 9 – Daily control hourly reading of the gas system of the Czech Republic (23 February 2011)

Table No. 10 – Evaluation of monthly natural gas consumption by customers‘ category in the Czech Republic

Table No. 11 – Evaluation of monthly natural gas supply in the gas system of the Czech Republic

Table No. 12 – Evaluation of stored gas in the Czech Republic

Table No. 13 – Evaluation of annual natural gas supply in the gas system of the Czech Republic

Table No. 14 – Evaluation of annual natural gas supply in the transmission system of the Czech Republic

Table No. 15 – Security of supplies in the Czech Republic in 2012 – 2021 (million m³/day, 0ºC)

Table No. 16 – Interruptions of the infracture and consequences
List of graphs:

Graph No. 1 – Natural gas consumption in the Czech Republic from 1990 to 2011

Graph No. 2 – Share of customers in gas consumption

Graph No. 3 – Share of traders on the gas market in 2011

Graph No. 4 – Analysis of security of supplies in the Czech Republic according to the N-1 formula

1. 
   Introduction:
   

The Preventive Action Plan affecting the security of gas supplies in the Czech Republic has been prepared based on the requirements of Articles 4 and 5 of Regulation (EU) No. 994/2010 of the European Parliament and of the Council of 20 October 2010 on measures to safeguard the security of the gas supply and repealing Council Directive 2004/67/EC (hereinafter "SoS").
The Preventive Action was prepared by the Ministry of Industry and Trade that is the Competent Authority according to Article 2, clause 2 of SoS and based on Act No. 458/2000 Coll. on business conditions and public administration in the energy sectors and on amendments to other laws (the "Energy Act"), as amended, in cooperation with gas companies and consultations with ERÚ.
The Preventive Action and Emergency Plan for providing a natural gas supply in the Czech Republic is based on the assessment of risks affecting the security of the gas supply prepared according to Article 9 of SoS and submitted to the European Commission on 3 December 2012.
The basic legislation for power engineering in the Czech Republic is Act No. 458/2000 Coll. on business conditions and public administration in the energy sectors and on amendments to other laws (the "Energy Act"), as amended. The latest amendment of the power engineering act No. 221/2011, effective from 18 August 2011, also implements the requirements of Regulation No. 994/2010 of the European Parliament and of the Councilanchoring of which in national legislation was required.
Emergency situations in the gas industry and procedures for emergency situations are dealt with by decree No. 344/2012 Coll. of the Ministry of Industry and Trade on emergencies in the gas industry that divides customers into seven groups depending on gas consumption type and determines five consumption levels for restricting gas supplies and five consumption levels for interrupting supplies to individual groups of customers.

At the moment, the decree is being amended to include the provisions of Regulation No. 994/2010 of the European Parliament and of the Council and the applicable wording of power engineering act No. 458/2000 Coll.

Decree No. 365/2009 Coll. of the Energy Regulatory Office on gas market rules determines, among others, the access rules for the transmission system, distribution system and gas storages, the extent of published information for access to the transmission system, distribution system and gas storages and the methods for dealing with capacity insufficiency in the gas system. In addition, it deals with settling balancing gas in an emergency and in emergency prevention.
Considering the quality, reliability and sturdiness of the gas system in the Czech Republic and the diversification of transmission routes and gas sources, a common Preventive Action in cooperation with neighbouring countries is not necessary. The reliability and secure operation of the gas system in the Czech Republic was demonstrated both during the gas crisis in January 2009 as well as during the very cold weather of February 2012. In both cases, it was not necessary to limit supplies to customers and increased demand was covered by higher gas extraction from gas storages.

2. 
   Gas system of the Czech Republic - summary:
   

The gas system of the Czech Republic consists of an interconnected group of facilities for production , transmittion and distribution of gas and gas storage, including a control and security equipment system and facilities for transmitting information for IT and IS operation used for operating the facilities.

Fig. No.1 - Gas system of the Czech Republic - summary:


The gas system of the Czech Republic consists of:

1. 
   Transit gas pipelines of the transmission system: total length 2,480 km, DN 800 - DN 1400 pipeline, nominal pressures 6.1 MPa and 7.35 MPa.
   
2. 
   National gas pipelines of the transmission system: total length 1,183 km, DN 80 - DN 700 pipeline, nominal pressures 4 MPa, 5.35 MPa and 6.1 MPa.
   
3. 
   Compresion stations in the transmission system: Břeclav, Hostim, Veselí nad Lužnicí, Kralice nad Oslavou, and Kouřim.
   
4. 
   Border transfer stations in the transmission system: Hora Svaté Kateřiny, Lanžhot, Brandov, Waidhaus (DE) and Cieszyn (PL).
   
5. 
   Transfer stations between the transit and national transmission system: Hrušky, Uherčice, Olešná, Limuzy, Hospozín and Veselí nad Lužnicí.
   
6. 
   Gas pipelines distribution systems: nominal pressures 2.5 MPa - 4 MPa, total length 65,000 km.
   
7. 
   Underground gas storages: RWE GasStorage – Tvrdonice, Dolní Dunajovice, Štramberk, Lobodice, Třanovice, Háje and Uhřice – MND GasStorage, SPP Bohemia – Dolní Bojanovice (still connected to the Slovak Republic system only)
   
8. 
   Border transfer points in the distribution systems: Vejprty – Barenstein, Aš – Selb, Alžbětín – Einsenstein, Hevlín – Laaan der Thaa, Úvalno – Branice, Hrádek nad Nisou – Zittau.
   

1. 
   Transmission system:
   

The transmission system is defined as an interconnected group of high pressure gas pipelines and compression stations and related technological facilities, including control and security system equipment and facilities for transmitting information for IT and IS operation used for operating the facilities, interconnected with gas systems abroad, where gas transport is operated by a licence holder for gas transport; the transmission system is constructed and operated in the public interest.

Fig. No. 2 – NET4GAS transmission system including Gazela gas pipeline

Border transfer stations:
Hora Svaté Kateřiny, Lanžhot, Brandov, Waidhaus(DE) and Cieszyn (PL).
The required gas pressure in the gas pipelines is provided by compression stations built at intervals of about 100 km. On the northern branch these are Kralice nad Oslavou and Kouřim compression stations, on the southern branch there are Břeclav, Hostim and Veselí nad Lužnicí compression stations. The total installed outupt of the compression stations is 297 MW.

The compression stations permit bi-directional flow in the transmission system of the Czech Republic. They include:

• 
  Kouřim compression station - full bi-directional West - East and East - West flow
  
• 
  Kralice compression station - full bi-directional West - East and East - West flow
  
• 
  Břeclav compression station - bi-directional flow, West - East restriction (2x6 MW), discharge pressure only to DN 800
  
• 
  Veselí nad Lužnicí compressor station - bi-directional flow, West - East restriction flow, suction only from DN 800 and DN 1000, discharge pressure only up to DN 1400
  
• 
  Hostim compressor station - bi-directional flow, West - East restriction flow, suction only from DN 800 and DN 1000, discharge pressure only up to DN 1400
  

Table No. 1 – Total installed output of compressor stations

	Northern branch		Southern branch
Compression station	Kralice	Kouřim	Břeclav	Hostim	Veselí nad Lužnicí
Number of turbine sets	5x 6 MW	5x 6 MW	9 x 6 MW	9 x 6 MW	9 x 6 MW
	2x 13 MW	2x 13 MW	1x 23 MW
Installed output at the compressor stations	56 MW	56 MW	77 MW	54 MW	54 MW
Total installed output for transmission	297 MW

Individual branches of the system are interconnected in the key distribution nodes Malešovice, Hospozín and Rozvadov. In addition to the compressor stations, the lines are also interconnected at route enclosures.

At the entry and exit points to and from the Czech Republic, natural gas is received and delivered, i.e. measured with respect to volume and quantity, at the border transfer stations between the Czech Republic and Slovakia in Lanžhot and Lanžhot - Mokrý Háj; between the Czech Republic and Germany in Hora Svaté Kateřiny – Sayda, in Waidhaus and in Brandov from October 2011. Since September 2011, natural gas has been received and delivered at the entry and exit points between the Czech Republic and Poland at HPS Český Těšín.
Capacities for physical gas flow at entry and exit points of the transmission system including capacities of reverse flow at the border points of the transmission system and the potential need to increase these capacities:

Fig. No. 3 shows the individual technical capacities at the entry and exit points of the transmission system. These capacities represent the possibility of reverse flow at the given entrances and exits.

Fig. No. 3 – Capacities on entry and exit points of the transmission system in 2012 (at 20ºC)

IP	Entry[mcm/d]	Exit [mcm/d]
Olbernhau	22.2	24.4
HSK	14.4	26.3
Brandov	33.9	0.0

IP	Entry[mcm/d]	Exit [mcm/d]
Cieszyn	0.0	W: 2.6/S: 0.4

IP	Entry[mcm/d]	Exit [mcm/d]
Lanžhot	157.2	27.0

IP	Entry[mcm/d]	Exit [mcm/d]
Waidhaus	19.4	102.9

Note: Pressure from Polish HPS Cieszyn is insufficient for natural gas transport to the Czech transmission system due to pressure limitations of the operator of the Polish transmission system.
Natural gas is fed from the transmission system over 94 transfer stations to the distribution systems, underground gas storages and facilities of directly connected customers. All transfer stations include commercial gas volume measurement. Gas quality (combustion heat) is measured on 15 nodes of the system.
From 2012 - 2014, the capacities of the transmission system will increase due to the increased compression and extraction capacity of several underground gas storages. These increases are shown in Table No. 2. In addition, the entry capacity of the Brandov point will increase in 2013 after the Gazela gas pipeline is connected to. During 2012 - 2014, the capacities of other entry and exit points will not change because no increase is required during the analyzed period.
Table No. 2 – Increasing capacity of the trans. system to and from UGS from 2012-2014

	Increasing capacity from UGS		Increasing capacity to UGS
	million m^3	[GWh/d]	million m^3	[GWh/d]
UGS MND GS	14.17	157.8	7.88	87.8
UGS RWE GS	0.6	6.7	2.29	25.6

Gas reverse flows in the transmission system:
During the gas crisis in January 2009, a temporary reverse flow West - East was started to provide supplies to customers not only in the Czech Republic but also in Slovakia. Gas supplies were taken over BTS Hora Svaté Kateřiny to the Czech Republic. This prevented gas supply shortages to customers in the Czech Republic.
The reverse flow within the EEPR programme consists of six independent structures:

1. 
   Modification at the border transfer station (BTS) in Hora Svaté Kateřiny permitted to increase gas transported from Germany to the Czech Republic from 18 million m³/day to 25 million m³/day.
   
2. 
   Modification of the pipeline at the Hospozín interconnection point permitted to increase gas volume between Olbernhau and Waidhaus up to 15 million m³/day.
   
3. 
   Modification of the pipeline in Kralice nad Oslavou compression station permitted to use compression activities for transporting gas from West to East.
   
4. 
   Modification of the pipeline at the Malešovice interconnection point permitted to increase gas transmission from BTS Hora Svaté Kateřiny to the Rozvadov distribution node.
   
5. 
   Modification of the pipeline system at the Břeclav compression station permitted to use compression activities for transmission to Slovakia.
   
6. 
   Modification of the pipeline at the BTS Lanžhot permitted to measure the gas transmitted from the Czech Republic to Slovakia.
   

Another project to increase the reverse flow was the modification of the compression station in Kouřim finished in 2011.

Fig. No. 4 – Current reverse gas flows in the transmission system

2.2 Distribution systems:
The distribution system is an interconnected group of high, medium and low pressure gas pipelines, gas connections owned by the operator of the distribution system and related technological facilities, including control and security system equipment and facilities for transmitting information for IT and IS operation used to operate the facilities, not directly interconnected with the compression stations and where gas distribution is operated by a licence holder for gas distribution; the distribution system is constructed and operated in the public interest.

Six regional distribution companies with more than 90,000 consumption points of customers operated licenced gas distribution in the Czech Republic in 2011. The total length of the gas pipelines of these distribution systems was 72,614 km as of 31 December 2011. In addition, there are several tens of local holders of a gas distribution licence with less than 90,000 consumption points of customers.

The total annual output gas volume from the distribtuion systems to all customers was 8.085 billion m³ (85.645 TWh) in 2011.
Regional distribution companies:

RWE Group: RWE Gas Net, s.r.o., VČP Net, s.r.o., JMP Net, s.r.o. and SMP Net, s.r.o.

Pražská plynárenská Distribuce, a.s.

E.ON Distribuce, a.s.

Fig. No. 5 – Regional operators of the distribution systems


2.3 – Underground gas storages

Because of unbalanced gas consumption in summer and winter, the difference between resources and consumption is balanced by the undeground gas storages (UGS) used for storing gas in the summer and extracting gas in the winter if the daily consumption is higher than the contractual daily gas import.

The total storage capacity of the underground gas storages in the Czech Republic is 2.881 billion m³ without Dolní Bojanovice underground gas storage, which is about 30% of the annual gas consumption of the Czech Republic and 3.457 billion m³ including the underground gas storage in Dolní Bojanovice.