REPUBLIC OF CROATIA MINISTRY OF ECONOMY, LABOUR AND ENTREPRENEURSHIP

GAS SECTOR IN CROATIA

by Mr. Domagoj Jeić

IMPLEMENTATION ACHIEVEMENTS SO FAR NATURAL GAS IN CROATIA ƒ Natural Gas production in Croatia commenced in 1959 ƒ Natural Gas import from Russia commenced in 1978 and today’s quantity of imported gas is 1.1 billion m3 ƒ Underground Gas Storage facility in Okoli was built in 1987 and today’s capacity is from 0,55 billion m3 increased to 0.63 billion m3 ƒ Natural gas in 2006 is produced from 20 onshore gas fields and 5 offshore gas fields ƒ In 2006 total domestic gas production for the Croatian market was 2.713 billion m3 Ministry of Economy, Labour and Entrepreneurship

IMPLEMENTATION ACHIEVEMENTS SO FAR PRIMARY ENERGY PRODUCTION 2006 Obnovljivi izvori Renewables 0,11%

Vodne snage Hydro power 27,90%

Ogrjevno drvo Fuel Wood 8,20%

Sirova nafta Crude oil 18,60%

Prirodni plin Natural gas 45,20%

Ministry of Economy, Labour and Entrepreneurship

IMPLEMENTATION ACHIEVEMENTS SO FAR TOTAL PRIMARY ENERGY SUPPLY 2006 Električna energija Electricity 4,90%

Obnovljivi izvori Renewebles 0,06%

Ugljen i koks Coal and coke 7,70%

Vodne snage Hydro power 14,20%

Ogrjevno drvo Fuel wood 3,70%

Prirodni plin Natural gas 24,30%

Tekuća goriva Liqid fuels 45,10%

Ministry of Economy, Labour and Entrepreneurship

IMPLEMENTATION ACHIEVEMENTS SO FAR NATURAL GAS CONSUMPTION STRUCTURE OF CONSUMPTION (2006) DOMESTIC PRODUCTION

IMPORT 1.126 x 109 m3

2.713 x 109 m3

OWN USE

TRANSMISSION 109

UGS - Okoli

m3

3,097 x 10 m

ENERGY TRANSFORMATION 1.032 x 109 m3

NON ENERGY USE 0.462 x 109 m3

INDUSTRY 0.408 x 109 m3

Ministry of Economy, Labour and Entrepreneurship

DISTRIBUTION 1.184 x 109 m3

PLANED AND POTENTIONAL DEVELOPMENT M. SREDIŠÆE

VARAŽDIN

HUNGARY

ROGATEC

BENIČANCI

ZABOK

SLOVENIA

ÐURÐEVAC ZAGREB BJELOVAR IVANIĆ GRAD PSP OKOLI 1 i2 KARLOVAC

UMAG PAZIN

DELNICE RIJEKA

VIROVITICA OSIJEK

SISAK

VRBOVSKO

B. MANASTIR

D. MIHOLJAC KUTINA

VINKOVCI

NOVSKA OGULIN

VUKOVAR

SLUNJ ŽUPANJA SLAVONSKI BROD

OTOČAC PULA GOSPIĆ

GRAČAC ZADAR

BENKOVAC

BOSNIA AND HERZEGOVINA KNIN

ŠIBENIK

LNG

ITALY

SINJ SPLIT

METKOVIĆ PLOČE

LEGEND: DUBROVNIK

GAS PIPELINES BAR 50 PLANED GAS PIPELINES BAR 50 POTENTIAL GAS PIPELINES BAR 50 GAS PIPELINES BAR 75 UNDERGROUND GAS STORAGE

Ministry of Economy, Labour and Entrepreneurship

IAP

PLANED AND POTENTIONAL DEVELOPMENT TRANSMISSION SYSTEM: • Planned Development has significantly increase the number of projects • In the second development phase of investments, main goal is to bring the natural gas to the majority of consumers in Croatia: Lika and Dalmatia (all the way to Ploče) • The new interconnection will be achieved to Hungary and to Bosna and Herzegovina • Capacity increase of the existing interconnection with the Slovenian gas transmission system • Potential interconnections with Serbian and future Montenegrin transmission systems have been initiated IAP - Possible connection to TAP thru CROATIA, Montenegro and Albania, with potential capacity up to 5 Bcm /y Ministry of Economy, Labour and Entrepreneurship

PLANED AND POTENTIONAL DEVELOPMENT UNDERGROUND GAS STORAGE: • Intended construction of: OKOLI–II (0.5 Bcm /y) and BENIČANCI (2 Bcm /y) • Volume of natural gas storage Beničanci insure possibility of storage for the neighboring countries of the region LNG PROJECT: • Development of projects is in 5 to 7 years • New supply of natural gas on level of up to 2,0 billion m3 per year • Possible location of LNG terminal is in the northern part of Adriatic See

Ministry of Economy, Labour and Entrepreneurship

PLANED AND POTENTIONAL DEVELOPMENT GAS TRANSMISSION SYSTEM was adjusted to the intended construction of storages and for the first working faze of LNG terminal. Growing demand for natural gas makes investment necessary for future insurance of import and transit to neighboring countries. Investment projects insure the conditions for reliable and diversified supply, respectively increase of security of gas supply. Ministry of Economy, Labour and Entrepreneurship

LEGISLATIVE FRAMEWORK • New acts in year 2007. and 2008.: – The Gas Market Act (OG; 40/07) – The Act on Amendments to the Energy Act (OG; 76/07) – The Act on Amendments to the Act on the Regulation of Energy Activities (OG 76/07) – Tariff system for natural gas transmission without amounts of tariff elements (OG 32/06, OG 3/07), – Tariff systems for natural gas distribution without amounts of tariff elements (OG 34/07, OG 47/07), – Tariff systems for natural gas supply, with the exception of eligible customers, without amounts of tariff elements (OG 34/07, OG 47/07), – Decision on gas supply price to gas supplier for distributors of tariff customer (OG; 77/07) – Decision on heights of tariff elements in tariff system for natural gas distribution, without amounts of tariff elements and tariff system for natural gas supply, with the exception of eligible customers, without amounts of tariff elements (OG; 116/07) – Decision on heights of tariff elements for natural gas transmission for year 2008. (OG; 14/08) Ministry of Economy, Labour and Entrepreneurship

FURTHER INFORMATION Ministry of Economy, Labour and Entrepreneurship Ulica grada Vukovara 78 10000 Zagreb Tel: 00 385 1 61 06 113 Fax: 00 385 1 61 09 113 Mr. Boris Makšijan, Head of Energy System Department e.mail: [email protected] Website: http://www.mingorp.hr Mr. Domagoj Jeić, Advisor in the Gas field e.mail: [email protected] Website: http://www.mingorp.hr

Thank you for your attention Ministry of Economy, Labour and Entrepreneurship