operating ugs in today’s gas markets
TRANSCRIPT
Operating UGS in today’s gas markets
Grigory Dyachenko – Gazprom Geotechnology LLC Leading specialist
1 Operating UGS in today’s gas markets
Gazprom gas reserves
Gazprom’s gas reserves:
35,4 trillion cubic meters
Gazprom’s share in world gas reserves
Gazprom’s share in Russian Federation gas reserves
17Independent manufacturers
Unallocated reserves
2 Operating UGS in today’s gas markets
Gazprom gas transmission system
The length of the gas transmission system in Russia totals 172,1 thousand kilometers. 254 compression stations with the aggregate capacity of gas compressor units equaling 46,7 thousand MW are used for gas transmission.
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Gazprom gas storage facilitiesWGV,bcm
Withdrawal,mmcm/d
72,27 812,5
Operating UGS in today’s gas markets
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Russian Federation UGS capacities developmentWorking gas capacity, bcmPotential maximum withdrawal, mmcm
69.017
72 72.018 72.098 72.184 72.27
83
727.8770.4 789.9 801.3 805.3 812.5
1000
0
200
400
600
800
1000
60
65
70
75
80
85
90
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2028/29
mm
cm/d
bcm
Operating UGS in today’s gas markets
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Gazprom gas delivery to Europe
Gazprom Management Committee Directive No.5 dated January 27, 2011 “On building up Company’s UGS capacities abroad” envisages Company’s UGS capacities growth in foreign countries to achieving the active capacity of at least 5% of annual export supplies, with the priority of creating proprietary storage capacities.
Gazprom’s gas storage abroad is characterized by the following advantages:• Covering seasonal fluctuations in gas demand;• Improving reliability and continuity of gas export supplies,• Emerging option of the participation in spot gas markets,• Increasing gas export volume,• Increasing of gas supply reliability at the periods of peak gas demand (sharp cold snaps, planned repair works as well as
contingency situations at gas transportation system).
138.6158.6
178.3194.4 201.8
0
50
100
150
200
250
2010 2015 2016 2017 2018
bcm
Gas export volume Long-Term Supply Contracts prices and Hub prices
Operating UGS in today’s gas markets
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Costs comparisonSpecific costs for peak capacity development
Operating UGS in today’s gas markets
7.30%
35.10%
100%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Short-term gas storage rentals inEurope
Gas storage development Gas production development
% fo
r one
seas
on
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Gazprom’s North-West & Central Europe UGS demand & capacities
UGS Capacity,bcm
Withdrawal,mmcm/d
Bergermeer 1,85 26,0
Katharina 0,32 23,2
Rehden 0,50 10,0
Damborgice 0,26 4,5
Haidach 1,86 18,9
Total 4,79 82,6
Pipeline Capacity,bcm
5% securityof supply,
bcm
Yamal 33 1,65
Nord Stream 55 2,75
Nord Stream-2 55 2,75
Total 143 7,15
Capacities
Demand
Operating UGS in today’s gas markets
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Gazprom’s Southern Europe UGS demand
UGS Capacity,Bcm
Withdrawal,mmcm/d
Banatski Dvor 0,23 2,6
Pipeline Capacity,bcm
5% security of supply, bcm
TurkStream-1 15,75 0,79
TurkStream-2 15,75 0,79
Total 31 1,58
Capacities Demand
Operating UGS in today’s gas markets
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Eastern Gas Program PJSC Gazprom
Operating UGS in today’s gas markets
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UGS market failures in EuropeTTF summer-winter spreads
European storage volume evolution
Source: Analysis of IEA and GIE data 2006-2016. Pöyry analysis (2017)
Source: Poyry, ICIS Heren data (2017) Source: woodmackenzie (2017)
Operating UGS in today’s gas markets
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Principles to access storage capacity in Europe
Operating UGS in today’s gas markets
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Strategic pipeline & UGS as an example of unified gas supply system in USA
Transco’s System - Generally System Peak Design Capacity: 308 MMcm/day Seasonal Storage: 5,6 BcmSupply Areas: Gulf Coast, Mid-Continent, Appalachia Market Areas: Southeast, Mid-Atlantic and Northeastern states Miles of Pipeline: 10,200 miles Compressor Stations: 56Gas storage facilities: Eminence, Washington…
Successfully usage of underground storage to maximize throughput on its pipeline and to respond to demand variability.
Source – Watson M., Steptoe & Johnson LLP, «Successfully Maximizing Storage Use –A Case Study of Transcontinental Gas Pipe Line Company, LLC»
Transco uses the storage assets, as well as pipeline capacity it has reserved to serve the overall needs of the system and operates them on an integrated basis.
GULFSTREAM
Operating UGS in today’s gas markets
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Gas storages in China
UGS - Depleted field
UGS - Salt cavern
LNG terminal
Operating UGS in today’s gas markets
UGS Developed by Gazprom
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UGS and “low carbon economy”
In case of injection of “GREEN” gas in UGS (porous media) the following detrimental reactions are expected:- Sulphur precipitation in valves;- Porous collectors blocking;- Minerals transformation and precipitation, e.g. Fe2+ Fe3+;- Sulphur reduction and deposition;- Corrosion intensification.
Operating UGS in today’s gas markets
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“Correct” operation of gas storage
Operating UGS in today’s gas markets
• Price should include supply flexibility, security of supply & infrastructure optimization• UGS market should fit both consumers & investors
“Unbundling” of gas production, transportation and storage business
Third party access
“Green gas”
“Big”Transmission
systems
“Small”Distribution
systems
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Thank You for your attention!