11

AAuuthor: Saša Ilićthor: Saša IlićJP “SRBIJAGAS”JP “SRBIJAGAS”

21000 Novi Sad,Narodnog fronta 1221000 Novi Sad,Narodnog fronta 12Serbia and MontenegroSerbia and Montenegro

DEVELOPMENT OF THE GAS DEVELOPMENT OF THE GAS MARKET IN SERBIA AND MARKET IN SERBIA AND

MONTENEGROMONTENEGRO

Athens, November 2005

22

BASIC ACTIVITIES OF NISBASIC ACTIVITIES OF NIS – – PETROLEUM INDUSTRY OF SERBIAPETROLEUM INDUSTRY OF SERBIA

EXPLORATION AND PRODUCTIONEXPLORATION AND PRODUCTION

NATURAL GAS AND LPG TRANSPORT, NATURAL GAS AND LPG TRANSPORT, DISTIBUTION AND MARKETINGDISTIBUTION AND MARKETING

REFINERY PROCESSINGREFINERY PROCESSING

MARKETING AND TRADEMARKETING AND TRADE

ENGINEERING SERVICESENGINEERING SERVICES

RELATED ACTIVITIES (NON CORE)RELATED ACTIVITIES (NON CORE)

33

BOARD OF DIRECTORS

NIS-PETROLEUM INDUSTRY OF SERBIA

BOARD OF DIRECTORS

GENERAL DIRECTOR

SUPERVISORY BOARD

EXECUTIVE BOARD-General director-Deputy general director- Assistant general director- Directors of operative divisions

NIS-NAFTAGAS NOVI SAD

NIS-GAS NOVI SAD

NIS-ENERGOGAS BEOGRAD

NIS-RNP PANCEVO

NIS-RNS NOVI SAD

NIS-RNB BEOGRAD

NIS-FAM KRUSEVAC

NIS-JUGOPETROL BEOGRAD

NIS-NAP NOVI SAD

NIS-ENGINEERING NOVI SAD

44

NIS-GAS NOVI SAD

NIS-ENERGOGAS BEOGRAD

JP SRBIJAGASINVOLVED IN FOLLOWING ACTIVITIES CONNECTED TO NATURAL GAS:

TRANSPORTATION, TRANSPORTATION,

DISTRIBUTION, DISTRIBUTION,

STORAGE STORAGE , ,

SYSTEM OPERATING, SYSTEM OPERATING,

TRADINGTRADING

55

PIPELINE SYSTEM OF SERBIA

SRBIJAGAS - GAS - Energogas

YugoROS gas

•Max. capacity Max. capacity 6.100 mil. m3 per 6.100 mil. m3 per yearyear•Maximum working pressure 50 Maximum working pressure 50 barbar

•Total length of high-pressure Total length of high-pressure pipeline pipeline is 2135 km is 2135 km

•Dimensions range from DN 150 Dimensions range from DN 150 to to DN 750 DN 750

•Average age of pipeline: 25 yearAverage age of pipeline: 25 year

•533 metering and regulating 533 metering and regulating stations stations from 100 to 100.000 Sm3/hfrom 100 to 100.000 Sm3/h

MAIN FEATURES MAIN FEATURES OF PIPELINE OF PIPELINE

SYSTEMSYSTEM

66

THE CONSUMPTION OF THE CONSUMPTION OF NATURAL GAS IN SERBIA NATURAL GAS IN SERBIA DURINGDURING THE THE

PERIOD 1989-2004PERIOD 1989-2004

0500

1.0001.5002.0002.5003.0003.500

YearNat

ural

gas

con

sum

ptio

n ex

pres

sed

in m

ilion

Cu.

m.

77

The Heating Plant and Household share The Heating Plant and Household share in yearly gas consumption in Serbiain yearly gas consumption in Serbia

38%

62%

Heating Plant &Hoseholds Industry

88

NATURAL GAS DEMAND FORECAST FOR NATURAL GAS DEMAND FORECAST FOR THE PERIOD 2000-2010THE PERIOD 2000-2010

0

500

1000

1500

2000

2500

3000

3500

4000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Year

Natu

ral g

as c

on

su

pti

on

exp

ressed

in

milio

n C

u.m

.

Other

Power plants (for theproduction of electricity )

Schools, Hospitals,medications

Households, generalconsumption

District heating

I ndustry, Consumptionfor raw materials

I ndustry, Consumptionfor energy

99

GAS PIPELINE SYSTEM DEVELOPMENT GAS PIPELINE SYSTEM DEVELOPMENT PLAN UNTIL 2010.PLAN UNTIL 2010.

CONSTRUCTION OF HIGH PRESSURE CONSTRUCTION OF HIGH PRESSURE PIPELINESPIPELINES

UNDERGROUND GAS STORAGE UNDERGROUND GAS STORAGE “BANATSKI DVOR”“BANATSKI DVOR”

DISTRIBUTION NETWORKSDISTRIBUTION NETWORKS

REHABILITATION AND UPGRADING OF REHABILITATION AND UPGRADING OF EXISTING PIPELINE SYSTEMEXISTING PIPELINE SYSTEM

1010

PLANNED HIGH PRESSURE PLANNED HIGH PRESSURE PIPELINES IN NORTHERN PIPELINES IN NORTHERN

PART OF SERBIAPART OF SERBIA

ESTIMATED COST OF ESTIMATED COST OF INVESTMENT EUR 82 mil.INVESTMENT EUR 82 mil.

No.No. DNDN LengthLength Inch mInch m

1.1. 3030”” 30 km30 km 900,000900,000

2.2. 2424”” 170 km170 km 4,000,0004,000,000

3.3. 20”20” 70 km70 km 1,400,0001,400,000

4.4. 1212”” 27 km27 km 324,000324,000

5.5. 1010”” 84 km84 km 840,000840,000

6.6. 8 8 55//88”” 37 km37 km 319,000319,000

7.7. 6 6 55//88” ” 40 km40 km 265,000265,000

8.8. 4 ½”4 ½” 12 km12 km 54,00054,000

TotalTotal 470 km470 km 8 182,0008 182,000

PIPELINE SYSTEM OF SERBIA

Planned pipelines in Northern part of Serbia

1111

Ref Ref no.no.

DNDN LengthLength Inch mInch m

1.1. 28”28” 248 km248 km 6 944 0006 944 000

2.2. 20”20” 70 km70 km 1 400 0001 400 000

3.3. 1818 88 km88 km 1 584 0001 584 000

4.4. 14”14” 216 km216 km 3 024 0003 024 000

5.5. 12”12” 68 km68 km 816 000816 000

6.6. 10”10” 62 km62 km 620 000620 000

TotalTotal 752 km752 km 14 388 14 388 000000

PLANNED PLANNED HIGH PRESSURE HIGH PRESSURE PIPELINES IN CENTRAL PIPELINES IN CENTRAL

AND SOUTHERN PART OF AND SOUTHERN PART OF SERBIASERBIA

ESTIMATED COST OF ESTIMATED COST OF

INVESTMENT EUR 140 mil.INVESTMENT EUR 140 mil.

PIPELINE SYSTEM OF SERBIA

Planned pipelines in Central and Southern part of Serbia

1212

Ref Ref no.no.

DNDN LengthLength Inch mInch m

1.1. 1616”” 221515kmkm 3,440,003,440,0000

2.2. 110”0”210210 km km 2,100,002,100,00

00

TotalTotal 425425 km km 5,540,005,540,0000

PLANED PLANED HIGH PRESSURE HIGH PRESSURE PIPELINES PIPELINES FOR AND IN FOR AND IN

MONTENEGROMONTENEGRO

ESTIMATED COST OF ESTIMATED COST OF INVESTMENT EUR 55 mil.INVESTMENT EUR 55 mil.

PIPELINE SYSTEM OF SERBIA

Planned pipelines in Montenegro

1313

BASIC PARAMETERS FOR BASIC PARAMETERS FOR UNDERGROUND GAS STORAGE UNDERGROUND GAS STORAGE

CONSTRUCTIONCONSTRUCTION

GAS CONSUMPTION IN 1997, 2.6 billion mGAS CONSUMPTION IN 1997, 2.6 billion m33

ESTIMATED GAS CONSUMPTION UNTIL 2010,ESTIMATED GAS CONSUMPTION UNTIL 2010, 3.3 billion m3.3 billion m33

DOMESTIC GAS PRODUCTION DOMESTIC GAS PRODUCTION 300300 million m million m33

DOMINANT IMPORTATION OF RUSSIAN GAS UNTIL DOMINANT IMPORTATION OF RUSSIAN GAS UNTIL 20102010

UNEVEN GAS CONSUMPTION DYNAMICSUNEVEN GAS CONSUMPTION DYNAMICS

EVEN GAS IMPORTATION DYNAMICSEVEN GAS IMPORTATION DYNAMICS

REQUIRED GAS STORAGE FOR 25-30% OF YEARLY REQUIRED GAS STORAGE FOR 25-30% OF YEARLY CONSUMPTIONCONSUMPTION

1414

PIPELINE SYSTEM OF SERBIA

SRBIJAGAS - Gas - Energogas

- Yugorosgas

- Gas Storage

LOCATION , AND TECHNICAL LOCATION , AND TECHNICAL FETURES OF UNDERGROUND FETURES OF UNDERGROUND

GAS STORAGEGAS STORAGE

• CAPACITY :CAPACITY :

• MAX 800 million MAX 800 million m3m3

• I phase 300 I phase 300 million million m3m3

• INJECTION CAPACITY:INJECTION CAPACITY:

• max. 7 million m3/daymax. 7 million m3/day

• min. 1.3 million m3/daymin. 1.3 million m3/day

• PRODUCTION CAPACITY: PRODUCTION CAPACITY:

• max. 10 million m3/day max. 10 million m3/day

• min. 1.6 million m3/daymin. 1.6 million m3/day

• WELL PRODUCTIVITY: WELL PRODUCTIVITY:

• max. 0,55 million m3/daymax. 0,55 million m3/day

• min. 0,3 million m3/daymin. 0,3 million m3/day

1515

PROJECT INVESTMENTSPROJECT INVESTMENTS

REQUIRED INVESTMENT 128 million EURREQUIRED INVESTMENT 128 million EUR

EQUIPMENT AND WORKS 65 million EUREQUIPMENT AND WORKS 65 million EUR

CUSHION GAS 63 million EURCUSHION GAS 63 million EUR

GAS STORAGE IS PLANED TO BE CONSTRUCTED IN TWO GAS STORAGE IS PLANED TO BE CONSTRUCTED IN TWO PHASESPHASES

PHASE IPHASE I 2004./200 2004./20066. 50 million EUR. 50 million EUR

EQUIPMENT AND WORKS 7 million EUREQUIPMENT AND WORKS 7 million EUR

CUSHION GAS 43 million EURCUSHION GAS 43 million EUR

PHASE IIPHASE II STAGE 200 STAGE 20066.-20.-201111. 78 million EUR. 78 million EUR

1616

CONSTRUCTION OF MUNICIPAL CONSTRUCTION OF MUNICIPAL NATURAL GAS DISTRIBUTION NATURAL GAS DISTRIBUTION

NETWORKSNETWORKS

Distribution network compriseDistribution network comprise

steel pipelines diameter 2”-12” steel pipelines diameter 2”-12” - metering and - metering and regulation stations 300-30.000. Sm3/hregulation stations 300-30.000. Sm3/h

PE pipes diameter d40 - d225PE pipes diameter d40 - d225 - residential and - residential and commercial stations G-4 to G-25commercial stations G-4 to G-25

Municipal gas networks could be constructed in more Municipal gas networks could be constructed in more than 80 districts all over the Serbia. than 80 districts all over the Serbia.

The construction of the said municipal networks The construction of the said municipal networks would allow the connection of 650.000 households would allow the connection of 650.000 households

1717

FUNDS FOR MUNICIPAL NATURAL GAS FUNDS FOR MUNICIPAL NATURAL GAS DISTRIBUTION NETWORKSDISTRIBUTION NETWORKS

The construction of the municipal networks would be The construction of the municipal networks would be funded partly from J.P.”SRBIJAGAS” own assets, funded partly from J.P.”SRBIJAGAS” own assets, from credits, and partly by local municipalities and by from credits, and partly by local municipalities and by domestic and foreign qualified partners .domestic and foreign qualified partners .

  The participation of foreign partner is expected in the The participation of foreign partner is expected in the realization of this project in technical and financial realization of this project in technical and financial terms.terms.

The construction of municipal networks is planned The construction of municipal networks is planned for the next ten years.for the next ten years.

The estimated value for the construction of municipal The estimated value for the construction of municipal gas distribution networks amounts to EUR 500.mil.gas distribution networks amounts to EUR 500.mil.

1818

REHABILITATION OF THE EXISTING REHABILITATION OF THE EXISTING GAS PIPELINE SYSTEMGAS PIPELINE SYSTEM

Goals: to provide reliable and safe gas transportation Goals: to provide reliable and safe gas transportation - Modernization of technological systems for:Modernization of technological systems for:

- Remote control and surveillanceRemote control and surveillance- Measurement of the delivered and received quantities of energyMeasurement of the delivered and received quantities of energy

- Inspection of pipeline with the modern pipeline inspection toolsInspection of pipeline with the modern pipeline inspection tools- Replacement of battered pipes and equipment on the pipelinesReplacement of battered pipes and equipment on the pipelines- Environmental protectionEnvironmental protection- Replacement of pipeline section for the purpose of increasing the Replacement of pipeline section for the purpose of increasing the

reliability of transportation.reliability of transportation.- Reconstruction of existing metering and regulation stations.Reconstruction of existing metering and regulation stations.

Estimated cost of the investment: EUR 30 milEstimated cost of the investment: EUR 30 mil

1919

RECAPITULATION OF INVESTMENTSRECAPITULATION OF INVESTMENTS

HIGH PRESSURE PIPELINES 277 million EURHIGH PRESSURE PIPELINES 277 million EUR

UNDERGROUND GAS STORAGE “BANATSKI UNDERGROUND GAS STORAGE “BANATSKI DVOR” 128 million EURDVOR” 128 million EUR

DISTRIBUTION NETWORKS 500 million EURDISTRIBUTION NETWORKS 500 million EUR

REHABILITATION AND UPGRADING OF REHABILITATION AND UPGRADING OF EXISTING PIPELINE SYSTEM 30 million EUREXISTING PIPELINE SYSTEM 30 million EUR

TOTAL 935 million EURTOTAL 935 million EUR

2020

THANK YOU THANK YOU

FOR FOR

YOUR ATTENTIONYOUR ATTENTION

Saša IlićSaša Ilić

SRBIJAGASSRBIJAGASNovi Sad, Narodnog Fronta 12Novi Sad, Narodnog Fronta 12

Serbia and MontenegroSerbia and Montenegro