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Workshop on transportation routes Region South-South East 24th November 2006, Vienna

Workshop on transportation routes Region South-South East 24th November 2006, Vienna. Transportation route 5 - genesis.

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Workshop on transportation routes Region South-South East 24th November 2006, Vienna

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  1. Workshop on transportation routes Region South-South East 24th November 2006, Vienna

  2. Transportation route 5 - genesis • In May 1992, Polish President, Lech Wałęsa and Russian President, Boris Yeltsin signed a "Treaty Between the Republic of Poland and the Russian Federation on Friendly and Neighbourly Co-opreation", which stated that "the Parties will co-operate towards the development of mutual and transit transport links and the related infrastructure with respect to all types of transport, including pipeline links and power lines". • In April 1993 the Council of Ministers appointed an inter-departmental working group to assess the conditions for the construction of a Russia-Western Europe transit gas pipeline.

  3. Transportation route 5 - genesis • On 25 August, 1993 - the governments of Poland and Russia signed the "Agreement between the government of the Republic of Poland and the government of the Russian Federation on the construction of a gas pipeline system for the transit of Russian gas through the territory of the Republic of Poland and supplies of Russian gas to the Republic of Poland”. • In 1994, the European Union included the Yamal-Europe pipeline as a priority project implemented in the framework of Trans-European Networks.

  4. Transportation route 5 - genesis • On 18 February, 1995, the Governments of the Polish Republic and the Russian Federation signed a protocol which formed an integral part of the Agreement of August 1993 and which set out the detailed responsibilities of the parties and the deadlines for the implementation of the transit gas pipeline through Polish territory. In accordance with the signed Protocol, the Polish party assumed responsibility for the establishment of conditions for the transportation of natural gas to Western Europe and Poland through a newly constructed transit gas pipeline system in Poland in such quantities and within such deadlines as were set out in the schedule. • On 18 August, 1995, the Council of Ministers approved the above Protocol.

  5. Transportation route 5 – current status • The pipeline was designed to transport natural gas supplies from the Yamal (West Siberia) field in Russia to Germany and other Western European countries through Belarus and Poland. EuRoPol Gaz S.A. was created to operate the Polish section of the pipeline as a joint stock company with the following shareholders: POGC - 48% of the shares, OAO GAZPROM - 48% of the shares and Gas-Trading S.A. with 4% of the shares. The Yamal line crosses 680 km of Poland and have a capacity of 32 bcm.

  6. Transportation route 5 • Shippers (data for 2005): - Gazprom-Export - 23,67 BCM - POGC – 2,98 BCM - Gas Trading – not use

  7. Transportation route 5 – regulatory aspects • The line delivers some gas to Poland (2,98 bcm) and tariffs charged for this are regulated by the President of the Energy Regulatory Office. The fourth tariff of the EuRoPol Gaz SA for transmission services valid for 2006, was approved in mid-December 2005. This tariff contains distance charges for three exits: Włocławek, Lwówek and Mallnow. Establishing a gas transmission tariff is elaborated with the application of the cost-based methodology. • Average transmission charge has been set by Regulator at: 1,92$/1000m³/100 km for 2006 (1$ = 3,26 PLN) • The President of the ERO has issued the licensee for EuRoPol Gaz SA for transmission activities on 26.04.1999 and for trade with foreign countries on 23.05.2001.

  8. Conclusions • The Polish domestic law does not contain specific provisions on natural gas transit. However non-discriminatory provisions of the Energy Charter Treaty (ratification in 2001) and WTO (ratification in 1995) are part of the Polish law. • The owner of the line did not submit an application to set up as the TSO in accordance with appropriate provisions of the Energy Law. On the basis of special agreement the technical issues are carried out by the Gaz-System S.A. • The TPA service may be provided under permission of main shareholders.

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