Top Banner
1 Georgian National Energy and Water Supply Georgian National Energy and Water Supply Regulatory Commission Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008
22

1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

Mar 30, 2015

Download

Documents

Melvin Harder
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

1

Georgian National Energy and Water Supply Regulatory Georgian National Energy and Water Supply Regulatory CommissionCommission

Natural gas sector

Dimitri NamgaladzeDepartment of Natural Gas

27 June -3 July, 2008

Page 2: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

2

Regulation of the natural gas sector in Georgia started in summer of 1999, when a change was made to the Law of Georgia on Electroenergetics. During the same period, the Department of Natural Gas was established within the Commission.

As of today, 1 transportation and 66 licensees are operating in Georgia.

Previously, there were also natural gas supply licensees, but at the end of 2005, after entry of changes and amendments to the Law – they were invalidated, i.e. this domain was deregulated.

Tariff on supply of the natural gas was deregulated correspondingly..

Regulation of the natural gas sectorRegulation of the natural gas sector

Page 3: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

3

A licensee presents to the Commission the following documentation specified by Law, and in particular:

1. Application; 2. Charter of an organization; 3. Record from the Register of entrepreneurs; 4. Record from the Public Register and cadastral plan; 6. A letter from Technical Gas Inspection on the state of the network; 7. Technical conditions of connection to the network; 8. Audit report on property evaluation; 9. A Certificate on qualification of the support staff (certificate of

training centers). After examination of documentation submitted to the natural gas,

tariffs and price formation departments, the case is considered at the Commission session at which decisions are made.

Licensing processLicensing process

Page 4: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

4

- - Natural gas supply in Georgia; - Natural gas supply in Armenia; - Natural gas losses..

By By 2007 the transportation system of Georgia has transmitted 3738 million m³ of natural gas, including transit.

Armenia was supplied 2054 million m³ , Georgia - 1684 million m³

Page 5: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

5

After launching of the South Caucasian Ppipeline (SCP), Georgia is supplied optional (5% of the transit volume) and additional gas (200500 million m3, by years). Transit of gas to Turkey was 2 billion m3 the first year of operation (in 2007), and in 4 years it is expected to reach 6,6 billion m3. Hence, in 2007, Georgia received 250 million m3. In the years to come, the situation is expected to be as follows:

YearNatural gas(million m3)

2008 400

2009 450

2010 550

2011 660

2012 830

Optional gas means a transit fee paid to Georgia in the amount of US 2,5 dollars per 1000 m3 transmitted gas, which is approximately 5% of the transmitted volume. Georgia may either receive this sum in full, or receive part of it and another part in the form of natural gas (US 50 dollars per each 1000 cubic meters). All the referred sums are increased monthly by 2%. Thus, the price of gas is practically not dependent on the global prices for gas.

Page 6: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

6

According to the volume of natural gas supplied to Georgia in 2000-2007, the situation is as follows:

Qu

anti

ty o

f th

e na

tura

l ga

s, m

illi

on

m3

2000 2001 2002 2003 2004 2005 2006 2007 years

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1 2 3 4 5 6 7 8

Page 7: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

7

Page 8: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

8

Page 9: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

9

Page 10: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

10

Natural gas is imported to Georgia through gas-main pipeline (system of transportation) having the following technical specification:

Designed productivity: 20 billion m3 per year Actual quantity of the transported gas per yearMax – 6.9 billion m3 in 1992Min – 1.9 billion m3 in 2002

Designed working pressure: 5.5 mpa

Total length: 1832.18 km.

Line part: 1452.6 km.Branches: 366.71 km.Connections: 12.87 km.

Page 11: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

11

The highest mark of the pipeline – 2400 m;

Max. variation between altitudes – 2400 m;

The pipelines cross more than 2000 artificial and natural obstacles, 118 large and medium size rivers;

6.013 km of the pipeline passes through specially constructed 12 tunnels; Active el.chemical protection of the gas pipeline was provided by means of 200 cathodic and 40 el.drainage systems, 3500 protectors; From 1991-1992, they are no longer operating;

Out of 1940 km of the pipelines, 19% have been operating for more than 30 years; 76% - for up to 10-30 years; 5% - for less than 10 years;

Age of the gas pipelines, complexity of relief and climatic conditions account for special requirements towards their operation.

Page 12: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

12

General specifications of gas-main pipelinesGeneral specifications of gas-main pipelines

N Title Diameter mm

Length, km Year of construction

1 Northern Caucasia-TransCaucasia 1200 133.65 1988-1994

2 Kazakh-Saguramo 1000 90.7 1980

3 Karadagh-Tbilisi 800-700- 500 110.26 1959-1968

4 Vladikavkaz-Tbilisi 700 239.91 1963-1966

5 Saguramo-Kutaisi 700-500 360.74 1967-1975

6 Kutaisi-Sukhumi 700-500 344.95 1986-1989

7 Rustavi-Telavi-Zhinvali 500-300-200 344.69 1969-1975

8 Tsiteli Khidi – Tsalka-Alastani 500-300 179.8 1978-1990

9 Gomi-Khashuri-Bakuriani 500-300 58.98 1972-1989

Page 13: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

13

InfrastructureInfrastructure:: Gas distribution stations Georgian Gas Transportation Company operates 133 gas distribution stations

of which 78 stations are on the balance of the Georgian International Gas Corporation.

Measuring units of the gas distribution stations are brought into compliance with the contemporary standards.

N Type of gas distribution station

Quantity Designed pressure (mpa)

Max. productivity (m3/sT)

1 aggs 1/3 10 55 1000

2 aggs 3 13 “-” 3000

3 aggs 10 21 “-” 10000

4 aggs 30 12 “-” 30000

5 energia I 4 “-” 50000

6 aggs 80 6 “-” 80000

7 aggs 150 3 “-” 150000

8 ggs tr 645 4 “-” 100000

9 ggs tr 885 5 “-” 200000

Page 14: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

14

Measuring unitsMeasuring units Volume of the transported gas is measured by

means of 7 measuring units. A measuring unit of Tsiteli Khidi has a

commercial status. A commercial measuring unit is on the Russian

side of the Georgian-Russian border, and a control unit is on the Georgian side.

As of today, actual loading of the gas-main pipelines is 18 %. Natural gas suppliers are: ”Gazpromeqsport”, Itera company, German company ”ЗМБ ГмбХ”, industrial amelgamation of Azerbaijan ”Azerigazniegl”.

Page 15: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

15

““KazTransGaz-Tbilisi” Ltd.KazTransGaz-Tbilisi” Ltd.

““KazTransGaz-Tbilisi” Ltd., which has purchased movable and immovable property of KazTransGaz-Tbilisi” Ltd., which has purchased movable and immovable property of jsc jsc “Tbilgaz”, in 2006 was issued a gas distribution license from GNERC and started to supply gas to its customers in Tbilisi city.

2007 2007 technical data of “KazTransGaz-Tbilisi” Ltd. technical data of “KazTransGaz-Tbilisi” Ltd.

Total length of pipelines 2420 km High pressure gas pipelines - 232 km Medium pressure gas pipelines - 811 km Low pressure gas pipelines - 1377 km 643 gas regulating ponts and case installations Number of subscribers – 307638 301511 - apartments 6039 – industrial and communal consumers 88 – Other consumers (Embassy and etc.) Yearly consumption - 454,8 million m3

Loss - 35,6%

Page 16: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

16

Gas supply system of Tbilisi city requires capital repair, as gas pipelines and their infrastructure are in emergency state. A number of subscribers are installed obsolete, unfit and non-standard gas-meters, which need to be replaced.

Investor – jsc “yaztrangazma” paid US 12 million dollars

for the purchase and restoration of gas supply systems of Tbilisi city and intends to invest another US 79 million dollars into further restoration of gas supply systems.

Page 17: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

17

Quality of gasQuality of gas

The Commission is regularly submitted Certificates of Compliance for gas from Georgian Oil and Gas Corporation and Kaztransgaz-Tbilisi laboratories. None of the other licensees has a gas quality examination laboratory.

Certificates of compliance of gas imported over the years show that the quality of gas imported into Georgia satisfy standards.

Page 18: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

18

Administration of disputes and complaintsAdministration of disputes and complaints

(The Commission considers disputes between licensees and between licensees and consumers. Often it has to stand out as mediator in these disputes). The procedure of administration of disputes and complaints is as follows:1. A submitted complaint is delivered to the other party. 2. After a response is received, the case is considered at a

working meeting with participation of both parties.3. If necessary, on-the-spot investigations are carried out;4. In case of arriving at a consensus, a dispute is considered to

be settled.5. If the parties fail to arrive at a consensus, the case is

considered at the session of the Commission, which takes a decision obligatory to both parties.

6. Both parties have a right to appeal against the decision taken by the Commission in court.

Page 19: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

19

Revision of observance of the conditions of licensesRevision of observance of the conditions of licenses

In accordance with the Law of Georgia on Electric Power and Natural Gas, regulation of the natural gas licensees includes carrying out of their permanent monitoring.

Every year, the licensees have to present to the Commission yearly reports, both technical and financial. On the basis of these reports, the Commission makes certain recommendations.

In disputable and questionable cases, on the spot revisions are carried out.

Page 20: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

20

New technological facilities; Replacement of steel pipes by polyethylene pipes; Increasing safety of operation; Measuring of natural gas and improvement of the system

of settlements with subscribers; Expanding monitoring of licensees by the Commission.

Prospects of development of the natural gas sector of Prospects of development of the natural gas sector of Georgia:Georgia:

Page 21: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

21

There are following problems with licensing and There are following problems with licensing and licensees:licensees:

Collection of the sum of tariffs from subscribers and illegal use of natural gas;

There is high incidence of violation by the licensees of the Rules of Consumption of Natural Gas established by the Commission, and in particularly with contracted subscribers;

Applicants for licenses experience difficulties with obtaining of cadastral plans from the Public Register as it is related to certian payment;

Sometimes licensees delay, or fail to present information requested by the Commission;

Problem of minor licensees.

Page 22: 1 Georgian National Energy and Water Supply Regulatory Commission Natural gas sector Dimitri Namgaladze Department of Natural Gas 27 June -3 July, 2008.

22

Thank you for attention