Uchenna Izundu
International Editor
LONDON, Feb. 7 -- RWE Energy AG plans to construct a 5 billion cu m/year gas pipeline that will extend from the Czech Republic to Belgium. It would start operations in 2011 and reduce Germany's reliance on Russian gas imports.
Plans call for a 560-km line to originate in Sayda on the Czech border and cross through Werne in Germany and a 200-km section extending to the Belgian system in the Aachen area.
"The pipeline would form a direct link between the Czech and the German gas transport grids of RWE Energy," RWE said. Germany, Great Britain, and the BeNeLux countries are the proposed customers for gas supplies from the Caspian Sea area, the Middle East, and Egypt.
The $1.3 billion project is another European route intended to diversify its significant reliance on Russia, however RWE did not rule out sourcing Russian gas supplies.
An RWE spokeswoman told OGJ the pipeline would bring in regasified LNG from its proposed 7.3 million tonne/year Adriatic terminal in Croatia, which will start operations in 2011. She said the Czech pipeline could link to other pipelines that could connect to OMV AG's proposed 8 billion cu m/year Nabucco pipeline through southeastern Europe (see map, OGJ, June 13, 2005, p. 60). She emphasized that the project was in the early stages and that nothing has been finalized.
RWE has invited third parties to take up capacity on a nondiscriminatory basis in the Czech pipeline to determine if it should increase its capacity of 5 billion cu m.
To more quickly launch the project, RWE is seeking an exemption from the German Federal Grid Agency and the European Commission's rules on grid regulation, stressing that the infrastructure improves supply security and increases competition.
Berthold Bonekamp, CEO of RWE Energy AG said: "We want to invest in new capacities. Additional gas procurement options in Europe promote competition."
Contact Uchenna Izundu at [email protected].