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Fluxys Indicative Investment

Programme 2010-2019 for


the Development of Natural Gas
Infrastructure in Belgium
Table of
contents 1 2
TRENDS AND DEVELOPMENTS
foreword...................... 4 fluxys in a nutshell.......................6 IN THE EUROPEAN NATURAL GAS MARKET........ 14

1.1 Mission������������������������������������������������������������ 6 2.1 D


 emand: natural gas will continue to feature
1.2 Vision��������������������������������������������������������������� 6 prominently in the energy mix���������������������������������������������������� 15

1.3 Infrastructure������������������������������������������������� 8 2.2 Supply: European production declining�������������������������������������� 16

1.4 Activities������������������������������������������������������� 10 2.3 N


 atural gas transmission infrastructure:
huge investment needed������������������������������������������������������������� 18
2.4 Initiatives of European institutions��������������������������������������������� 22

2 FLUXYS nEW infrastructure


2 FLUXYS 2OO9
3 4
INDICATIVE 3.1 General approach underpinning the investment programme�� 24 From preliminary study to
investment 3.2 K
 ey elements of the indicative investment commissioning: what are the stages
programme programme 2010-2019���������������������������������������������������������� 25 involved in laying a pipeline? ....................46
2010-2019................... 23 3.3 Estimation of future capacity demand���������������������������������� 26
Capacity to supply points
Capacity at the entry zones 4.1 Preparatory tasks����������������������������������������������������������������� 47
Less balancing zones for domestic transmission In-depth study to determine the optimal route
Partial conversion of the low-calorific natural gas network Different permits
into a high-calorific natural gas network Fluxys appoints a specific contact person for
the owners and users of affected lands
3.4 Key investment projects on the main axes��������������������������� 31
Enhancing the east/west transmission axis 4.2 Laying a pipeline������������������������������������������������������������������ 49
Enhancing the north/south transmission axis Pipeline laying step by step
Additional compression capacity and second pressure- Consultation with land operators during the works
reducing facility in Berneau Compensation for damage
Opwijk - Desteldonk pipeline
4.3 After construction of the pipeline��������������������������������������� 54
Alveringem - Maldegem pipeline
No change to how the plot of land is used
Enhancing capacity on the transmission axis to Luxembourg
Natural gas specifications Legal notification requirement for works in the vicinity
of natural gas transmission pipelines
3.5 Major investment projects for local and regional axes������� 36 Administrative simplification: quick and simple notification
Pipelines via the CICC/KLIM website
New connections for industrial end users and combined
heat and power facilities
Connections for new power stations

3.6 Storage projects��������������������������������������������������������������������� 40


Unless indicated otherwise, the figures and numbers
Capacity enhancement at the underground storage in this publication reflect the situation as at 30 June 2010.
facility in Loenhout When referring to capacities or volumes in cubic metres,
Research into possible underground storage in the Campine it is understood that these are normal cubic metres (a cubic
region of the Province of Limburg metre of natural gas at 0°C and a pressure of 101,325 Pa).
3.7 LNG terminalling projects����������������������������������������������������� 42
 Construction of an Open Rack Vaporizer
 Project for a second capacity enhancement at the
Zeebrugge LNG terminal

3.8 Safety�������������������������������������������������������������������������������������� 44

3.9 Environment��������������������������������������������������������������������������� 45
Systematic reduction of environmental impact
Commitment to joining the global energy efficiency elite

2010 > 2019 3


81e exercice 3
foreword
Fluxys pursues an active investment policy to anticipate changes in natural gas demand in
Belgium, attract new border-to-border gas flows and continue to open its grid to as many sources
of natural gas as possible. By developing its network as a crossroads, Fluxys enhances security of
supply, diversification of sources and the well-functioning of the natural gas market in Belgium
and North-Western Europe.

To take account of market signals, Fluxys updates annually its ten-year indicative investment
programme for its three core activities: transmission and storage of natural gas and terminalling
of liquefied natural gas (LNG) in Belgium. The company has gradually increased its budget
earmarked for investments in Belgium from 2700 million in 2002 to some 22.8 billion in 2009.
This budget was revised downward in 2010 to reach a little more than 22 billion. Fluxys Executive Board
(from left to right)

Pascal De Buck
Commercial Director
Gérard de Hemptinne
Director Asset Management
Walter Peeraer
Chairman of the Executive
Board and CEO
Peter Verhaeghe
Director Infrastructure
Projects & Engineering

Paul Tummers
Director Strategy and
Regulatory Affairs
Michel Vermout
Chief Financial Officer

4 FLUXYS nEW infrastructure


The reason for this drop has partly to do with bringing project budgets in line with market price
trends. In addition, grid users in Belgium as well as elsewhere in Europe have been adopting a
more cautious approach as to booking additional capacity and prolonging their existing contracts.

Against this background, Fluxys has essentially reviewed the scope of its north/south project
(see page 33) to avoid over-investment and associated stranded costs. Current demand for
additional flows can actually be met by using capacity available in the existing infrastructure,
laying a shorter pipeline than initially planned, and building additional compression capacity.

This publication outlines how Fluxys has drawn up its indicative investment programme in Belgium
for the period 2010-2019. The bulk of this programme is earmarked for laying around 700 km of
new pipelines and investments in ancillary stations for natural gas transmission. Investments are
also planned and under way in natural gas storage and liquefied natural gas (LNG) terminalling.
Also provided for are the funds required to keep the natural gas transmission infrastructure in
good condition. Projects have already been approved for nearly 25% of the indicative budget,
the remaining projects still being in a preparatory phase and liable to evolve in line with market
demand, on the basis of which Fluxys annually adapts its rolling ten-year programme.

The aim of Fluxys in publishing this indicative ten-year programme is to give grid users a
comprehensive and anticipatory overview of the investments the company deems necessary
based on the information currently available. However, this plan is also aimed at municipalities,
permitting authorities and people living in the vicinity of the Fluxys infrastructure.

For each new project of any scale, Fluxys makes every effort to ensure that all interested parties
are kept clearly informed right from the preparatory phase, in a spirit of good neighbourliness.
This publication takes that policy a step further, informing you about the entire range of projects
included on an indicative basis in Fluxys’ investment planning process.

2010 > 2019 5


FLUXYS EN BREF

1. Fluxys IN A NUTSHELL
1.1 Mission

Fluxys builds and operates the infrastructure for transmission and storage of natural gas and
terminalling of liquefied natural gas in Belgium. The company has been designated as the
independent system operator in Belgium and in this activity of general economic interest we
aim on behalf of natural gas consumers at competitive tariffs for our services, contributing
to a well-functioning market and security of supply, and we spare no effort to consolidate
our role as a crossroads for international natural gas flows in North-Western Europe. Safety,
efficiency, sustainability and profitability are at the centre of our approach.

1.2 VISION

The natural gas transmission market in North-Western


Europe is evolving into a virtual cross-border unity.
Fluxys plays a key role in developing this integrated
market into an efficient system for suppliers to move
natural gas flexibly from any border point in the region
to their customers.
NORWEGIAN
GAS FIELDS

NETHERLANDS
UNITED KINGDOM

ZEEBRUGGE
GERMANY

LUXEMBOURG
LNG SOURCES
FRANCE

FLUXYS NETWORK: NATURAL GAS CROSSROADS FOR THE NORTH-WESTERN EUROPEAN MARKET
p l a n i n d i c at i f 2 0 0 9 > 2 0 1 8  7
F L U X Y S i n a n u t s h ell

1.3 Infrastructure

Belgium has no natural gas of its own and so is entirely reliant on imports. The interconnection points
on the Fluxys grid connect Belgium to natural gas supplies piped from the United Kingdom, Norway, the
Netherlands, Germany and Russia, while the Zeebrugge LNG terminal enables LNG to be supplied by
seaborne transport from producing countries worldwide. LNG for Belgium is currently sourced mainly
from Qatar. In 2008 and 2009, the Zeebrugge LNG terminal was also used to unload LNG ships from Egypt,
Norway and Trinidad & Tobago.

Fluxys has developed the Zeebrugge area into a central


norwegian crossroads of international natural gas flows in North-
gas fields
Western Europe. The Zeebrugge area has an annual
united kingdom the netherlands
landing capacity of 48 billion cubic metres, which
represents 10% of the border capacity needed to supply
Europe. It is a reception point for LNG imported by
RUSSIa ship as well as the place where two key gas pipelines
LNG BELGIum germany
SOURCES meet: the east/west route between Russia and the UK
and the north/south route between Norway and the
Netherlands, the UK and Southern Europe. Zeebrugge
LUXEMBOURG
is also a key trading centre for the natural gas industry:
FRANCE the Zeebrugge Hub is one of mainland Europe’s most
spain
ITALy important spot markets for natural gas.

8 FLUXYS nEW infrastructure


LNG the netherlands
the netherlands
norway Zandvliet
united kingdom
Poppel / hilvarenbeek
Zelzate
HUB
Loenhout

Bruges Antwerp Dilsen


Zeebrugge Sint-Niklaas
Mechelen norway / germany

Gent Genk

Aalst ‘s-Gravenvoeren
Brussels
Kortrijk norway / germany
Berneau
russia /
germany

Tournai Liège
Eynatten
Verviers

Namur
Charleroi
Sinsin
Mons

Blaregnies bras

france Bastogne
spain
italy Libramont
High calorific gas Arlon
Pétange
Low calorific gas

Interconnection points LUXEMBOURG

LNG terminal

Compressor station

Blending station

Storage

Hub

FLUXYS NETWORK FOR NATURAL GAS TRANSMISSION


2010 > 2019 9
F L U X Y S i n a n u t s h ell

1.4 Activities

Transmission
Fluxys is responsible for the transmission of natural gas in Belgium to industrial consumers
and power stations directly connected to its grid. Fluxys also ensures the transmission of
natural gas to distribution system operators, who in turn supply the gas to the SMEs and private
households connected to their distribution systems. The Fluxys grid has connections with
17 distribution system operators. In addition, there are about 250 industrial customers,
combined heat and power facilities and power stations connected directly to the Fluxys grid.
On 30 June 2010, 13 grid users were active in the business of domestic transmission.
Consumption in Belgium represents some 17 billion cubic metres of natural gas per year, or
3% of the overall European consumption.

Fluxys also accommodates border-to-border natural gas flows for other markets in Europe:
France, the Netherlands, Germany, Spain, Italy, the UK and Luxembourg. Some 40 grid users are
active in the business of border-to-border transmission. Long-term booked capacity for border-
to-border flows amounts to approximately 95 billion cubic metres per year, corresponding to the
capacity needed for supplying nearly 20% of the European Union.

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210
Large industrial
end-users

18
Combined heat

3,900 km & power units

Fluxys grid
High pressure

17 bcm/year
18 Transmission for supply
in Belgium 24 95
interconnection Power bcm/year
points stations Long-term booked
capacity in the
Fluxys network for

17 border-to-border
transmission
Grids of distribution
system operators

Households
60,000 km
Low pressure

SMEs

FLUXYS’ ROLE ON THE NATURAL GAS TRANSMISSION MARKET


2010 > 2019 11
F L U X Y S i n a n u t s h ell

LNG Terminalling
Fluxys LNG provides LNG terminalling services at the Zeebrugge LNG terminal, where LNG ships
can be loaded or unloaded. The LNG is kept in cycling storage at the facility and can be regasified
and injected into the grid for transmission or be reloaded onto LNG ships.

In April 2008, Fluxys finalised the investments to increase the terminal’s annual capacity from
4.5 to 9 billion cubic metres of natural gas by commissioning a fourth storage tank and additional
regasification facilities. The overall capacity of 9 billion cubic metres of natural gas per year (i.e.
a little more than 7 million tonnes of LNG) has been booked through long-term agreements with
3 terminal users.

Commissioning of the fourth storage tank has increased the terminal’s cycling storage capacity
from 240,000 to 380,000 cubic metres of LNG, which corresponds to two or three times the cargo
of a standard LNG ship. As for the additional regasification facilities, they increased send-out
capacity from 950,000 to 1.7 million cubic metres of natural gas per hour: the entire cargo of a
standard LNG ship can be regasified and injected into the grid in about two days.

Q-Flex-type ships with a capacity of 217,000 cubic metres of LNG have been able to use the
Zeebrugge terminal since the summer of 2008. In 2010, Fluxys LNG loaded LNG for the first time
on a small capacity LNG ship (with a volume 20 times smaller than a standard LNG ship) in a
Liquefied natural gas
trial operation. Fluxys LNG considers to develop this activity according to market demand so as to
Liquefying natural gas enables
expand the services offered at the LNG terminal and offer customers greater utilisation flexibility. it to be transported over huge
distances by LNG ship from
producer countries to end-user
The LNG terminal in Zeebrugge also expanded its services in 2010 with LNG truck loading, a markets. Natural gas is liquefied
particularly useful alternative for supplying natural gas to industrial sites in Europe where no by cooling it down to -160 °C.
This reduces its volume by a factor
pipeline supplies are available. The LNG terminal can load 3,300 LNG tanker trucks per year. of 600 and allows large amounts of
energy to be shipped in relatively
The new service offers terminal users the opportunity to further broaden their options in the
small volumes in an economical
destination flexibility for the LNG they have shipped into the facility. and ecological manner.

12 FLUXYS nEW infrastructure


Storage
Fluxys offers natural gas storage capacity to suppliers to the Belgian market so that they can
ensure continuity of supply to their heating customers in periods of colder weather. The service
is offered from its facility in Loenhout where natural gas is kept in storage in an aquifer more
than 1,000 m below sea level. The workable storage volume in Loenhout amounts to 675 million
cubic metres of natural gas.

2010 > 2019 13


T r e n d s a n d d e v elo p m e n t s i n t h e E u r o p e a n n a t u r a l g a s m a r k e t

2. Trends and developments in the


European natural gas market

Natural gas transmission system operators must plan the investments needed to make the required
capacity available to the market in good time. However, market liberalisation and the impact of the
economic crisis bring along that TSOs no longer have a clear view on how the flurry of grid users will
use their networks in the long run. The challenge for TSOs in this climate of uncertainty is to continue
to develop their infrastructure while avoiding both over- and underinvestment.

14 FLUXYS nEW infrastructure


2.1 Demand: natural gas will continue to feature
prominently in the energy mix

Long-term forecasts of natural gas demand uncertain. Forecasts of demand for natural gas consumption
in the long-term tend to diverge far more than in the past. The economic crisis has of course left its mark,
and still does, but consumption is nevertheless expected to return to pre-crisis level as of 2015 and even
exceed that level slightly around 2020. After 2020, natural gas demand will be influenced primarily by
developments in electricity generation and renewable sources of energy.

Natural gas will continue to feature prominently in tomorrow’s energy mix. The purpose of energy policies
is not only to enhance security of supply, but also to reduce greenhouse gas emissions at an acceptable
cost. But what policies will actually be implemented to take up the environmental challenge? And how much
time will such policies take to produce results? Several scenarios have been put forward, but whatever the
scenario, natural gas will continue to feature prominently in tomorrow’s energy mix. From an environmental
point of view, natural gas is the best option among fossil fuels (lower CO2 emissions), and natural gas
technology is more energy efficient than rival technology. In addition, transmission by pipeline and by ship
has a minimal environmental impact compared to other modes of transport. What’s more, all the signs are
that the share of natural gas in Europe’s power generation mix (currently close to 25%) will remain stable,
or even increase, in future. Coal already plays a much less important role in Europe’s electricity production
than natural gas. And when the last of Europe’s coal-fired plants reach the end of their life cycle, they will
need to be replaced. Only natural gas technology can be deployed quickly enough to meet the needs of
power production: alternative solutions such as carbon capture and storage will doubtlessly need more time
to reach maturity. Furthermore, some renewable energy sources such as wind and photovoltaic generate
electricity only intermittently and must therefore be supplemented with back-up production capacity.
And that capacity will very probably rely on natural gas technology because it offers the necessary flexibility.
Finally, natural gas also has major advantages for residential heating and as fuel for vehicles.

2010 > 2019 15


T r e n d s a n d d e v elo p m e n t s i n t h e E u r o p e a n n a t u r a l g a s m a r k e t

2.2 Supply: European production declining

On the supply side in Western Europe, only Norwegian natural gas production has scope for
further expansion. According to Cedigaz, additional production of natural gas in Norway could
cover one-third of the growth in demand for gas imports in Europe up to the year 2020. This
increase in Norwegian production would be used mainly to supply the United Kingdom, which has
been a net importer of natural gas since 2004-2005, as the reserves of the British Continental
Shelf are in decline. In the Netherlands, production from small fields is also waning while
production from the Groningen field has been capped. To meet the growth in European demand,
larger volumes of natural gas will have to be imported from sources further afield.

European Union: evolution of natural gas production

Bcm/y

250

200

150

100

50

2007 2015 2020

Source : Cedigaz, July 2009

16 FLUXYS nEW infrastructure


NORWAY
2,985 CIS
59,631

UNITED KINGDOM
625 NETHERLANDS
1,222
2,000km

IRAN
4,000km
29,050
6,000km QATAR
ALGERIA 25,580
4,504
SAUDI ARABIA + UNITED
ARAB EMIRATES
14,002
TRINIDAD & TOBAGO
500 NIGERIA
5,292

Source : Cedigaz, July 2009

NATURAL GAS SOURCES FOR THE EUROPEAN MARKET (in billion m3)
2010 > 2019 17
T r e n d s a n d d e v elo p m e n t s i n t h e E u r o p e a n n a t u r a l g a s m a r k e t

Unconventional natural gas production could prove an opportunity as well. Some countries
such as the United States have in recent years registered high growth in the production of what
is known as unconventional gas. This is natural gas found particularly in shale or coal layers.
Thanks to technological advances, this type of natural gas can now be extracted at competitive
costs. Unconventional gas production in the United States amounted to 44% of natural gas
demand in 2009. In Europe, the oil and gas industry is beginning to explore the possibilities of
producing unconventional gas as well. The sites currently being explored are located essentially
in the east: Hungary, Poland, Austria and Germany.

2.3 Natural gas transmission infrastructure:


huge investment needed

More pipeline gas from remoter sources. As regards gas piped from sources further afield, all
the signs indicate that Russia will continue to develop as a major producer for Europe.

Against this backdrop, work got under way in 2010 on the undersea Nord Stream pipeline, which
will supply more Russian gas to Europe via north-east Germany. Another remote-source project
on the longer term is the Nabucco pipeline, planned to run through Turkey and Austria and
connect the Caspian region, the Middle East and Egypt with the markets of Central and Western
Europe. There is also the South Stream pipeline project, which would transport natural gas from
Russia via southern continental Europe.

As it goes, the new supply routes do not extend to all consumer markets: downstream of these
major arteries, substantial investment in infrastructure is required to transport the new flows
to their final destinations.

18 FLUXYS nEW infrastructure


Nord Stream

Yamal II ?
NEL
Opal

ZEEBRuGGE

RTR 2 BauMGaRTEN

MET
North/South
White Stream

TaP ?
South Stream

Nabucco
Galsi ITGI
Medgaz

Pipelines Commissioning date

Under construction 2010 2013


Planned or announced 2011 2014
Possible route 2012 2015

MAJOR PIPELINES PROJECTS IN EUROPE


2010 > 2019 19
T r e n d s a n d d e v elo p m e n t s i n t h e E u r o p e a n n a t u r a l g a s m a r k e t

More liquefied natural gas. Europe will also have to further diversify its import portfolio with
liquefied natural gas from the Middle East, Africa and most likely also, albeit to a smaller degree,
from Latin America. LNG actually has the flexibility needed to cover demand peaks, particularly
through the price arbitrage mechanism. According to Cedigaz estimates, LNG imports in Europe
are set to rise from 55 billion cubic metres in 2008 to 115 billion cubic metres in 2015 and may
hit 135 billion cubic metres by 2020. A raft of LNG projects are in the pipeline to build new LNG
terminals or expand existing facilities. In 2009, Europe’s total regasification capacity reached
137 billion cubic metres of natural gas, and additional regasification capacity totalling 54 billion
cubic metres was under construction.

More capacity for cross-border and bidirectional flows. On a European gas market being
unified, major investments are also indispensable to facilitate cross-border flows and to promote
competition between suppliers so that they can provide natural gas to end users at the best price.
A larger number of interconnections between the different Member States must be created,
making sure that they can be operated in both directions so as to enhance security of supply in
the European Union.

20 FLUXYS nEW infrastructure


Nynäshamn

Wilhelmshaven (2) Klaipéda


(1 on hold)
Shannon LNG

Swinoujscie
Rotterdam

MildfordHaven(2) Isle of Zeebrugge


Grain

Le Havre Dunkirk

Montoir
Rovigo Trieste
La Spezia
Fos (2) Krk
El Musel Bilbao
Reganosa Livorno Falconara
Ereglisi
Rosignano Brindisi
Barcelona (on hold)

Sagunto Taranto Izmir


Sines (2) Porto
Empedocle
Cartagena
Gioia Tauro
Revithoussa
Huelva Priolo-Augusta-
Melilli Vasiliko

Existing LNG terminals

Terminals under construction Enhancement under construction

Planned or announced terminals Planned or announced enhancement

LNG TERMINALS AND LNG PROJECTS IN EUROPE


2010 > 2019 21
T r e n d s a n d d e v elo p m e n t s i n t h e E u r o p e a n n a t u r a l g a s m a r k e t

2.4 Initiatives of European institutions

The European Commission’s Third Gas Directive. The European Commission’s Third Gas
Directive imposes tougher requirements in terms of unbundling – i.e. the separation between
trading activities and infrastructure management – and also requires greater cooperation
between national transmission system operators in order to gain a better picture of the capacity
needs through the different grids and to develop synergies between infrastructure investment
projects. To this end, the European Network of Transmission System Operators for Gas (ENTSOG)
has been created, and is responsible for publishing a coordinated ten-year investment plan and
for drawing up a set of network codes in order to harmonise the rules governing system access
and facilitate gas transmission between networks and markets.

Security of supply. Following the dispute between Russia and Ukraine in January 2009, the
European Commission published a proposed Regulation aimed at strengthening security of gas
supply to the internal market. The proposal is currently under discussion between Member States
and gas industry players. It provides for solidarity mechanisms enabling Member States to provide
mutual assistance in the event of a supply interruption. In this connection, the Commission has
highlighted the importance of investments in border-to-border infrastructure and the possibility
to moving gas in both directions at interconnection points between networks.

Support for trans-European infrastructure projects. As part of its economic recovery plan, the
European Commission intends to increase investments and to modernise infrastructure in Europe.
The Commission has thus earmarked 21.4 billion to financially support trans-European projects
such as LNG projects and reinforcements of interconnections between transmission systems
(see pages 32 and 33: Enhancing the east/west transmission axis and Enhancing the north/south
transmission axis).

22 FLUXYS nEW infrastructure


3. Indicative investment
programme 2010 - 2019

2010 > 2019 23


I n d i c at i v e i n v e s t m e n t p r o g r a m m e 2 0 1 0 - 2 0 1 9

3.1 General approach underpinning the investment programme

The Fluxys indicative investment programme 2010-2019 currently amounts to a little over
22 billion. Fluxys has planned expenditures of 21.7 billion for the period 2010-2015 alone, i.e.
the equivalent of 80% of its investment programme.

Fluxys updates its indicative ten-year investment programme each year. For these updates, due
account is taken of the changing needs for natural gas supply, requests for additional connections
and new needs of grid users as identified through market consultations among other things.

When updating its investment programme, Fluxys carries out simulations on the grid as it
currently stands. These simulations use data covering expected development of demand for
transmission capacity and expected use of entry zones. Several scenarios are considered to
take account of different flow configurations, peak consumption conditions in Belgium, and the
maximum tolerance for imbalance on the Fluxys system.

For each scenario, Fluxys examines what investment is needed to ensure continuity of service
at economically justified conditions. Fluxys also attaches great importance to working closely
with adjacent grid operators as the success of certain projects on Fluxys’ own grid requires
consultation and agreement on the nature and timing of investment in neighbouring grids.

This approach allows Fluxys to anticipate market needs as effectively as possible while taking
into account the time required to complete a project. In Belgium, infrastructure projects on any
significant scale take a good five to six years to complete.

24 FLUXYS NEW infrastructure


3.2 Key elements of the indicative investment programme 2010-2019

Opening up the grid to as many sources as possible to ensure maximum INDICATIVE INVESTMENT
diversification of sources, thus contributing to security of supply. PROGRAMME 2010-2019 OF FLUXYS:
% DECIDED, PLANNED, NOT ASSIGNED
Making new capacity available to cover the expected demand growth
in transmission capacity in Belgium (capacity increase of around Not assigned

20 to 30% by 2019). 17% Decided

Strengthening the role of the Fluxys network as a crossroads for 23%


international natural gas flows in North-Western Europe by making
additional border-to-border capacity available as agreed with grid users
through long-term contracts. Planned

Moving towards a virtual marketplace for the Belgian market. 60%


I ncreasing capacity and availability at the Loenhout underground
natural gas storage facility.
■ Decided
Systematically reducing the environmental impact of the company’s
Projects approved for realisation.
activities.
Maintaining the security, integrity and reliability of the infrastructure. ■ Planned
Projects still waiting for approval before
realisation, but for which expenditures can

2
already be made.
MORE
THAN w
■ Not assigned
BILLION
Budgets in the investment programme
Breakdown by type of activity Breakdown by type of investment 2010-2019 for projects not identified for
Services / ICT the time being, such as the construction
Other (buildings,
Storage
6% 4% 2% purchase of land, of pressure-reducing stations. Today, real
6% Keeping the network small equipment, ...)
Terminalling in good condition projects are only known for part of the period
Transmission
88% 20% of the investment programme. For the other
Network
extension / years, Fluxys takes into account historical
enhancement
data to determine the indicative budget in
74% the investment programme.

2010 > 2019 25


I n d i c at i v e i n v e s t m e n t p r o g r a m m e 2 0 1 0 - 2 0 1 9

3.3 Estimation of future capacity demand

Capacity to supply points

Two consumption profiles. In estimating future demand for transmission capacity in Belgium,
Fluxys draws a distinction between the consumption profiles of different categories of end users:
R
 esidential consumers connected to local distribution grids have a consumption profile that

is sensitive to temperature variations.


I ndustrial consumers and power stations have a consumption profile that is less dependent
on temperature variations.

Local distribution: sufficient capacity for peak day consumption. As for local distribution, Fluxys
calculates the capacity that has to be available in its grid to be able to transport the quantities of
natural gas consumed in a day at an equivalent temperature of -11°C in Uccle (calculated daily
average). The corresponding consumption is known as peak day consumption.

In its indicative investment programme 2010-2019, Fluxys uses the following variables to estimate
the growth in local distribution demand:
T
 he annual growth percentage used by CREG (i.e. 1.4%) in its study (F)090713-CREG-874 on

‘natural gas supply needs, security of supply and development of the infrastructure 2009-2020’;
T
 he forecasts of distribution system operators: under their cooperation agreements with

Fluxys, they provide the company with their growth forecasts for the next five years;
A
 winter consumption analysis: each year, Fluxys carries out an analysis of consumption

through local distribution during the previous winter.

26 FLUXYS NEW infrastructure


Industrial consumers and power stations: capacity according to market demand. In estimating
the evolution of the capacity required for industrial consumers and power stations, Fluxys takes
as its basis the requests for new connections, capacity increases and disconnections from its grid.
To determine the time at which new capacity must be available, Fluxys looks at the commissioning
date requested by end users. Obviously, the requested commissioning date must be compatible
with the time needed to build the connection and perform any necessary grid upgrades. Most ‘new
capacity’ requests currently registered by Fluxys pertain to the period 2010-2015.

Estimation of growth in capacity demand

Capacity (in thousand m3/h)


8000
7000
6000
5000
Local 4000
distribution
3000
Industry, power
stations, combined 2000
heat and power units
1000
Total
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

The graph shows the rise in average hourly capacity that has to be available during a day of peak
consumption: the capacity demand of local distribution, industry and power stations grows by
approximately 30% over ten years according to the Fluxys reference scenario. This scenario
takes into account all the capacity enhancement or new connection projects that have reached a
sufficient degree of maturity. If only projects in progress are taken into account, capacity demand
over ten years increases by about 20%.

2010 > 2019 27


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Capacity at the entry zones

In estimating the capacity increases that will be needed at the entry zones, Fluxys takes as much
account as possible of the available information on upstream capacity, planned investments in
neighbouring countries and the development of booked capacity in Belgium.

In 2008 and 2009, Fluxys has assessed market interest in domestic transmission capacity for the
short and medium term. For border-to-border transmission capacity, Fluxys organises market
consultations, wherever possible in conjunction with the relevant neighbouring grid operators.

These consultations enable the company to assess the interest in booking new long-term border-
to-border capacity in a given direction.

If a consultation results in the signing of new


contracts for a sufficient volume of additional
capacity, a new project is launched.

28 FLUXYS NEW infrastructure


+90
+720 +180
+500 +125
Poppel
Zandvliet
Zeebrugge
Loenhout
Zelzate

0 +350

‘s-Gravenvoeren Eynatten

2010 The chart shows the overall weight of the various entry zones for all current contracts. Zeebrugge’s share
High calorific gas
in the expected growth of capacity at the entry zones to the high-calorific grid remains sizeable, while that
2010 of Eynatten and Zandvliet increases substantially. Zelzate recently has become a new interconnection
Low calorific gas
point for firm entry from the Netherlands.
2016

Capacity evolution at the entry zones (in thousand m3/h)


2010 > 2019 29
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Less balancing zones for domestic transmission

The planned investments by Fluxys will make it possible to veer towards a virtual market place
for the Belgian market. Currently, the Fluxys high-calorific gas transmission system is subdivided
into three balancing zones with specifically defined transfer capacity levels between them. These
three zones will be merged into one single balancing zone to the benefit of the market.

Partial conversion of the low-calorific natural gas network into a high-calorific


natural gas network

The Fluxys grid consists of two separate grids: one for the transmission of low-calorific natural
gas from the Netherlands, and the other for the transmission of high-calorific natural gas from
the North Sea, Russia and LNG sources.

Future supply of low-calorific natural gas in Belgium is dependent, among other things, on
changes in suppliers’ purchase contracts and the remaining life cycle of the Groningen gas
field in the Netherlands. Against this backdrop, the Federal Public Service Economy has set up
a Task Force comprising Fluxys, distribution system operators, natural gas suppliers and the
authorities. The Task Force’s role is to establish the medium term security of supply outlook with
regard to low-calorific natural gas in Belgium. Various lines of approach will be considered on
the outcome of the task force’s work.

30 FLUXYS NEW infrastructure


3.4 Key investment projects on the main axes

Maldegem

Desteldonk Winksele
Opwijk
‘s-Gravenvoeren
Alveringem
Eynatten
Berneau

Saint-Amand Ben-Ahin

Bras

2010 > 2019 31


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Enhancing the east/west transmission axis

Opwijk EYNATTEN

In February 2009, Fluxys decided to build new capacity on the east/west Zeebrugge-Zelzate/Eynatten
transmission axis (RTR). This new capacity will enable Fluxys to meet demand evolution on the Belgian
market, open up the transmission system to as many natural gas sources as possible and continue to enhance
the role of the Fluxys network as a natural gas crossroads. As for border-to-border transmission, long-term
agreements have been concluded for an additional capacity of around 10 billion cubic metres a year on the
east/west axis following a market consultation launched in June 2005.

The project involves the construction of a 170-km bidirectional pipeline on the route from Eynatten to Opwijk
(RTR2 project) parallel to the existing Zeebrugge-Zelzate/Eynatten pipeline. Work on the RTR2 pipeline
began in early 2010; the larger part should be completed by the end of 2010, with te remaining section to be
finalised in 2011. As the east/west transmission axis upgrade is an important step in strengthening security
of supply in Europe, RTR2 is listed among the European Commission‘s priority projects for the development
of trans-European energy networks. The east/west project is also earmarked for co-funding through the
European Energy Programme for Recovery. The new transmission capacity also fosters continued liquidity
growth at the Zeebrugge Hub and therefore greater market fluidity, benefiting both international players
and suppliers to the Belgian market. In addition, the new infrastructure will offer Belgian market suppliers
greater flexibility in importing natural gas at the entry point of their choice.

Co-financed by the European Union


European Energy Programme for Recovery

The sole responsibility of this publication lies with the author. The European Union is
not responsible for any use that may be made of the information contained therein.

32 FLUXYS NEW infrastructure


Enhancing the north/south transmission axis

The market consultation on new east/west transmission capacity conducted in 2005 also pointed
to interest in new capacity between Belgium and France. In order to specifically assess the need
Winksele for additional north/south capacity, Fluxys launched another market consultation in April 2007
Berneau

in coordination with adjacent grid operators.


Saint-Amand

This market consultation was brought to a successful conclusion in December 2008. Several
grid users then booked new capacity from Zeebrugge, ’s-Gravenvoeren (Belgian-Dutch border)
or Eynatten (Belgian-German border) to Blaregnies (Belgian-French border). In the meantime,
some grid users have revised their demand downward, both in Belgium and downstream in the
GRTgaz network, leading Fluxys to downsize the initial north/south project in order to avoid
overinvestments.

In this new configuration, the Fluxys indicative investment programme provides for laying a
new pipeline between the Winksele compressor station and Saint-Amand. The programme also
includes capacity enhancements in the compressor stations at Winksele and Berneau.

As the Winksele – Saint-Amand pipeline will be connected to the RTR pipelines, the north/south
project will trigger improved diversification of natural gas sources and security of supply. It will
also support the development of the natural gas market in the Walloon Region, thanks to the
potential along the route for creating new injection points to local distribution networks.

The project for enhancing capacity on the north/south transmission axis has been included in
the European Commission’s list of priority projects for the development of the trans-European
energy networks. The north/south project is also earmarked for co-funding through the European
Energy Programme for Recovery.

Co-financed by the European Union


European Energy Programme for Recovery

The sole responsibility of this publication lies with the author. The European Union is
not responsible for any use that may be made of the information contained therein.

2010 > 2019 33


I n d i c at i v e i n v e s t m e n t p r o g r a m m e 2 0 1 0 - 2 0 1 9

Additional compression capacity and second


pressure-reducing facility in Berneau

Berneau

The enhancement works at Berneau will make it possible to combine gas flows on the east/west
and north/south routes more flexibly. Additional compressor facilities are being built with a view
to complete the works in 2011. The new facilities will make it possible to increase the pressure
of natural gas from the ’s-Gravenvoeren - Blaregnies pipeline (SEGEO pipeline at 66 bars) for
onward transmission in the RTR (Zeebrugge/Zelzate-Eynatten) and RTR2 (Opwijk-Eynatten)
pipelines at 84 bars.

To enhance existing pressure-reducing capacity for transfers from the RTR pipeline (Zeebrugge -
Zelzate/Eynatten) to the SEGEO pipeline (’s-Gravenvoeren - Blaregnies), a second pressure-reducing
facility was completed in 2010. The investments at the Berneau compressor station also fit in with
the future evolution towards a virtual market for domestic transmission of high-calorific natural gas.
In the longer run, additional firm capacity could be offered from the entry point in ‘s-Gravenvoeren.

Opwijk - Desteldonk pipeline


To meet demand for additional capacity, Fluxys has also plans to lay a second pipeline along
Desteldonk
Opwijk
the RTR route between Opwijk and Desteldonk. The Ghent-Zeehaven section of this pipeline
will be laid in 2010-2011 and the other sections are scheduled for 2012 and 2013. Depending
on the evolution of market demand, Fluxys also plans to extend this pipeline from Desteldonk
to Zomergem.

34 FLUXYS NEW infrastructure


Alveringem - Maldegem pipeline
Maldegem At the end of May 2010, Fluxys and French system operator GRTgaz launched a joint market
Alveringem
westhoek
consultation to assess the interest in long-term agreements for firm natural gas transmission
capacity from France to Belgium. Firm transmission capacity is now available only in the
direction from Belgium to France, at the interconnection between the Fluxys and GRTgaz grids
in Blaregnies/Taisnières. The project depends partly on the project to build an LNG terminal in
Dunkerque. In a first phase, grid users have expressed sufficient interest to launch the binding
phase of the market consultation. Depending on the level of long-term capacity that grid users
will book, a new interconnection point between France and Belgium can be built at Alveringem
(West Flanders), with a pipeline to be laid between Alveringem and Maldegem (East Flanders)
to connect this new interconnection point to the Zeebrugge area. The aim of Fluxys and GRTgaz
is to make new capacities available to the market by 2015, but the actual commissioning date
will depend not only on the scale and nature of the investments required but also on lead times
for obtaining permits and licences both in France and Belgium.

Enhancing capacity on the transmission axis to Luxembourg


In June 2009, Fluxys launched a market consultation to assess the interest for future transmission
capacity to the Grand Duchy of Luxembourg. Upon closure of this market consultation in February
Ben-Ahin 2010, Fluxys had received capacity bookings for the period 2015-2025 that justify the construction
(in 2012) of a pipeline between Ben-Ahin and Bras on the transmission axis to Luxembourg. This
Bras

investment is to ensure security of supply for the Grand Duchy of Luxembourg in the long term
and at the same time creates potential for new connections with local distribution networks in
the Walloon Region.

Natural gas specifications


The composition of natural gas supplied and the standards applicable at interconnection points
vary from one European country to another. In many cases, these variations hinder the free
movement of cross-border flows. Against this background of divergent standards, Fluxys has
plans for a facility to optimise the use of its grid. However, network interoperability will in the long
run have to be secured through the harmonisation of natural gas specifications at interconnection
points. Fluxys continues to be one of the pioneers in the process of developing harmonised
specifications within the European gas industry.

2010 > 2019 35


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3.5 Major investment projects


for local and regional axes

Pipelines
Fluxys’ indicative investment programme 2010-2019 includes plans to lay around 300 km of
pipelines to enhance supply capacity in several regions of Belgium.

The Dilsen-Boslaan (2010), Olen-Ham (2013) and Tongeren-Genk (2013) pipelines to enhance
security of supply in the Campine region of the Province of Limburg and to ensure new connections
to the Fluxys grid, e.g. the power station in Dilsen.

The Lommel-Ham-Tessenderlo (2010) and Tessenderlo-Diest (2013) pipelines to enhance supply


capacity in the Province of Limburg and in particular to connect a new combined cycle gas turbine
plant on the Tessenderlo Chemie site. These pipelines will also enable the Province of Limburg
to switch partially over to high-calorific natural gas (see page 30).

The Warisoulx-Vedrin-Namur pipeline (2010) to increase network capacity in the Meuse valley.

The Péronnes-Leernes-Dampremy pipeline (2010-2011) in the La Louvière and Charleroi area,


to allow for the connection of a power station in Marcinelle.

The Wilsele-Loenhout pipeline (2012/2013) to keep up with standards for security of supply of
high-calorific natural gas in the Antwerp region and to develop supply capacity to and from the
underground storage facility in Loenhout. The pipeline will also make it possible to supply the
Antwerp region and Loenhout from two different pipeline systems.

36 FLUXYS NEW infrastructure


Loenhout

Oosterweel

Brugge Lommel
Olen Ham
Kruibeke Balen Dilsen
Beringen
Tessenderlo Boslaan
Genk
Zwijnaarde Diest
Wilsele
Denderleeuw Leuven Tongeren
Lixhe

Angleur-Belle-Ile
Warisoulx
Quevaucamps Beloeil
Manage
Obourg Namur
Aisemont
Dampremy
Leernes
Péronnes

PIPELINES: LOCAL AND REGIONAL ENHANCEMENT


2010 > 2019 37
Commissioning date

2010 2013

2011 2014

2012 2015

Capacity in m3/h

12 000 6 000
24 000

In addition to new connections for industrial end users and combined heat and power
facilities, the indicative investment programme also provides for the construction of new
pressure-reducing stations to cover demand growth from local distribution systems.

38 New connections for industrial end users and combined heat and power facilities
FLUXYS NEW infrastructure
Capacity in m3/h

35 000
70 000

140 000

Fluxys’ indicative investment programme also includes projects for new power stations, taking into account network balance constraints.
A positive investment decision for such projects is only made when a connection agreement with due reservation of firm capacity has
been concluded. The connections featured on the map are all connections for which the investment decision has been made. One of the
major challenges the company continues to face is that the lead times for obtaining the permits required to lay a pipeline by far exceed
the time it takes to build a power station.

Connections for new power stations


2010 > 2019 39
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3.6 Storage projects

Capacity enhancement at the underground storage facility in Loenhout


Fluxys has since 2007 carried out work to progressively increase the workable storage capacity
in Loenhout by 15% over a period of four years (2008-2011) from 600 to 700 million cubic metres
(total volume of 1.4 billion cubic metres). Workable storage capacity reached the 675 million m3
mark in 2010.

Utilisation flexibility of the underground storage facility is also being enhanced: emission capacity
will increase from 500,000 to 625,000 cubic metres per hour and injection capacity from 250,000
to 325,000 cubic metres per hour.

40 FLUXYS NEW infrastructure


Research into possible underground storage


in the Campine region of the Province of Limburg
In collaboration with the Flemish Institute for Technological Research (VITO) and the Limburg
Investment Company (LRM), Fluxys is currently looking into potential underground storage sites
for natural gas in the Campine region of the Province of Limburg.

Seismic research was carried out in November 2007 in Bree, Maaseik, Kinrooi and Dilsen-Stokkem to
chart the deep subsurface. Since then, seismic research by VITO geologists has revealed that possible
storage structures may be present. In order to confirm the subsoil characteristics of the area and
to analyse the structures which might be used as a reservoir, Fluxys and VITO are considering an
exploratory drilling in 2011.

2010 > 2019 41


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3.7 LNG terminalling projects

Construction of an Open Rack Vaporizer


In the framework of the environmental licence for the first capacity enhancement of the
LNG terminal in Zeebrugge, Fluxys has over the past few years been looking at whether it would
be conceivable to complement the new regasification facilities with a second combined heat and
power installation or with a series of Open Rack Vaporizers (ORVs). These vaporizers, which
regasify LNG using the heat present in seawater, can considerably reduce energy consumption
as well as carbon dioxide, nitrogen dioxide and noise emissions.

In 2009 Fluxys decided to invest in the construction of an Open Rack Vaporizer at the Zeebrugge
LNG terminal and initiated discussions with the relevant federal and regional authorities
concerned. The competent authorities issued the environmental permit for the ORV project in
July 2010 and works got under way in autumn. The facility could be commissioned by the end
of 2011 at the earliest.

Project for a second capacity enhancement at the Zeebrugge LNG terminal


Fluxys LNG launched a market consultation in late 2007 to assess interest in a second capacity
enhancement at the LNG terminal in Zeebrugge. Several players in the LNG sector have shown
non-binding interest. In 2010, Fluxys LNG, in close cooperation with the Bruges port authority
and the competent administrative authorities, has thoroughly studied the technical and economic
feasibility of the project as well as the nautical and security aspects.

Depending on the long-term capacity contracts that may be concluded, Fluxys LNG envisages to
take a two-step approach as to the capacity enhancements that might be triggered by the market
consultation. As the project to enhance capacity at the LNG terminal in Zeebrugge depends on
decisions that will be taken in neighbouring countries to develop new regasification capacity,
Fluxys deems it important to invest in phases so as to avoid stranded costs.

42 FLUXYS NEW infrastructure


phase 2

phase 1

Phase 1: construction of a second jetty. In a first phase, Fluxys LNG considers to build a second jetty for
accommodating both standard LNG ships and LNG vessels of very small capacity. The earliest commissioning
date for the second jetty would be 2013.

Phase 2: Fluxys LNG could build a fifth storage tank and additional regasification capacity on the existing
site of the LNG terminal in a second phase. The new storage and regasification facilities could be available in
2016. The cost of this second enhancement phase is not included in Fluxys’ indicative investment programme.

2010 > 2019 43


I n d i c at i v e i n v e s t m e n t p r o g r a m m e 2 0 1 0 - 2 0 1 9

3.8 Safety

Every investment project includes a section for safety provisions. Nevertheless, there are some
projects whose main or even sole purpose is to make infrastructure safer. Such safety projects
include for example works to safeguard the integrity and accessibility of pipelines, works to
modify and replace infrastructure and works to improve and expand fire-fighting resources.

44 FLUXYS NEW infrastructure


3.9 Environment

Systematic reduction of environmental impact


Traditional modes of transmission are no match for underground pipelines when it comes to
use of space, safety, energy efficiency or environmental impact. Fluxys’ environmental policy
is geared towards a continued and systematic reduction of the already minimal environmental
impact during the design, construction, operating and dismantling phases of any infrastructure.

Commitment to joining the global energy efficiency elite


In 2006, Fluxys voluntarily joined the Flanders Benchmarking Covenant on energy efficiency
(Benchmarking Convenant Vlaanderen). In so doing, the company has committed itself to channel
the necessary investments into its facilities with high energy consumption to become and remain
worldwide one of the best companies in terms of energy efficiency.

The benchmarking project involves comparing the energy performance of the relevant company
sites with that of similar sites in other parts of the world on a four-yearly basis. Proposals are then
drawn up to increase energy efficiency.

Pursuant to the covenant, Fluxys has drawn up several energy management plans listing all the
changes required to bring the energy efficiency of facilities up to the level of the best companies in
the world in 2006 and to maintain that position in 2012, when an even more rigorous benchmark
will be set. The last changes required for Fluxys to fully comply with the first (2006) benchmark
were introduced in 2008.

Under the covenant, a number of compressors were replaced at the Weelde compressor station and
other compressors are being replaced at the Berneau compressor station. As for the LNG terminal,
Fluxys has decided to build an Open Rack Vaporizer, which uses the heat in seawater to regasify
LNG (see page 42). This installation will considerably reduce energy consumption as well as carbon
dioxide, nitrogen dioxide and noise emissions.

2010 > 2019 45


4. From preliminary study to
commissioning: what are the stages
involved in laying a pipeline?

46 FLUXYS nEW infrastructure


4.1 Preparatory tasks

When a capacity requirement is identified, it takes between three and six years for a Fluxys
pipeline to become operational after the preliminary study has been launched. The pipeline’s
route has to be chosen extremely carefully, in close cooperation with various bodies. Furthermore,
various permitting procedures must be completed and it also takes time to reach agreements
with the owners and operators of the plots of land involved.

In-depth study to determine the optimal route


As part of the preliminary study, Fluxys examines various possible routes to bring the natural gas
from point A to point B. When choosing the route, all industrial and residential areas, whether
existing or planned, are taken into account. Fluxys also evaluates the risks in the areas affected
by the future pipeline in order to take any specific technical measures that may be necessary.
Special attention is given to farming areas, archaeological sites and the conservation of animal
and plant life.

For example, Fluxys takes measures to protect the various ecosystems in the affected areas.
The chosen route avoids traversing areas of ecological interest, such as nature reserves, as
much as possible. If, for one reason or another, it is impossible to bypass these areas, Fluxys
requests certified experts to carry out all mandatory environmental impact assessments (EIAs).
The experts will then draw up a list of all the measures that Fluxys must take during the execution
of the project in order to minimise the environmental impact.

During the preliminary study, Fluxys holds informal meetings with the relevant local, regional and
federal bodies, and every effort is made to take into account the demands that are put forward.
Fluxys then asks authorities and utilities for a written opinion on the pipeline’s route. Lastly,
Fluxys contacts the owners and users of all the lands that may be concerned, in order to tell
them about the pipeline construction project.

2010 > 2019 47


w h a t a r e t h e s t a g e s i n v ol v e d i n l a y i n g a p i p el i n e ?

Different permits
Depending on the optimal route selected for the pipeline and the results of the studies carried
out, several permits must be obtained before the works can begin:
D
 eclaration of public utility ;

P
 rocedure for environmental impact assessment at plan level and project level, if any ;

R
 eview of the regional spatial implementation plan ;

T
 ransmission licence ;

T
 own planning permit ;

I f, for example, a pressure-reducing station must also be built, a specific environmental licence
is required as well.

During the procedures to obtain these various permits and licences, local authorities as well as
owners and users of the affected lands are repeatedly consulted. Only when all the procedures
have been successfully completed will Fluxys start the works for laying the pipeline.

Fluxys appoints a specific contact person for the owners and users
of affected lands
From the preliminary study to the site restoration phase after a pipeline has been laid, owners and
users of affected properties have their own contact person at Fluxys who, from the beginning, is
familiar with their concerns as well as with the characteristics of their land. This contact person
is a member of the Fluxys team of negotiators and is responsible for thoroughly understanding
the interests of the owners and operators of lands concerned and defending them vis-à-vis Fluxys.

During the study phase, a negotiator contacts the landowner in order to sign an easement
agreement. This agreement grants Fluxys permission to use the plot of land for laying a pipeline
and gives Fluxys access to the land for inspection and maintenance purposes afterwards. The
easement agreement sets out an access fee, which is paid to the landowner before preparation
of the working area.

48 FLUXYS NEW infrastructure


4.2 Laying a pipeline

When preparing and laying a pipeline, Fluxys sees to the safety of the pipeline, complying
with any ecological and environmental requirements, and taking all necessary measures
for restoring the site after the pipeline is laid so that farmland can be used as before.

Pipeline laying step by step


Preparation of the working area. Depending on the diameter of the pipeline, an area
of 15 to 36 metres wide must be cleared. This working area is clearly marked out and
temporary fencing is erected wherever necessary. Within this area, Fluxys temporarily
removes any existing obstacles, plant life or crops. It is sometimes necessary to place
temporary mechanical coverings over ditches and, as and when required, drainage
systems may be diverted during the works and layers of sand may be spread to
facilitate transport.

Arable soil separated from other soil layers. The trench for the pipeline is then dug
out. Whenever digging and drilling works are performed, Fluxys ensures that the
arable soil and other soil layers are stored separately on the working area.

Inspection of the pipes. When the working area is ready, the pipes are brought to the
site and welded to each other. The quality of the pipes is checked carefully at the factory
beforehand under the supervision of an authorised independent inspection body.

Lowering the water table is sometimes necessary. The structure and composition
of the ground make it sometimes necessary to lower the water table.

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w h a t a r e t h e s t a g e s i n v ol v e d i n l a y i n g a p i p el i n e ?

Checking the welded joints. Before a pipeline is laid, the pipes are welded to each other
manually or automatically. Every manual weld is checked separately by radiograph and
some are also checked by ultrasound. Every automatic weld is checked by ultrasound
and some also by radiograph. The welds are inspected under the supervision of an
authorised independent inspection body.

Pipelines laid deep in the ground. Fluxys ensures that all pipelines are buried at
least 1.1 m below the surface, the minimum legal depth being 80 cm. Furthermore, an
orange-coloured fluorescent warning mesh and a warning ribbon (detailing the nature
of the product in the pipeline, Fluxys’ name and an emergency telephone number) are
placed some 30 centimetres above the pipeline.

Tests before commissioning. For safety reasons, several tests are performed before
the pipeline is commissioned. The first test is a mechanical strength test: water is
introduced into the pipeline and the pipeline is tested at a pressure that exceeds by far the
maximum pressure at which natural gas will flow through the pipeline. Subsequently, a
leak test is carried out: air is injected into the pipeline in order to test the welds a second
time. These tests are performed under the supervision of an authorised independent
inspection body. After completion of the tests, the pipeline is cleaned and dried.

50 FLUXYS NEW infrastructure


Special pipe protection. The pipes are covered by polyethylene or polypropylene
coating to prevent any form of corrosion, and are moreover equipped with a cathodic
protection system.

Special attention given to site restoration. In order to restore the sites to their original state
as fully and efficiently as possible, Fluxys may use special techniques to lay the pipeline in
specific environments. To lay pipelines in hilly regions for example, clay plugs and peripheral
drainage systems are used so as to minimise disruption to the flow of underground water.

When backfilling the trench, the drainage systems are re-established. The arable
soil and other soil layers are placed back separately and with care so as to enable
the best possible recovery of the soil. All fences, enclosures and boundary marks are
also restored to their original places. The last stage of the operation consists in using
beacons and markers on the surface to indicate the route of the underground pipeline.

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w h a t a r e t h e s t a g e s i n v ol v e d i n l a y i n g a p i p el i n e ?

Consultation with land operators during the works


Before preparation of the working area, a Fluxys negotiator draws up a joint site description
with the land operator. This will identify the characteristics of the plot that Fluxys must take into
account when laying the pipeline and restoring the site. The document also serves as a basis to
assess any damage and award compensation accordingly.

Specific recording process for drainage systems. If Fluxys finds drainage systems while
preparing the working area or digging the trench, the negotiator will draw up a document with
the land operator to describe the situation. This document will then serve as a basis to make
sure that the drainage systems were restored properly once the pipeline has been laid.

Joint evaluation after site restoration. Once a plot has been restored, the negotiator contacts
the land operator again. They jointly assess any damage on the basis of the original inventory.
An adequate amount of compensation is then agreed.

52 FLUXYS NEW infrastructure


Compensation for damage
Agreements with farmers’ organisations. When a pipeline is being laid, farmers are temporarily
unable to use parts of their fields and meadows. Fluxys pays them compensation for this and
also takes special measures as regards throughways and water supply for livestock. Fluxys
also does its utmost to ensure optimum restoration of the land into its original state after the
pipeline has been laid. With a view to handling all these aspects while maintaining good relations,
Fluxys concludes agreements with farmers’ organisations, namely the Fédération Wallonne de
l’Agriculture, the Boerenbond and the Algemeen Boerensyndicaat. This approach has the added
advantage of guaranteeing equal treatment to all parties.

Fair compensation. The new agreement protocols which Fluxys has concluded with the farmers’
organisations in 2009 confirm the existing bonds of cooperation with the farming community
but also introduce new elements. For instance, due to changing market prices, new rates have
been agreed to ensure that farmers receive fair compensation for the financial losses and other
temporary inconveniences associated with the laying of a pipeline. In the spirit of good neighbourly
relations, additional guarantees have also been incorporated to provide compensation for any
other possible damage and to restore land into its original state in accordance with best practices.

p l a n i n d i c at i f 2 0 1 0 > 2 0 1 9  53
w h a t a r e t h e s t a g e s i n v ol v e d i n l a y i n g a p i p el i n e ?

4.3 After construction of the pipeline

No change to how the plot of land is used


The laying of a Fluxys pipeline does not change the spatial implementation plan: agricultural
land remains agricultural land. There is no change to how the land is zoned. After the pipeline is
laid, a plot of land can be used just as before: a field can be worked normally. Special agreements
must be made with Fluxys for specific works such as the replacement of drainage systems.

Legal notification requirement for works in the vicinity


of natural gas transmission pipelines
The presence of a Fluxys pipeline does not entail any kind of dispossession of the property
concerned, but does entail a legal public easement which prohibits carrying out any action
in the vicinity of a pipeline that might damage the natural gas transmission installations or
hinder their operation. Anyone wishing to carry out work in the immediate vicinity of natural gas
transmission infrastructure has therefore a legal obligation to inform Fluxys during the planning
stage and at least 15 working days before beginning work (Royal Decree of 21 September 1988
and amendments).

54 FLUXYS NEW infrastructure


Administrative simplification:
quick and simple notification via the CICC/KLIM website
The CICC/KLIM website (Federal Cable and Pipeline Information Database) is the swiftest legal
way (Royal Decree 2006) to find out whether planned works are situated near Fluxys natural
gas infrastructure. Thanks to the CICC/KLIM website (www.klim-cicc.be), any such works can
be notified quickly, easily and free of charge to Fluxys and over 30 other pipeline and cable
transmission companies.

While the CICC/KLIM is a federal initiative, the KLIP (Kabel -en Leiding Informatie Portaal) is the
Flemish equivalent to notify any works carried out in the Flemish Region to all pipeline and cable
operators. To enable all planned works to be notified both through CICC/KLIM and KLIP, a module
has been developed to permit data exchange between the two systems. Thanks to this module,
applicants for copies of blueprints who are planning to carry out works in the Flemish Region no
longer need to notify the works and request the relevant blueprints both through KLIP and CICC/
KLIM. Notification through KLIP is now automatically transmitted to CICC/KLIM, and works in
the Flemish Region notified through CICC/KLIM are automatically transmitted to KLIP. For the
Walloon and the Brussels Capital Region, CICC/KLIM intends to help devising similar solutions to
those in Flanders once the required regional electronic contact points are to become operational.

www.klim-cicc.be

2010 > 2019 55


Fluxys SA – Registered Office
Avenue des Arts 31
B-1040 Brussels
www.fluxys.com

VAT BE 0402.954.628 – RLP Brussels - D/2010/9484/14


November 2010 – Responsible publisher : Bérénice Crabs – Avenue des Arts 31 – B-1040 Brussels