Proven reserves of natural gas are also minimal in the Visegrad countries, with a combined total of 7.7 Tcf, as of January 2006. Poland, with roughly 75 percent of the Groups total, has an estimated 5.8 Tcf of natural gas reserves, with Hungary at 1.2 Tcf. Slovakia and Czech Republic contain 530 billion cubic feet (Bcf) and 140 Bcf, respectively. In 2003, Poland produced 200 Bcf, which met 38 percent of its domestic natural gas demand. Hungary produced 100 Bcf, accounting for almost a fifth of its demand. Slovakia produced only 10 Bcf and the Czech Republic just 5 Bcf. As the Visegrad countries strive to meet EU membership criteria, natural gas is becoming increasingly important to the regions energy mix. Increased consumption of natural gas, as an alternative to coal, is considered to be a key component of the regions plan to meet the stricter EU environmental regulations. In 2003, natural gas represented approximately 22.3 percent of the Groups total primary energy consumption, up from 16.1 percent in 1993. In 2002, Slovakias per capita natural gas consumption was the highest among the Visegrad Group countries, with Hungary a close second. Russia supplies most of the Visegrad groups natural gas requirements via the Yamal and Brotherhood pipelines. Poland and the Czech Republic import small amounts of natural gas from Germany and Norway. About 80 percent of Hungarys natural gas imports come from Russia through part of the Brotherhood pipeline. Hungary also imports natural gas via the Gyor-Baumgarten pipeline, which is connected to Western Europes natural gas grid. The following companies are responsible for operating each countrys national pipeline grid: Transgas (Czech Republic); Mol (Hungary); Polish Oil and Gas Company (POGC) (Poland); and Slovensky plynrensky priemysel (SPP) (Slovakia).
Given increased domestic natural gas production and flat demand, Poland has had difficulty in maintaining its Russian, Danish, and Norwegian current contracts in their present form, with the POGC amending or deferring some of the contracts. Nonetheless, POGC currently is looking to diversify its natural gas suppliers, particularly after Gazprom cut off supplies to Belarus in February 2004, thus affecting Polands natural gas supply. One option is the construction of a new pipeline from the German town of Bernau to Polands Szczecin. In March 2004, Bartimpex, the company leading the project, announced that it wants to move ahead with the pipeline which would have an annual capacity of 88 Bcf, with the potential of increasing to 177 Bcf per year. Bartimpex announced its continuiog interest in the project in December 2005, although potential funding is still unclear.
In February 2003, POGC and Gazprom renegotiated their original 25-year take-or-pay Yamal pipeline contract signed in 1996, reducing Polands imports from Russia by about a quarter, from 7.7 Tcf to 5.7 Tcf, for the years 2003-2022. The Polish government reportedly is looking to amend the current contract in order to allow Poland to re-export natural gas to other surrounding countries. This would likely be similar to an amended contract between Italys Eni and Gazprom, which allowed Italy to re-export natural gas. The Yamal pipeline, which began operations in September 1999, transports natural gas from the Yamal (West Siberia) field in Russia to Poland, where it is further distributed to Germany and to other Western European countries. EuRoPol Gaz operates the Polish section, in which both POGC and Gazprom each hold a 48 percent share. A consortium of Polish firms called Gas Trading owns the remaining 4 percent. Getting the pipeline up to capacity required the construction of three additional compressor plants Szamotuly, Ciechanow and Zambrow. The first two compressor plants are currently in operation and the third is expected to be inoperation in 2006. Plans to build a second pipeline (Yamal II) have been postponed indefioitely/
In July 2001, POGC reached an agreement with Dansk Olie og Naturgas (DONG) to import 565 Bcf of natural gas over eight years, starting in 2003. This was to be done through a planned $330 million, 186-mile pipeline under the Baltic Sea. The project, however, was deferred because Polands natural gas demand was less than expected. Both parties reportedly have been considering revising down natural gas deliveries, as well as ways to re-export natural gas delivered to Poland. In December 2003, POGC and Norways Statoil terminated their original natural gas supply agreement (signed in September 2001), due to insufficient natural gas demand projections in Poland to justify building a new Baltic seabed import pipeline. Statoil is currently in a dialogue with the POGC over reduced natural gas deliveries to Poland, which would have to be sent through new or existing infrastructure. The original contract included the delivery of 2.6 Tcf of natural gas over 16 years, as well as the construction of $1.1 billion, 683-mile pipeline. Another alternative to Russian supplied natural gas is the planned Nabucco pipeline, bringing natural gas from the Caspian Sea region to Europe. A consortium, comprising MOL, Botas, Boru Hatlari ile Petrol Tasima AS (Turkey), Bulgargaz EAD (Bulgaria), and SNTGN Tranzgas (Romania), OMV (Austria), is heading up the project which could start deliveries as early as in 2011. In January 2006, OMV announced that the joint venture was in the process of signing up potentail buyers for the gas. It is planned that the pipeline would run 2,000 miles across Turkey to Austria via Bulgaria, Romania, and Hungary. The line would cost an estimated $5.35 billion to build.