Coverage of the investment costs for local producers for the injection of green gas in the Belgian grid

    Request a gas connection or adopt your existing gas connection

    Local producers of green gas may request a gas connection or adopt their existing gas connection. To facilitate this, works may need to be carried out on your property (private domain) and/or the Fluxys network (public domain).

    The costs for these works depend on several factors, including the length and diameter of the connection, the injection station as well as the complexity of the required works.

    To promote the injection of green gas into the transmission network, Fluxys supports these connections via financial contributions on the investment costs. Fluxys will:

    1. bear 50% of the costs related to the injection station; and
    2. apply an additional financial contribution in case the local producer of green gas owns and operates the compression, and will bear:
    • for a pipeline shorter than or equal to 500 meters, the entire pipeline costs;
    • for a pipeline longer than 500 meters, the pipeline costs for the first 500 meters, the section longer than 500 meters is covered by Fluxys for 50%

    with a maximum of 50% of the difference between the costs for Fluxys when the injection station with compression is owned and operated by Fluxys and the costs for Fluxys when the injection station with compression is owned and operated by the local producer.

    Below is a calculation example to clarify the part of the investment costs borne by Fluxys when the injection station with compression is owned and operated by the local producer.

    • Injection station with compression costs if owned and operated by Fluxys: 7.000 k€
    • Injection station with compression costs if owned and operated by the local producer: 2.000 k€
    • Pipeline costs: 3.000 k€
    • Pipeline length: 1.500 m
    1. 50% of the injection station = 1.000 k€
    2. Additional financial contribution:
    • Maximum amount borne by Fluxys: (7.000 k€ - 2.000 k€) * 50% = 2.500 k€
    • Financial contribution for the first 500m: 3.000 k€ * (500/1.500) * 100% = 1.000 k€
    • Financial contribution for the remaining pipeline: 3.000 k€ * (1.000/1.500) * 50% = 1.000 k€
    • The financial contribution of 2.000 k€ is not higher than the maximum amount borne by Fluxys (2.500 k€)
    • The applied pipeline costs for the determination of the cash payment and the financial guarantee are 3.000 k€ - 2.000 k€ = 1.000 k€

     

    Works on the private domain

    All costs related to works carried out by Fluxys on your private domain are entirely borne by you. These costs will be specified in your Offer and must be paid according to the following schedule:

    • 25% upon signature of the Offer;
    • 25% upon procurement of the required materials; and
    • The remaining 50% upon commissioning of the connection.

     

    Works on the public domain

    A portion of the costs associated with works on the Fluxys network (public domain) will be covered by Fluxys. In return you or your supplier must commit to booking the annual transmission capacity specified in your Offer for the duration indicated therein.

    This long-term commitment must be secured by a financial guarantee, the amount of which will be specified in your Offer.

    Any cost for the public domain works that remains payable by you will be detailed in the Offer and must be paid according to the following schedule:

    • 25% upon signature of the Offer;
    • 25% upon procurement of the required materials; and
    • The remaining 50% upon commissioning of the connection.

     

    Financial guarantee requirements

    The financial guarantee must be satisfied through one of the following options:

    • Holding an acceptable credit rating; or
    • Providing an unconditional and irrevocable parent company guarantee (PCG) issued by your parent company with an acceptable credit rating; or
    • Submission of a collateral under the form of:
      o A bank guarantee, or
      o A cash deposit