Capacity Project – C1 Interconnection points Blaregnies / Taisnières Medelsheim / Obergailbach Gas Regional Initiative – North West Region Capacity Day

Capacity Project – C1

Interconnection points

Blaregnies / TaisnièresMedelsheim / Obergailbach

Gas Regional Initiative – North West Region

Capacity Day - Bonn 28 April 2009

Project leader - Betsy ANNEN

2 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009

Agenda

1. Presentation of the project

2. TSOs proposals and implementation review

3. Conclusion


Objective and context

Optimizing and expanding capacity Capacity seen as a major priority by stakeholders

Ultimate goal: easy access to capacity for transport across the region

Pilot interconnection points Bonn Workshop in Feb. 2007, focus on 2 IPs: MO and BT

Concrete improvement of functioning and access to capacity

First set of proposals: 2nd IP meeting in Feb. 2008- Identification of obstacles (questionnaires, roundtables)

- Concrete proposals from TSOs


Medelsheim (EGT)

Quévy H

Taisnières H / L Blaregnies L

Blaregnies H Medelsheim (GDFDT)

Obergailbach

(GRTgaz)

MEGAL pipeline

SEGEO pipeline

TROLL pipeline

The two interconnection points


Strong interdependencies with other projects

A project plan at the confluence of other initiativeso Coordination issues in open season CRE

o Transparency on capacity availability and gas flows OFGEM

o Enhancement of compatible products ONTRAS

o Study on Fluxys’ interruptible product, ONTRAS

o Lessons learnt from the implementation of a day-ahead capacity trading platform at BOS DERA

TSOs contributionProject plan supported by the voluntary work of the participating network operators

- Five involved TSOs EGT, Fluxys, GDFDT, GRTgaz, GTS

- Technical expertise & proposals


Agenda



3. Conclusion


Project plan – strategic rationale

Challenges Improvement of the access to capacity at the IPs concerned and

possibility to get access to equal capacity on each side of the IPs

Improvement of the interoperability of adjacent networks

Improvement of the gas transit

Scope

(1) Capacity products and service offered

(2) Allocation rules and booking procedures

(3) Congestion management procedures (CMP)

(4) Capacity “increase”

(5) Transparency


Summary of TSOs proposals

AREAS PROPOSALSBlaregnies / Taisnières

Medelsheim / Obergailbach

(1) Capacity products and services offered

Interruptible transit product Fluxys -

Short term firm daily capacity GRTgaz GRTgaz


Booking notice and implementation term of contracts

Fluxys GDFDT

(3) CMPDay-ahead capacity trading

platform at BOS-

EGT (GRTgaz / GDFDT)

(4) Capacity increaseCoordinated open season Fluxys / GRTgaz

EGT / GRTgaz

Reverse flow H gas GRTgaz -

(5) Transparency

Improvement of existing information on products and CMP

Fluxys -

New website - GDFDT

New publications - EGT


(1) Capacity products

Identified need in Feb. 08: Differences between capacity products and services offered at each side of the border are a matter for shippers

Blaregnies / Taisnières

New interruptible product by Fluxys

New interruptible product under 1 year contracts- 5% interruption probability based on historical capacity use

“Web Track Metering Transit”- New transparency tool

- Hourly data on natural gas flows at the interconnection point on which the shipper is active (pressure, volume, energy etc.)

More compatibility between capacity products


(1) Capacity products

Identified need in Feb. 08: The lack of firm capacity is a barrier to active market and new entrants

Both IPs

Short-term firm daily capacity by GRTgaz

GRTgaz proposed to consider implementing the same firm daily product sold on D-2 in Oltingue Principle: creation on a short notice of a firm capacity through netting of flows

(reverse flows) Only in case of contractual congestion and for limited amount of flows Requires predictability of reverse flows

Currently, insufficient reverse flow and/or forward subscriptions to justify daily capacity at both IPs



Identified need in Feb. 08: Booking timeframe should be consistent on both sides so that shippers can book exit and matching entry at once and carry out short-term arbitrages.

Both IPs

Improvement of booking notice and implementation term

Internal process by Fluxys to improve booking procedure Shortening of booking timeframe to two days maximum Still manual procedure

Operational progress by GDFDT Reducing of the implementation term of contracts from a maximum term of 10 days to

3 days


(3) Congestion management procedures

Identified need in Feb. 08: a liquid and well-functioning secondary market at cross-border points

Medelsheim / Obergailbach

Lessons learnt from the implementation of a day-ahead capacity trading platform in Bunde Oude / Statenzijl

If successful, study of the opportunity of transposing the experience conducted at BOS to MO

Pilot launched in early 2007. Possible to trade secondary firm capacity via online platforms Extension of the project to the IP Ellund (Danish-German border) in Feb. 09, Danish

side in May 09 In last few months, considerable increase of liquidity on the German trac-x platform

Next step, extending the service to Medelsheim / Obergailbach


(4) Capacity increase

Identified need in Feb. 08: enabling participants assessing service on adjacent systems through the selling of compatible products, offered in the framework of coordinated timetables and processes.


1st coordinated Open Season between GRTgaz and Fluxys

Main lessons learnt in terms of coordination: - Good cooperation and sharing of information between TSOs and NRAs- Definition of consistent timeframes- Coordinated capacity allocation: shippers not exposed to the risk of capacity

mismatch - Process coincides with the conclusion of the open season conducted by GTS,

the Dutch TSO

Effective coordination. More reflection needed on the reliability of the first phase and on short term capacity on top of the requested capacity


(4) Capacity increase

Identified need in Feb. 08: interest of shippers in physical firm transmission capacity for reverse flow of H gas from France to Belgium depending on the price of the service


Deodorization plant by GRTgaz

Project part of the remedies to guarantee competition submitted to European Commission in the framework of the merger between Gaz de France and Suez

First experiment in the world but still at a pilot stage


(5) Transparency

Identified need in Feb. 08: Access to information on available network capacity and on procedure is key to enabling shippers to flow gas across IPs

Both IPs

Improvement of existing information and new publications

Improvement of the general level of information at both IPs- Better information on existing products and CMP by Fluxys

- New website by GDFDT giving new publication of hourly flows without access code and information on interruptions with monthly update

- EGT publishes new network data (historic gas flow database ; hourly publication of interrupted capacities…)

Every commitment taken fulfilled – completed by the Transparency project led by Ofgem and E.ON


Other initiatives

Launch of a secondary platform Capsquare: joint initiative by Fluxys and GRTgaz Launch for early December 2008 To foster liquidity in the secondary market for capacity in their networks Electronic platform to buy or sell in the networks of Fluxys and / or GRTgaz

GRTgaz and GDFDT study product harmonization Identification of potential bundled products

Consistent allocation methodology Consistent capacity level

Both TSOs to investigate implementation requirements


Agenda



3. Conclusion


Positive outcomes

PROPOSAL TSO IMPLEMENTATION & COMMENTS

Interruptible transit product Fluxys

Short-term firm daily capacity GRTgaz Not application due to current flows and subscription

Booking notice and implementation term of

contracts

Fluxys; GDFDT

Day-ahead capacity trading platform at BOS

EGT (GRTgaz / GDFDT)

Possible extension to Medelsheim / Obergailbach IP in the next months

Coordinated open seasonFluxys / GRTgaz

Reverse flow H gas GRTgaz Still at a pilot stage

Improvement of existing information on products and

CMPFluxys

New website GDFDT

New publications EGT


Conclusion

Project conceived as a pilot project targeting very concrete improvements

Real progress in a year on both interconnection points ; TSOs commitments done in February 2008 fulfilled

During the year, many aspects have been specifically developed in other projects

Project considered as finished

Next steps if necessary:

What do stakeholders (users / TSOs) need at these two cross-border points now?


Thank you for your attention !

Project leader: Betsy ANNEN

[email protected]

+ 33 1 44 50 42 44

Documents

Capacity Project – C1 Interconnection points Blaregnies / Taisnières Medelsheim / Obergailbach Gas Regional Initiative – North West Region Capacity Day