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Code Modification Forum Clayton Hotel, Cork Wednesday, 23 rd August 2017

Code Modification Forum - Gas Networks · 8/23/2017 · PSR Compliance 6 7 114 81 15 149 98 102 181 127 65 945 ... 4th Jul 2018 1 day Corrib Fuel gas skid connection at Cappagh South

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Code Modification ForumClayton Hotel,

Cork

Wednesday, 23rd August 2017

Agenda (1 of 2)

1. Review of minutes from last meeting

2. Review of Action Items from last meeting

3. General Items Update

4. GNI Scheduled Maintenance Update

5. Code Modification Proposal ‒ A071 Alternative Capacity Arrangements in event of GNI Interruptions to Flows

6. Code Modification Proposal‒ A079 Classification of CNG Exit Points as Daily Metered (DM)

7. Code Modification Proposal‒ A080 Option to Provide Monthly Settlement from Disbursements Account

8. CAM Amendment related Code Modification Proposals:‒ A081 Amendments to Capacity Auction Timelines to Comply with EU Capacity Regulations (CAM NC)

‒ A082 Establishing Framework and Rules for the Acquisition and Release of Incremental Capacity at IPs

2

Agenda (2 of 2)

9. Code Modification Proposal

‒ A083 Interruptible Capacity at Non IP Entry Points

10. Code Modification Proposal

‒ A084 Replace the NTS SO & TO exit Commodity cost element in the Balancing Transportation Cost formula with the Optional Commodity Charge

11. Intra-day Nomination Patters and Profiles

12. Balancing

13. VRF Tariffing Structure

14. Gas Electricity Interaction

15. BrExit and ROI Gas Market

16. Transparency Data

17. Renewable Gas

18. AOB

Next Code Modification Forum Meeting3

1. Review of minutes from last meeting

4

2. Review of Action Items from last meeting

5

ID Action Responsibility Status Priority

C483

Transporter is to investigate adding further enhancements to the VRF product:

1. Notification if additional VRF capacity available.

2. Within-day auctions

3. Interruption time-stamping

Transporter Open High

C530Release revision Version 5.02 of the Code of Operations which reflects any outstanding

Code Modifications approved by the CER subsequent to the 1st of October 2015Transporter Open High

C536Regulator to provide its decision by way of a verbal update on A083, and rationale for

same, at the August 2017 CMF MeetingRegulator

Propose to Close

High

C537 Industry to provide responses on Code Mod A084. IndustryPropose to

CloseHigh

C538

Transporter to consult with each shipper about issues surrounding their nomination

patterns and profiles.

Transporter to provide an overview on the outcomes of such industry consultation at

the August CMF Meeting.

Transporter Open High

C539

Transporter to further provide timelines of next steps to further review and consult on

potential amendments to cashout prices and tolerances, after finalisation of the tender

process to secure a Trading Platform Service Provider.

Transporter Open Medium

C540Industry to provide feedback on VRF presentation made by ESB, in addition to any views

on proposed VRF tariffing solution(s).Industry

Propose to Close

High

Code Modification Forum – Open Actions

6

3. General Items Update

Code Modification Forum

7

Code of Operations 5.02

• Version 5.02 will be released in due course, to reflect:

‒ Code Mods A071, A079, A080, A081 and A082 (all of which have been approved by the CER).

8

4. GNI Scheduled Maintenance Update

Code Modification Forum

9

Network Maintenance Update

10

Location Nature of WorksPlanned Timings (Subject to change)

Duration (days)

Entry/Exit Points Affected

Impact on flows at entry/exit points affected

InchScheduled Upstream Maintenance by Operator: Planned Maintenance Outage

26th August - 17th

September 201723 days Inch

No flows from Entry Point

CorribScheduled Upstream Maintenance by Operator: Planned Annual Maintenance

11th – 14th September2017

4 days CorribNo flows from Entry Point

1. GNI MaintenancePresentation on GNI Planned Maintenance Programme for 2017/18 Gas Year (in following Slides).

2. Upstream Operator Maintenance

GNI have been advised of the following scheduled Summer Maintenance Upstream of Entry Points:

GNI Planned Maintenance Programme 2018

Network Maintenance

• Systemised Maintenance Activities ‒ Mechanical

‒ E,C&I

‒ Compressors

• Inspection Activities‒ Line Patrols

‒ PSR and Statutory Inspections

‒ CIPs and DCGV

‒ In Line

‒ Sub Sea

• Upgrade and Replacement Works

12

Systemised Planned Maintenance Activities 2018Projected PMs Month

Asset Maintenance Programmes Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Grand TotalPipeline Ground Patrols 938 826 924 859 943 883 905 929 853 939 895 888 10782DRI/IC Maintenance 256 332 399 422 479 397 418 402 430 550 636 118 4839Pipeline Leak Surveys - Tx 466 535 295 414 386 238 336 292 212 329 301 206 4010Tx Planned Maintenance 168 230 212 216 214 278 209 239 238 254 184 232 2674Pipeline Aerial Survey 248 192 193 202 194 225 248 192 193 203 225 247 2562Meter Calibrations 51 150 242 350 261 214 180 151 222 230 52 21 2124Site Instrument Calibrations 71 149 259 177 236 226 155 195 279 137 107 75 2066Tx Comp Instrument Calibrations 16 68 63 39 76 32 66 41 124 1264 40 24 1853AGI Ground Maintenance 17 346 74 47 75 387 76 66 74 390 15 1 1568Tx Compressor Maintenance Mechanical Maintenance 122 119 124 117 139 118 127 141 115 125 150 100 1497Statutory Inspections Portable Assets 78 73 106 62 163 242 87 60 191 48 97 156 1363Tx Compressor Electrical Maintenance 84 87 87 96 95 92 89 94 91 87 93 78 1073Electrical Maintenance 281 270 157 53 24 11 28 31 38 25 28 16 962PSR Compliance 6 7 114 81 15 149 98 102 181 127 65 945Pipeline Leak Surveys - Dx 223 111 70 46 34 22 45 92 27 30 34 26 760Odorant Systems 52 51 51 51 51 51 51 51 51 51 51 51 613Tx Compressor Statutory Compliance 84 3 22 129 51 3 15 1 185 493Volume Corrector Cals 12 22 36 36 34 135 37 38 38 43 32 14 477Compliance Programme 5 56 64 14 33 21 1 83 27 3 30 25 362Pressure Monitoring Station Cals 9 14 17 20 23 22 21 15 14 10 7 172Atex Instruments 2 3 3 8 11 18 3 1 4 34 23 16 126AGI Boiler Maintenance 4 5 18 11 16 6 5 5 24 10 16 4 124CNG Inspections 10 8 8 9 9 8 10 8 8 10 8 9 105Tx AGI - Heating Overhauls 58 36 94Third Party Chromatograph Verification 4 1 23 6 4 7 6 15 4 70Tx Rural Line Walk Survey 4 8 39 51Sub-sea Inspection & Consultancy 2 5 4 3 9 3 2 5 4 4 5 3 49Tx Interconnect Inspection 4 4 4 4 4 4 4 4 4 4 4 4 48CIPS Programme 26 17 1 44AGI Waterbath Systems 5 5 2 2 6 5 3 2 2 6 38Tx Compressor Maintenance Painting Programme 3 1 3 3 3 13Tx Meter Mechanical Works 1 1 1 1 1 1 1 1 1 1 1 1 12Tx Comp Environmental Maintenance 1 1 1 1 2 2 1 3 12Tx Compressor Ground Maintenance and Security 2 2 3 2 1 10Tx Compressor Maintenance PSSR 6 6AGI Painting 4 4Tx Compressor General Maintenance 1 1 2Dx Pulse 1 1Non Maintenance Programme 1 1Grand Total 3225 3665 3546 3390 3561 3937 3329 3280 3465 4975 3122 2510 42005

Inspections

CIPs, DCGV, PSSR, Line Patrols etc.General• Can lead to follow on work

• Depending on location may require entry point or large end user disruptions

• Inspections are planned but follow on work is unplanned

IC1 and IC2Sub-Sea• External inspection so no flow interruptions

• May lead to follow on work

• Both near shore and far shore surveys to be undertaken

• May be postponed following Risk Based Inspection approval

3 x PipelinesIn Line • Inch to Lochcarrig Lodge

• Lochcarrig Lodge to Caherlag

• IC2 onshore in Scotland – new pipeline

• 3 other optional pipelines being considered

14

Upgrade/ Replacement Works

Control System UpgradeLoughshinny• Planned programme commencement date 1st March 2018 and will run for 16 weeks

• Loughshinny land fall station will be off line

• HAZOP completed and contingency plans prepared

Fuel Gas Skid Replacement Cappagh South • Expected to happen in Q3 2018

• Going through design process

• Probable minor disruption to Corrib during tie in

Multiple Tx Meter Refurbishment/ ReplacementTx Meters - Various• Ongoing programme across the network

• Replacing/ refurbishing LDM, DM and City Gate meters on the Tx network

Multiple Chromate ReplacementChromate - Various• Ongoing programme across the network

15

2017/ 2018 Maintenance Days

Maintenance Programme Gas Year 2017/2018

Date Duration Entry Points Commentary

8th Nov 2017

1 day CorribMay be required for meter upgrade works at Cappagh. Depends on if all works are completed during the Corrib initiated

shut-down in September

1 day Inch Will be required to install a new UPS at Middleton. May not affect flow.

7th Feb 2018

1 day Corrib Not scoped yet.

1 day Inch ILI run between Inch, Lochcarrig Lodge and Caherlag. Date to be finalised with the pigging contractor.

9th May 2018

1 day Corrib Not scoped yet.

1 day Inch Odorant tank refill at Inch. Zero flow whilst this takes place.

4th Jul 2018

1 day Corrib Fuel gas skid connection at Cappagh South. May not affect flow

1 day Inch Not scoped yet

12th Sep 2018

1 day Corrib Not scoped yet

1 day Inch Not scoped yet

16 Note: Dates and maintenance programme may be subject to change

Questions?

17

IT Maintenance Update

18

Nature of Works Planned Timings (Subject to change) Duration (days) Systems Affected

Nothing to report

Please note the above works/timings/duration are subject to change

5. Code Modification Proposal A071:

‘Alternative Capacity Arrangements in event of GNI

Interruptions to Flows’

Code Modification Forum

19

A071: Industry Responses to Proposed Legal Drafting

• Legal Drafting circulated for Industry Consultation.

• One response was received from IOOA:

‒ Discussions underway on wording of proposed Legal Text.

20

6. Code Modification Proposal A079:

‘Classification of CNG Exit Points as Daily Metered (DM)’

Code Modification Forum

21

• Commission Instruction circulated, approving A079 and directing GNI to proceed to legal drafting.

• Legal Drafting currently being finalised.

22

Update on A079

7. Code Modification Proposal A080:

‘Option to Provide Monthly Settlement from

Disbursements Account’

Code Modification Forum

23

Update on A080

• Commission Instruction circulated, approving A080 and directing GNI to proceed to legal drafting.

• Legal Drafting currently being finalised.

• Transporter has established the Oracle and IT interface requirements to implement A080.

• A080 expected to be implemented by 1st October 2017.

8. CAM Amendment related Code Modification Proposals:

A081: ‘Amendments to Capacity Auction Timelines to Comply with EU Capacity Regulations (CAM NC)’

A082: ‘Establishing Framework and Rules for the Acquisition and Release of Incremental Capacity at IPs'

Code Modification Forum

25

• Commission Instructions circulated, approving A081 and A082 and directing GNI to proceed to legal drafting.

• Legal text complete.

• Re Incremental Capacity, all stages of the Demand Assessment Phase are now complete.

26

Code Mod Proposals A081 (Auction Timelines) and A082 (Incremental Capacity)

Dates Activity Responsible Outcomes

7th April 2017Call for submission of Non-binding Demand Indications

TSOs Call Completed

7th April 2017 - 1st June 2017Preparation and submission of Non-binding Demand Indications

Shippers or other interested parties

No Non Binding Demand Indications received from interested parties

1st June 2017 - 27th July 2017Preparation and publication of Demand Assessment Report

TSOs DAR submitted to ENTSOG

9. Code Modification Proposal A083:

‘Interruptible Capacity at Non IP Entry Points’

Code Modification Forum

27

A083

• CER Statement

‒ Regulator to look into Entry Point Procedures at domestic entry points.

28

A083: Next Steps – Monitoring of Activity

• The Transporter will monitor activity and send an update to the Regulator each month on primary capacity bookings and secondary capacity trades at domestic entry points.

• If any shipper experiences any issues in securing capacity at domestic entry points, please inform GNI Client Services accordingly.

29

10. Code Modification Proposal A084:

‘Replace the NTS SO & TO exit Commodity cost element in

the Balancing Transportation Cost formula with the

Optional Commodity Charge’

Code Modification Forum

30

A084: Industry Responses

31

• No responses received from industry.

32

A084: Transporter’s View (as per July CMF Meeting)

The Transporter does not support this proposed Code Modification.

• The Transporter has no visibility of the source/transportation route of gas imported via Moffat.

• The Transporter is only aware that its shippers wish to nominate gas at Moffat.

• The Code Modification makes a strong assumption that all gas at Moffat has been short-hauled – this is not necessarily

the case (e.g. Teesside production outages).

• The Transporter wishes to note that this proposed Code Mod would impact the Disbursements Account (i.e. if relevant

shippers are to pay less for their imbalance charges, this will result in other shippers paying more).

In light of these points, the Transporter considers the conventional approach to calculating the Imbalance Gas

Transportation Cost to be appropriate as it references the NBP to Moffat benchmark transportation costs in all instances.

A084

• CER Statement

33

Overview of Status of Active Code Modifications

34

Code

Modification

No.

Description of Code Modification Current Status

A071Alternative Capacity Arrangements in event of GNI

Interruptions to Flows

Following industry consultation, discussions

underway on wording of proposed Legal Text

A080Option to Provide Monthly Settlement from

Disbursements AccountLegal Drafting currently being finalised

A081Amendments to Capacity Auction Timelines to Comply

with EU Capacity Regulations (CAM NC)Legal text complete

A082Establishing Framework and Rules for the Acquisition

and Release of Incremental Capacity at IPsLegal text complete

A083 Interruptible Capacity at Non IP Entry Points Awaiting CER Statement at August CMF Meeting

A084

Replace the NTS SO & TO exit Commodity cost

element in the Balancing Transportation Cost formula

with the Optional Commodity Charge

Awaiting CER Statement at August CMF Meeting

11. Intra-day Nomination Patterns and Profiles

Code Modification Forum

35

36

Industry Consultation re Intra-day Nomination Patterns and Profiles

• The Transporter is in the process of arranging meetings to consult with individual shippers re their intra-day

nomination patterns and profiles.

• As per Action Item C538, the Transporter will provide an overview on the outcomes of such industry

consultation, once all relevant parties have been consulted.

37

Code Modification Forum

12. Balancing

Activities to be Completed

Issues requiring industry/GNI/CER agreement:

• Finalise contractual arrangements with Preferred Tenderer.

• Finalise Business Rules for TP activity, reflecting industry feedback.

• Information Provision

‒ Publication of data on system linepack.

• Other Activities

‒ Finalisation of IT systemisation change requirements.

‒ Business process amendments (e.g. Grid Control operations, validation of bal.

actions, invoicing/settlement).

Note: Any currency conversion for agreed trade prices on the TP (e.g. from GBP

sterling to Euros) is to be completed at the billing stage, i.e. trade prices are to be

entered on GTMS as per the original currency denoted on the TP.

‒ Code Modifications to reflect new regime.

‒ Internal Work Instructions and GNI Grid Control training.

‒ Bilateral contracts with counterparties to enable trading with them on TP.38

Activities Completed to date

• Balancing Arrangements Consultation completed.

• Initial Draft of Business Rules circulated and industry feedback collated.

• Tender for TP services issued, and submissions received and evaluated.

• Complete and award tender

• Scoping of IT systemisation

and process change

requirements

Summary of Activities Completed/ to be Completed (Phase 1)

Activities to be Completed

Issues requiring industry/GNI/CER agreement:

• Establish sections of the Code possibly requiring amendments.

‒ Further review tolerances and proposed cash-out pricing regime once TSO participates on a live and liquid TP.

39

Activities Completed to date

• Initial review of tolerances and cash-out regime completed.

‒ Proposed imbalance CO prices to apply once the

TSO participates on a liquid TP, and TSO’s

interpretation of the relevant sections of the

Regulation concerning tolerances.

Summary of Activities Completed/ to be Completed (Phase 2)

Transporter wishes to reiterate its standpoints that:

1. It considers any decision on potential amendments to tolerances and imbalance cash-out prices to be premature, ahead of

an agreed benchmark of proven liquidity on an IBP TP.

2. The shipping community should be mindful that any potential amendments to tolerances will have an impact on both the

level of flexibility provided by a tiered tolerance regime and the Disbursements Account.

40

Code Modification Forum

13. VRF Tariffing Structure

• Following the VRF presentation made by ESB at the July CMF Meeting, one industry response was received.

IOOA Response to ESB VRF Tariffing Proposals

• IOOA members wish to state that they agree with the Regulator that

‒ Any change to VRF tariffing must be consulted upon by the Regulator, and

‒ The Regulator should focus its efforts on determining the form of an enduring VRF tariff necessary to meet with the Tariff NCRequirements in October 2019.

• IOOA members disagree with the ESB’s assertion that forward flow shippers are cross subsidising VRF shippers.

‒ IOOA believes that its members are paying the incremental cost of providing the service, in addition to the shrinkage charge.

‒ IOOA notes the views expressed throughout Europe during the Tariff NC consultation process about VRF services saving shippersmoney by reducing fuel gas consumed, and having the potential to reduce variable and perhaps fixed costs.

• IOOA considers the options proposed by ESB to be ad hoc and not to reflect the current incremental cost approach to tariffing.

• IOOA believes that the ESB’s comment that Irish consumers are only realising partial benefits of indigenous supply to be incorrect.

‒ IOOA notes that between Nov 2016 and June 2017 inclusive, 93% of total Irish indigenous supply has been consumed in Ireland (only 7% has been exported).

‒ IOOA also states that, in the context of the ESB’s comment which suggests that all indigenous gas should be the sole benefit of Irish consumers, the Tariff NC specifically sets out the objectives of contributing to market integration, enhancing securing of supply and promoting the interconnection between gas networks.

41

Industry Views on VRF Tariffing Structure

VRF Tariffing Structure

• CER Statement

42

43

Code Modification Forum

14. Gas and Electricity Interaction

44

Code Modification Forum

15. BrExit and ROI Gas Market

Brexit and ROI Gas Market (Slide 1/3)

• Main Brexit related activity with regard to Energy was with the publication of a UK position paper entitled

‘Northern Ireland and Ireland’ on 16th August.

• This paper also dealt with energy. It details the importance of continued cooperation with regards to SEM, but

also outlines the important of the ‘continued ability to trade gas between GB and the island of Ireland for

security of supply and efficient market operation’.

• Additionally, the paper outlines that ‘there should be a strong shared desire between the UK government, Irish

Government and the rest of the EU to support the stability of energy supply on the island of Ireland, and

maintaining affordable, sustainable and secure electricity supplies’.

45

Brexit and ROI Gas Market (Slide 2/3)

The document proposes that the new framework relevant to the energy market in Northern Ireland and Ireland should:

• take account of the strategic importance placed on cross-border cooperation in the Belfast Agreement, which provides for cooperation between Northern Ireland and Ireland, and the UK and Ireland.

• facilitate the continuation of a single electricity market covering Northern Ireland and Ireland.

• facilitate the continuation of efficient electricity and gas interconnection between the island of Ireland and Great Britain.

• providing certainty on energy arrangements and,

• include an appropriate interim period to ensure any changes to current arrangements can be implemented in a timely way.

46

Brexit and ROI Gas Market (Slide 3/3)

• GNI is due to meet with National Grid in September, with a view to commencing initial discussions regarding day-to-

day interaction and operations at Moffat post Brexit.

• If there are any specific issues/concerns you would like us to raise, please contact us.

47

16. Transparency Data

Code Modification Forum

48

17. Renewable Gas

Code Modification Forum

49

Renewable Gas Market Developments

Code Modification Forum Meeting – 23rd of August 2017

Agenda

Renewable Gas to Grid Project Update

Business Processes for Renewable Gas Projects

GNI Proposed Connection Policy for Renewable Gas Projects

Pending Code Modification proposal for Renewable Gas

Next Steps

Renewable Gas to Grid Project Update

Renewable Gas to Grid Design – Green Gas Generation

Preliminary Design completed

• Detailed Design Review has commenced

• Project consists of 5 major components;

‒ Biogas Purification and Upgrading Unit

‒ Biomethane Compressor Station & Dispenser

‒ 3 * CNG trailer units with capacity for 4,000 kg of

compressed gas in each unit

‒ Biomethane Pressure Reduction Station

‒ Network Entry Facility

Network Entry Facility

• The Network Entry Facility will contain the following

assets, which will be owned & operated by GGG;

‒ Non-Fiscal Metering

‒ Propane Injection (if CV of gas needs to be

increased)

‒ Gas Analysers

‒ Divert valves

‒ Pressure regulators

‒ Fiscal Flow Meter

‒ Odorant plant

‒ Supervisory control system

‒ Electrical distribution equipment

• In the same kiosk but in separate compartments GNI

will own & operate the following assets;

‒ Remotely Operated Valve

‒ Telemetry Panel

‒ UPS & Batteries

‒ Satellite System

‒ All items installed within the RTU room

‒ All items installed within the ROV room

Renewable Gas to Grid Project Timeline

Programme to provide a Dx connection to Green Gas Generation for a biomethane injection facility in Q1 2018.

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Planning Permission Obtained

GNI Preliminary

Design Complete

2017 2018

GNI Detailed Design

Complete

GGG Construction

Start

All Materials Delivered

GGG Design Complete

GGG Commissioning

Complete

GNI Dx Connection

Safety CaseApproval GNI

GGG

Business Processes for Renewable Gas Projects

Business Process Approach for Renewable Gas Injection

• Regulatory Jurisdiction

‒ The Entry Points will be given a Renewable Gas Classification, but most processes will reflect current Code of Operations arrangements.

The Connected System Operator (CSO) will be a party to a Connected Systems Agreement (CSA) and the Shipper will be bound by the Code of Operations via the Framework Agreement. The CSA will oblige the CSO to comply with the Code of Operations.

Business Process Approach for Renewable Gas Injection

• Registration of Shipper – At least one Shipper must be registered at the Entry Point

• Capacity

‒ No facility to Transfer Entry Point Capacity is proposed (due to designation as Renewable Gas Entry Points)

‒ Otherwise, the same suite of annual, quarterly, monthly and daily products will apply at this entry point as at other entry points. The Shipper will book capacity as per the process employed at other entry points.

‒ CER regulated tariffs will apply at the entry points.

• Nominations

‒ The CSO will notify the Shipper no later than D-1 as to the amount of gas to be injected into the system.

The CSO & Shipper must agree communications protocol and frequency ahead of Day.

‒ The Shipper will “nominate” this amount on D-1, reflecting the CSOs notified data.

‒ The CSO will notify the Shipper of any within day amendments to forecasted flows and End of Day Quantities (EODQ).

‒ The Shipper will “Re-nominate” this amount on D, reflecting the CSO’s notified data. The process will apply every day.

Business Process Approach for Renewable Gas Injection

• Allocations

‒ Allocations at Entry Points will be made in accordance with current procedures

‒ An allocation agent will not be required. Gas will be allocated as per data from the Entry Point meter. The allocations will be divided out on a pro-rata basis to each Shipper (based on Shipper nominations).

• Flow Profile

‒ Nomination flow profiles will not be required initially, however this may be required at a later date should quantities of renewable gas and / or the number of entry points increase sufficiently.

• Balancing

‒ Balancing arrangements will be in accordance with current procedures.

‒ An Operational Balancing Account (OBA) will not be required.

Business Process Approach for Renewable Gas Injection

• Measurement‒ The Connected Systems Agreement (CSA) will define the measurement equipment and procedural

obligations of the CSO, including obligations to facilitate GNI’s access to validation, calibration and maintenance processes.

• Data Cleansing‒ There may be a requirement to adjust the monthly meter data in the event of a correction for data

loss, or amendment following a calibration test.

• Capacity Overrun‒ The overrun arrangements will be in accordance with current procedures.

• Tolerance‒ The Entry Tolerance should be appropriate to the scale of production at the Renewable Gas Entry

Point. 1.5% is stated in the Code. This will be relaxed to an agreed % during the commissioning phase.

GNI is minded to propose further relaxation of tolerance subject to operational experience.

Proposed Connections Policy and Tariffs for Renewable Gas

Proposed Renewable Gas Connection Policy

• Gas Networks Ireland has developed a connections policy proposal.

• The connections policy proposal has been drafted taking into account the responses that are outlined in the Renewable Gas Bridging paper and the feedback that Gas Networks Ireland received after the industry meeting that was held in February.

• Gas Networks Ireland is proposing that there would be an economic test which should result in a positive Net Present Value (NPV).

• If the economic test results in a negative NPV then a supplementary charge will apply.

• A public consultation on the connections policy proposal is likely to open early in September and run for 4-6 weeks.

Renewable Gas Tariffs

• Gas Networks Ireland is currently working on a proposal for a Renewable Gas Entry Point tariff.

• As the first renewable gas injection facility is a demonstration project, Gas Networks Ireland is proposing that an interim tariff be applied for this Renewable Gas Entry Point.

• An enduring tariff for Renewable Gas Entry Points will subsequently be developed.

Pending Code Modification proposal for Renewable Gas

Part A – New definitions (main changes)

• "Renewable Natural Gas" or "RNG" means sustainably processed gas derived from non-fossil sources which meets the Natural Gas Specification as outlined in Part G (Technical) Appendix 1 in the Code of Operations

• "RNG CSA" means an agreement of any description entered into by the Transporter and the Connected System Operator of a RNG Facility regulating, inter alia, the physical and operational interconnection between the Transportation System and the RNG Facility.

• "RNG Delivery Facility" means the plant and equipment constructed and/or installed at the RNG Delivery Site which is connected to the RNG Entry Point.

• “RNG Entry Point” means an Entry Point which is connected at the Connected System Point to a RNG Delivery Facility

• "Entry Capacity“ means capacity at an Entry Point to the Transmission System or at an RNG Entry Point …".

• Minor amendments are required to other existing definitions to include for RNG

Part D (Nominations and Allocations)

• Amend Section 2.5.1 by adding the following:

• ["If there is an Allocable Quantity at an Entry Point for a Day on which there are no Shipper's Entry Nomination(s) at that Entry Point for that Day, the Allocable Quantity shall be allocated among all Shippers which are Registered Shippers at the Entry Point on that Day.]

• Part D Section 2.7.3(v), Formula will be revised as follows

• NDM = (CC + RNG) – (DS + LDM + DM)

RNG = the quantity of Natural Gas (in kWh) metered at an RNG Entry Point downstream of the CitygateMeter.

Part E (Balancing and Shrinkage)

• RNG would be treated as an Entry Allocation so no changes required to Disbursement Account

• No change required to Daily Imbalance Calculation

• In Section 1.7.2 amend table to include RNG Entry with an agreed tolerance

• In Section 1.7.4 amend the formula by adding agreed tolerance for RNG

• In the legend to Section 1.7.4 include "RNG means the Final Entry Allocation at each RNG Entry Point for a Shipper".

Part G (Technical)

• Renewable gas contains relatively more oxygen than Natural Gas (can be up to 1% mol O2). GNI are currently reviewing the current upper limit for oxygen content in the Natural Gas Specification (0.2% mol)

‒ In 2013 the UK HSE issued a Class Exemption that permits oxygen mole fraction up to 1 % for gases conveyed below 38 bar, provided that such gases are compliant with all other requirements of the Gas Safety Management Regulations.

‒ Following a Measurement Risk Assessment of the Renewable Gas to Grid project, GNI were recommended to explore the option of increasing the upper limit value for oxygen from its current limit of 0.2%

‒ GNI are currently in the process of commissioning a study on assessing the impact of increasing the upper limit of oxygen content in both the distribution and transmission networks.

Summary of next steps

Progress Renewable Gas to Grid Project with GGG

Finalise and consult with stakeholders on Draft Connections Policy

Finalise Business Processes for Renewable Gas Projects

Present Code Modification for Renewable Gas

18. Any Other Business

Code Modification Forum

70

IGEM Future of Gas Infrastructure in Ireland Conference

• IGEM Future of Gas Infrastructure in Ireland Conference, being held on 13th September 2017 in Malahide, Dublin. Gas Networks Ireland is one of the sponsors of this event.

• Further details for this Conference are available at http://events.igem.org.uk/events/future-of-gas-infrastructure-

71

Decarbonising Transport -Opportunity for gas

Decarbonising Transport - Opportunity for gas

• Transport sector one of the most difficult to decarbonise

‒ Liquid hydrocarbons are an ideal transport fuel

• NTA running market consultation on options for decarbonising public bus fleets

‒ See BusConnects project

‒ 1000 buses in Dublin alone to be converted to Low carbon bus technology

• Bio-methane /CNG buses are a well tried and tested technology

‒ Including in Ireland

‒ Successful trial in Cork 2012 proved the concept

• gas current market share in Ireland

‒ C. 55% of power gen market

‒ C. 35% of heating market

‒ C. 0 % of transport market

• 42% of energy consumed in Ireland is in transport sector

‒ This is a huge opportunity for gas 73

Natural gas /biogas Public bus fleet opportunities

Dublin Bus and BusConnects project

• NTA published the BusConnects project policy document on 29th May 2017 in conjunction with DTTaS.

‒ https://www.nationaltransport.ie/wp-content/uploads/2017/05/BusConnects_Brochure_Final.pdf

• This policy document outlines the objective to convert the Dublin Bus fleet of 1000 buses to green bus technology.

• 1000 buses on CNG /biogas would add demand of annual demand of c. 400GWh per annum (based on Bus Eireann trial in Cork data).

74

Next Steps - NTA Questionnaire

• Shippers should consider responding to NTA market consultation at:

http://files.constantcontact.com/7e277b98001/b472dda8-7a21-458e-9b2a-2b7f494cb0f6.pdf

‒ See in particular question 1a.

‒ Suggest Shippers would be keen to supply transport sector including public transport ?

‒ Opportunity to communicate this to NTA as part of market consultation.

‒ Submission Deadline - see Section 2.2

Completed Appendix A and Appendix B forms must be received by the Authority on or before 12.00 noon on Friday 1st September 2017. Completed forms can be submitted via email to: [email protected]

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18. Upcoming Code Modification Forum Meetings

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CMF Dates 2017 Location

18th January 2017 (Wednesday) Dublin

22nd February 2017 (Wednesday) Cork

3rd May 2017 (Wednesday) Cork

5th July 2017 (Wednesday) Dublin

23rd August 2017 (Wednesday) Cork

11th October 2017 (Wednesday) Dublin

6th December 2017 (Wednesday) Cork

Next CMF Meeting:

Thank you for your participation