Gaz de France Réseau de Transport Jacques Laurelut How Gaz de France – Transport can contribute to further competition in France

Gaz de FranceRéseau de TransportJacques Laurelut

How Gaz de France – Transport can contribute to further competition in

Francewww.transport.gazdefrance.co

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Diapo 2

French Gas Transmission System – Main Characteristics

The French transmission system is divided into 8 zones, taking into account:

• the existing boundaries between TSOs

• the existence of two gas qualities (L-gas and H-gas)

• the major physical capacity constraints

(from North to South, from West to East)

Each zone is an Entry / Exit system:

• separate entry and exit capacity booking for each zone (including capacity coming from or going to the neighbouring zones)

• each zone is a notional balancing point

The capacity between zones (in each direction) is limited by the physical constraint


Diapo 3

Gaz de France Transmission SystemDunkerque

Obergailbach

O E

NH

S

Taisnières H

Oltingue

Cruzy

Lussagnet

Montoir

CFM Ouest

CFM Sud

FosGSO

CFM

NL

Taisnières B

Balancing zone

Exit zone

N

Interconnection Point with other Transmission systems

Gas Exchange Point

Transmission-Storage Interface Point


Diapo 4

Services proposed

Annual capacity

Monthly capacity

Secondary market on a monthly basis

Title transfer facilities


Diapo 5

Gaz de France Title Transfer Points Points d’Échange de Gaz – PEGs / Gas Exchange

Points

Five title transfer points, one in each balancing zone

In operation since November 1st 2003

« Over The Counter » exchanges of daily quantities

Firm title transfer : allocated quantities = scheduled quantities


Diapo 6

The PEG Early Stages

Exchanges on the PEGs since feb. 1st 2004

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

February 2004 March 2004 April 2004 May 2004 June 2004 July 2004 August 2004

Quantity exchangedMWh/month

0

10

20

30

40

50

60

70

80

90

Number of deals

Quantity exchanged

Number of deals


Diapo 7

How can GDF Transport contribute to further competition in France ?

Widening of the range of services

Helping to increase the number of transactions and the quantities exchanged at the PEGs


Diapo 8

Widening range of services proposed in 2005

As from January 1, 2005 GDF Transport will propose:

Possibility to book capacity on a daily basis

Possibility to exchange capacity on a daily basis with a single nomination of the seller

Interruptible capacity which price is consistent with availability

Capacity allocation procedure in case of congestion


Diapo 9

Increasing of the number of transaction and quantities exchanged at the PEGs (1/4)

20043 Transmission System Operators (TSOs)

Gaz de FranceNetwork : 24 000 km

Compagnie Française du MéthaneNetwork : 7 000 km

Gaz du Sud-OuestNetwork : 4 500 km


Diapo 10

Increasing of the number of transactions and quantities exchanged at the PEGs (2/4)

2 Transmission System Operators

Gaz de FrancePipelines: 24,000 km

Compagnie Française du MéthanePipelines: 7,000 km

Gaz du Sud-OuestPipelines: 4,500 km

2005 planning : 100% Gaz de France

2005 planning : 100% Total


Diapo 11


GDF Transport will reduce the number of the balancing/tariff zones of his Entry/Exit model from currently 7 to 4 in 2005

The 2 balancing zones of the CFM’s pipe line system are merged with the 2 adjacent zones of the GDF’s transmission system

In the North of France, merge of the L gas zone and the H gas zone and proposal of a conversion H – L service


Diapo 12


The GDF E/E model should have only two balancing zones in 2009

Merge of the three balancing zones: north, east and west

The global E/E system will have two zones: north and south


Diapo 13

Making this possible (1/4)

In an E/E system, the balancing zones are designed, notably, in order to identify potential congestions

To solve the question of congestion, there are at least two possibilities

• Reinforcing the pipe line system capacity

• avoiding congestion through incentive scheme for shippers


Diapo 14


We should compare the cost of reinforcing the system with the incentive requested by the shippers

But:

• Difficulties identifying all the constraints

• Market conditions prevailing in France currently

costs for de-bottlenecking were identified on a zone by zone basis


Diapo 15


In the French Regulator’s opinion de-bottelenecking investment should be better rewarded

following discussion with the regulator; it was decided:

• except for some cases, to reinforce the pipeline system between the North – East and North – West zones,

• To not reinforce the pipeline system between the new north zone and the south one

We are convinced that the additional costs for the shippers should be lower than their savings on the gas price


Diapo 16


This approach is not completely satisfactory since the investment are made by the TSO while the advantages should benefit to the shippers.

Lack of feed back on the decision

Lack of market based process to make the decision


Thank you for your attention

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Gaz de France Réseau de Transport Jacques Laurelut How Gaz de France – Transport can contribute to further competition in France