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
3 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009
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
4 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009
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
5 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009
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
6 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009
Agenda
1. Presentation of the project
2. TSOs proposals and implementation review
3. Conclusion
7 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009
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
8 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009
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
(2) Allocation rules and booking procedures
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
9 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009
(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
10 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009
(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
11 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009
(2) Allocation rules and booking procedures
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
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(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
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(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.
Blaregnies / Taisnières
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
14 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009
(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
Blaregnies / Taisnières
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
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(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
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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
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Agenda
1. Presentation of the project
2. TSOs proposals and implementation review
3. Conclusion
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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
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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?
20 Capacity Project – C1 – Interconnection points BT / MOBonn, 28 April 2009
Thank you for your attention !
Project leader: Betsy ANNEN
+ 33 1 44 50 42 44