7th IG Meeting, GRI SSE

7th IG Meeting, GRI SSE

Milano, Italy, 26 March 2010

GRI South South-East Region

27th IG Meeting, Milan, Italy, 26 March 2010

1. Agenda

Agenda Topics Rapporteur

Arrival and registration

1.Opening- Approval of the agenda- Approval of minutes of the 7th SG meeting- Review of action points & new structure

Co-chairs

2. Updates Co-chairs

3. Guidelines for CAM & CMP & Next steps Co-chairs

4. Mercados Recommendations & Work Programme 2010-2011

Co-chairs

5. GRI SSE Position on Cost Allocation Co-chairs


Agenda Topics Rapporteur

6. IP Arnoldstein/Tarvisio AEEG

7. Status IPAs at other IPs TSOs

8. Practical questions on OBA Implementation (IP Baumgarten: OMV Gas, TAG, BOG and eustream) BOG

9. Update on who joined the Transparency Platform GTE+

10.AoB

1. Agenda


1.b) Approval of minutes of 7th SG meeting in Vienna

http://www.energy-regulators.eu/portal/page/portal/EER_HOME/EER_INITIATIVES/GRI/South_South_East/Meetings1/SG_meetings/7supthsup%20SSE%20SG/AD


1. c) Review of Action Points

New Format for monitoring of progress

Action Description Who When Due Status

A-090416-05

Discussion on how to allocate costs for reverse flow investments

affected TSOs and NRAs

October 2009

Completed

A-090416-07

Update: IPAs at other IPs TSOs Ongoing

A-090626-01

Capacity and congestion management – identification of priority issues for harmonization at regional level

TSOsNext meeting

Ongoing


2. Updates by country


3. Way Forward CAM and CMP

Framework Guideline on capacity allocation

• May 2010: Publication of evaluation of responses and revised

Framework Guideline

Recommendations on comitology guidelines for congestion

management

• Stakeholders are invited to comment on CMP comitology

guidelines by 31 March 2010

• Revision of Guidelines and submission to the European

Commission by June 2010


4. Mercados - Weaknesses


4. Mercados - Recommendations


4. Work Programme

1. Regional Wholesale Trading

2. Market Integration

3. Transparency


4. Regional Wholesale Trading

GRI-SSE-RWT-1: Trading Points• facilitation of access to the virtual trading point for the gas market South-East• national consumer markets and transit market should be technically and

administratively merged• national trading points to be established• Entry/Exit Systems to be implemented in all markets of the GRI SSE

GRI-SSE- RWT-2: Improvement of Hub-to-Hub Trading

• facilitation of Hub-to-Hub Trading

• harmonisation between the hubs

GRI-SSE- RWT-3: Regional Balancing Services

• Common balancing arrangements

• Coordination and compensation of imbalances (TSOs coordinate to allow shippers

to offset their imbalances in one zone against those in another)

• Criteria for the definition of balancing areas


4. Market Integration

GRI-SSE-MI-1: IP Assessment• implementation of an Operational Balancing Agreement

• template for reproduction at those Interconnection Points in the SSE

GRI-SSE-MI-2: Monitoring of Implementation of OBAs at other IPs

GRI-SSE-MI-3: Reverse Flow Investments• Tendering of the projects themselves, and• Cost allocation for the remaining part of the investments

GRI-SSE-MI-4: MS’ improvement of Regional Solidarity

• GRI SSE RCC to serve as assisting body to development of regional Emergency plans

GRI-SSE-MI-5: TSO Regional 10 Year Network Development Plan (2011)• Regional 10 Year Network Development Plan will follow one year after each publication

of the Europe-wide plan


4. Transparency

GRI-SSE-T-1: Monitoring of data delivery (GTE+ Transparency

Platform)

• The RCC will constantly monitor the data quality and completeness provided by

the TSOs and encourage TSOs to improve data provision

GRI-SSE-T-2: Monitoring of data quality for GSE Platform• The RCC will constantly monitor the data quality and completeness provided by

the SSOs.

Cost recovery mechanisms

• No market demand for SoS investments– These investments will not be born by costumers via

regular mechanism – New mechanisms needed

• New mechanism with ability to cope with different situations– Small / large investments– Reverse flow projects– One, two or several countries benefiting from SoS

Investment– Evolving needs of countries

GIE position on cost recovery of infrastructure for SoS

Principles that should be obeyed

• Mechanism should apply cross-Europe• Mechanism should be able to cope with evolving

requirements of SoS• Cost recovery mechanism should not be limited

to reverse flows and take into account all SoS investments

• Ultimately, end-users of benefiting countries should fully bear the cost

• TSOs should not bear the risk of SoS investment


Some suggestions

Possibilities for cost recovery mechanisms (no market demand)

• Stay as close as possible to current schemes Take into account shippers responsibility for providing gas – consider a public service obligation to contract capacity for non-market events

• Investments in SoS are more policy-driven Involve Member States in capacity booking

• TSOs book capacity through open season Further refinement needed to cope with involvement of several MS

Need full clarity on the mechanism for cost-recovery if two or more MS involved


Suggestions for involvement of more than 2 MS

Efficiency of Multi-lateral/Regional/European Mechanism:

• SoS provider claims costs to a central organism

• Central organism claims costs to benefiting countries

Precise determination of means needed – further elaboration on mechanism should be done



6. IP Arnoldstein / Tarvisio

On 10 march 2010 a meeting gathering TAG GmbH, SNAM Rete Gas, and AEEG, ECG has been organized to assess the status of the IPA process

TAG GmbH presented a proposal for an Interconnection Point Agreement (IPA) to SNAM Rete Gas (SRG) to define some technical issues to be tackled.

The main argument of the IPA is the Operational Balancing Account (OBA) and the relevant imbalance tolerance.


6. IP Arnoldstein / Tarvisio

SNAM’s preliminary assessmentSNAM identified four important issues to be faced to introduce the OBA:

• Modify the current practice in use at Italian Customs offices for accounting of imported gas volumes;

• Increased SNAM Rete Gas storage capacity needs to manage the differences between nominated and measured volumes;

• Possible amendment to be proposed to the Italian Network Code and balancing rules:

• Management of the imbalance volumes “nomination/measured” if exceeding a certain tolerance.


7. Monitoring OBAs at IPs

Status ImplementationIP Hora Svaté Kateriny: RWE TGN and Wingas Transport IP Lanžhot: RWE TGN and eustream OBA haltedIP Lasow, Ontras/GazSystem ImplementedIP Waidhaus: RWE TGN and EGT/ GRTgaz Deutschland IP Oberkappel: BOG and EGT/ GRTgaz Deutschland Dec 2010IP Burghausen/Überackern: OMV Gas and bayernets ImplementedIP Mallnow: EuRoPolGaz and Wingas Transport IP Gorizia/Sempeter: Geoplin plinovodi and Snam Rete Gas Jan 2011IP Negru Voda: Transgaz and Bulgartransgaz IP Nickelsdorf/Hegyesshalom, HAG, OMV-MOL ImplementedIP Kula/Sidirokastron: Bulgartransgaz and DESFAIP Arnoldstein/Tarvisio, TAG/Snam Rete Gas Kick off 10th MarchIP Murfeld, OGG, Geoplin ImplementedIP Baumgarten, Eustream, TAG, BOG, OGG Implemented

GTEInterconnection points – update status (28.2.2010)

Survey on TSOs coordination activities at IPs – status as of 28. 2. 2010

27

14 5

6

7

3

2

Legend:

910 11

13

14

16

17

18

19

2122 23 24

25

26

27

28

29

30

31

32

33

34

OBA

OBA in preparation

Others

Survey on TSOs coordination activities at IPs

28

Survey on TSOs coordination activities at Ips (status as of 28.2. 2010)

Interconnection point TSO IPA Comments/ Next Steps

Hora Svaté Kateřiny NET4GAS Wingas Transport Pro Rata/SBA 1OBA 10/2010 ISO 2003 to be applied in whole chain 9/2010

Lanžhot NET4GAS eustream Pro Rata/SBA 2OBA 10/2010 ISO 2003 to be applied in whole chain 9/2010

Waidhaus NET4GAS E.ON/ Gaz de France Pro Rata/SBA 3OBA 10/2010 ISO 2003 to be applied in whole chain 9/2010

Olbernhau II Wingas Transport NET4GAS OBA 4

Hora Svaté Kateřiny Ontras NET4GAS OBA 5

Mallnow EuRoPolGaz S.A. Wingas Transport Pro Rata 6

Lasow (Görlitz) Ontras Gaz System OBA 7

Oberkappel BOG EGT/ GRTgaz Deutschland GmbH BS 9 IPA in discussion - in parallel, discussions on ISO 2003

Überackern OMV Gas Wingas Transport OBA 10

Überackern OMV Gas bayernets OBA 11

Griespass Snam Rete Gas Enl /Swissgas Mix 13

Mazara del Vallo TPMC Snam Rete Gas Mix 14

Tarvisio Snam Rete Gas TAG GmbH Mix 16

Gorica/Gorizia Geoplin plinovodi Snam Rete Gas Mix 17IPA in discussion

Murfeld/Ceršak OMV Gas Geoplin plinovodi OBA 18

Gela Green Stream Network Snam Rete Gas Mix 19

Mosonmagyarovar OMV Gas E.ON/Földgáz OBA 21

Baumgarten OMV Gas eu - stream OBA 22

Baumgarten BOG eu - stream OBA 23 IPA finalised with OBA - Discussions on ISO 2003 started

Baumgarten TAG GmbH eu - stream OBA 24

Velke Kapusany NaftoGaz eu - stream Pro Rata 25no EU-internal IP

Drozdowicze NaftoGaz Gaz System Mix 26no EU-internal IP

Wysokoje Bieltransgas Gaz System Mix 27no EU-internal IP

Tietierowka Bieltransgas Gaz System Mix 28

Negru Voda Transgaz Bulgartransgaz 29

Malkoclar Bulgartransgaz Botas 30no EU-internal IP

Kula/Sidirokastron Bulgartransgaz DESFA 31

Zidilovo Bulgartransgaz Makpetrol 32no EU-internal IP

Kondratki Bieltransgas EuRoPolGaz S.A. Pro Rata 33(newly added)

Kipoi Botas DESFA 34


8. Practical Implications for Implementation of OBAs

A challenging Interconnection Agreement…..

Baumgarten-Oberkappel Gasleitungsgesellschaft m.b.H.

Nomination and matching at the Interconnection Point Baumgarten:A challenging Interconnection Agreement

GRI SSE Implementation Group Meeting26/03/2010 - Milano

GRI SSE – 26.03.2010 - p 31

Interconnection Point Agreement is not only about OBAs

The IPA states the technical and operational conditions between the adjacent TSOs (EASEE-gas CBP 2005/002-02):

Impact on the TSOs Impact on shippersMatching procedures (information exchange)

+(IT impact)

++ (nomination scheme and schedule)

Flow control +(OBA steering, operations)

Measurement procedures

+(operations, losses in TSO)

Gas Spec, Min and Max delivery pressure

++(in particular operation

conditions)

+(refusal of off-spec gas)

Allocation rules + ++(OBA, Balancing Shipper or pro-rata)

Coordination of operation

++(windows for maintenance

and tie-ins)

+(limitation of reduction periods)

Information exchangeExceptional events

+(operations, crisis)

+(consistency between TSOs)

GRI SSE – 26.03.2010 - p 32

Baumgarten IPA Issues with the matching process:

Units and gas day

GRI SSE – 26.03.2010 - p 33

Two different unit systems, 2 different gas days

Issues: how to transform slovak nominations (Sm3/d) in EASEE-gas CBP standard? (kWh/h)

3 GCV forecast (one for each downstream system (OGG, TAG, BOG))

Transforming Nm3(15°) into Sm3(20°)

8.00 to 8.00 day vs 6.00 to 6.00

Solutions:

All TSOs agreed on a common forecast GCV. Based on this GCV, eustream transforms its shipper´s nominations into kWh for matching.

Austrian TSOs provide eustream with the calculation in Sm3(20°) as an additional information+ defined kWh based on Nm3(15°) as the reference.

Austrian TSOs request their shippers for 6.00 to 8.00 nominations.

The „lesser rule“ hourly matching, the 2h renomination lead time and the OBA between the TSOs allow the compatibility with eustream´s daily matching.

Slovakia: Sm3(20°C) – 8.00 to 8.00Austria: kWh based on forecasted GCV – 6.00 to 6.00.

GRI SSE – 26.03.2010 - p 34

Issues in matching process:Matching the nominations

for each shipper pairs

GRI SSE – 26.03.2010 - p 35

Gas

Day D+1

Daily matching processGas

Day D+1

A

SK

Gas Day DGas Day D-1

6h 8h 10h 12h 14h 16h 18h 20h 22h 24h 2h 4h 6h

Gas Day D

8h8h 8h

8h

Gas Day D-1

8h

= or ≠ = or ≠

GRI SSE – 26.03.2010 - p 36

Gas

Day D+1

Hourly matching process

8h

Gas

Day D+1

A

SK

Gas Day DGas Day D-1

6h 8h 10h 12h 14h 16h 18h 20h 22h 24h 2h 4h 6h

Gas Day D

8h8h

8h

Gas Day D-1

8h

= or ≠

GRI SSE – 26.03.2010 - p 37

Solution choosen: hourly matching

Compatible with EASEE-gas CBP

The profiles on the Slovak and Austrian TSO network are relatively „flat“ (transit or compensated domestic)

Some shippers on eustream already send an hourly profiled nomination for information.

GRI SSE – 26.03.2010 - p 38

Impact of the decision

+ =

Hourly matching

+ =

BaumgartenSlovakiaAustria

Typical transit profile or balancing-compensated domestic profile

Typical non balancing-compensated end-consumer profile

GRI SSE – 26.03.2010 - p 39

Impact of the decision: lesser rule

+ =

MatchedSlovak SideAustrian

Side

•Eustream might „shape“ the incoming flow based on history and compensate small deviations within the dayly balancing mechanism + use the lead time from 6.00 to 8.00.

GRI SSE – 26.03.2010 - p 40

Matching process:Matching between the systems,

integration of CEGH trading platform

GRI SSE – 26.03.2010 - p 41

Possible nominations at the SK/AT border

Eustream

BOG

OMV Gas

TAG

WAG ICP

Q1

Q2Q´2

Q´1a

Q´1b

Q´4

Q3

The CMA has been tasked by the TSOs to check the consistency of all nominations at the SK/AT border, within the technical limits set by the TSOs

MS3

MS1MS4

MS2

OMV ICP

TAG ICP

2,3 km

Baumgarten station

March/Morava: limit of responsibility between

the TSOs

Flange tradingOTC or Gas exchange

CEGH tradingCombination of CEGH trading

GRI SSE – 26.03.2010 - p 42

Summary: TSO allowed flexibility for trading parties

Within the Interconnection Point Agreement Baumgarten the 4 TSOs (eustream, TAG, OGG, BOG) and the CEGH established the procedures :

Keeping open both possibilities for trade on the CEGH trading Platform (OTC or exchange) or on the flange.

the trading parties can freely determine what is their preferred trading solution.

Allowing to compensate the different regimes for balancing and units.

These regimes derive on the one hand from the legal framework (authorities and NRA).

But also are not independant on the terms of the trade contracts (between trading parties, e.g gas day definition in the trade contract).


8. IPAs with OBAs – Next Steps

• NRAs and TSOs could cooperate by forming “Project Teams” in

order to discuss given issues and barriers for the implementation at

their respective Interconnection Points.

• Experience from the IP Baumgarten and, in the future, form the IP

Arnoldstein-Tarvisio, as well as other successful implementations,

may serve as templates.

• The GRI SSE will constantly support and monitor the

implementation of Interconnection Point Agreements containing

OBAs

Transparency PlattformSSE TSO Participants

Participant as of beginning:• Snam Rete Gas• OMV Gas• NET4GASParticipants since last year:• Eustream• Geoplin Plinovodi• FGSZIn a testing phase: • BOGPreparing for participation:• TAG


10. Any other Business

Next Meeting Date scheduled for 20th of May – we propose

another date, either for Regional Cooperation & Regional

Solidarity or Transparency

Group Date Place

1. 3 RCCs 16.Jun/10.Nov Rome/Vienna

2. 3 focus IGs: - SOS 10. Nov Vienna

3. 1 SG/IG:- Wholesale Trading and Transparen y 16. & 17. Jun Rome (rotative

venue)


Closure

Thank you very much!


Michael Schmöltzer

Head of Gas Department E-Control gmbH+43(0)1 – 24 7 24 / [email protected]

www.e-control.atwww.ceer.org

Contact

Documents

7th IG Meeting, GRI SSE