Development of new gas routes1- Belgium / France
2- Spain / France
Shipper’s meeting - Paris - October 20th, 2008
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Brief overview of Taisnières H developments
Proposed product: Taisnières H firm entry capacity into the North Zone on GRTgaz’ transmission system from Belgium
Three development steps are envisaged
Capacity allocated through this open season process to be made available on December 1, 2013
Amount of capacity kept for short-notice bookings• Currently 93 GWh/d• Level to be set by the CRE
Created Total AvailableStep 0 0 590 380Step 1 180 770 560Step 2 160 930 720
Capacity (GWh/d)
• Step 0 takes into account current commercial capacity and existing subscriptions of 210 GWh/d
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Allocation rulesConsistency Rule• Target: to ensure consistency in developments on both sides of the border• Responsibility to remain with shippers themselves: each shipper submits
requests to GRTgaz, that are consistent with capacity (to be) subscribed on Fluxys network by himself and/or its counter-parties at the flange
Max [ Cz(E, MN);Cse(E, MN) ] ≤ ΣE [ R(E, d, n) ]+S(E, MN) ≤ Cz(E, MN) + Cse(E, MN)
• Final check by GRTgaz: comparison of the total of capacity allocations on bothGRTgaz and Fluxys networks
Requests stacked by priority groups according to duration / starting date
Last priority group only to be pro-rated
20242014
Reservationsby level ofpriority
Duration of reservation
CapacityReservations reduced(α pro-rata)
Reservations 100% served
Existing SubscriptionShort notice
C
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Price of the capacity at Taisnières H
Proposed by the CRE, decided by the Ministry
Historical prices in MWh/d per year:
Indicative ratio “Regulated Asset Base / Entry Capacity Offered”• Presented in GRTgaz’ 10-Year development statement• Over the 2008-2017 period: on average above-inflation increase between 1 and
2%, i.e. close to 3 or 4% per annum.
2005 2006 2007 2008 2009 2010 2011 201291,80 91,80 78,03 78,03
ATRT3 ATRT4ATRT2
90,00
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How to participate?This new binding phase in the process is scheduled to end on December 12, under the following coordinated timetable: • November 7 – GRTgaz receives binding requests for entry capacity into the
North Zone from Belgium on GRTgaz’s transmission system. • November 21 – GRTgaz notifies shippers of the results of the capacity allocation
process. • December 3 – Fluxys receives binding requests for North-South capacity on the
Fluxys transmission system. • December 12 – Fluxys notifies shippers of the results.
Binding requests received by GRTgaz before January 30, 2008 have been cancelled
The capacity available at the Taisnières H entry point between December 1, 2012 and November 30, 2013 is again accessible under GRTgaz’s usual allocation rules
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A Need : Development of new gas routes connecting North of France to Spain
Limited connection between Spanish and French Gas Markets
Spain: connected to NW Europe Markets through France
France: an additional mean to foster liquidity on the South Zone
Need expected in both directions
South GRI: A strong demand from Market and Regulators for new routesfrom Spain to North Zone, to be developed through Open Season process
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A new connection to be built : PerthusWestern connection (Larrau): can be optimised by 2013
Eastern route connecting Midi with Catalonia via Perthus
Perthus : Proximity with GRTgaz network
Perthus : part of a route to be built from Northern France to Spain by 2015
TIGF
Larrau
Perthus
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GRTgaz investments related to Perthus
MidCat
TIGF
Midi
Rhône
Bourgogne
A whole new route to build from Northern France to Spain
Otherwise, Perthuslimited to local needs
Major investment program for GRTgaz• 1 to 1,5 billion Euros
« MidCat » connection : only 20% of the whole program
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Market design and tariff structure(from 1st of January, 2009)
PIR Midi (prices in MWh/d per year)• 75 € Entry / Exit GRTgaz South• 75 € Entry / Exit TIGF
Larrau (prices in MWh/d per year)• Exit from TIGF : 285 €• Entry in TIGF : 90 €
Larrau
Midi
TIGF
Nord Sud
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Market design : options to considerMARKET DESIGN 2MARKET DESIGN 1
TIGF
Larrau Perthus
Midi
Nord Sud
Midi
Nord Sud
.. or..
Larrau Perthus
TIGF
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GRTgaz proposes direct connectionGRTgaz South / Enagas
A wider choice offered to the market
A more direct route between Spain and PEG Nord
Fair balance between revenues and investments• Market Design 1:
GRTgaz invests 25 x annual incomeTIGF 3 x annual income
• Market Design 2:GRTgaz invests 9 x annual income
TIGF
Larrau Perthus
Midi
Nord Sud
GRTgaz proposes to build the whole route including MidCat
GRTgaz proposes to market Perthus as pure Entry / Exit Enagas / GRTgaz S
MARKET DESIGN 2
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Next steps
End October 2008: Market consultation to be launched by Regulators on Market design, tariff principles and Open Season schedules
Mid November 2008: End of Consultation by Regulators and analysis
December 2008: Choice of a market design
January 2009: Publication of Info Memorandum
2009: Open Season for capacities 2013 & 2015