2nd ig meeting – region south-south east 5th july 2007, krakow, poland
TRANSCRIPT
2nd IG Meeting – Region South-South East5th July 2007, Krakow, Poland
2
Agenda
Agenda Topics Rapporteur
11.00 1. Opening
- Welcome
- Approval of the agenda
Co-chairs
11:15 2. Presentation session I:
2.1. Best-practice standardised bulletin board
2.2. Summary of planned investments in the region (incl. Storage)
TSOs
TSOs, SSOs
12:30 Lunch break
13.30 3. Presentation session II:
3.1. Removing remaining obstacles to implementation of IPA/OBA
3.2. Best practice provision of OSS service
TSOs an shippers
TSOs
15.00 Coffee break
4. Presentation session III:
4.1. Regional Entry Exit Tariff System
4.2. Hub development as regional balancing market
RCC
Hub operators,
EFET, Eurelectric
16.30 5. Closure
5.1. Summary of main findings
5.2. Date(s) of the next meeting
5.3. Outlook and next steps
Co-chairs
3
Implementation Task Forces
Implementation TF Responsible Result until
Best-practice standardised bulletin board - RCC: TOR- TSOs- Next steps
End June/ beginning of July
Summary of planned investments in the region (incl. Storage)
- RCC: TOR- ECG: Survey results- TSOs & SSOs- Next steps
End June/ beginning of July
Removing remaining obstacles to implementation of IPA/OBA
- RCC: TOR- TSOs - Next steps
End June/ beginning of July
Best practice provision of OSS service- RCC : TOR- TSOs- Next steps
End June/ beginning of July
REETS- RCC : TOR- AEEG- Next steps
End June/ beginning of July
Hub development as regional balancing market
- RCC TOR- CEGH, PSV - EFET, Eurelectric- Next steps
End June/ beginning of July
Gas Regional Initiative
South-South EastContribution by TSOs
Milano Tasks
5 July 2007, Krakow, Poland
Contribution by TSOs
Participating TSOs
Geoplin Plinovodi OMV Gas GmbH RWE Transgas Net Snam Rete Gas SPP-preprava Trans Austria Gasleitung GmbH
Best practice: Standardised bulletin board
Summary of planned investments in the region (excl. storage)
Planned investments regarding storage should be presented by SSOs as TSOs may not be aware of them
Removing remaining obstacles to implementation of IPA/OBA
Best practice: Provision of one-stop-shop (OSS) service
Milano Tasks - Contribution by TSOs
TSOs discussed all topics identified as areas for further work
TSOs Met on 18 May in Prague
TSOs’ understanding of the Milano tasks was very different from the contents given in the
Terms of Reference sent on 23 May by Mr. Rieser /on 24 May by REM SSE Co-Chairs
The given Terms of Reference seem to go well beyond what was said in Milano
9
Agenda
Agenda Topics Rapporteur
11.00 1. Opening
- Welcome
- Approval of the agenda
Co-chairs
11:15 2. Presentation session I:
2.1. Best-practice standardised bulletin board
2.2. Summary of planned investments in the region (incl. Storage)
TSOs
TSOs, SSOs
12:30 Lunch break
13.30 3. Presentation session II:
3.1. Removing remaining obstacles to implementation of IPA/OBA
3.2. Best practice provision of OSS service
TSOs an shippers
TSOs
15.00 Coffee break
4. Presentation session III:
4.1. Regional Entry Exit Tariff System
4.2. Hub development as regional balancing market
RCC
Hub operators,
EFET, Eurelectric
16.30 5. Closure
5.1. Summary of main findings
5.2. Date(s) of the next meeting
5.3. Outlook and next steps
Co-chairs
10
Best-practice standardised bulletin board
Why necessary Regulation 1775/2005/EC Art. 8:
“Each transmission system operator shall take reasonable stepsto allow capacity rights to be freely tradable and to facilitatesuch trade.”
Quote from Explanatory Notes (Reg. 1775/2005/EC)“TSOs should be obliged to publish the offer of secondary capacity when requested by the seller. The TSOs should be urged to organise a bulletin board where this is not organised in another market place.“
RCC’s background paper:TSOs should cooperate in setting up a central bulletin board as a trading platform for secondary market capacities for transmission pipelines in the region SEE
11
Best-practice standardised bulletin board
What is expected: Implementation of an online, user-friendly, and secure trading
platform.
Step 1: a best practice online-based trading platform for secondary market capacities in the SSE regional energy market shall be identified
Step 2: implementation of an online platform using a harmonised standard for transmission capacity on all major transit systems of the region SEE
12
Example to be used for all Austrian transit capacities
TSOs’ understanding: creation of a harmonised user-friendly bulletin board by EACH TSO (no joint platform)
Bulletin Board is no true trading platform only an information board made available by the TSOs to make it easier for interested parties to find each other; the TSOs are not involved in the transaction until the parties that have traded/want to trade capacity send them notice thereof
Harmonised Bulletin Board (1)
Approach taken: operational rules for running the bulletin boards were checked and pros and cons of their functioning were discussed
TSOs agreed to use standard contents for presenting the information on the capacity bid/offer received in whatever form from the shippers
The contents (format) used by TAG has been chosen as the best practice
Harmonised Bulletin Board (2)
The TSOs would like to note that shippers have made very little use of the bulletin boards so far
TAG Bulletin Board
Harmonised Bulletin Board (3)
*
* Optional information may be in the form of an attachment or as directly published text
16
Action POINT 1 - Best-practice standardised bulletin board
Suggested next steps
Coordinator: TSOs Next steps:
TSOs agreed to use standard contents for presenting the information on the capacity bid/offer received in whatever form from the shippers
The contents (format) used by TAG has been chosen as the best practice
Timing: Implementation of the standard content till September
17
Agenda
Agenda Topics Rapporteur
11.00 1. Opening
- Welcome
- Approval of the agenda
Co-chairs
11:15 2. Presentation session I:
2.1. Best-practice standardised bulletin board
2.2. Summary of planned investments in the region (incl. Storage)
TSOs
TSOs, SSOs
12:30 Lunch break
13.30 3. Presentation session II:
3.1. Removing remaining obstacles to implementation of IPA/OBA
3.2. Best practice provision of OSS service
TSOs an shippers
TSOs
15.00 Coffee break
4. Presentation session III:
4.1. Regional Entry Exit Tariff System
4.2. Hub development as regional balancing market
RCC
Hub operators,
EFET, Eurelectric
16.30 5. Closure
5.1. Summary of main findings
5.2. Date(s) of the next meeting
5.3. Outlook and next steps
Co-chairs
18
Route Assessment in SSE
1
2
4
3
Gas Regional Initiative – Region: South-South East, Assessment on selected Transportation Routes
19
Available firm capacitySPP
Preprava
SK
RTN
CZ
BOG
A
TAG
A
OMV
A
Geoplinplinovodi
SI
SRG
I
GAZ System
PL
route 1UK-SK-CZ-GER
yes yes
route 2UK-SK-A-SI-I
no no yes no
route 3UK-SK-A-I
no no
route 4UK-SK-A-GER
no no
route 5BE-PL-GER
no
route 6AL-I-A-SK
no yes
20
Short term congestion managementSPP
Preprava
SK
RTN
CZ
BOG
A
TAG
A
OMV
A
Geoplinplinovodi
SI
SRG
I
GAZ System
PL
route 1UK-SK-CZ-GER
noneinterr. UIOLI,
bulletin board
route 2UK-SK-A-SI-I
noneinterr. UIOLI,
bulletin board
interr. UIOLI, bulletin board
none
route 3UK-SK-A-I
noneinterr. UIOLI,
bulletin board
route 4UK-SK-A-GER
noneinterr. UIOLI,
bulletin board
route 5BE-PL-GER
interr. UIOLI
route 6AL-I-A-SK
interr. UIOLI, bulletin board
bulletin board
21
Capacity expansionSPP
Preprava
SK
RTN
CZ
BOG
A
TAG
A
OMV
A
Geoplinplinovodi
SI
SRG
I
GAZ System
PL
route 1UK-SK-CZ-GER
no plans no plans
route 2UK-SK-A-SI-I
no plansplanned -
not enough
no plans planned
route 3UK-SK-A-I
no plansplanned -
not enough
route 4UK-SK-A-GER
no plansopen
season
route 5BE-PL-GER
no plans
route 6AL-I-A-SK
backhaul planned
22
Congestion Management – Obligation of TSOs
Why necessary Regulation 1775/2005/EC Art. 5:
“In the event that physical congestion exists, non discriminatory, transparent capacity allocation mechanisms shall be applied by the transmission system operator or, as appropriate, the regulatory authorities.“
Quote from Explanatory Notes (Reg. 1775/2005/EC)In the case of new investments in transportation capacity (which includes significant expansion of existing capacity), the TSOs' responsibility to ensure the long term ability of the system by meeting reasonable demands would make it appropriate to organise an open season or open subscription period before allocating capacity, in order to determine more precisely the required capacity expansion.
RCC’s route assessment:Congestion management measures are missing
23
Summary of planned investments in gas infrastructure
What is expected: Deliverable 1: Survey of the future gas demand and capacity
need by country (10 years ahead) Deliverable 2: Survey of planned and actual investments in
transmission pipelines and storage facilities, by country and TSO/SSO
Deliverable 3: Analysis of concrete obstacles to investment, be it regulatory, legal, political or other reasons
24
Summary of planned expansions in SEE (incl. Storage)
Presentation/report Report by RCC Early findings from questionnaire Review by country
Austria Bulgaria Czech Republic Greece Hungary Italy Poland Romania Slovakia Slovenia
In the light of the obligation imposed by Regulation (EC) 1775/2003 to publish regular long-term forecasts of available capacities for up to 10 years for all relevant points, in case the TSOs have the obligation under the national law to publish an investment forecast, they mostly interpret planned investments as investments that will be realised (i.e. no investment plans in pre-feasibility and feasibility stage)
Summary of Investment Forecasts
The TSOs would like to underline that it is not the investments as such but the associated increase
in transmission capacity that is of interest to shippers
SPP - preprava
Decisions on investments currently under preparation according to the demand of the network users.
Developments Length [km] Notes
Olbernhau-Waidhaus (link to the Nordstream/OPAL)
3 alternatives Market Survey OngoingThe new capacity should come on stream gradually between 2011-2015
RWE Transgas Net (1)
RWE Transgas Net (2)
Investments Volume Increase
Planned entry into operation
Notes
Compressor Station Eggendorf (Region Lower Austria)
3.2 bcm/y 1 October 2008 Capacity allocated through long-term allocation procedure on a pro-rata basis
Compressor Station Weitendorf (Region Styria)
3.3 bcm/y Capacity to be allocated in the near future
Total capacity to be made available through the new investments amounts to 6.5 bcm/y.
Further information will be published on TAG’s web site in due time.
Trans Austria Gas Leitung (1)
Trans Austria Gas Leitung (2)
Planned investments into the transit system
Volume Increase
Planned entry into operation
Notes
Compressor Station at Oberkappel (Penta West) including extension of PW transfer metering station at Überackern
1.75 bcm/y 1 November 2011 Under construction, capacity nearly sold
Planned investments into the Austrian domestic system should be looked up under the Long-term Planning Process of AGGM (www.aggm.at)
OMV Gas (1)
OMV Gas (2)
Developments Length [km]
Diameter [mm] Pressure [bar] Notes
M2/1 Rogatec – Rogaška Slatina
8.1 800 70 Under construction
R25D Šentrupert – Šoštanj
17 400 70 Under construction
M1/1 Kidričevo – Rogatec M1/1 Ceršak – Kidričevo M2/1 Rog. Slatina – Trojane M2/1 Trojane – Vodice M3/1 Vodice – Šempeter M3B/1 Šempeter – Miren M5 Vodice – Jarše
M5 Jarše – Novo mesto M6 Ajdovščina – Lucija M8/1 Jelšane – Kalce M8/2 Brod na Kolpi – Ljubljana (alternative) M8/3 Vinica – Ljubljana (alternative) R25A Trojane – Hrastnik R45 N. mesto – B. krajina R38 Kalce – Godovič
Planned developments -- different stages:
Geoplin Plinovodi (1)
Geoplin Plinovodi (2)
Developments Length [km]
Diameter [mm] Compressor Station [MW]
Notes
Reinforcement of infrastructure in Sicily
160 1200 25 Under construction
Reinforcement of infrastructure in North-West of Italy
45 750 - Under construction
Reinforcement of infrastructure in North-East of Italy
- - 100 Planned
Reinforcement of infrastructure in South Italy 1300 800/1200 88 PlannedAdriatica
Tirrenica
Development of Entry point of Panigaglia
150 900 - Planned
Information on respective increases in transmission capacity is available on Snam Rete Gas’ web site
Snam Rete Gas (1)
Entry PointNorth-Est Italy
Entry PointPanigaglia
Entry PointPasso Gries
Entry PointSouth Italy
Entry PointMazara del Vallo
Snam Rete Gas (2)
37
Presentation of the GSE website with all actual expansion projects in storage
38
39
Details for Austria and Poland
40
Gas Demand forecast in Austria
41
Congestion in the Domestic Transmission system
42
Plant power stations (4.000 MW till 2015?)
KW
KW
KW
KW
KW
KW
KW
Geplant bis 2010
Geplant bis 2015
Geplant bis 2020
KW
KW
angedacht
Zeltweg
Mellach
KW
Peisching
KW
KW
KW
KW
Riedersbach
Timelkam
KW
Ennshofen
Theiß II
Dürnrohr
400
400
400
4001000
650150
800
800
400
800
43
Feasibility Study to increase domestic capacity
44
WAG
TAGI + II
SOL
PENTAWest
HAG
BaumgartenOberkappel
Arnoldstein
Murfeld
Burghausen
SLO HR
H
CZ
SKD
I
Capacity expansions in gas transit
Existing pipelines
planned expansions
TGL(2010)
Nabucco(2012)17-20 bcm/y
new compressor stations
Weitendorf(2008)3.2 bcm/y
Eggendorff(2008)3.3 bcm/y
Rainbach(2011)1.4 bcm/y
45
Storage projects in Austria
Haag
Storage site Puchkirchenwgv 850 mcmWithdrawal rate 400.000 cm/h
Storage site Thannwgv 250 mcmWithdrawal rate 130.000 cm/h
Storage site Schönkirchenwgv 1.570 bcmWithdrawal rate 770.000 cm/h
Storage site Tallesbrunn wgv 300 mcmWithdrawal rate 160.000 cm/h
Tallesbrunn
Expansion project „Schönkirchen Tief“Wgv minimum 1 bcm,High withdrawal rateCompletion expected 2011
Expansion project „Puchkirchen/Haag“wgv 400 mcmWithdrawal rate 160.000 cm/hCompleted 2010
Expansion project „Haidach“First expension phase wgv 1.2 bcm
Completion wgv 2.4 bcmCommissioning 2007
RAG
OMV Gas
OMV Gas
Storage site Haidach 5WGV 13.5 mcm
Withdrawal rate 20.000 cm/h
Existing storage facilities
Storage projects
RAG
Piotr SekleckiPiotr SekleckiChief Expert Chief Expert Department of European Integration and Department of European Integration and Comparative StudiesComparative StudiesEnergy Regulatory OfficeEnergy Regulatory Office
e–mail: [email protected]. (+48 22) 6616 318, fax (+48 22) 6616
321
Address:: Chłodna 64, 00–872 Warsaw
InvestmentInvestmentss and Planning and Planning
2nd Implementation Group Meeting of the Gas Regional 2nd Implementation Group Meeting of the Gas Regional Initiative for the South-South East RegionInitiative for the South-South East Region
The structure of gas supplies in 2006 The structure of gas supplies in 2006 (in mcm)(in mcm)
20-242 -474 74
4318 4277
63
40
68
40
33
50
31
89
2005 2006 2005 2006 2005 2006 2005 2006
mln
m3
The Yamal contract
Other import
domestic production
import PGNiG SA. change in stock other domestic suppliers
The structure of gas supplies in near The structure of gas supplies in near future future
POGC is now importing gas within the POGC is now importing gas within the frames:frames:• a long – term contract for the supplies of a long – term contract for the supplies of the Russian gas of 25th September 1996, the Russian gas of 25th September 1996, with Gazexport, valid until 2022,with Gazexport, valid until 2022,• the contract between PGNiG and VNG the contract between PGNiG and VNG AG on 17 August 2006 and valid until AG on 17 August 2006 and valid until 2016 (for annual gas supply volume 2016 (for annual gas supply volume ranging from 400 to 500 million m³) and ranging from 400 to 500 million m³) and • the contract of 17 November 2006 the contract of 17 November 2006 concluded with RosUkrEnergo AG until concluded with RosUkrEnergo AG until 2009 (for purchase of 2.5 billion m³ of gas 2009 (for purchase of 2.5 billion m³ of gas per annum) with an extension option for per annum) with an extension option for further 2 years.)further 2 years.)
LNG Terminal in Świnoujście LNG Terminal in Świnoujście
The first deliveries of LNG to the terminal The first deliveries of LNG to the terminal are planned for the year 2011. The are planned for the year 2011. The regasification capacity of the terminal will regasification capacity of the terminal will be developed by stages to reach the be developed by stages to reach the target capability of receiving up to 7.5 target capability of receiving up to 7.5 bcm of natural gas per year from the bcm of natural gas per year from the terminal by the year 2020. PGNiG set up a terminal by the year 2020. PGNiG set up a company - Polskie LNG (PLNG)- to build company - Polskie LNG (PLNG)- to build the terminal and, subsequently, to the terminal and, subsequently, to provide the regasification service. The provide the regasification service. The company is based in Świnoujście and company is based in Świnoujście and controlled by PGNiG.controlled by PGNiG.
The domestic production (1996 – The domestic production (1996 – 2006)2006)
3,7 3,73,6
3,8
4 44,1
4,3 4,3 4,3
3,6
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
bcm
Expansion of storage capExpansion of storage capaacitycity
InvestmentInvestmentss planned by the TSO planned by the TSO
53
Action POINT 2 – Overview capacity expansions in SEE
Suggested next steps Coordinator: RCC/E-Control Next steps:
inclusion of received information (TSOs and GSE) on expansion projects (Transmission&Storage) into the survey
Timing: present the results at the next IG meeting
54
Agenda
Agenda Topics Rapporteur
11.00 1. Opening
- Welcome
- Approval of the agenda
Co-chairs
11:15 2. Presentation session I:
2.1. Best-practice standardised bulletin board
2.2. Summary of planned investments in the region (incl. Storage)
TSOs
TSOs, SSOs
12:30 Lunch break
13.30 3. Presentation session II:
3.1. Removing remaining obstacles to implementation of IPA/OBA
3.2. Best practice provision of OSS service
TSOs an shippers
TSOs
15.00 Coffee break
4. Presentation session III:
4.1. Regional Entry Exit Tariff System
4.2. Hub development as regional balancing market
RCC
Hub operators,
EFET, Eurelectric
16.30 5. Closure
5.1. Summary of main findings
5.2. Date(s) of the next meeting
5.3. Outlook and next steps
Co-chairs
55
Further improvment since March 07 ?SPP
Preprava
SK
RTN
CZ
BOG
A
TAG
A
OMV
A
Geoplinplinovodi
SI
SRG
I
GAZ System
PL
route 1UK-SK-CZ-GER
under negotiation
under negotiation
route 2UK-SK-A-SI-I
in testing phase
in testing phase
in testing phase
in testing phase
route 3UK-SK-A-I
in testing phase
in testing phase
route 4UK-SK-A-GER
in testing phase
in testing phase
route 5BE-PL-GER
no
route 6AL-I-A-SK
under negotiation
under negotiation
56
Removing remaining obstacles to implementation of IPA/OBA
Region Number of IPs(GTE map)
number of OBAs at IPs
in %
NNW 55 33 60%
S 17 12 70%
SSE 29 8 28%
57
Removing remaining obstacles to implementation of IPA/OBA
Interconnection point (GTE map)
affected TSOs reported status actual implementation?
Lanzot (54) RTNSPP
under negotiation
Hora Svate Kateriny (22b) RTNWINGAS
in place OK
Waidhaus(24) RTNEON GT, GDF DT
under negotiation
Oberkappel (25) BOGEON GT, GDF DT
under negotiation
Velke Kapusany (55) NAFTOGAZSPP
in place OK
Tarvisio (49) TAGSRG
in place OK
Murfeld (51) OMVGEOPLIN
under negotiation mid 2007?
Gorizia (48) GEOPLINSRG
under negotiation mid 2007?
Baumgarten (55) SPPOMV, TAG, BOG
under negotiation mid 2007?
TAGc
HUB central matching station in between Transportation Systems one step towards harmonization
c c
c
c
c
WAG
Regulatory Zone Austria
HAGMABStorage
SPP
Baumgarten March 2007
Graphical illustration of hub trade in Baumgarten
SPP System
BOG System
OMV Gas System
TAG System
SPP System
SPP System
Technical ICP Agreements
Bilaterally conclusion
Business ICP
Common agreementSPP System
CEGH System
BOG System TAG System
OMV Gas System
OBA: Contractual structure
Integration of CEGH in OBA
Carrier SPP
Carrier OMV
Carrier TAG
Carrier BOG
Operator
SPP
Operator
OMV
OBA CEGH
Shipper
upstream
Shipper
downstream
Trader
Operator
OMV
CEGH
SPP System
BOG System OMV Gas System
TAG System
TradingShipper CEGH
Shipper CEGH
Shipper CEGH
Shipper OMV GASShipper WAG
Shipper TAG
TradingShipper CEGH
Systems of Austrian Side
Systems of Slovakian Side
Shipper SPP
SPP System
BOG System
OMV Gas System
TAG System
Shipper 1Shipper 2
Shipper 3
Shipper xyShipper xy
Shipper xy
Shipper xyShipper xy
Shipper xy
Shipper xyShipper xy
Shipper xy
ShipperShipper 1Shipper 2
Shipper 3
ShipperShipper xy
Shipper xy
Shipper xy
ShipperShipper xyShipper xyShipper xy
ShipperShipper xyShipper xy
Shipper xy
CEGH System
Detailed illustration of matching operation
64
Action Point 3: Removing remaining obstacles to implementation of IPA/OBA
Suggested next steps Affected TSOs: Next steps:
further update on implementation: TSOs will focus on concluding IPAs where these are not yet in place; Implementation of an OBA regime is dependent on certain prerequisites and will always be conditional; Shippers must be equally involved in the implementation process by complying with the nomination rules set up by the TSOs
Baumgarten: all involved stakeholders work on a solution within the next 3 months incl. a list of remaining obstacles
Timing: CEGH will coordinate a solution for Baumgarten within the next
3 months and present the results at the next IG meeting
65
Agenda
Agenda Topics Rapporteur
11.00 1. Opening
- Welcome
- Approval of the agenda
Co-chairs
11:15 2. Presentation session I:
2.1. Best-practice standardised bulletin board
2.2. Summary of planned investments in the region (incl. Storage)
TSOs
TSOs, SSOs
12:30 Lunch break
13.30 3. Presentation session II:
3.1. Removing remaining obstacles to implementation of IPA/OBA
3.2. Best practice provision of OSS service
TSOs an shippers
TSOs
15.00 Coffee break
4. Presentation session III:
4.1. Regional Entry Exit Tariff System
4.2. Hub development as regional balancing market
RCC
Hub operators,
EFET, Eurelectric
16.30 5. Closure
5.1. Summary of main findings
5.2. Date(s) of the next meeting
5.3. Outlook and next steps
Co-chairs
66
Best practice provision of OSS service
What is expected: Practical implementation of a voluntary one-stop-shop (OSS)
service based on the recommendations of the OSS study Information requirements
Capacity information Cumulative transportation tariff for the requested route Contract information to be signed with different parties Service fee for the OSS service
67
Regional one-stop-shop service provider
Step 1 – no new legal basis: requirements on a regional OSS provider
capacity information tariff information contract information service fee Standardized secondary market trading platform
(Step 2 – enhanced inter-TSO-cooperation) establishment of a regional entity set up by TSOs (RGM) main tasks of a RGM
Grid access and Capacity Management Gas Flow Control & Optimizing Investment (regional long-term planning)
68
Step 1: Coordination function of OSS provider
TSOshipper
transportation request one stop shop
TSO2
CASE 1: transport through network of one TSO
CASE 2: transport through networks of more than one TSO
shipper TSO1 TSO3
transportation request one stop shop
individual contracts with TSO1, 2...
coordination function of TSO1
69
Step 1: Responsibilities of OSS provider
OSS service is offered on a voluntary basis if shippers request for such a service (shippers are not obliged to use it)
In case a shipper requests the service, the regional OSS provider shall be responsible for replying within a certain number of working days presenting the available capacity or for alternative routes calculating the network tariff publishing unused committed capacity on the internet Arrange necessary contracts
70
Best practice provision of OSS service – examples
OMV Gas for all Austrian transit systems
Ontras and RWE Transgas Net
One-Stop Shop Provider
TSOs see the first stage of a process that may in the end lead to a one-stop shop provider in creating one common webpage where all relevant information concerning capacity would be available
Action has been taken by TSOs at the European level within the framework of GTE, independent action at the regional level would therefore be superfluous and possibly distortive. In case of delay in the process, appropriate actions at regional level could be taken
One-Stop Shop Provider
TSOs will make every effort to contribute to the creation of a European-wide Transparency
Platform
Obstacles to Implementation of
IPAs/OBA
Process-related obstacles Determination of norms and units to be used for
communication between the relevant TSOs* in connection with the operation of the respective delivery/redelivery station(s) and metering
Determination of the counter-party (e.g. at interface btw Slovakia-Austria)
Obstacles to Implementation of IPAs
* The units agreed are then to be used by Shippers entering and exiting the system at the respective points
Process-related obstacles To be able to ensure allocation equalling nomination, TSOs need to be
able to steer the flows at IPs accordingly. This is only possible if 1) matching of nominations may be executed with the neighbouring TSO, 2) nominations are given sufficiently in advance of the relevant Gas Day, 3) these nominations do not significantly differ from any renominations later on, esp. during the relevant Gas Day (“yo-yo flows” would lead to a very inefficient operation of the system)
Risk-related obstacles Some TSOs may not have access to any other flexibility but linepack.
Additional flexibilities exceeding linepack might generate additional costs. In any way TSOs may not take on unlimited risks and therefore the OBA will remain limited. In case of extraordinary events, in particular unplanned breakdowns on the (upstream) system or unexpected cuts in supply by the producers, the TSOs will need to revert to pro-rata allocation regime.
Obstacles to Implementation of OBA
Obstacles to Implementation of IPAs/OBA
TSOs would like to note that primarily it is necessary to conclude IPAs as such. Their
existence is already a significant contribution to ensuring non-discriminatory, transparent and objective third-party access conditions to gas
grids. Implementation of an OBA regime is dependent on certain prerequisites and will
always be conditional. Shippers must be equally involved in the implementation process by
complying with the nomination rules set up by the TSOs.
77
Action Point 4: Best practice provision of OSS service
Suggested next steps Coordinator: TSOs Next steps:
Transparency platform (GTE pilot project) TSOs offer OSS service to shippers who request the service Best practice OSS (OMV Gas, www.gatrac.com)
Timing: update next meeting
78
Agenda
Agenda Topics Rapporteur
11.00 1. Opening
- Welcome
- Approval of the agenda
Co-chairs
11:15 2. Presentation session I:
2.1. Best-practice standardised bulletin board
2.2. Summary of planned investments in the region (incl. Storage)
TSOs
TSOs, SSOs
12:30 Lunch break
13.30 3. Presentation session II:
3.1. Removing remaining obstacles to implementation of IPA/OBA
3.2. Best practice provision of OSS service
TSOs an shippers
TSOs
15.00 Coffee break
4. Presentation session III:
4.1. Regional Entry Exit Tariff System
4.2. Hub development as regional balancing market
RCC
Hub operators,
EFET, Eurelectric
16.30 5. Closure
5.1. Summary of main findings
5.2. Date(s) of the next meeting
5.3. Outlook and next steps
Co-chairs
79
Regional Entry Exit Tariff System (REETS)
Expected Deliverables: Theoretical considerations on the stepwise introduction of a
REETS in the regional energy market SSE
80
Work plan of REETS study
Will deal with main transportation routes
Following and completing analysis of the routes undertaken in Vienna Workshop and Milan Stakeholder Group meeting
Benchmarking of current tariffs
Simulation of alternative approach (REETS)
Simulation and comparison with today will show feasibility, benefits, and costs of REETS
81
Scope of the study: existing routes
Routes already considered in the GRI for SSE:
1. UKR-SK-CZ-GER (Vel'ké Kapušany - Waidhaus or Hora S. Kateriny)
2. UKR-SK-A-SI-I (Vel'ké Kapušany – Baumgarten – Murfeld - Šempeter/Gorizia)
3. UKR-SK-A-I (Vel'ké Kapušany - Baumgarten - Tarvisio)
4. UKR-SK-A-GER (Vel'ké Kapušany – Baumgarten - Oberkappel)
5. BELARUS-PL-GER-CZ (Kondratki – Mallnow - HSK)
6. ALGERIA-I-(SI)-A-SK (- CZ, -H) (Mazara-Tarvisio (Gorizia–SI) - Baumgarten – Slovakia/Czech Rep./Hungary)
82
Scope of the study: other routes
Routes to be added7. UKR–H-Austria (Beregdaroć-Mosonmagyarovar-Baumgarten)
8. CH-I-A/SI (Griespass-Minerbio-Route 6)
9. Italian LNG terminal connection (Panigaglia-Minerbio-Route 6)
10. UKR-RO-BG-GR (Isaccea–Negru Voda-Kula-Revithoussa)
11. UKR–H-Serbia (Beregdaroć-Szeged)
12. UKR-PL (Drozdowice-Mallnow)
Future Routes ●- TR-BG-RO-H-A (Nabucco)●- TR-GR-I (IGI)●- New LNG terminals in Italy, Croatia and related pipelines
83
Scope of the study: entry and exit points
Entry points➢ SSE import-export points (Kondratki, Vel'ké Kapušany,
Beregdaroć, Griespass, Panigaglia, Mazara, Gela, Isaccea, Negru Voda, Kula, Revithoussa, Oberkappel, Szeged)
➢ Main domestic production and storage areas (Baumgarten area, N. Adriatic, Po Valley, Central - S. Romania, S. Hungary, Silesia...)
Exit points ➢ SSE import-export points
➢ Representative consumption points close to the routes (Warsaw, Krakow, Poznan, Bratislava, Košice, Brno, Prague, Vienna, Linz, Klagenfurt, Milan, Bologna, Rome, Messina, Ljubljana, Budapest, Szeged, Bucharest, Constanta, Sofia, Thessaloniki, Athens)
84
Main transportation profiles
● Standard profiles to be defined for current tariff benchmarking and REETS simulation
● Current tariffs to be calculated for all entry-exit pairs, for standard transportation profiles
● Based on ongoing CEER benchmarking study
➢ performed for B, F, DK, H, NL, forthcoming
➢ Balancing regimes and charges included in the study
➢ Volumes: 5 Gm3, 500 Mm3, 50 Mm3
➢ Load factors 0.88, 0.71, 0.57, 0.34 (on hourly basis)
85
Current average tariffs for main routes/TSO
Unit \ Line TAG GmbH BOG GmbH OMV Gas GmbH
Entry Baumgarten Baumgarten Mazara
Exit Baumgarten
102,2 29 10,6 180 81,6 108 301 7,1
Exit capacity Mcm/d 88,3 17 10,6 142 NA 100,8 260 2,6
Km 380 245 26 390 1720 684 470 235
Tariff methodology Cost-based Cost-based Cost-based Benchmarking Cost-based Cost-based Benchmarking Cost-based
EUR/(m3/h)/(km/a) 0,125 0,241 0,875 0,170 0,052 0,148 0,187 0,410
RWE Transgas NET, s.r.o
Snam Rete Gas S.p.A.GAZ-SYSTEM
S.A.SPP - preprava,
a.s.Geoplin Plinovodi
d.o.o.
Weitendorf Lanžhot Kondratki Velke Kapušany Ceršak
Arnoldstein/Tarvisio Oberkappel Ceršak Waidhaus Tarvisio/Arnoldstein Mallnow Šempeter
Entry capacity Mcm/d
86
REETS simulation: allowed revenues
Calculation of revenue requirements for each route and TSO
➢ Based on allowed revenue approved by National Regulator
for each TSO
➢ Based on current balance sheets
➢ After benchmarking and harmonisation of revenue
calculation criteria
87
REETS simulation: tariff structure● Simulation of common entry-exit system with interlinks between balancing zones
● Identification of bottlenecks & balancing zones
➢ where present red lights at TSO border
● Simulation of entry and exit tariffs within each balancing zone
➢ average cost vs. long run marginal cost
● Regulated interlinks between zones
● Single zone may be simulated assuming current bottlenecks are removed
88
REETS simulation: new investment
● Based on investment plans delivered by TSOs
● Including investment required for bottleneck removal
● Simulation of the new major infrastructure impact (Nabucco, Greece-Italy, Algeria-Sardinia-Italy, new LNG terminals), possibly subject to partial TPA exemption
● TPA exemption enhances sponsor/TSO responsibility, reduces impact on EE tariffs
89
Action Point 5: Regional Entry Exit Tariff System (REETS)
Suggested next steps Coordination: RCC/AEEG Next steps:
presentation of benchmarking results simulation of implementation REETS
Timing: update next meeting
90
Agenda
Agenda Topics Rapporteur
11.00 1. Opening
- Welcome
- Approval of the agenda
Co-chairs
11:15 2. Presentation session I:
2.1. Best-practice standardised bulletin board
2.2. Summary of planned investments in the region (incl. Storage)
TSOs
TSOs, SSOs
12:30 Lunch break
13.30 3. Presentation session II:
3.1. Removing remaining obstacles to implementation of IPA/OBA
3.2. Best practice provision of OSS service
TSOs an shippers
TSOs
15.00 Coffee break
4. Presentation session III:
4.1. Regional Entry Exit Tariff System
4.2. Hub development as regional balancing market
RCC
Hub operators,
EFET, Eurelectric
16.30 5. Closure
5.1. Summary of main findings
5.2. Date(s) of the next meeting
5.3. Outlook and next steps
Co-chairs
91
Punto
Scambio
V irtuale
Baumgarten
PL
A
I
SLO
H
SK
CZ
GR
Hub development as regional balancing market (I)
What is expected Step 1: Plan for development the Hubs in the region as a
regional balancing point Step 2: Suggestions for practical implementation of the
concepts developed under step 1
92
Hub development as regional balancing market (II)
16 February 2007Gas Committee – CEGH Working Group
Timeline
Feb 07 Oct 2008Oct 07
? For Bulletin Board the decision on Market Maker (volume? spread? period? rights and responsibilities?)
? Back-up/-down services? Customer focus
?OBAs?physical nomination < 1 day
lead time (now 5 days)?Web based nomination
? Workshop CEGH with EFET on products
Mar 07 May 2007
? systematic offering of structured products (week ahead, month ahead) anonymous
? standardised agreements (EFETs)
? (Super-) firm market place
? CEGH takes counterpart risk and makes clearing
? International balancing via CEGH
? online intraday balancing market
? derivative trading with physical hedge/forwards
? gas exchange
? Meeting CEGH with EFET CEGH Working Group (Ressl)
Jan 2009
? Derivative trading? Regional
balancing market
Mar/Apr 07 Jan 2008
? Meeting CEGH with EFET CEGH Working Group (after 20.03)
? day ahead products? intraday products? physical nomination
< 1 day possible? web based
nomination possible
Jul 07
? Operational Market Maker
? Back up/down service
? completion of contractual specifications
CEGH
SPP System
BOG System OMV Gas System
TAG System
TradingShipper CEGH
Shipper CEGH
Shipper CEGH
Shipper OMV GASShipper WAG
Shipper TAG
TradingShipper CEGH
Systems of Austrian Side
Systems of Slovakian Side
Shipper SPP
SPP System
BOG System
OMV Gas System
TAG System
Shipper 1Shipper 2
Shipper 3
Shipper xyShipper xy
Shipper xy
Shipper xyShipper xy
Shipper xy
Shipper xyShipper xy
Shipper xy
ShipperShipper 1Shipper 2
Shipper 3
ShipperShipper xy
Shipper xy
Shipper xy
ShipperShipper xyShipper xyShipper xy
ShipperShipper xyShipper xy
Shipper xy
CEGH System
Detailed illustration of matching operation
Heart pace maker for liquidity
optimized utilization of transport capacities
harmonized business environment
storage
price quotations
back up /down services
market maker
functionalities
availability
flexibility
of gas
interface with local balancing mechanism
physical balancing of network
liquidity
buy and sell to the market
TransparencyGRP
Online
Bulletin Board
price index
AGCSProvider 4
Provider 3
Provider 2
Provider 130€
25€ 20€
15€
Merit
Order
list
Provider 1
Provider 2
Provider 3
Provider 4
Balancing Energy Market
Back UP/DownMarket
Merit
Order
list
CEGH27€
23€
18€
13€
Shipper
1
Shipper
2
Shipper
3
Shipper
4
Shipper
5
Shipper
6
Shipper
7
Shipper
8
Shipper 9Shipper 10Shipper 11Shipper 12Shipper 13Shipper 14Shipper 9Shipper 10Shipper 11Shipper 12Shipper 13Shipper 14
Shipper 15
Shipper 16
Shipper 17
Shipper
1
Shipper
2
Shipper
3
Shipper
4
Shipper
5
Shipper 1
Shipper 2
Shipper 3
Shipper 4
Shipper 5
HUB
Control area
WAG
TAG
SPP
HAG
MAB
storage
Shi
pper
Shi
pper
Ship
per
Ship
per
Ship
per 9
Ship
per 1
0S
hip
per 1
1S
hip
per 1
2S
hip
per 1
3S
hip
per 1
4
Ship
per
9S
hip
per
10
Ship
per
11
Ship
per
12
Ship
per
13
Ship
per
14
ShipperShipper
13€
15€
18€
20€23€
25€
27€
30€
Combined Merit
Order
list
EFET – PLAN next steps back up back down services
Hub as Balancing Point
OBA
ERGEG - Issues
Back up/down Service
provision
Back up/down Service
Request for tender
Contract with providers
Contract with OTC - customers
Prepared for discussion with EFET
16 February 2007Gas Committee – CEGH Working Group
Timeline
Feb 07 Oct 2008Oct 07
? For Bulletin Board the decision on Market Maker (volume? spread? period? rights and responsibilities?)
? Back-up/-down services? Customer focus
?OBAs?physical nomination < 1 day
lead time (now 5 days)?Web based nomination
? Workshop CEGH with EFET on products
Mar 07 May 2007
? systematic offering of structured products (week ahead, month ahead) anonymous
? standardised agreements (EFETs)
? (Super-) firm market place
? CEGH takes counterpart risk and makes clearing
? International balancing via CEGH
? online intraday balancing market
? derivative trading with physical hedge/forwards
? gas exchange
? Meeting CEGH with EFET CEGH Working Group (Ressl)
Jan 2009
? Derivative trading? Regional
balancing market
Mar/Apr 07 Jan 2008
? Meeting CEGH with EFET CEGH Working Group (after 20.03)
? day ahead products? intraday products? physical nomination
< 1 day possible? web based
nomination possible
Jul 07
? Operational Market Maker
? Back up/down service
? completion of contractual specifications
100
Action Point 6: Hub development as regional balancing market (I)
Suggested next steps Lead: PSV/EFET and CEGH/EFET Next steps:
Separate workstreams and update on implementation of next steps according schedule
Timing:
16 February 2007Gas Committee – CEGH Working Group
Timeline
Feb 07 Oct 2008Oct 07
? For Bulletin Board the decision on Market Maker (volume? spread? period? rights and responsibilities?)
? Back-up/-down services? Customer focus
? OBAs? physical nomination < 1 day
lead time (now 5 days)? Web based nomination
? Workshop CEGH with EFET on products
Mar 07 May 2007
? systematic offering of structured products (week ahead, month ahead) anonymous
? standardised agreements (EFETs)
? (Super-) firm market place
? CEGH takes counterpart risk and makes clearing
? International balancing via CEGH
? online intraday balancing market
? derivative trading with physical hedge/forwards
? gas exchange
? Meeting CEGH with EFET CEGH Working Group (Ressl)
Jan 2009
? Derivative trading? Regional
balancing market
Mar/Apr 07 Jan 2008
? Meeting CEGH with EFET CEGH Working Group (after 20.03)
? day ahead products? intraday products? physical nomination
< 1 day possible? web based
nomination possible
Jul 07
? Operational Market Maker
? Back up/down service
? completion of contractual specifications
Gas Regional Initiative Regional Energy Market South-
South East
Hub development as a regional balancing market
PSV implementation TF
Hub development as regional balancing points:
TF considerations
The TF shares the ERGEG objective of developing the hubs as balancing points Market based balancing more effective and positive for liberalisation than fixed penalties Helps to increase the liquidity at the hubs in SSE Reduces the risk of exposure for traders
In principle the TF also shares the objective of setting regional balancing points
Hub development as regional balancing points:
TF considerations
In practice the SSE regional market lacks:
harmonized business environment (contractual conditions, operational procedures, balancing mechanism and procedures etc…)
well meshed gas grid. For instance there is no interconnection between Poland and the southern SSE countries
available capacities: gas flows throughout the whole region limited by physical/contractual congestion on the interconnection routes
Hub development as regional balancing points:
Balancing points in the SSE Region
As a first immediate step the TF suggests the development of two/three hubs in the region acting as balancing points for their reference area.
In the longer term the local balancing points could evolve to a regional dimension.
PSV Implementation Task Force
The way forward
Set users priorities for the development of PSV as a balancing point
Meet with other stakeholders (hub operator, regulators, other interested parties)
Plan for the development of PSV as balancing point
106
Agenda
Agenda Topics Rapporteur
11.00 1. Opening
- Welcome
- Approval of the agenda
Co-chairs
11:15 2. Presentation session I:
2.1. Best-practice standardised bulletin board
2.2. Summary of planned investments in the region (incl. Storage)
TSOs
TSOs, SSOs
12:30 Lunch break
13.30 3. Presentation session II:
3.1. Removing remaining obstacles to implementation of IPA/OBA
3.2. Best practice provision of OSS service
TSOs an shippers
TSOs
15.00 Coffee break
4. Presentation session III:
4.1. Regional Entry Exit Tariff System
4.2. Hub development as regional balancing market
RCC
Hub operators,
EFET, Eurelectric
16.30 5. Closure
5.1. Summary of main findings
5.2. Date(s) of the next meeting
5.3. Outlook and next steps
Co-chairs
107
Action Points 1-3
Implementation TF ActionsResponsible/Result until
Best-practice standardised bulletin board - harmonized content for individual TSO platforms accordnig TAG and OMV best practice
TSOspresentation at next IG meeting
Summary of planned investments in the region (incl. Storage)
- inclusion of information on expansion projects (Transmission&Storage) into the survey
RCCpresentation at next IG meeting
Removing remaining obstacles to implementation of IPA/OBA
- further update on implementation :TSOs will focus on concluding IPAs where these are not yet in place; Implementation of an OBA regime is dependent on certain prerequisites and will always be conditional; Shippers must be equally involved in the implementation process by complying with the nomination rules set up by the TSOs
- Baumgarten: all involved stakeholders work on a solution within the next 3 months incl. a list of remaining ostacles
TSOs, Shippers
CEGHpresentation at next IG meeting
108
Action Points 4-6
Implementation TF ActionsResponsible/Result until
Best-practice standardised bulletin board - harmonized contentaccordnig TAG and OMV best practice
TSOspresentation at next IG meeting
Summary of planned investments in the region (incl. Storage)
- inclusion of information on investments into survey
RCCpresentation at next IG meeting
Removing remaining obstacles to implementation of IPA/OBA
- further update on implementation and- Baumgarten: all involved stakeholders work on a solution within the next 3 months incl. a list of remaining ostacles
CEGHpresentation at next IG meeting
Best practice provision of OSS service
- Transparency platform (GTE pilot project)- TSOs offer OSS service to shippers who request it- best practice OSS (OMV, www.gatrac.com)
TSOs presentation at next IG meeting
REETS
- presentation of benchmarking results- simulation of introduction of REETS
RCCpresentation at next IG meeting
Hub development as regional balancing market
- update on implementation of next steps according schedule
CEGH/EFETPSV/EFETpresentation at next IG meeting
109
Any other business-AOB
Proposed date of next meeting
Suggestion: Next meeting (Stakeholder Group Meeting) end of
September in Maribor proposal
Key: Progress report by implementation group members
Regulators only to facilitate the process
Context of regional activities
Next Madrid Forum on 16th/17th October 2007
ERGEG to report on progress
Update on issues regarding transparency (Outcome of recent
survey)