8th sg meeting south gas regional initiative 27th april 2009, paris

8th SG Meeting

South Gas Regional Initiative

27th April 2009, Paris

2

Agenda

I. Opening:

I.1 Welcome

I.2 Approval of the agenda and last meeting minutes (for approval)

II. Open Season Procedure for the development of new gas interconnection capacity

between Spain and France from April 2013:

II.1 TSOs’ proposal on Information Memorandum (for information and discussion)

II.2 TSOs’ proposal on application forms and allocation rules (for information and

discussion)

III. Transparency: focus on LNG terminals (for information by Regulators)

IV. MIBGAS: progress on harmonization of trading licences (for information by

Regulators)

V. Further actions

VI. AOB

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II.1 OS: Information memorandum

OPEN SEASON PROCEDURE

INFORMATION MEMORANDUM

Presentation by TSOs

4

Conclusions on the Information Memorandum

• Transparency commitment about the economic test

• Tariff visibility

• Clarification of investment costs

• Contractual agreement framework

• Deadlines to be kept

• Trading licenses to be requested if needed

• Possibility to book capacity from or to the AOC (wholesale market) in Spain

5

II.2 OS: Allocation rules and forms

OPEN SEASON PROCEDURE

Allocation rules and allocation forms

Presentation by TSOs

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Allocation rules - Conclusions

• One month for comments to be sent to regulators

• Documents will be published on ERGEG’s website

7

TRANSPARENCY

Transparency at LNG terminals in the South Region

Presentation by Regulators

III. Transparency at LNG terminalss in the S-GRI

8

Users Country Number of responses Terminal referred in their responses

User 1 Spain 2 Spanish and French terminals

User 2 Spain 3 Spanish, Portuguese and French terminals



User 5 Spain 1 Spanish terminals

User 6 UK 1 Spanish terminals

User 7 UK 1 Spanish terminals

User 8 Holland 1 Spanish terminals

User 9 France 1 French terminals

User 10 Portugal 1 Portuguese terminals

User 11 Portugal 1 Portuguese terminals

TOTAL = 15 responses

III. Transparency-Level of participation

• Spanish terminals— 8 responses

• French terminals– 4 responses

• Portuguese terminals— 3 responses

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III. Transparency--Transparency cheking

The survey questioned about transparency regarding:Regulatory provisions on transparency

Infrastructure description

Current and future capacities

Capacity availability

Capacity utilization

Services and contracts

Rules, penalties and compensation payments for noncompliance with LSOs’ and users’ obligations

Maintenance plans

Terminal code

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III. Transparency– Results

France Spain Portugalyes yes yes

yes yes yes

yes yes yes

6.1 Are there regulatory provisions regarding transparency for LNG terminals? (several answers possible)

Yes, for technical information

Yes, for operational information

Yes, for commercial information

NRAs’ responses

Regulatory provisions on transparency

11

Infrastructures description

12 100%83%

67%

100%

17%33%

0

2

4

6

8

10

12

14

Applicable In national lenguaje Are they also inenglish?

Are they on theinternet?

Are they availablefree of charge?

Number of responses

Yes No


12

Current and future capacity

14 13

8

1 2

5

100%

57%

100% 100% 100% 100% 100%

43%

0

2

4

6

8

10

12

14

16

Applicable In nationallenguaje

Are they alsoin english?

Are they onthe internet?

Are theyavailable freeof charge?




Are theyavailable freeof charge?

Number of responses

Yes No

Existing Capacity Future capacity


13

Capacity availability

1213

14

21

1

100%

40%

85%

100%100%

46%

85%

100%100%

86%

50%

100%

50%

17%

54%

15%

50%

14%

0

2

4

6

8

10

12

14


Are theyalso in

english?

Are theyon the

internet?

Are theyavailablefree of

charge?


Are theyalso in

english?

Are theyon the

internet?


charge?


Are theyalso in

english?

Are theyon the

internet?


charge?

Numebr of responses

Yes No

Contracted capacity Available capacity Short term available capacity


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Historical capacity utilization

9

1

33%

78%

100%100%

22%

67%

0

2

4

6

8

10

12

Applicable In national lenguaje Are they also inenglish?



Number of responses

Yes No


15


9

13

5

5

1

4100%

77%

62%

100%

100%89%

56%

100%

100%

60%

100% 100%

38%

23%

11%

44%

40%

0

2

4

6

8

10

12

14

Applic

able

In n

ationa

l lengu

aje

Are th

ey also

in e

nglis

h?

Are th

ey on

the

intern

et?

Are th

ey ava

ilable

free

of c

harge

?

Applic

able

In n

ationa

l lengu

aje

Are th

ey also

in e

nglis

h?

Are th

ey on

the

intern

et?

Are th

ey ava

ilable

free

of c

harge

?

Applic

able

In n

ationa

l lengu

aje

Are th

ey also

in e

nglis

h?

Are th

ey on

the

intern

et?

Are th

ey ava

ilable

free

of c

harge

?

Number of responses

Yes No

Spot services Standrad services contracts Conditions of interruptible services



16

Rules, penalties and compensations for noncompliance

8 100%75%

50%

100%

50%25%

2

02468

1012


Are they also inenglish?



Number of responses

Yes No


17

III. Transparency- Results

Updated maintenance plans

10 100%90%70%

100%

10%30%

0

2

4

6

8

10

12




Are theyavailable free

of charge?

Number of responses

Yes No

18

Terminal code

15 100%

53%

100% 100%

47%

0

2

4

6

8

10

12

14

16


Is also in english? Is on the internet? Is free of charge?

Nu

mb

er

of

res

po

ns

es

Yes No

7%

III. Transparency- Results

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Considerable good level of transparency

However, some room for improvement has been identified regarding:

Capacities

Historical capacity use

Services

Penalties for noncompliance with obligations

Publication on websites

Publication in english, as well as in national language

III. Transparency- Conclusions

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MUTUAL RECOGNITION OF TRADING LICENCES IN THE IBERIAN NATURAL GAS MARKET (MIBGAS)

CNE and ERSE prepared a public consultation document in order to collect opinions from market agents, TSOs, DSOs and other interested institutions, about the mutual recognition of trading licenses in the Iberian natural gas market.

The consultation document was published on each of the regulators’ websites in February 2009.

The main proposal submitted for public consultation consists of the adoption of an agreement between Spain and Portugal for mutual recognition of gas trading licences issued by one country, in the neighbouring country.

IV. MIBGAS

PUBLIC CONSULTATION PROCESS of MUTUAL RECOGNITION OF TRADING LICENCES

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The players in the Iberian gas market evaluated the proposal for mutual recognition of trading licences in the Iberian natural gas market positively and showed willingness and interest in the development of the Iberian Gas Market.

However, a majority of answers considers that is necessary to harmonise the requirements to get the trading licence in the two countries, and propose to maintain actual licence requirements, in order to grant consumer’ protection.

The replies received are going to be evaluated for the final writing of the proposal for mutual recognition of trading licences in the Iberian natural gas market prepared by the CNE and the ERSE.

IV. MIBGAS

Answers received:

In response to the public consultation, 7 written replies were received from market agents and gas infrastructure owners.

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Next Steps:

The final writing of the proposal for mutual recognition of trading licences in the Iberian natural gas market will be prepared by the CNE and the ERSE before June 2009, and send to both Governments

The adoption of an agreement between the Governments of Spain and Portugal for mutual recognition of gas trading licences issued by one country, in the neighbouring country.

MUTUAL RECOGNITION OF TRADING LICENCES IN THE IBERIAN NATURAL GAS MARKET (MIBGAS)

IV. MIBGAS

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V. Further actions

Next RCC meeting: 25th June 2009?

Next IG meeting: 25th June 2009?

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VI. Any other business