Download Proposal on calendar for the Second Phase

OS 2015: next steps
Proposals and agreements by TSOs
12th IG meeting
Paris
14th December 2009
Index
1. Proposal on Calendar for the Second Phase
2. Proposal on Documentation for the Second Phase
3. Proposal on Capacities at the border to be
included in the Second Phase
4. Proposal on the Test by Regulators to validate
capacity allocation for the Second Phase
5. Issues subject to further consideration
2
Proposal on calendar for
the Second Phase
3
Indicative schedule for the Second Phase
TSOs are following the calendar agreed in the
Information Memorandum:
FEBRUARY 2010

Starting date of the Second Phase of the OS.
JUNE 2010

Publication of results of the Second Phase of the OS.
JULY 2010

Signing of capacity booking contract or transmission contract between each
TSO and interested subscribers (2015 capacities).
JANUARY 2011

Approval of GRTgaz (December 2010) and TIGF global investment programs
by their respective Boards of Directors (2015 capacities).

Approval of GRTgaz and TIGF global investment programs by CRE (2015
capacities).
4
Proposal on
Documentation for the
Second Phase
5
Documentation
OS document
Information
Memorandum (main
body)
Action foreseen
A short-version/amendment should be produced for the Second
Phase.
TSOs:
 Description of physical capacities and commercial capacity products
offered* (including specific reference to units/measuring temperature)
(*) Including, the description of split of capacity between
two products:
Spain  GRTgaz South
Spain  TIGF  GRTgaz South
 Calendar
NRAs:
 Potential further information on tariff visibility and/or market
structure
 (Threshold/economic) test to validate capacity allocation
Allocation Rules
Same rules, adapted to the capacity products offered for 2015.
Letter of Commitment
Similar to the Letter of Commitment for 2013 capacities, adapted to
the capacity products offered for 2015.
Application form
Similar to the Application form for 2013 capacities, adapted to the
capacity products offered for 2015
6
Documentation
OS document
Action foreseen
Non-Disclosure
Agreement between the
TSO and the shipper
No changes required.
Capacity booking
contracts and/or
transmission contracts
Similar to the Capacity booking contracts and/or transmission
contracts for 2013 capacities, to be approved by NRAs adapted to
the capacity products offered for 2015.
Only shippers that have not signed it during the First Phase will be
required to sign the NDA.
Private contracts
between TSOs
Action foreseen
Non-Disclosure
Agreement between
TSOs
No changes required. No need to sign a new document.
Memorandum of
Understanding between
TSOs
Amendment required to launch the Second Phase.
“The Parties undertake to complete and update the indicative lists of
infrastructure developments for the 2015 Project before the launch
of the second phase including the binding requests of the 2015
Project. The final list will be contractualised by way of an
amendment to the present MoU. The Parties shall execute this
amendment no later than March 31st, 2010.”
7
Proposal on Capacities
at the border to be
included in the Second
Phase
8
2015 Capacities – Non-sold 2013 Capacities
The Information Memorandum states:
“In the second phase, the sale of capacities not
sold during the first phase could be possibly*
provided NRAs’ prior approval and subject to the
frame required by the NRAs if any.”
(*) Note that due to a typo the original document reads “possible” instead of “possibly
9
MIDCAT capacities
NORTH
SOUTH
230 GWh/d
TIGF
7.2 bcm/y
Annual capacities (*)
180 GWh/d
SPAIN
NS
5.6 bcm/y
Technical
Offered
SN
180 GWh/d
230 GWh/d
5.6 bcm/y
7.2 bcm/y
144 GWh/d
184 GWh/d
4.5 bcm/y
5.8 bcm/y
(*) Note that technical and offered capacities are defined in GWh/d. The conversion to bcm/y is merely informative.
10
Biriatou capacities
NORTH
SOUTH
60 GWh/d
Annual capacities (*)
TIGF
1.9 bcm/y
NS
60 GWh/d
SPAIN
Technical
1.9 bcm/y
Δ Biriatou
Offered
SN
60 GWh/d
60 GWh/d
1.9 bcm/y
1.9 bcm/a
60 GWh/d
55 GWh/d
1.9 bcm/y
1.7 bcm/y
48 GWh/d
48 GWh/d
1.5 bcm/y
1.5 bcm/y
(*) Note that technical and offered capacities are defined in GWh/d. The conversion to bcm/y is merely informative.
11
General principles agreed by TSOs
Having taken into consideration the results from the First Phase and comments
received by stakeholders after the announcement of the First Phase results,
TSOs have agreed on the general principle of maximising capacity allocation
in order to attend as much market demand as possible.
This implies that:
 MIDCAT should be analysed or built if there is enough capacity to proceed;
and
 The Biriatou project should be included in the capacity offering of the Second
Phase, and it must be analysed both in case of insufficient or excess
demand for validating MIDCAT. The timing for Biriatou capacities would need
to be reconsidered, according to the new dates for the FID.
The agreement has been reached considering both proposals together
(capacities to be included + maximisation of capacity allocation), as well as the
agreement to attach to the calendar included in the Information Memorandum.
12
Biriatou and MIDCAT capacities
Annual capacities  MIDCAT + Biriatou
NORTH
Technical
Offered
SOUTH
290 GWh/d
TIGF
9.1 bcm/y
240 GWh/d
SPAIN
7.5 bcm/y
13
NS
SN
240 GWh/d
290 GWh/d
7.5 bcm/y
9.1 bcm/a
192 GWh/d
232 GWh/d
6.0 bcm/y
7.3 bcm/y
Non-sold 2013 Capacities not corresponding to Biriatou
The Information Memorandum states:
“Remaining capacity not sold via the current procedure at the
Spanish-French border will be sold through coordinated procedures
between French and Spanish TSOs to be defined.
In France, the detailed rules for marketing this capacity will be
submitted to CRE for approval.
In Spain, capacity allocation will comply with regulation in force.”
14
Non-sold 2013 Capacities not corresponding to Biriatou
GWh/d
NORTH
North → South
3
Offered S – N at Larrau*
1
Allocated S – N
Non-allocated S – N
5
132.00
132.00
0.00
Offered N – S at Larrau*
69.98
Allocated N – S
69.00
Non-allocated N – S
0.98
4
4
3
SOUTH
2
2
TIGF
5
5
1
1
SPAIN
South → North
TSOs
proposal
Open Subscription Period for Short-Term Capacities (OSP STC)
until 2015
Potential inclusion in the Second Phase: to be discussed
At the points 2, 4 and 3 capacity will be allocated under the current French‘s allocation rules.
(*) Total capacities showed in the Information Memorandum included Larrau and Biriatou
15
Proposal on the Test by
Regulators to validate
capacity allocation for
the Second Phase
16
Proposals on the Test agreed by TSOs

It would be recommendable for the Second Phase to announce a Test commonly
agreed by Regulators (CRE and CNE).

The validation mechanism of such Test should guarantee that if a project enjoys
100% of demand for the capacity offered on a long-term basis in only one
direction, the validation by Regulators should be automatic. The threshold for
studying the project could be placed around 50%.

Demand during the First Phase for both 2013 capacities (binding requests) and
2015 capacities (indicative requests) has revealed a clear preference for capacity
at the border from South to North (Spain-France). The Test should be primarily
performed on demand for such (forward flow) capacity.

If a project enjoys less than 100% of demand from South to North, a validation by
regulators may also be granted taking into account other conditions, e.g:
 (Certain level of) demand from North to South (backhaul flow).
 SoS criteria (e.g. in line with future SoS Regulation).
 …
17
Proposals on the Test agreed by TSOs
In practice the proposal to build MIDCAT if there is enough capacity to proceed could
be articulated in two different manners:
1.
MIDCAT should be considered first, and regardless the result of the analysis,
Biriatou should be considered after MIDCAT. A threshold test for each project
could be established independently.
2.
Demand thresholds could be predefined, in order for regulators to provide
visibility on the validation of the allocation. Under this proposal, the practical
result should be similar to the one of the previous proposal.
18
Sample threshold test*
Capacity
reserved for
short-term
232 GWh/d
208 GWh/d
184 GWh/d
 MIDCAT
 Biriatou
 MIDCAT
? Biriatou
 MIDCAT
 Biriatou
100% of offered capacity
 MIDCAT   Biriatou
? MIDCAT
Analysis
 MIDCAT   Biriatou
92 GWh/d
 MIDCAT
 Biriatou
The thresholds for analysis should be established
guaranteeing that below them, it is not possible to build
the referred infrastructure, i.e., they should not be unduly
high.
48 GWh/d
24 GWh/d
0 GWh/d
 MIDCAT
? Biriatou
 MIDCAT
 Biriatou
 Validation
 Non-validation
? Ex-post analysis
MIDCAT + Biriatou: S N
19
Sample threshold test*
S-N demand threshold
Calculation
232 GWh/d
100% MIDCAT + 100% Biriatou
208 GWh/d
100% MIDCAT + 50% Biriatou
184 GWh/d
100% MIDCAT
92 GWh/d
50% MIDCAT
48 GWh/d
100% Biriatou
24 GWh/d
50% Biriatou
0 GWh/d
-
(*) Notwithstanding the fact that a validation by regulators may also be granted taking into account other
conditions, e.g::
 (Certain level of) demand from North to South (backhaul flow).
 SoS criteria (e.g. in line with future SoS Regulation).
…
20
Issues subject to further
consideration
21
2015 Capacities – First Phase offering
Technical capacities
provided by MIDCAT
2015 capacities (long-term capacities =
80% of technical capacity at the border)
2015 CAPACITIES (GWh/d)
(starting from December 2015)
Interconnection points and flow direction
North → South
NORTH
NORTH
H
South-North
230 GWh/d
7.2 bcm/y
SPAIN
SOUTH
H
H
F
F
G
SOUTH
E
G
G
E
TIGF
D
TIGF
B
D
C
B
A
C
A
SPAIN
North-South
South → North
180 GWh/d
5.6 bcm/y
Interconnection
Point
22
Multiannual
Capacities
Multiseasonal
Capacities
Summer
Winter
A
C
184.00
0.00
0.00
B
D
144.00
16.00
0.00
E
184.00
0.00
0.00
F
144.00
16.00
0.00
G
80.00 - 264.00
H
160.00 - 281.98
2015 Capacities – First Phase Results
North → South
NORTH
H
H
H
F
F
G
G
G
SOUTH
E
E
TIGF
D
D
B
C
B
A
A
C
SPAIN
South → North
2015 Capacities offered and requested – figures aggregated at the border
Interconnection Point
MWh/day
A+C
B+D
E
F
G
H
Capacity requested
157,523
99,520
88,352
62,520
82,632
225,512
Capacity offered
184,000
144,000
184,000
144,000
80,000
264,000
160,000
281,980
85.6%
69.1%
48.0%
43.4%
103.3%
31.3%
141.0%
80.0%
% Requested/Offered
23
2015 Capacities – First Phase Results
North → South
NORTH
H
H
H
F
F
G
G
SOUTH
G
E
E
TIGF
D
D
B
C
B
A
C
A
SPAIN
South → North
2015 Capacities offered and requested per point
Interconnection Point
MWh/day
Capacity requested
Capacity offered
% Requested/Offered
A
C
B
D
55,992
101,531
38,000
61,520
184,000
30.4%
55.1%
144,000
26.4%
24
42.7%
E
F
G
H
88,352
62,520
82,632
225,512
184,000
144,000
80,000
264,000
160,000
281,980
48.0%
43.4%
103.3%
31.3%
141.0%
80.0%
2015 Capacities – capacity splitting
 Two options were proposed at the cross border point between Spain
and France :
 Option 1: Three-step entry-exit system Spain ↔ TIGF ↔
GRTgaz South (Points C & D)
 Option 2: Entry-exit system with direct interconnection Enagas
↔ GRTgaz South (Points A & B)
 Aggregating the options presented, demand for 2015 capacities at
the cross border point between Spain and France equals 85.6% of
the capacities offered from South to North, and 69.1% from North to
South.
25
Capacity splitting
The Information Memorandum states:
“Shippers will be asked in the non-binding phase
which capacity product they want. This input will
be used to define a split between the 3
components* in the France – Spain products.”
(*) GRTgaz South Spain, GRTgaz South-TIGF and TIGF-Spain, the three of them in both directions.
26
Thank you for your attention!