Marie-Claire AOUN – CRE [email protected]

17
Gas Regional Initiative – North West Region Stakeholders Group meeting - London 14 November, 2008 Capacity Workshop Coordinated Open Seasons Marie-Claire AOUN – CRE [email protected]

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Marie-Claire AOUN – CRE [email protected]. Agenda. Overview of the project Guidelines for Good Practice on Open Season Procedures (GGPOS) Aims of the project Experiences on coordinated open seasons Need to improve the coordination of the open seasons Questions. - PowerPoint PPT Presentation

Transcript of Marie-Claire AOUN – CRE [email protected]

Page 1: Marie-Claire AOUN – CRE  marie-claire.aoun@cre.fr

Gas Regional Initiative – North West Region

Stakeholders Group meeting - London 14 November, 2008

Capacity Workshop

Coordinated Open Seasons

Marie-Claire AOUN – CRE

[email protected]

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Agenda

1. Overview of the project

Guidelines for Good Practice on Open Season Procedures (GGPOS)

Aims of the project

2. Experiences on coordinated open seasons

3. Need to improve the coordination of the open seasons

4. Questions

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Guidelines for Good Practice on Open Seasons (GGPOS)

Role of the Open seasons procedures Assess the market demand for capacity Allow a project sponsor to efficiently consult the market about

how much infrastructure it needs and under what terms Allocate resulting capacity in a transparent and non-discriminatory

way

Structure of an Open Season in 2 phases1. Assessment of the market’s needs on the basis of an open season notice

and through non binding capacity requests from interested parties

2. Capacity allocation and capacity contracts

Need for long term as well as short term contracts

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GGPOS: what they provide for coordination

Need for coordination with adjacent SOsParticipants should be able to assess service on adjacent systemsProducts offered by the adjacent TSOs have to be compatibleProducts have to be offered in a coordinated way, using compatible

and/or coordinated timetables and processes.

Coordination between NRAs Clarity of the regulatory frameworks and sufficient degree of

similarity (in order to design compatible products) Ensure that differences between regulatory frameworks are not a

barrier to investmentNRAs have to jointly monitor the open seasonNRAs provide timely and coordinated input on allocation of costs

and tariffs for the use of the infrastructure

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Aims of the project

The main principles of the GGPOS provide “floor” requirements in order to ensure transparent and non-discriminatory open seasons

There is a need to provide more concrete guidance on the coordination of open seasons.

The project focuses on coordinated open seasons, but also addresses other difficulties encountered by past and present open seasons

The aim is also to define a rule to determine how much additional capacity should be developed for short term needs, on top of the long term capacity requested through the open seasons

Complete GGPOS on the basis of the experience gained through the ongoing coordinated open

seasonsDefine effective and operational coordinated open

seasons mechanisms

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GRTgaz - Fluxys

GRTgaz

Growing number of ongoing open seasons: need for coordination

GTS - Gasunie De

GTS 2012

Energinet.dk

EGT

EGT/Gasunie/DONG

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Ongoing process launched in April 2007

Binding phase Nov. – Dec. 2008

First experience for cooperation and sharing of information between TSOs and NRAs

Difficult to draw a final conclusion before the end of the process: Positive points and critical issues

GTS 2012 Open

Season

GRTgaz

Open season GRTgaz/Fluxys (+ GTS 2012)

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Positive points: Definition of consistent timeframes and some coordination on

contractual aspects

Coordinated capacity allocation: shippers are not exposed to the risk of capacity mismatch

Memorandum of Understanding between GRTgaz and Fluxys

Open season 2012 of GTS: Possibility for shippers to adjust their bids by GTS thanks to the update of the timing of phase 2 of the open season

Critical issues: Delay of more than one year due to discussions regarding transit

tariffs in Belgium

Capacity requests in the 1st phase are “free”: lack of incentives for shippers to reveal their real needs (≠ E.ON GT open season)

Short term capacity on top of the requested capacity only provided on the French side

Open season GRTgaz/Fluxys (+ GTS 2012)

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E.ON Gastransport (EGT)

End of binding phase in June 2008

Little coordination with adjacent TSOs, partly due to the large network area and to the important number of IPs covered by the OS

Need for coordination with GRTgaz

Integrated network development GTS/Gasunie

Cross-border network development approach

Initial phase of market screening (Nov. - Dec. 2008)

Non-Binding (Phase 1) and binding agreements (Phase 2) in 2009

Growing number of ongoing open seasons: need for coordination

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Energinet.dk Open season 2009

Model paper : Dialogue on Open season design (Nov. 2008) - 1st phase (Feb. 2009) – 2nd phase (Aug. 2009)

Capacity bids for each point can vary by +/- 15% from the 1st phase to the 2nd phase

Need for coordination with adjacent SOs (Gassco, Gas System, Swedegas , E.ON Gastransport, DONG Energy Pipelines, Gasunie Deutschland)

Growing number of ongoing open seasons: need for coordination

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National specificities impact coordination

Different stakes in adjacent MS divergent priorities Belgium: transit service

France: develop Hub to Hub capacity (Zeebrudge/TTF/PEG North)

Germany: gas network expansion: need to coordinate with several adjacent SOs (Energinet.dk, GTS, Fluxys and GRTgaz)

Different allocation of risks between the market players in MS

Investment planning varies from one country to another

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Need to improve the coordination of the O.S

Between regulators: rules on each side of the borderShare of the capacity dedicated to short term bookings

Between TSOs: Contractual aspects:Contractual aspects: In case of delay in the realisation of

the project on one side of the border Information exchangeInformation exchange between the adjacent TSOs:

Confidentiality claimed by certain TSOs hindering the information exchange with adjacent SO: No legal barriers for sharing data – Contractual provisions of confidentiality.

Main difficulties encountered related to coordination Main difficulties encountered related to coordination

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Conclusion

Growing number of OS increasingly becoming the standard procedure for major investment projects in many MS

Coordination between TSOs and NRAs is possible as proved by the ongoing coordinated open seasons

Coordination can be hindered by several obstacles: External element that slows down the ongoing process

Divergences between regulatory rules of adjacent MS

Lack of information sharing between adjacent TSOs

The coordination of open seasons requires Compatibility of the different systems

A certain degree of similarities in regulatory frameworks

Complete cooperation between adjacent TSOs

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Question 1: Coordination issues

What are the concrete difficulties you have

encountered during open seasons processes related

to coordination with an adjacent TSO Coordination of regulatory rules?

Coordination between TSOs on contractual aspects, timing,

technical issues?

Other?

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Question 2: Information exchange

Do you agree with the fact that adjacent TSOs should

share with each other all the information related to the

open season procedure for a successful

coordination?

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Question 3: Additional short term capacity

Do you think that additional capacity should

systematically be developed for short term needs or

security of supply reasons, on top of the long term

capacity requested through the open seasons? If yes,

how much (10%, 20%)?

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Thank you for your attention!

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