
28th IG Meeting
South Gas Regional Initiative
29th April 2014
Teleconference
1

Agenda
I.
Opening
I.1
Welcome
I.2
Approval of the agenda and minutes of the last meeting (for approval)
II. Early implementation of the CAM NC
II.1
Supervision of the yearly capacity auction in March 2014 (for information by NRAs)
II.2
Quarterly capacity auction on 3rd of June 2014. Preparation

Process of information to stakeholders. Publication of capacity to be offered in
the auction (for information by TSOs)
II.3 Information about other capacity allocations calendar in the region and beyond.
III. Iberian Gas Hub: update on the study on models for integration of the Spanish and Portuguese
gas markets (for information by NRAs)
IV. Balancing and interoperability
 Calendar and detailed tasks for the harmonisation: gas day, nomination and
renomination procedures, data exchange and reference temperature –
priorities for 1st Nov 2015 (for discussion)
V. Update of the development of GRIP / TYNDP (for information by TSOs)
VI. AOB and next meetings
2
 II. Early implementation of the CAM NC
II.1. Supervision of the yearly capacity auction in March 2014
(for information by NRAs)
3
 II. Early implementation of the CAM NC
II.1. Supervision of the yearly capacity auction in March 2014

CAM NC establishes that NRAs should ensure that CAMs are
implemented at the IPs in the most effective way
SPAIN
•
Following the Circular 1/2014 de la CNMC, the Spanish regulator is going to
supervise the application of CAM in last 3rd March auction.
•
For this purpose, CNMC has requested information to ENAGÁS. The
deadline to receive the information on the process is 28 April.
4
 II. Early implementation of the CAM NC
II.2. Quarterly capacity auction on 3rd of June 2014. Preparation
Process of information to stakeholders. Publication of capacity
to be offered in the auction
(for information by TSOs)
5
 II. Early implementation of the CAM NC
II.3. Information about other capacity allocations calendar
in the region and beyond
6
 III. Iberian Gas Hub
III. Update. Study on models for integration of the Spanish
and Portuguese gas markets
(for information by NRAs)
7

MIBGAS
Models for the integration of the Spanish and
Portuguese gas markets in a common Iberian
Natural Gas HUB
Area of work
Responsible
Starting
Questions to
Stakeholders
Deadline
Analysis of the possible
models for the
integration of the
Spanish and Portuguese
gas markets in a
common Iberian Natural
Gas HUB
NRAs
2013
May 2014
Q3 - 2014
8

.
.
General Objective
In order to assess the feasibility for the development of a gas hub, the study
analyzes different aspects of the current gas market situation in Spain and
Portugal, including prices in the gas market, as the most important factors.
The study covers three different models for Iberian gas market
integration, comparing the advantages and disadvantages for each model.



Market Area Model.
Trading Region Model.
Wholesale Market with Implicit Capacity Allocation.
9

1 The Market Area Model (full integration)
.
.
.
.
.
Country A
Market Area A
VP
National
market
area
Final customers
(A)
Country A
Features
The adjacent transmission and distribution networks
situated in the same geographical area (and well
interconnected) are forged into a single entry/exit
system.
The market area includes all gas transmission and
distribution systems of participating countries (one
single market area).
The market area enables a single wholesale market
with a single virtual point.
The market region has a single balancing system
(with a single balancing entity and balancing rules).
Country B
Market Area AB
Crossborder
market
area
VP
Final customers
(A)
Final customers
(B)
10

2 The Trading Region Model (full integration, except
balancing)
.
.
Country A
Country B
Trading Region AB
VP
End user
zone A
Final customers (A)
End user
zone B
Final customers (B)
.
Features:
The adjacent transmission and
distribution networks that are situated in
the same geographical area and that
are well interconnected are forged into
a single entry/exit system with a
single virtual point.
The Trading Region has two end-user
balancing zones. The balancing in
each end user zone is performed
according to the respective national
rules (unbalances are managed by the
National balancing entities).
11

3. Wholesale market with implicit allocation
of capacity
Interconnection capacity
is being reserved for
implicit allocation
Market participants make
“bids” and “offers” for
buying or selling of gas
The implicit mechanism
matches those bids and
offer with the highest price
differences
Capacity is automatically
assigned once a trade is
made until cross-border
capacity is sold out or
prices have converged
.
.
.
.
Features:
A certain amount of the interconnection capacity is reserved
for implicit allocation.
In this model, gas trade and allocation capacity are
assigned simultaneously via a gas exchange (or a gas
trading platform).
The implicit allocation may promote market liquidity on the
Iberian gas market and can represent a first step for market
integration. The introduction of this model would give a new
approach to the development of a wholesale gas market,
providing price transparency as well as benefits to the retail
market, being a preliminary step for further integration
through the trading region model or the gas market area
model .
12
Because
this is.[ERSE2]
a consultation document it seems to us that we should not be so affirmative. And give more space to the comments of the agents.
model[CNMC1]
Furthermore, the gas hub is not an objective for itself.

Preliminary evaluation of the models
Wholesale market with implicit
allocation of capacity
• Can be applied with limited
interconnection capacity (the
•Requires substantial
•Requires substantial
markets will decouple when the
legal and regulatory
legal and regulatory
alignment among Spain interconnection capacity is fully
alignment among Spain
used).
and Portugal.
and Portugal
•Does not require a high level on
•
Requires
very
good
(implementation will take
harmonization of national
interconnection
capacity.
many years).
legislations (implementation can
•
Co-habitation
of
one
be faster).
• Requires very good
• Will directly promote market
interconnection capacity. single virtual point with
two end-user balancing liquidity on the common Iberian
• Can be considered as a
zones (possibly with
gas hub.
long term objective for
different balancing rules) • Can be a first step for the Iberian
the Iberian Market.
is really a challenge.
gas market integration.
Market Area Model
Trading Region Model
13

IBERIAN GAS HUB
Work in progress
1.
Document analyzing the advantages and drawbacks of
the possible models, the regulatory harmonization
requisites for its implementation by CNMC – ERSE (2014
April) .
2.
Public hearing (2014 May)
3.
Analysis of stakeholders responses to the public hearing
(2014-Q3)
4.
Final document to be approved by CNMC- ERSE (2014Q3)
14
 IV. Balancing and interoperability
IV. Calendar and detailed tasks for the harmonisation: gas
day, nomination and renomination procedures, data
exchange and reference temperature – priorities for 1st
Nov 2015
(for discussion)
15
 V. Update of the development of GRIP /TYNDP
(for information by TSOs)
16
 VI. AOB and next meetings - 2014
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JANUARY
APRIL
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JULY
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SG Meeting
Auctions IG Meeting
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FEBRUARY
MAY
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3 5 4 6 57
1012 1113 1214
1719 1820 1921
2426 2527 2628
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2
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AUGUST
MAY
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511 612 713
1218 1319 1420
1925 2026 2127
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Spanish Bank Holiday
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Portuguese Bank Holiday
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MARCH
JUNE
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89
15
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2122 2223
2829 2930
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SEPTEMBER
JUNE
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11 25
12 26
13 2714 2815
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French Bank Holiday
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RCC Meeting
Next meetings:
•SG meeting on 22 May is cancelled
•RCC meeting: date to be determined
17
22
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