New Gas Market Model in TNC
Warsaw, 16 October 2012
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Premises of the new TNC
1. Easier entrance on the gas market for new
entities.
2. Gas trading no longer associated with a
physical location on the network.
3. Separation of physical entry and exit points, i.e. enabling gas
transport from physical entry points to virtual point and from virtual
point to physical exit points.
4. Gas system use rules simplified.
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Virtual Point
1. The TNC introduces a 'virtual point' – without a concrete location
that makes gas trade possible between customers inside the
transmission network.
2. Gaseous fuel is the product on offer at the virtual point – E high
methane gas.
3. Nitrified natural gas (Lw) will not be available at the virtual point.
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TSO Cooperation with POLPX
1. The TNC regulates cooperation between the
TSO and the Polish Power Exchange
(POLPX).
2. Possibilities of selling and purchasing
gaseous fuel on the exchange at market
driven prices and in complete observance of
anonymity of transactions.
3. A sales agreement concluded on the Gas Exchange is valid, effective between
the Parties that concluded it and is performed by the TSO.
4. In the event of no physical possibilities of performing the agreements, the TSO
executes agreements using balancing instruments.
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The Gas Year
1. Change in the duration of the gas year in order to adapt to EU
solutions and consequently to facilitate commercial
transactions
(Gas Year = Oct. – Sept. instead of Jan. – Dec. calendar
year).
2. The gas day effective as of 1 July 2012 lasts from 6:00 am
until 6:00 am the next day.
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Wobbe Index
1.
Supported by a series of gas facility
and equipment tests, a change in the
admissible gas quality parameters
(WI) to adapt to the amended Polish
Standards and to enable import of
new, more calorific gas via the LNG
terminal.
2.
The scope of WI variables for the E group gaseous fuel introduced by the new draft TNC is
45.0 – 56.9 MJ/m3.
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Implementation Schedule for the TNC, DNC and the TSO and DSO Tariff
Storage Service Rules
Update
1) Start of works on the DNC
Approval
2) publishing the DNC for consultation
DNC
3) submission of remarks & comments to the DNC
4) Works on final draft of DNC after end of consultation process
24/07/2012
Approval of TNC
and publishing in
ERO Bulletin
24/09
15/08
30/08
TSO and DSO and TSO and SSO contain ITC, and
order contracted capacity allocation for the terms:
01.12.2012-31.12.2012
TSO/Shipper: Change in existing
transmission contracts into Framework Contracts with
CCA/CA
Works on TSO Tariff
04/09
15/09
30/09
01/10
02/11
14/11
Contracted Capacity Allocation PP for
DSO and SSO for the terms:
01.12.2012-31.12.2012
Application for Capacity
Allocation CA
1. Calculation of Tariff rates for TSO,
2. Works on the Tariff and
calculation of Tariff rates of DSO/SSO
Submission of application in TSO capacity allocation
Application Verification
procedure
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15/10
01/12/2012
Implementation
of TNC, DNC/SSR
and Tariffs of
TSO/
DSO/SSO
Capacity allocation for
WPWYGG, WPWYOTC, WPWYOSP,
WPWYOSD, WPWYOSM
Approval
Tariffs of TSO/
DSO/SSO
Capacity allocation for term of
01.01.2013-30.09.2013
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Polish Gas Market Model
Gas Sources
Domestic
Extraction
Trading
Company
Import
LNG
Transmission
Storage
Distribution
Customer
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Polish Gas Market Model
Gas Sources
Domestic
Extraction
Trading
Company
Import
LNG
Transmission
Storage
Distribution
Customer
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Polish Gas Market Model
1. Trading company is currently responsible for the entire gas transport
process from the entry point to the customer, including to the final
customer that receives the gaseous fuel.
a) Agreeing Transport Routes
b) Ordering contracted capacity at entry and exit points at the TSO; DSO
and SSO, including ordering contracted capacity at interconnectors.
2. Problem with establishing the quantity of gaseous fuel off-taken by the
customers of a given trading company in a given distribution zone.
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Cooperation with SSO
PWY
PWE
Pumping capacity
TSO
Off-take capacity
Storage capacity
SSO
1.
2.
3.
At present, in order to use the storage service a market participant has to:

conclude a transmission contract and reserve contracted capacity a the exit and entry point
with the TSO;

conclude a storage services contract specifying the pumping capacity and the off-take capacity.
No certainty available that the capacity at PWY/PWE at the TSO and the capacity at the SSO will be
the same.
The TSO suggests that the SSO who will determine the capacity at PWY and PWE through the
connection agreement to the storage facilities, to order capacity at the connection of both systems
and make it available within storage services.
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Change in Principles for Cooperation with the DSO and
SO
1.
The change in the conditions for cooperation with the distribution system operators and
storage system operators will make it easier for customers to perform gas transmission
between transmission systems and distribution and storage systems.
2.
Only the DSO and SSO will purchase capacity at physical point connecting their systems
with the GAZ-SYSTEM S.A. transmission system.
3.
Simplification of the rules for purchasing capacity at TSO/ DSO and SSO connections,
simplified allocation rules for quantities of gaseous fuel.
Entry
Entry
Virtual Point
TSO
TSO
Exit to DSO1
SSO
DSO1
Exit to
DSO2
DSO2
DSO
DSO
Exit
Exit
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Change in Principles for Cooperation with the DSO and
SO
1. According to EP, the operators are responsible
for the development of the transmission,
distribution and storage system infrastructure –
TSO, DSO, and SSO, respectively.
2. The DSO and SSO determine the size of the
demand for capacity at interconnectors
concluding connection agreement, and then the
ITC.
Virtual Point
TSO
DSO
DSO
3. The gas transport route to the final customer will be agreed between the SSO, DSO and
TSO. The DSO and SSO will reserve at the TSO contracted capacity (capacity) at the
connection to both systems. The DSO will be responsible for exceeded capacity.
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Virtual Point
FPWETSO
Virtual Point
FPWETSO
TSO
DSO
DSO
Ordering contracted capacity takes place at physical entry points to the
transmission systems and at the physical exit points to the final customer from the
distribution (or transmission) system.
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Virtual Point
FPWETSO
WPWY
FPWETSO
TSO
DSO
DSO
The transport of gaseous fuel to the Virtual Point (Gas Exchange, OTC Market)
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Virtual Point
FPWETSO
WPWE
FPWETSO
FPWYFC
TSO
PWYSSO
DSO
DSO
The transport of gaseous fuel from the Virtual Point to the final customer of the
the storage system facility.
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Virtual Point
FPWETSO
FPWETSO
WPWE
FPWYFC
TSO
WPWYDSO
DSO
PWYSSO
WPWYDSO
DSO
The transport of gaseous fuel from the Virtual Point to the distributoin zone (via
the Virtual Exit Point to the distribution zone), which customers are connected
with.
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Trading on the Gas Exchange
Virtual Point
Shipper1
Shipper2
Sold
-100
Bought
+100
Balance: 0
FPWETSO
(Import, Mine)
Shipper1:
+100
Balance: 0
FPWYFC
(Final Customer)
Shipper2: -100
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Trading on the Gas Exchange
Virtual Point
Shipper1
Shipper2
Sold
-100
Bought
+100
Balance: -100
FPWETSO
(Import, Mine)
Shipper1: 0
Balance: 0
GAZ-SYSTEM S.A.:
+100
FPWYFC
(Final Customer)
Shipper2: -100
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Trading on the Gas Exchange
Virtual Point
Shipper1
Shipper2
Sold
-100
Bought
+100
Balance: 0
FPWETSO
(Import, Mine)
Shipper1:
+100
Balance: +100
GAZ-SYSTEM S.A.:
-100
FPWYFC
(Final Customer)
Shipper2: 0
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Settlements
Shipper
TSO
TSO
(trading company)
DSO
PWYFC
PW
PWE
PWY/PWE
Transmission fee
Entry
Transmission fee
Exit
TSO
Shipper
(trading company)
TSO
PWY
DSO
Transmission
fee
Distribution fee
DSO
Shipper
(trading company/
final customer)
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Settlements
TSO
SSO
PWE/PWY
WPW
PWE
Storage Services
Package
PWY/PWE
Transmission fee
Exit
TSO
Storage services fee
SSO
SSO
Shipper
(trading company/
final customer)
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Thank you for your attention
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piotr.bujalski@gaz-system.pl
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