Terms of Reference: Gas and Infrastructure Action
Group
Introduction
A number of the recommendations made in the ONS report, relate directly to the need
to harmonise standards, and improve accessibility across the two countries gas and oil
infrastructure systems in order to encourage the free flow of hydrocarbons across
national boundaries to ensure the efficient development of resources. The
recommendations themselves are detailed below:

Recommendation 7; “Industry to promote the required investment in the
National Transmission System, particularly the connection from St. Fergus, to
ensure sufficient capacity and to reduce the uncertainty of cost and
availability. This will provide greater confidence for Norwegian producers and
benefit UK security of supply”.

Recommendation 8; “Promote the need for improved compatibility of UK,
Norwegian and continental gas sales specifications by dialogue between
respective Ministries and stakeholders”.

Recommendation 11; “Assess the need for a common Code of Practice for
access to cross-border (non-regulated) infrastructure, based on the principles
of the existing UK and Norwegian codes”.
Objective
To ensure that through appropriate consultation the recommended actions are
completed within a timescale required to ensure current activities requiring cross
border flows of hydrocarbons are able to make decisions as if there were no
encumbrances
Organisation
The Gas and Infrastructure Action Team will be organised with a core group of
personnel in each country from those companies and stakeholders that have an interest
in ensuring the recommendations are completed within the required timescale. The
action teams will network widely within the companies and with the industry to
provide appropriate technical and commercial input and advice.
In the UK, the team will be chaired by TFE and it is envisaged that action team
members will include representatives from Shell, ExxonMobil, TFE, ConocoPhillips,
BP, Amerada Hess, Paladin, Marathon, Transco, and for working Recommendation 8
– the UK H&S Executive.
In Norway, the team will be chaired by Norske Shell, and it is envisaged that team
members will include representatives from TFE, Statoil, Norsk Hydro, BP. Gassco
and ConocoPhillips .
Process
The recommendations will follow the following process
Recommendation 7
Ensure together with Transco, that Shippers and Operators are aware of the Long
Term Auction in January, and across the North Sea have an understanding of how
these auctions work : By December 15th
Post the Long Term Auction, hold a review of the results, and develop an industry
consensus of what the results mean in terms of 1) investment required at various entry
points in the UK and 2) improvement suggestions for the next set of long term
auctions in August. This review will be in addition to any review proposed by
Ofgem, and will be shared with Ofgem to assist them in the development of a
transparent market for NTS entry capacity in the UK. Review to be completed by end
February 2003
Recommendation 8
Establish the scale of investment required to ensure that gas from Norway and the
UKCS can freely flow into the other system and be accepted in the market place. By
end January 2003
If deemed necessary, propose modifications to the Gas specifications, to the
appropriate regulatory authorities, to ensure greater compatibility at lower cost. By
End March 2003
Recommendation 11
Determine whether team members believe there is any value in developing a general
code of practice covering access to the non regulated infrastructure in the UK and
Norway, make recommendation to Implementation Group - by end January