CMP COUNTRY ANALYSIS
13th SG meeting
Madrid
7th February 2010
Index
1. Introduction
2. France
3. Portugal
4. Spain
2
Introduction
3
Introduction
At the 15th Implementation Group meeting of the South Gas Regional
Initiative that took place on 19th October 2010, French, Portuguese and
Spanish TSOs were asked to start working in the harmonisation of the
Congestion Management Procedures according to what is being
discussed in Europe. The mandate includes two parts:
1. Detailed description of current CMP in France, Portugal and
Spain.
2. Proposals for harmonisation.
4
France
5
CMPs in France at a glance…
Method
TIGF GRTGaz
Buy Back
No
No
Surrender Capacity
No
No
EU FG CMPs
Firm Day ahead UIOLI
No
No
Long Term UIOLI
Yes
Yes
Interruptible day ahead UIOLI Yes
Yes
Interruptible capacity
Yes
Yes
Others
Secondary market
Yes
Yes
Releasable capacity
No
Yes
6
Long Term UIOLI
Object: To market the non-used subscribed capacities in the long term.
Every Shipper can trigger the implementation of the procedure of Use-ItOr-Lose-It (UIOLI) when:
I. no available capacity published on the web site of TIGF/GRTgaz in the
entry/exit points or when TIGF/GRTgaz was not able to satisfy the totality of
the demand requested in firm capacity,
II. the request is duly justified,
III. the requested period is superior or equal to a season/annual
IV. the Shipper was not able to acquire on the secondary market capacities
requested at a price lower or equal to the reference price.
If all these conditions are fulfilled, TIGF/GRTgaz applies the rule defined
in the appendix of the contract and makes its best efforts to meet the
needs at best of all the Shippers by taking into account their contractual
obligations, under the view of the competent authorities.
7
Interruptible day ahead UIOLI
•
A Shipper can request for additional capacities beyond its subscriptions (firm and interruptible).
These capacities can be allocated to him (totally or partially) if another Shipper does not use all
his capacities for a given day.
•
The following points are concerned by the offer (supply) UIOLI CT:
•
TIGF: all Entry/Exit Points (GRTgazSud, Larrau and Biriatou)
•
GRTgaz: all PIR and links from April 2011
•
TIGF: The offer UIOLI is proposed only in the physical direction (or forward) by the flow. The
UIOLI service does not exist for the back direction.
•
GRTgaz: UIOLI is proposed in both direction at links
•
TIGF: In case there is not an available firm daily capacity anymore (period of reduction of
capacity included), capacities reserved by a Shipper for annual, seasonal, monthly
subscriptions and not nominated the day before can be assigned by TIGF to the other Shippers
in this point, having made the demand of capacities UIOLI CT. This demand is considered
equal to the difference between the effective nomination of the Shipper and the rights which he
holds.
•
GRTgaz: Offer UIOLI does also apply to the points subjected to a reduction of capacities (case
of maintenance for example). In this case, a nomination beyond the reduced subscribed
capacity is considered as a UIOLI capacity request and only the capacity beyond the initial
rights is charged
8
Interruptible day ahead UIOLI
 The Shipper who holds the capacity originally keeps the right to
make renominations which are priority with regard to the recently
assigned capacity. Consequently, capacities allocated in UIOLI are
interruptible.
 Only the nominations beyond the rights made between 2 pm the day
before the D-Day and 3 hours the D-Day are considered as
demands of UIOLI capacities for the D-Day. In case capacities
requested within the framework of the UIOLI cannot be completely
served, capacities are assigned on the basis of a pro rata made on
the received demands.
 The available capacity UIOLI is daily published on the TIGF site.
 The available capacity UIOLI is published after every nomination
cycle on GRTgaz site.
9
Interruptible capacity
•
Interruptible Capacity is capacity whose use is not guarantee by the
TSO.
•
The main factors affecting the availability of Interruptible Capacity
are as follows:
 Level of consumption,
 Network configuration
•
Unless otherwise expressly stipulated in the Special Terms and
Conditions, the obligations of the Shipper, particularly the balancing
obligations as well as the obligations to pay the Price, shall not be
modified as a result of such implementation
10
Interruptible capacity TIGF
Main Grid
GRTgazSud
Lacq
Biriatou
Larrau
GRTgazSud
Interconnection
Biriatou
points of EXIT grids
Larrau
Interconnection
points of ENTRY
grids
Storage Transport Entry
Interface Points Exit
(PITS)
Season Monthly
Daily
F/I
F/I
F/I
F/I
F/I
F/I
F/I
F
F
F
F/I
F
F/I
F
F
F
F
I
F
F/I
F
Annual
Monthly
Daily
F
F
F
F
11
Interruptible capacity GRTgaz
Capacity
Network
section
Annual
subscription
Monthly
subscription
Daily
subscription
Network
Interconnection
Points,
excluding Midi
and Jura
main
transmission
system
Firm and
Interruptible
Firm
Firm
Network
Interconnection
Point Midi
main
transmission
system
the subscriptions
are seasonal,
firm and
interruptible.
Firm
Firm
Links between
Balancing Zones
main
transmission
system
Firm and
Interruptible
Firm
Firm
12
Secondary market
•
TIGF/GRTgaz offers to the Shipper, having signed a Transport
Contract with TIGF/GRTgaz the possibility of buying or selling on the
secondary market of the multiannual, annual capacities, multi-seasonal,
seasonal, monthly and daily in the IPs (Entry or Exit) (except at the IP with
Storage facilities).
•
On TIGF’s side the transactions (transfers) can be made on the TETRA
platform.
•
On GRTgaz side the transactions (buying or selling) can be made on the
CAPSQUARE platform.
•
The shipper can give in to another Shipper having a current Shipping
agreement capacities signed according to the following methods:
•
User’s Right,
•
Complete Transfer
13
Secondary market
TIGF
• For the Complete Transfers, the transactions are concluded on a
bilateral base (over-the-counter OTC) before the maturity date.
• For the Transfers of User’s Right, the transactions are one-side
concluded but by informing the counterpart.
GRTgaz
• All transaction can be made on CAPSQUARE Platform
Capacities which can be sold are the Entry or Exit capacities or, Firm
or interruptible in the Interconnection Points (PIR GRTgaz South,
PIR Biriatou and PIR Larrau and all PIR and links for GRTgaz)
14
Releasable capacity (GRTgaz)
 Shippers who have subscribed more than 20% of total firm annual
capacity of an IP, undertake to make part of their firm annual
capacity available in the form of an x percentage (dependant on the
IP) of releasable capacity for use by other shippers. This
Releasable Capacity is allocated under the capacity subscription
and allocation rules. The price of Releasable Capacity is 90% of the
price of the corresponding annual Firm Capacity.
 Releasable Capacity is considered to be firm capacity. It is sold for
periods of 1 year to 4 years.
15
Portugal
16
Background
•
Two IPs IP43 - Valença do Minho and IP42 Campo Maior;
•
Until the end of 2002, Portugal natural gas
supply was crossing the spanish system from
Algeria by pipeline. The LNG terminal started
operation in 2003 and is now responsible for
55% of the Portuguese supply. Consumption
growth was accommodated by the LNG
terminal mainly until 2009;
•
•
Valença do Minho
Porto
Lisboa
Gas liberalization in portugal has opened the
market to traders in Iberia and there is a
growing demand at the existing Ips;
Campo Maior
LNG
Beeing a new system ( Portuguese Natural
gas network started in 1997 based on 28
inch pipe there are no internal congestions in
the system;
17
Country specific issues
Specificities of the Portuguese Capacity Allocation Mechanism established by
the NRA regarding CMP:
• The existing CAM in Portugal as established by the local NRA has profound
implications in the applicable CMP rules:
•
capacity requests in any of the established planning phases (Year, month,
week, day), once accepted by the TSO for each detail period, are considered
firm obligations of the TSO. The nomination at D-1 acceptance by the TSO is
the final stage.
•
Only capacity not yet requested or freed voluntarily in the meanwhile by a
shipper, is made available for the next planning phase.
•
if the requests exceed the remaining available capacity, CMP applies to it and
an auction will be set by the System Manager;
•
Once allocated via auction procedure, this capacity right becomes tradable by
the shipper on the secondary market under a bilateral agreement
18
Country specific issues
Specificities of the Portuguese Capacity Allocation Mechanism established by
the NRA regarding CMP (cont.):
• The Portuguese system is relatively new (=> surplus of available capacity),
which explains the reason why there haven’t been any contractual or
physical congestion events until today;
• Interruptible capacity is therefore not available yet, as an instrument to
manage congestions or security of supply issues;
• These procedures and principles apply to all infrastructures;
• Congestion is expected in the near future regarding international IPs and
once it occurs the existing mechanisms are adequate to settle the problem
19
CMP contained in the Commission Proposal
Review for Portugal of the relevant mechanisms regarding
capacity availability on IPs (in accordance to the Commissions
Proposal)
1. Capacity increase
arrangements.
by
oversubscription
and
buy-back
2. Surrender of booked capacity.
3. Firm day-ahead UIOLI.
4. Long term UIOLI.
20
CMP contained in the Commission Proposal
1. Capacity increase
arrangements
by
oversubscription
and
buy-back
Portuguese practice:
•
For any requests above the existing capacity, an auction must take place for
that particular period;
•
This methodology regarding capacity
oversubscription or buy-back arrangement..
allocation
never
leads
to
21
CMP contained in the Commission Proposal
2. Surrender of booked capacity
Portuguese perspective:
•
capacity is not owned by the users, therefore it cannot be surrendered;
•
capacity that is not reserved within a nomination or planning period is
automatically defined as
free and published as available for
nomination/planning within the next period;
•
shippers pay for their capacity based on its effective use ex-post .
22
CMP contained in the Commission Proposal
3. Firm Day-ahead UIOLI
Portuguese perspective:
•
day-ahead UIOLI is implicit on a firm basis;
•
when the nomination procedure on d-1 is closed, the Global System
Manager publicises the available capacity, meaning that all unused capacity
is immediately available for renomination, whatever the user requiring it;
•
All other procedures and concepts described are not implemented.
23
CMP contained in the Commission Proposal
4. Long-term UIOLI
Portuguese perspective:
•
Long term UIOLI is not possible or required in the Portuguese System at
present, because the allocation process resets all shippers rights on an
annual basis.
24
Other CMP arrangements and related tools
1. Interruptible UIOLI
Portuguese perspective:
•
There is no interruptible UIOLI - capacity that is not reserved within a
nomination period is set free and published as available for nomination
within the next nomination period;
25
Other CMP arrangements and related tools
2. Interruptible capacity
Portuguese perspective:
•
Interruptible capacity is available on all backflow nominations for each
interconnection point between the transmission network, international IPs
and the connecting point to the existing LNG terminal.
26
Other CMP arrangements and related tools
3. Secondary market
Portuguese perspective:
•
•
Non allocated capacity is not paid and users are always free to not use the
booked capacity without any penalty , therefore:
•
The secondary market is only necessary under congestion, where an
auction takes place;
•
The winning bidder actually gets a price for the capacity allocation
before he uses it. In this case this capacity is tradable as recognized
in the published rules and may be exchanged on the secondary
market;
The Portuguese secondary market is bilateral ;
27
Other CMP arrangements and related tools
Portuguese perspective (cont.):
•
Particular case of LNG ship unloading capacity allocation:
•
•
regulated swaps - the new user may force the incumbent LNG
supplier into an agreement to swap gas quantities within certain rules
at a regulated price;
users trend to negotiate a bilateral agreement before the regulated swap
procedures have to be enforced.
28
Spain
29
EC CMP proposals not applied in Spain
1. Capacity increase
arrangements
by
oversubscription
and
buy-back
• Their implementation has never been considered or discussed
2. Surrender of booked capacity.
• Its implementation has never been considered.
• This might be due to the fact that in Spain users are allowed to
release the booked capacity one year after the start of the
service without making any Ship-or-pay payment.
3. Firm day-ahead UIOLI
• A proposal to implement a type of Firm day-ahead UOILI has
been included in a Royal Decree about to be approved.
30
Long-term UIOLI
1st UIOLI
• Article 6.4 of the Royal Decree 949/2001 establishes that if six months after
the start of the service, or six months after any modification in the capacity
booked, the capacity actually used is below 80% of the capacity booked by
the user, contractual capacity shall automatically be reduced in the
percentage not used and the user will automatically lose the proportional
part of the bail. This mechanism is applied by the TSO only for long term
contracts.
• This mechanism is mandatorily applied by the TSO to both congested and
non-congested points.
Reduction of
capacity
100%
100%
90%
90%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
0%
Jan
Jan
Feb
Mar
Abr
May
UIOLI threshold
Feb
Mar
Abr
May
Jun
Jun
Used capacity
Non-used capacity
31
Long-term UIOLI
2nd UIOLI
• Article 6.5 of Royal Decree 949/2001
• Applied by Enagás in its role as Technical System Manager
• This mechanisms is applied if Enagás observes an existing or potential
continuous underutilisation of the capacity booked by a user, and
considers that maintaining such capacity booking could prevent access by
other users to the infrastructure.
• Other users must have already requested access to the infrastructure in
order to applied this mechanism.
• Enagás, in its role as Technical System Manager, will release the
underutilised capacity (contractual capacity will automatically be reduced
in the percentage not used).
• Users will lose the part of their booked capacity which has not been used
and the corresponding part of the bail.
32
Other CMP arrangements and related tools
Interruptible UIOLI
• Resolution of 30th July 2010 from the DGPEyM established the obligation
for TSOs to to apply interruptible UIOLI at IPs from 1st November 2010.
• At IPs, for each of the possible flow directions and only after all the
available capacity has been contracted, the TSO shall offer to third
parties at least one day-ahead the unused capacity on interruptible
basis.
• TSOs shall offer to users on interruptible basis the backhaul capacity that
might be available.
• If requested interruptible capacity is above the available interruptible
capacity, capacity shall be allocated under prorata basis.
• If initially the capacity was contracted as interruptible capacity, this capacity
will not be turned into firm capacity. However, day-ahead UIOLI capacity
will be directly offered as firm capacity if the initial holder of the capacity
informs the TSO about its intention of NOT using the non-nominated
capacity.
33
Other CMP arrangements and related tools
Interruptible capacity
• Enagás offers what is so called in the Spanish System “interruptible tariff”. The
“interruptible tariff” is implemented through an agreement between the end user, the
shipper, and Enagás in its role as System Technical Manager in order to solve
situations of lack of natural gas in the system due to unavailability or congestion in the
transmission facilities.
• Interruptible tariff can only be requested by shippers whose consumers are located in
areas subject to this tariff.
• Each year Enagás publishes the areas where congestion might occur and the
maximum volume subject to interruption.
• Interruptible tariff can only be contracted for a maximum duration of a year, from 1st
October to 30th September next year.
• There are 2 types of interruptible tariff depending on the maximum duration of the
interruption during 12 month agreement: type A of interruptible tariff (5 days) and type
B of interruptible tariff (10 days).
• The tariff to be paid for this service is yearly established by the NRA
• It should be note that the interruptible tariff does not apply to IPs.
34
Other CMP arrangements and related tools
Secondary market
• Enagás offers at its website a Bulleting Board which facilitates the exchange of
contracted capacity at its facilities (transmission network, UGSs and LNG terminals).
• Interested parties can submit capacity offers and request for capacity in the
secondary market.
• There are 2 trade structures:
•
Sublet of capacity: the capacity holder in the primary market keeps the rights and obligations.
Capacity rights might be totally or partially transferred from the initial holder to second holder
by means of a bilateral agreement between them.
•
Resale of capacity: the final capacity holder acquires the rights and obligations. A new
contract between the final capacity holder and Enagás should be signed.
• Further regulatory developments for the secondary market have been included in a
Royal Decree which is about to be approved.
•
The 2 types of transactions will be maintained: sublet and resale of capacity.
•
Enagás, in its role of System Technical Manager, will make available to network users a
platform where shippers will be able to publish capacity offers and requests.
35
Thank you for your attention!