4th Commercial Workshop 2018
San Donato Milanese, 26th July 2018
Agenda
1. Settlement
2. Storage Injection & Export Credit limit
3. Balancing update
4. Reverse flow
5. Ministerial Decree 18th May 2018
6. Entry Points Renominations with hourly detail
7. Storage booking capacity & Injection season
8. Regasification
Settlement
Agenda
1.
SettlementResolutions about Adjustment Sessions previous Years
4
• Consultationdocuments proposingnew calculationmethodologies for the adjustment session
DCO 570/2016/R/gas and
DCO 590/2017/R/gas
• Resolution defining the methodology to be applied for the adjustment sessions for years 2013-2017
670/2017/R/gas
• Resolution defining:
• 𝐴,𝑃𝑑𝑅,𝑟𝑖𝑐• 𝐶𝑅𝑉𝑆𝑇 starting from
July 2018
782/2017/R/gas
• Network Code approval
220/2018/R/gas
5
Dec 2017, 5th
Communication to DSOs and UdDabout the track
record to use for adjustment
sessions
Dec 2017, 31st
670/2017/R/gas 7.4
From Nov 2017, 27th, availability of
data already communicated by DSOs in previous
time windows
Feb 2018, 28th
670/2017/R/gas 4.2
Communication of data from
reference DSOs
Mar 2018, 20th
670/2017/R/gas 4.4
Correction and / or integration of
provided data
May 2018, 5th
Transmission of Summary
Document with reports available in Logistica Gas
to UdB
Jun 2018, 18th
670/2017/R/gas 7.2
Publication of results of the Adjustment
Session
SettlementMulti-annual adjustment session 2018 deadline (Years 2013-2016)
6
Requests Year2013
Requests Year2014
Requests Year2015
Requests Year2016
Requests Delta IO
386 293 612 617 3
Number of UdB that sent requestsof corrections: 22
Total amount of requests of corrections received: 1911
SettlementRecap of requests of corrections due to clear errors made by Snam
7
Jun 2018, 22nd
Extension of deadline for requests of
correction to July 2018, 2nd
Jul 2018, 6th
Extension of deadline for requests of
correction to July 2018, 24th
Jul 2018, 10th
Communication to DSOs about
the extension of deadline to
July 2018, 31st
Jul 2018, 24th
UdB deadline for requests of correction
Jul 2018, 31st
DSOs deadline for correction of
data
Jun 2018, 29th
Answer to requests received
within June 2018, 25th
Jul 2018, 10th
Availability of Citygate report
grouped for kind of data (G,M,Y)
Jul 2018, 31st
Snam deadline for answer to requests of correction
SettlementMulti-annual adjustment session 2018 (Years 2013-2016) - Chronicle
8
𝑫𝒔𝒌𝒂𝒈𝒈
𝜟𝒌𝑰𝑶
Determination of the physical daily items of adjustment withdrawn as per Attachment 9/C of the Network Code
𝛾𝐴,𝑃𝑑𝑅 =σ𝐺=1𝑛𝑎 𝐼𝑁𝐺−𝑄𝐺σ𝐺=1𝑛𝑎 𝑄𝐺
; ∀ PdR
∆𝑘,𝑃𝑑𝑅,𝐴𝐼𝑂 =
𝛾𝐴,𝑃𝑑𝑅,𝑟𝑖𝑐1 + 𝛾𝐴,𝑃𝑑𝑅
∙
𝐺=1
𝑛𝑎
𝑃𝑘,𝑃𝑑𝑅,𝐺𝐴
𝐴,𝑃𝑑𝑅,𝑟𝑖𝑐 = ൞
ҧ𝛾𝑃𝑑𝑅,𝑠 − 𝑚𝑎𝑥 ҧ𝛾𝑃𝑑𝑅,𝑠 > 𝑚𝑎𝑥
0 0 ≤ ҧ𝛾𝑃𝑑𝑅,𝑠 ≤ 𝑚𝑎𝑥
ҧ𝛾𝑃𝑑𝑅,𝑠 ҧ𝛾𝑃𝑑𝑅,𝑠 < 0
ҧ𝛾𝑃𝑑𝑅,𝑠 =σ𝐺=𝑡0,𝑠
𝑡𝑓𝐼𝑁𝐺−𝑄𝐺
σ𝐺=𝑡0,𝑠
𝑡𝑓𝑄𝐺
; ∀ PdR
𝑷𝑨
Imbalance of the k-th Shipper as a result of the AdjustmentSession
SettlementDetermination of physical terms related to the Adjustment Sessions
• 𝛾𝐴,𝑃𝑑𝑅 =100−80
80= 0,25
9
100
8020
• 𝐺𝑅 = 𝐺 ∗ 1 + 𝛾𝐴,𝑃𝑑𝑅 = 20 ∙ 1,25 = 25
G=20
IN
OUT
100P GR=25
SettlementExample of request #1 – Application of 𝛾𝐴,𝑃𝑑𝑅 to G data
10
DEF results ID Time windows Adjustment Session Year 2013
Client Profile #1 #3 #5 #7
UdD_1 C2X1 100 170 200 1120
C3D1 100 361 2659
UdD_2 C2X1 100 147 1253
T2D3 100 1051
UdD_3 C2X1 100 1452
C3D1 1582 1970
NPA 100
UdD_4 C3D1 100 2663
T2D3 100 106 405
Best Data
1120
2659
1253
1452
1970
405
SettlementExample of request #2 – Determination of Best Adjustment Data
11
Y1=50IN
OUT
Y2=70 Y3=60 Y4=100
Y2=30 Y3=58 Y4=8048
ҧ𝛾𝑃𝑑𝑅,𝑠 =σ𝐺=𝑡0,𝑠
𝑡𝑓 𝐼𝑁𝐺 − 𝑄𝐺
σ𝐺=𝑡0,𝑠
𝑡𝑓 𝑄𝐺=(280 − 233)
233= 0,20172
∆𝑘,𝑃𝑑𝑅,𝑌1𝐼𝑂 =
0,19772
1 + (−0,23077)∙ 50 = 12,85181
𝐴,𝑃𝑑𝑅,𝑟𝑖𝑐 = ҧ𝛾𝑃𝑑𝑅,𝑠 − 𝑚𝑎𝑥 = 0,19772ҧ𝛾𝑃𝑑𝑅,𝑠 > 𝑚𝑎𝑥
SettlementExample of request #3 – Calculation of Delta IO
Y1=65
12
100
100
INyear
OUTyear
50
60
INmonth
OUTmonth
50
40
50Pmonth 50
Even if 𝛾𝐴,𝑃𝑑𝑅 = 0 , monthly reconciliation is applied
SettlementExample of request #4 – Monthly allocation in case of 𝛾𝐴,𝑃𝑑𝑅 = 0
13
Lo
gis
tica
Ga
s • Allocations detailed per UdB, PdR, UdD
• Report Scada
• Entry/Exit Commercial and Custom Allocations
• LNG and Storage allocationreport
• 𝐷𝑆𝑘 Report
• Δ𝐼𝑂 Report detailed per UdD
M-G
as • “Best" adjustment measures
report (for AD and UdDusers)
• Allocation report with daily details (for UdD users)
SR
G W
eb
Sit
e • 𝐼𝑁𝑘 index
• 𝛾𝐴,𝑃𝑑𝑅 parameter
• 𝛾𝐴,𝑃𝑑𝑅,𝑟𝑖𝑐 parameter
• Citygate report grouped for kind of data (G,M,Y)
SettlementInformation set available to users
14
July 2018, 15th
670/2017/R/gas 4.1
Communication of data from underlying DSOs to
reference DSOs
July 2018, 31st
670/2017/R/gas 4.2
Communication of data from reference DSOs
August 2018, 20th
670/2017/R/gas 4.4
Correction and / or integration of provided
data
October 2018, 31st
670/2017/R/gas 3.1
Publication of results of the Adjustment Session
SettlementAnnual adjustment session 2018 deadline (Year 2017)
15
2013 2014 2015 2016
SettlementDistribution of 𝛾𝐴,𝑃𝑑𝑅
16
∆Dsk and ∆IO economic values
publication on PORTALE CAPACITA’
EPSuk/MEPSuk *
Update
SRG issue the invoices and give
Shippers the information (via
excel files) needed to issue their invoices
* Not less than 10 working days after the economic values publication
31st August
(provisional)
14th September
(provisional)21st September
(provisional)
PDet will be increased by the total net amount of the ∆Dsk and ∆IO if at credit for SRG
PDet will be decreased by a quota of the total net amount of the ∆Dsk and ∆IO if at debit for SRG
The above quota is determined from time to time according to the SRG coverage (ARERA-CSEA)
SettlementInvoicing timeline
17
SettlementInvoicing process
The 2013-2016 settlement is similar to the balancing regime.
• «Reverse Charge» regime for passive subjects resellers
• 10% ordinary VAT for all other subjects that do not fall under the previous point
• Invoice payment within 15 days
• «Reverse Charge» regime
• Invoice payment within 30 days (subject to SRG availability ARERA-CSEA)
Invoices issued by SRG
Invoices issued by the Shippers
Agenda
Storage Injection & Export Credit limit
2.
Storage Injection & Export Credit limit checkOverview
19
The Network Code Update proposal n° 52 foresees the introduction of a credit limit check on
the Shippers’ nominations as follows:
• Injection into the Storage;
• Export vs foreign interconnected systems (Austria, Switzerland, Slovenia).
Storage Injection & Export Credit limit checkEpsuk - Mepsuk report – A numerical example
20
D
D+1
D+2
• Storage Injection nomination = 60
• Export nomination = 40
• Epsuk (Patt) = 0
• Daily Credit Limit = -100 (Storage Injection & Export nominations of Gas Day D)
• Storage Injection nomination = 0
• Export nomination = 0
• Epsuk (Patt) = -100 (Storage Injection & Export nominations of Gas Day D)
• Daily Credit Limit = +100 (Restoration of Storage Injection & Export nominations of Gas Day Daccounted to PAtt)
• Storage Injection nomination = 0
• Export nomination = 0
• Epsuk (Patt) = +100 (Restoration of Storage Injection & Export nominations of Gas Day D)
• Daily Credit Limit = 0
Agenda
Balancing update3.
Agenda
Reverse flow4.
Implementation of bidirectional flows with other European countries(historically directed from North to South) in accordance with theEuropean Commission's objective of creating an integrated gas market
Development opportunities for the Italian market thanks to theconnection with other more liquid and mature markets such as Germanyand the Netherlands
New important flexibility source for balancing actions during excess gasevents in the system
Increase of flows in transit for the benefit of: Italy Strategic role Market liquidity Security of Supply Spread reduction
Reverse FlowOverview
Reverse FlowAs is
518*
4,4
Data in MSm3/g
* Interruptible capacity subject to a forward physical flow or a null physical flow at the entry point of Passo Gries
Actually the reverse flow capacity is equal to:
• 5 MSm3/g towards Switzerland
• 18 MSm3/g towards Austria
• 4,4 MSm3/g towards Slovenia
Source: Transparency Platform ENTSOG
≈9≈2
Reverse FlowTo be
40*18*
4,4
* Includes the 18 MSm3/g of competing capacity
Starting from next Thermal Year (2018/2019)the reverse flow capacity will be equal to:
• 40 MSm3/g towards Switzerland (thanks tothe entry into service of the newcompression stations of Sergnano andMinerbio)
• 18 MSm3/g towards Austria
• 4,4 MSm3/g towards Slovenia
Source: Transparency Platform ENTSOG
Data in MSm3/g
≈9≈18
* In March 2018, interruptible capacity was booked
Reverse FlowAnalisi sulle capacità
8
18
28
38
48
58
68
0
1
2
3
4
5
6
€/M
Wh
MSm
c/g
Passo Gries Export - AT 1718
Volume Tecnhical PSV DA TTF DA SAP
Source: ICIS-Heren
Agenda
Ministerial Decree 18th May 20185.
Ministerial Decree 18th May 2018Physical Chemical Characteristics
28
Parameters Acceptable valueMinisterial Decree
Acceptable valueNetwork Code
Measurementunit
Carbon dioxide ≤ 2,5 ≤ 3 % mol
Hydrogen sulphide ≤ 5 ≤ 6,6 mg/Sm3
Sulphur from mercaptan
≤ 6 ≤ 15,5 mg/Sm3
Total sulphur ≤ 20 ≤ 150 mg/Sm3
Relative density 0,555 ÷ 0,7 0,5548 ÷ 0,8 mg/Sm3
The Ministerial Decree has defined new parameters related to the monitoring of gas quality.
The parameters shown below replace those defined in Chapter 11, Attachment 11/A.
Ministerial Decree 18th May 2018Odorisation and safe use of natural gas
29
Field of application: customers directly connected to the transport network.
Mandatory obligations for the end customer:
• within 60 days from the date of publication of the Decree in the Gazzetta Ufficiale (7th August2018), a declaration regarding the use’s category of the delivered gas;
• within 6 months from the same date of publication (7th December 2018), in case of declaration ofdomestic or similar use - also combined with technological uses - a certificate that such use is safehaving adopted the technical solutions foreseen by the Decree.
Forms necessary to fulfill the obligations are available on Snam website, in a dedicated area ofTransportation/ On-line Services section, available at the following link.
In case the end customer do not send to the TSO the declarations within the aforementioneddeadlines, the TSO will cut-off the redelivery point.
30
Ministerial Decree 18th May 2018Odorisation and safe use of natural gas
N. of PDR to be recorded:
3.135
N. of declarationsreceived:
1.415
N. of declarationsto be received:
1.720
N. of compliantdeclarations:
1.230
N. of incompletedeclarations:
185
Use categorydeclared T1:
729
Use categorydeclared ≠ T1:
501
Situation updated to July 24, 2018
Agenda
Entry Points Renominations with
hourly detail
6.
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 0 1 2 3 4 5
Gas Day D-1 Gas Day D
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 0 1 2 3 4 5
Gas Day D-1 Gas Day D
Entry Points Renominations with hourly detailNomination cycle to be
32
e.g. Input of a new renomination at 8 AM
Starting from 9 PM
Entry Points Renominations with hourly detailNomination cycle to be
33
Flexibility and renomination constraints in accordance with BAL NC
Opportunity to send Entry Points’ Renomination with an hourly detail on a trial basis.
Balancing on daily basis
Compliance with booked capacities
In order to accept it, User’s transportation programme it’s verified considering
• the amounts already flown (confirmed hours cannot be changed)
• the transportation capacity booked on Prisma
Entry Points Renominations with hourly detailLogistica Gas to be – Functionalities involved
34
NOMINATION RECEIPT
MATCHINGCAPACITY CHECK
NOMINATION UPLOAD
Update GUI Nomination: • Opportunity of inputs with hourly details
• Change of logics for day-aheadand withinday cycles
Update of section Upload Nomination:
New algorithm thatcompares nomination with capacity:
• New matching algorithm (change of comparison logics)
In case of matching of hourly nom:
• New functionality of Upload Data from interconnected TSOs
• New template with hourly details
• Change of logics for day-aheadand withinday cycles
• after User’s input• After the end of each cycle
Entry Points Renominations with hourly detailEdig@s at present and to be
35
Entry Points Renominations with hourly detailNomination upload at present and to be
36
Agenda
Storage booking capacity &
Injection season
7.
April2018
May2018
June2018
July2018
August2018
AVAILABLE CAPACITY 12.350 12.350 12.350 12.350 12.350
BOOKED CAPACITY
Hydrocarbon Storage 0 0 0 0 0
Shipper Balancing Service 221 221 221 221 221
Peak Modulation 5.825 5.870 6.760 6.760 6.760
Flat Multi-Annual 1.324 1.324 1.324 1.324 1.324
Flat Modulation 2.608 2.776 3.016 3.325 3.603
Fast Cycle 300 300 300 300 300
TOTAL BOOKED CAPACITY 10.278 10.491 11.621 11.930 12.208 99%
UNASSIGNED CAPACITY 2.072 1.859 729 420 142 1%
Storage booking capacity & Injection seasonLong Term Auctions
38
Thermal Year 2018/2019
Mln of Scm Pcs 39,3
Storage booking capacity & Injection seasonStorage System Filling 2015-2018
39
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
apr mag giu lug ago set ott
(BCM at 10,57275 kWh/Sm3)
2015 2016 2017 2018
Stock updated to July 24, 2018
9,455 BCM
Storage booking capacity & Injection seasonSTOGIT Injection season
40
0
200
400
600
800
1.000
1.200daily flow
Daily flow
Pre Auction
Pre Auction + TSO
Post Auction
Mwh
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000stock trend
Offered
Booked
Stock - Actual
Stock - Forecast
July*12.947
April17.542
May26.202
June21.691
Mwh
(*) updated to July 24, 2018
Storage booking capacity & Injection seasonTax Bills & Digital Signature
41
Agenda
Regasification8.
RegasificationPricing
43
• Increase of East Asia price index during the summer;
• Iberian price index premium to the Mediterranean price index;
• Increasing of prices compared to the last Thermal Year
2
4
6
8
10
12
[$/M
Mb
tu]
LNG Front Month
Henry Hub Mediterranean East Asia Iberian NW Europe
RegasificationCargo received by LNG terminal
44
0
2
4
6
8
10
Number of cargo received by GNL Italia
0
2
4
6
8
10
Number of cargo received by Adriatic LNG
0
2
4
6
8
10
Number of cargo received by OLT
7
217
Spot Integrated Service Long term
1
96
Spot Long term
1
8
2
Peak shaving Integrated Service Spot
RegasificationLNG avarage day volume injected into the network
45
Adriatic LNG: 65.216.015 MWh
OLT: 9.437.910 MWh
GNL Italia: 3.554.107 MWh
Adriatic LNG: 67.682.239 MWh
OLT: 4.029.618 MWh
GNL Italia: 8.140.173 MWh
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
MW
h/d
Adriatic LNG OLT GNL Italia
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
MW
h/d
Adriatic LNG OLT GNL Italia
-5 WD(before auction)
Regasification
Contract
Presentation
Mo
nth
M+
1
Subject of the booking: Binding slots for M+1+2+3; not binding slots for M+4 M12
Booking Tipology: During the Thermal Year Assignment algorithm: Pay as bid – maximization of the #slots (PAR)
Bank Guarantee
Presentation
(by 14:00)
-2 WD(before auction)
Auction by PAR (*)
-10 WDM (M+4 M12)
Prog_Proposal
M+1+2+3
(by 13:00)
Program
schedulation
M +1 +2 +3
-7 WDM
-6 WDM
De
liv
ery
Da
te
(*) The auctions of the months M + 1, M + 2, M + 3, M+4M12 are carried out in 4 separate days, the opening of each single auction isnormally posted at 09:00 on the day of assignment. At the of M+4M12 auction the Shipper have to allocate slots booked to calendar
dates
-12 WDM (M+2)
-13 WDM (M+1)
-11 WDM (M+3)
(Month M)
RegasificationDuring the Thermal Year
50
THANK YOU
48
48
SettlementPayment in installments
In order to require the payment in installments the following requirements must be met:
• Invoice amount bigger then 100.000 €
• Invoice amount bigger than 20% of the highest monthly amount of the fees invoiced forthe transportation and balancing services towards the same shipper during the previous12 months before the multiannual settlement invoicing issuing date
The Shipper can required the payment in installments within the 12th working day after the Dskand ∆IO economic values publication date.
The payment in installments are allowed up to a maximum of 12 months but no further then thepenultimate month before the guarantees expiration date.
RegasificationFocus on GNL ITALIA new Regasification Code
With Resolution 376/2018/ R/gas of 05.07.2018, ARERA approved the proposal to update theRegasification Code of GNL Italia:
New market mechanisms based on auction procedures for regasification capacity booking Flexibility services
Snam publishes on its own web site the main information useful to participate to the auctions
Contracts/Bank guarantee forms Brief explanations of the different products offered (Yearly, Monthly, Spots) Calendar of the auctions Key points for the calculation of the starting price
For the auction Snam will use the PAR Web Platform (Piattaforma di Assegnazione dellacapacità di Rigassificazione), managed by Gestore Mercati Energetici (GME)
------------------------------------------------------------------For more info please click on http://www.snam.it/it/rigassificazione/Processi_Online/Capacita/procedure-moduli/conferimento-transazioni-capacita/index.html
48
-2 WD(before auction)
-5 WD(before auction)
Slots allocationto calendardates (**)
Bank Guarantee
Presentation(by 14:00)
Regasification
ContractPresentation
26.07.2018
AuctionsPAR (*)
Prog_ProposalM+1+2+3(by 13:00)
-7 WD -6 WD
Program approval
M +1 +2 +3
July 2018
Mo
nth
M+
1
Subject of the booking: Not Binding slots Booking Tipology: Start of the Thermal Year Assignment algorithm: Ascending Clock
De
liv
ery
Da
te
September 2018(Month M)
(*) The opening of the auction to allow Shippers to enter bids is placed on 23.07.2018(**) During the month of September, in accordance with the provisions of the GME
RegasificationStart of the Thermal Year
49