igu woc3 – study group 3.1 global review on third party...

I.G.U. WOC 3 – SG 3.1. Triennium 2003-2005

23rd World Gas Conference June 5-9, 2006 Amsterdam, The Netherlands

IGU WOC3 – Study Group 3.1

Global Review on Third Party Access and Network Codes

Report Triennium 2003 – 2006


CONTENTS 1.

Introduction

2.

Questionnaire Development and Structure

3.

Survey Response

4.

Data Analysis: T.P.A. index

5.

Results

6.

Discussion: analysis of responses

7.

Conclusions

8.

Glossary

Appendix 1

2003 - 2005 Survey Results

Appendix 2

Key Indicator Questions for TPA Index

Appendix 3

Summary of TPA Index

Appendix 4

Survey Questionnaire


1. INTRODUCTION

The IGU Working Group for Transmission (WOC3 Study Group 3.1) has completed for the Second Triennium (2003 – 2006) an international study of the development of Third Party Access and Network Codes with the following objectives:

o To review the development and harmonisation of third party access and network codes in order to promote harmonisation of technical and operational arrangements for international gas transmission across IGU members;

o To compare the different solutions adopted in the international gas industry, regarding

third party access and balancing of networks;

o To provide a projection of the world-wide development of TPA and NC subjects each year for the period 2003 to 2005, with particular reference to:

o competition in gas supply; o TPA to monopoly transportation; o regulation on network access and security; o NC and associated tariff systems.

In consideration of the positive results of the study completed for the triennium 2000 - 2003, IGU Working Group for Transmission (now WOC3) decided to carry out the same survey over the triennium 2003 – 2006 through a global review on TPA and NC made by the Study Group 3.1 co-ordinated by Snam Rete Gas, owner and operator of the main part of the Italian gas network. The information provided represents a general indication of present international third party access situation: from the activity carried out so far, it appears that at this stage the first wave of TPA has been successfully introduced in most countries within the framework of the gas market liberalization.


2. QUESTIONNAIRE DEVELOPMENT AND STRUCTURE Work methodology consists in the circulation, among IGU countries, of an annual questionnaire to define current and twelve month expected development: the present final report includes the results for the questionnaires already circulated from 2003 to 2005, for which the IGU members have provided their answers. Questions were grouped into the following thirteen categories:

o General o Market share and ownership of assets o Competition in Transport o Competition in supply o Storage o Balancing o Gas Quality o Licensing regime o Network code o Capacity o Tariffs o Additional questions for 2001 o Security of supply

From 2003 to 2005 some changes have modified the initial questionnaire:

o A reduced number of questions (from 53 to 46) in order to facilitate the management of the document;

o The introduction of 2 new sections: “Tariff ” and “Security of Supply”, grouping the questionnaire into the above mentioned 13 sections;

o A short explanation with a pop – down menu for some answers, in order to introduce more uniformity in qualitative results.

o A short explanation for some question has been considered as useful for a better comprehension of the document.

No change has to be pointed out for the “TPA index” questions. See Appendix 2


3. SURVEY RESPONSE These are the data responses for the 2003 – 2005 triennium: a number of respectively 27, 29 and 24 countries provided a response to the questionnaire. Data projection has been used in the analysis when the relative data for the year were not available. The high proportion of countries responding to all surveys provides confidence that statistical trends in the data are due to real international developments in TPA. Here attached you find the list of the responding countries for the triennium:

Nation (label) 2003 2004 2005 Argentina AR OK OK OK Australia AU OK 2003 projection nothing Austria AT OK OK OK Belgium BE OK OK 2004 projection Bosnia Erzegovina BA OK 2003 projection nothing Croatia HR OK OK 2004 projection Denmark DK OK OK 2004 projection Finland FI OK OK OK France FR OK 2003 projection nothing Germany DE OK OK OK Japan JP OK OK OK Iran IR nothing OK OK Republic of Ireland IE OK 2003 projection nothing Italy IT OK OK OK Korea KR OK OK OK Malesia MY nothing OK OK Mexico MX OK 2003 projection nothing The Netherlands NL OK OK OK Poland PL OK OK 2004 projection Portugal PT OK OK OK Czech Republic CZ OK OK OK Serbia Montenegro (ex YU) SM OK OK 2004 projection Slovak SK OK OK 2004 projection Slovenia SI OK OK OK Espana ES OK OK OK Sweden SE OK 2003 projection OK Switzerland CH OK OK 2004 projection Ukraine UA OK OK 2004 projection United Kingdom UK OK OK OK TOTAL ANSWERS 27 29 24


4. DATA ANALYSIS: T.P.A. INDEX As already done for the previous triennium (2000-2003), to support the analysis of the development of TPA, a simple index (the TPA Index) has been calculated for this study TPA index enables the situation in countries to be directly compared The TPA Index is calculated from responses to key survey questions as follows:

1. Responses to thirteen questions identified as important indicators of the development

of TPA have been scored from 1 to 10 in accordance with the scoring scheme in Appendix 2.

2. Weighting factors were assigned to these questions in accordance with Appendix 2. 3. The weighted sum of the scores was evaluated for each country and the TPA index

calculated as this weighted score expressed as a percentage of the maximum possible score.

See Appendix 2 for Key Indicator Questions 5. RESULTS 5.1 Responses to the Surveys Responses to the 2003, 2004 and 2005 surveys are presented graphically in Appendix 1. 5.2 TPA Indices The TPA Index for each participating country during the triennium are shown in Appendix 3


6. DISCUSSION: ANALYSIS OF RESPONSES 6.1 Analysis of responses. The number of major transporters also supplying gas to consumers shows a significant downward trend. The number of countries no longer both transporting and supplying gas rose from 2003 to 2005 (4 countries changed their answer from yes to no: SK, SI, DE, IR). This suggests progress towards more transparent and non-discriminatory access to gas markets through the removal of the potential for cross-subsidy between transportation and supply. [Question 8] The number of countries with an organised gas trading system open to all suppliers increased: organised gas trading systems support the development of liquidity in gas markets, encouraging new entrants into the gas supply market. [Question 10] The number of countries allowing TPA remained constantly high, if compared with the previous triennium analysis: trends towards TPA are clearly not restricted to EU member states, although in these countries implementation of the EU Gas Directive is a key factor. [Question 11] The number of countries without any third party transportation decreased further on from 2003 to 2005, continuing the decreased rate still started in the previous triennium. The separation of transportation and supply increased the number of countries transporting all gas on behalf of third parties: Sweden and Slovenia were added as a 100% transportation on behalf of third parties. [Question 12] The number of shippers inputting gas into national networks has remained relatively static during the triennium, despite increasing projections referred to its expectation to rise. [Question 14] The number of nation applying equal and not discriminatory access rules to their storage facility has considerably increased during the triennium: 5 countries have changed their answer from no to yes. Storage may be used for a number of purposes including seasonal and daily balancing and to maintain security of supply. Increased access to storage on a non-discriminatory basis enables transmission system operation to be optimised and supports security of supply. [Question 22] Balancing frequencies are increasing, together with the number of countries with competitive markets in acquiring and disposing of gas for balancing in accordance with the results of the previous triennium, but at a less increasing rate: the trend towards hourly balancing may increase the responsiveness of shippers to consumers requirements. [Questions 23 and 24] Survey questions on gas quality requirements indicate an increase in the number of countries with published gas quality requirements (in 2005 four countries more than 2003 ): gas quality is a significant issue for the interoperability of transmission systems and lack of development in this area may restrict gas transmission between grids. [Question 28] Increasingly published network codes are available to all suppliers, with a decrease of the number of countries with private network codes: published codes promote non-discriminatory access to transmission networks and support competition between suppliers, while private network codes may favour large suppliers and discriminate against smaller suppliers who could be unable to enter the market. [Questions 42 and 43] The number of countries with shippers trading capacity between themselves, together with the number of countries with an organized capacity trading system, has considerably increased during the triennium: a number of six countries has changed its answer from no to


yes. This is relevant for the competition: the ability to trade capacity provides suppliers with flexibility in response to changing commercial requirements. [Question 36] Countries with published transportation rates for all suppliers have remained constantly high during the triennium, promoting openness and lack of discrimination in the market. [Question 40] 6.2 TPA Indices In 2005, on a total of 24 countries answering, there were 18 countries with a TPA index above 50%. By 2003, on a total of 27 countries responses this had risen to 15 countries and by 2004, on a total of 29 countries, TPA above 50% had increased to 17 countries: this analysis show the global increased number of countries with an high TPA. The countries recording the highest TPA index at the end of the triennium were United Kingdom (97%), Italy (97%), Denmark (93%) and Austria (90%). The analysis performed highlights also some problems regarding the TPA Index results, giving evidence of countries with a TPA Index lower than the previous year: this result has to be studied through an analysis of the involved IGU Members questionnaires to verify if it is done to a different situation in the gas liberalization process or, for example, the reason is that questionnaires have been filled by different operators (not the same interpretation of the questions used to calculate the TPA Index). See Appendix 3 6.3 Trends in TPA Indices Between 2003 and 2005 the countries with the largest increase in TPA Index were Slovak Republic (from 44 to 85), Belgium (from 52 to 77) and Czech Republic (from 52 to 77). In the survey period 2003 to 2005 the average increase was +7%. Four countries did not change TPA Index over the period of the study; these countries were the United Kingdom, Italy, Ukraine and Iran. Summarising: • the gas liberalization process, meaning the possibility for third parties to access to the

transportation systems through non discriminatory conditions, is expected to proceed at an accelerate rate during next years;

• the main level of “opening” markets, represented by the results of the 2005 TPA Index, is reached by European countries as UK (97%), Italy (97%) and Denmark (93%);

• outside Europe, TPA Index highest levels are registered by Australia and Argentina.


7. CONCLUSIONS Trends apparent from analysis of responses to the 2003, 2004 and 2005 surveys include the following:

o The number of gas transporters supplying gas to gas consumers is decreasing; o More countries have an organised gas trading system open to all suppliers; o The number of countries permitting TPA is increasing; o Greater volumes of gas are being transported on behalf of third parties; o More shippers are putting gas into transportation systems; o The threshold to change the supplier is decreasing; o Balancing frequencies are increasing; o More countries publish their gas quality requirements; o There is a global trend towards increased publication of Network Codes to access the

transmission system; o Capacity trading is increasing o Published transportation rates are increasing.

Survey results confirm that the opening of the gas market and the evolution in the liberalization process are constantly growing: in consideration of this, and with the aim to provide a world-wide overview trend of the actual situation, the prosecution of the analysis for the next triennium should be carried out.


8. GLOSSARY Third Party Access is when somebody who does not own or operate the pipeline can have access to it for the transportation of gas. A Network Code is a contract between Transporters and Suppliers giving details of the pipeline access and the balancing requirements. The Transporter operates the Transmission Network and also transports gas for the suppliers. The Transmission Network is the high pressure system that is used for transporting gas throughout the country operating above 4, 7 or 16 bar depending on national standards. The Distribution Company operates the local Distribution Networks to the final gas consumers. In some cases distribution companies are also Transporters. The Distribution Network is the low/medium pressure system that carries gas into towns and cities. The Supplier (including shippers) owns the gas and sells it to the gas consumers. In some cases this would include the distribution company. A Gas Consumer is a person or organisation that burns or uses gas. International Gas Transit is the transportation of gas through the country from one border to the next A Published Document is one that has been made public and is transparent to others. Commercial Backhaul is a notional transaction that results in the transportation of gas in the opposite direction to the physical flow of gas in the pipeline. A backhaul transaction can be realised by non-delivery or a reduction in the physical flow of gas to a delivery point. Physical Backhaul is a transaction that requires the transporter to reverse the direction of physical flow in the pipeline.


APPENDIX 1 2003 - 2005 SURVEY RESULTS


MARKET SHARE AND OWNERSHIP OF ASSETS


Question 6: Number of Gas Transporters (including the major transporter)

012345678910111213

~0

12

34

56

79

1012

1314

1518

2024

2890

700

Num

ber

of g

as t

rans

port

ers

Frequency

Freq

uenc

y -

2003

Freq

uenc

y -

2004

Freq

uenc

y -

2005


Question 8: Does the major gas transporter also supply gas to gas consumers?

Year 2003

Yes No No Answer N/A

BA CZ FI FR MX PL SK SI PT SM SE UA

AR AU AT BE HR DE UK IT NL ES CH KR DK IE

JP

Year 2004

Yes No

NL FI JP IR KR PT SM UA PL BA CZ FR MX SE MY DE

IT AR AT UK SK SI ES CH AU BE DK IE HR

Year 2005

Yes No

NL FI JP PT SM UA PL CZ MY SE

IT AR AT UK SK SI ES CH DK BE HR DE IR KR


Question 9: Do the Majority of the Distribution Companies Supply Gas to Gas Consumers?

Year 2003

Yes No No Answer

BA CZ FI FR MX PL SK SI PT SM SE UA

BEUK IT

Year 2004


IT UK IE

PL NL AR AT HR FI JP IR KR PT SM SK SI ES CH UA AU BA CZ DK FR MX SE DE MY

BE

Year 2005


IT UK

PL NL AR AT HR FI JP IR KR PT SM SK SI ES CH UA DK CZ MY DE SE

BE


Question 10: Is there an organized gas trading system opened to all suppliers?

Year 2003

Yes No

AR AU AT BE BA DK FR DE UK IE IT NL

HR CZ FI JP MX PL SK SI ES CH PT KR SM SE UA

Year 2004

Yes No

PL HR FI JP IR PT SM SK SI ES CH UA CZ MX SE MY

IT NL AR AT UK KR AU BE BA DK FR IE DE

Year 2005

Yes No No Answer

PL HR FI JP IR PT SM SK SI ES CH UA MY KR SE IT NL AR AT

UK DK BE CZ DE


COMPETITION IN TRANSPORT


Question 11: Does the major gas transporter allow third party access?

Year 2003

Yes No

AR AU AT BE BA HR CZ DK FI FR DE UK IE IT JP MX NL PL SK SI ES CH KR SM SE UA

PT

Year 2004

Yes No No Answer

IR PT MY

PL IT NL AR AT HR FI JP UK KR SM SK SI ES CH UA AU BE BA CZ DK MX IE SE DE

FR

Year 2005

Yes No

IR MY

PL IT NL AR AT HR FI JP UK KR SM SK SI ES CH UA PT DK BE CZ DE SE


Question 12: What percentage of volume of the country’s gas consumption is transported on behalf of third parties?

0123456789

10

00-1

011-2

021-3

031-4

041-5

051-6

061-7

071-8

081-9

091-1

00

Perc

enta

ge o

f volu

me

Frequency

Fre

quency 2

003

Fre

quency 2

004

Fre

quency -

2005


Question 13: How many entry points are there into the national transmission network?

0123456789

10

11

12

1-5

6-1

011-1

516-2

021-2

526-3

031-3

536-4

441-4

546-5

051-5

556-6

061-7

0~

5700

Num

ber

of

Entr

y Po

ints

Frequency

Frequency

- 2

003

Frequency

- 2

004

Frequency

- 2

005


Question 14: How many Shippers input gas into the transmission network?

0123456789101112

1-3

4-6

7-9

10-1

516

-22

23-3

031

-40

41-1

00~

220-

250

~30

070

010

1080

00

Num

ber

of S

hipp

ers

Frequency

Freq

uenc

y -

2003

Freq

uenc

y -

2004

Freq

uenc

y -

2005


COMPETITION IN SUPPLY


Question 17: What is the threshold above which the gas consumer can change their supplier?

01234567891011

0-0,

91-

56-

1011

-15

~21

-25

31-3

5~

50~

100

1825

~17

000

Thre

sold

Frequency

Freq

uenc

y -

2003

Freq

uenc

y -

2004

Freq

uenc

y -

2005


STORAGE


Question 19: Are there any of the following gas storage facilities in your country (excluding storage used for balancing)?

Year 2003

LNG Salt Cavity Depleted Gasfield Underground cavern Aquifer None

AR AU CZ ES AR AU

BE FR DE UK JP M X NL ES PT KR

DK FR DE UK PL

AU AT HR CZ DE UK IE IT JP NL PL SK UA

BE CZ DK FR DE UA

BA FI SI CH SM SE

Year 2004


AR CZ SENL AR JP UK KR PT ES AU BE M X DE

PL UK PT DK FR DE

PL IT NL AT HR JP UK SK ES UA AU CZ IE DE

UA DK FR DE BE CZ

FI IR SM SI CH BA

Year 2005


AR CZ SE NL AR JP UK KR PT ES BE DE

PL UK PT DK DE

PL IT NL AT HR JP UK SM SK ES UA CZ DE

UA BE DK CZ DE

FI IR SI CH M Y


Question 20: Who owns the above gas storage facilities (percentage by volume)?

100% Major Transporter 100% Government100% Supplier 100% Indipendent Storage Operator100% Other CombinationN/A No Answer

Year 2003

BE PL ES PT KR UA

HRAT DK IE IT

JP UA

AR AU CZ UK NL

BA FI FR DE MX SI CH SM


Year 2004

PL PT ES BE

HRIT AT SK DK MX IE SE

NL AR JP UK KR UA AU CZ

FI IR SI CH MY

SM BA FR DE


Year 2005

AR

DE

SM ES BE PT

PL IT AT HR SK DK UK SE

UA

NL JP KR UA CZ

FI IR SI CH MY


Question 21: Who has access to the above storage facilities?

Year 2003

Transporter only Supplier only Both No answer

CZ UK PL PT KR UA

AR AT HR FR IE JP

AU BE DK IT NL SK ES

BA FI DE MX SI CH SM SE

Year 2004

Transporter only Supplier only Both No answer N/A

PL PT CZ DE

AR AT HR JP FR MX IE SE DE

IT NL UK KR SK ES UA AU BE DK

BA SI FI IR SM CH MY

Year 2005

Transporter only Supplier only Both No answer N/A

AR AT JP

FI

PT SM KR SE

PL IT NL HR UK SK ES UA DK BE DE CZ

SI FI IR SM CH MY


Question 22: Is there equality in access to the above storage facilities for all suppliers?

Year 2003

Yes No No Answer

AT DK DE UK

IT SK ES UA

AR AU BE HR CZ FR IE JP NL PL KR

BA FI MX SI CH PT SM SE

Year 2004

Yes No No Answ er N/A

IT AT JP UK SK ES UA

DK FR IE DE BE CZ

PL NL AR HR KR AU

SE

PT SM BA MX

FI IR SI CH MY

Year 2005

Yes No No Answ er N/A

PL IT AT HR JP SK ES UA DK BE CZ DE

NL AR KR SM SE UK

PTFI IR SI CH MY


BALANCING


Question 23: How often are the suppliers required to balance the difference between inputs and outputs?

Year 2003

Hourly Daily Weekly Monthly Other

AT FI JP CH

AU BE CZ DK FR UK IE IT NL SK SI ES CH

SM SE

HR ES

BA DEAR MX

PL ES KR UA

Year 2004


HR

NL AT FI JP CH

PL IT UK IR PT SM SK ES AU BE CZ DK FR IE SE MY

AR KR SI UA MX

BA DE

Year 2005


NL AT HR FI JP CH

PL IT UK IR PT SM SK ES DK

BE CZ MY AR SI SE

KR UA DE


Question 24: Is there a competitive market in acquiring and disposing of gas for balancing?

Year 2003

Yes No

AR BE BA HR CZ DK FI FR DE IT JP MX PL SK SI ES CH PT KR SM UA SE

AU AT UK IE NL

Year 2004

Yes No

NL AT UK AU FR IE

DK

PL IT AR HR FI JP IR KR PT SM

SK SI ES CH UA BA CZ MX SE DE BE MY

Year 2005

Yes No No Answer

IT NL AT UK DK CZ

PL AR HR FI JP IR KR SM SK SI ES CH UA BE DE PT SE

MY


GAS QUALITY


Question 25: Who specifies the gas quality requirements?

Year 2003

Government Transporter Customer Other

AU BE CZ DK FI DE UK IE IT NL SK SI ES CH SE

AR AU BE HR FR MX PL ES PT KR SM UA

AU AT BA DK JP PL

AU DE

Year 2004

Government Transporter Other

PL AR HR PT SM ES UA FR

MX

IT NL FI UK IR KR SK SI CH AU BE

CZ DK IE SE MY

AT JP BA DK DE

Year 2005

Government Transporter Other

NL FI UK IR KR SK SI CH DK BE

CZ MY SE IT

AT JP DK DE

PL AR HR PT SM ES UA


Question 28: Are the gas quality requirements published (transparent to others)?

Year 2003

Yes No No Answer

AR AU AT BE BA HR CZ DK FI FR UK IE IT JP MX NL PL SI ES KR SM UA SE

SK CH PT

DE

Year 2004

Yes No

CH

PL IT NL AR AT HR FI JP UK IR KR PT SM SK SI ES UA AU BE BA CZ DK FR MX IE SE

DE MY

Year 2005

Yes No

CH

PL IT NL AR AT HR FI JP UK IR KR PT SM SK SI ES UA DK BE CZ MY DE SE


LICENSING REGIME


Question 29: Who regulates gas supply and transportation?

Year 2003

Nobody Government Department Independent regulator

AR AU BA FI JP MX NL PL ES CH PT KR SM UA

AU AT BE HR CZ DK FR UK IE IT SK SI PT

SE

Year 2004

Nobody Government Department Independent regulator

SE

AR FI JP IR PT SM ES CH UA

AU BA MX MY

PL IT NL AT HR UK KR SK SI BE CZ DK FR IE DE

Year 2005

Government Department Independent regulator Other

DE

AR FI JP IR ES CH UA MY

KR PT

PL IT NL AT HR UK SM SK SI DK BE CZ SE


Question 30: Do suppliers need a license to operate?

Year 2003

Yes No

AR AU BE HR CZ FR DE UK IE IT JP PL SK SI ES PT KR SM UA

AT BA DK FI MX NL CH SE

Year 2004

Yes No

PL IT NL AR HR JP UK KR PT SM SK SI ES UA AU BE CZ FR IE

DE MY

AT FI IR CH BA DK MX SE

Year 2005

Yes No

PL IT NL AR HR JP UK KR SM SK SI ES UA BE CZ MY DE IR PT

AT FI CH DK SE


Question 31: Do transporters need a license to operate? Year 2003

Yes No

AR AU AT BE HR CZ DK FI FR DE UK IE JP MX PL SK SI ES CH PT KR SM UA

BA IT NL SE

Year 2004

Yes No

PL AR AT HR FI JP UK KR PT SM SK SI ES CH

UA AU BE CZ DK FR MX IE DE MY

IT NL IR BA SE

Year 2005

Yes No

IT SE IR

PL AR AT HR FI JP UK KR PT SM SK SI ES CH UA DK BE CZ MY DE NL


NETWORK CODE


Question 32: Is there a published network code available to all suppliers?

Year 2003

Yes No

AR AU AT HR CZ DK FI FR UK IE IT NL SI ES KR UA SE

BE BA DE JP MX PL SK CH PT SM

Year 2004

Yes No

IT NL AR AT HR FI JP UK IR SK SI CH UA AU BE DK FR IE SE DE

PL KR PT SM ES BA MX CZ MY

Year 2005

Yes No

IT NL AR AT HR FI JP UK IR SK SI ES CH UA DK BE CZ DE SE

PL KR SM MY PT


Question 33: Is there a private network code between transporter and individual suppliers?

Year 2003

Yes No No Answer

AR AT BE DE JP NL PL SK CH KR UA

AU BA HR CZ DK FI FR UK IE IT SI ES PT SM SE

MX

Year 2004

Yes No No Answer

MX

NL AR AT JP KR PT SK SI ES CH UA BE DE MY

PL IT HR FI UK IR SM AU BA CZ DK FR IE SE

Year 2005

Yes No No Answer

PL NL AR JP KR SK SI ES CH UA BE CZ MY DE IR PT

IT HR FI UK SM DK AT SE


Question 34: Are network codes approved by the government?

Year 2003


AR AU AT BA HR DK FI UK IE JP ES SI KR

CZ FR DE IT MX NL SK CH PT SE UA

PL SM BE

Year 2004

Yes No N/A

AR AT HR FI JP UK SK SI ES AU BA DK IE BE MY

IT NL KR PT UA CZ FR MX SE DE

PL IR SM CH

Year 2005

Yes No N/A

PL AR HR FI JP UK SK SI ES DK BE DE NL

IT UA AT CZ SE

IR SM CH KR MY PT


Question 35: If no network code applies are there regulations which govern access and balancing obligations?

Year 2003


AT HR SK UA

AR BA CZ MX CH

BE DE

AU DK FI FR UK IE IT JP NL PL SI ES PT HR SM SE

Year 2005


PTSK DE SI

PL IT NL FI JP UK IR SM CH DK BE CZ AR AT SE

HR KR ES UA MY

Year 2004


DE

PL AR BA MX MY

IT NL FI JPUK IR PT SM SI CH AU DK FR IE SE BE CZ

AT HR KR SK ES UA


CAPACITY


Question 36: Can suppliers trade capacity between themselves? Year 2003

Yes No No Answer

AU AT BE DK FI DE UK IE IT NL CH

AR BA HR CZ FR JP PL SK SI ES PT KR SM SE UA

MX

Year 2004

Yes No No Answer

MX

IT NL AT FI UK SK SI CH AU DK FR IE

DE

PL AR HR JP IR KR

PT SM ES UA BA CZ SE BE MY

Year 2005

Yes No No Answer

MY

IT NL FI UK SK CH DK BE CZ DE IR

PL AR HR JP KR SM ES UA AT PT SI SE


Question 37: Is there an organised capacity trading system open to all?

Year 2003

Yes No

DK UK IE NL

AR AU AT BE BA HR CZ FI FR IT JP MX PL SK SI ES CH PT KR SM SE UA DE

Year 2004

Yes No

IT NL UK DK FR IE DE

PL AR AT HR FI JP IR KR PT SM SK SI ES CH UA AU BA CZ MX SE BE

MY

Year 2005

Yes No No Answer

IT NL UK DK CZ AR DE SI

PL AT HR FI JP IR KR SM SK ES CH UA BE PT SE

MY


TARIFF


Question 39: How does the major gas transporter charge for transportation

Year 2003

Capacity Commodity Both

AR HR CZ FR DE NL SK ES CH PT KR SE

BA SM UA

AU AT BE DK FI UK IE ITJP MX PL SI

Year 2004

Capacity Commodity Both

NL AR HR FI SK SI ES CH CZ FR SE DE BE MY

IR KR SM UA BA

PL IT AT JP UK PT AU DK MX IE

Year 2005

Capacity Commodity Both No Answer

SM UA

MY

NL AR HR FI SK SI ES CH BE CZ DE IR SE

PL IT AT JP UK PT DK KR


Question 40: Does the major gas transporter provide published standard transport rates for all suppliers?

Year 2003

Yes No No Answer

AR AU AT BE HR DK FI FR DE UK IE IT JP NL SK SI ES KR SE

UA

CZ PL CH SM

BA MX PT

Year 2004

Yes No No Answer

PL IT NL AR AT HR FI JP UK IR SK ES CH UA AU BE DK FR IE SE DE CZ

KR PT SI MY

SM BA MX

Year 2005

Yes No No Answer

PL IT NL AR AT HR FI JP UK SK ES CH UA DK BE CZ DE KR SI SE

IR PT

SM MY


ADDITIONAL QUESTIONS FROM 2001


Question 41: Which of the following transportation services does the major transporter provide?

Year 2003

Firm Transportation Non - Firm TransportationCommercial Backhaul Physical BackhaulNo Answer N/A

AR AU AT BE BA HR

CZ DK FI FR DE UK IE IT

M X NL SK SI ES CH PT SM SE UA

AU AT BE CZ FI FR UK IT NL SI CH UA PT DK

AU AT BE CZ DK FI FR IT NL SI UA

AU AT CZ DK NL UA

KR PL JP

Year 2004

Firm Transportation Non - Firm Transportation

Commercial Backhaul Physical Backhaul

PL IT NL AR AT HR FI JP UK IR KR PT SM SK SI ES CH UA AU BE BA CZ DK FR M X IE SE DE M Y

IT NL AT UK SM SK SI UA AU BE DK FR DE

IT NL AT FI SK UA AU BE DK FR

NL AT UA AU DK BE

Year 2005

Firm Transportation Non - Firm TransportationCommercial Backhaul Physical Backhaul

PL IT NL AR AT HR FI JP UK IR KR PT SM SK SI ES CH UA DK BE CZ M Y DE SE

PL IT NL UK SM SK SI UA DK BE CZ AR DE

IT NL FI SK UA DK BE AR SE

NL AT UA DK BE AR


Question 42: In which of the following ways does the major transporter sell third party access for a new pipeline?

Year 2003

Before construcion of a new pipelineDuring pipeline constructionWhen pipeline is operationalNo AnswerN/A

AR AU AT CZ DK UK IT MX NL ES

AU AT BE CZ DK UK IT NL ES

AU AT BE HR CZ DK FI FR DE UK IE IT NL ES CH KR

PL BA JP SK SI PT YU SE UA SM IR

Year 2004

Before construcion of a new pipelineDuring pipeline constructionWhen pipeline is operationalN/A

AR AU AT CZ DK UK IT MX NL ES

AU AT CZ DK UK IT NL ES

JP PL DE AU AT BE HR CZ DK FI FR UK IE IT NL ES CH KR MY

PT IR BA SK SI PT YU SE UA SM

Year 2005

Before construcion of a new pipelineDuring pipeline constructionWhen pipeline is operationalN/A

IIR SK SE UA SM MY PT

PL AR AU AT CZ DK UK IT MX NL ES CZ SI

PL AU AT CZ DK UK IT NL CZ SI

PL JP AU AT BE HR CZ DK FI FRUK IE IT NL CH KR CZ DE SI SE


APPENDIX 2 KEY INDICATOR QUESTIONS FOR TPA INDEX


Question Weight Question Scoring Scheme

Reason for Weighting

Market Share & Ownership of Assets 8. Does the major gas transporter also supply gas to gas consumers

4

Yes: 0 No: 10

A country will have a more competitive gas market if transporters and suppliers are separate companies. This is one small measure of magnitude of competitiveness of a country

10. Is there an organised gas trading system open to all suppliers 4

No: 0 Yes: 10

This allows fairness in the industry if so. A small measure of competitiveness

Competition in Transport 11. Does the major gas transporter allow third party access

8

No: 0 Yes: 10

A significant question when considering Third Party Access, although it does not show the extent of use if available

12. What percentage of volume of the country's gas consumption is transported on behalf of third parties

10

0%: 0 51-60%: 6 1-10%: 1 61-70%: 7 11-20%: 2 71-80%: 8 21-30%: 3 81-90%: 9 31-40%: 4 91-100%: 1041-50%: 5

The most illustrative question asked as it shows not only whether Third Party Access is allowed but how far companies are making use of this opportunity

14. How many organisations input gas into the network 6

1-2: 1 11-12: 6 3-4: 2 13-14: 7 5-6: 3 15-16: 8 7-8: 4 17-18: 9 9-10: 5 20+: 10

Another significant measure of competitiveness in the industry

Competition in Supply 17. What is the threshold above which the gas consumer can change their supplier

6

N/a: 0 5-7: 6 24+: 1 3-4: 7 19-23: 2 2: 8 15-18: 3 1: 9 11-14: 4 0: 10 8-10: 5

Having no or a low threshold indicates competition between suppliers


Question Weight Question Scoring Scheme

Reason for Weighting

Storage 22. Is there equality in access to storage facilities for all suppliers

4

No: 0 Yes: 10

In many cases storage is essential for securing supply to consumers

Balancing 23. How often are the suppliers required to balance the difference between inputs and outputs

5

Hourly: 10 Weekly: 4 Every 6 hours: 8 Monthly: 2 Daily: 6 N/A: 0

Regular balancing indicates a responsiveness of suppliers to consumers.

Licensing Regime 29. Who regulates gas supply and transportation 6

Non Government: 10 Government: 5 Nobody: 0

The move to independent regulators from government regulators reduces the likelihood of preferential situations for monopoly or larger companies.

Network Code 32. Is there a published network code available to all suppliers

7

No: 0 Yes: 10

A significant question when considering equality of access for all companies

33. Is there a private network code between transporter and individual Suppliers

4

If Qu42=Yes and Qu43=No: Qu43 score: 10 If Qu42=No and Qu43=Yes: Qu43 score: 5 If Qu42= No and Qu43=No: Qu43 score: 0 If Qu42=Yes and Qu43=Yes: Qu43 score: -2

Having a private network code is positive if published network codes do not exist. It is less helpful where published network codes are available

Capacity 36. Can suppliers trade capacity between themselves

6

No: 0 Yes: 10 N/a: 0

This provides security to suppliers in the event of shortfall of economic benefits in the event of excess

Tariff 40. Does the major gas transporter provide published standard transport rates for all suppliers

5

No: 0 Yes: 10

Indicates openness of the market


APPENDIX 3 SUMMARY OF TPA INDEX


Label Country 2003 2004 2005 AR Argentina 67 61 66 AT Austria 89 93 90 BE Belgium 52 69 77 BA Bosnia and Herzegovina 31 22 IR Iran 37 37 HR Croatia 50 50 59 CZ Czech Republic 41 37 61 DK Denmark 92 93 93 FI Finland 59 56 56 FR France 55 73 DE Germany 78 60 66 UK United Kingdom 97 97 97 IE Republic of Ireland 87 92 IT Italy 97 97 97 JP Japan 37 55 55 MX Mexico 19 23 MY Malaysia 14 11 NL The Netherlands 81 77 83 PL Poland 23 33 51 SK Slovak republic 44 67 85 SI Slovenia 48 46 62 ES Espana 76 65 71 SE Sweden 43 50 60 CH Switzerland 41 54 54 UA Ukraine 47 47 47 PT Portugal 14 12 12 KR South Korea 43 30 33 AU Australia 89 89 SM (ex YU) Serbia Montenegro 21 26 26


APPENDIX 4 SURVEY QUESTIONNAIRE


International Gas Union Union internationale de l'industrie du gaz WOC3 - Transmission

The Transporter operates the Transmission Network and also transports gas for the suppliers.

IGU WORKING COMMITTEE FOR TRANSMISSION

The Supplier (including shippers) owns the gas and sells it to the gas consumers.

Definitions for this Questionnaire

The Transmission Network is the high pressure system that is used for transporting gas throughout the country operating above 4, 7 or 16 bar depending on national standards.

The Distribution Network is the low/medium pressure system that carries gas into towns and cities.

Third Party Access is when somebody who does not own or operate the pipeline can have access to it for the transportation of gas.

The Distribution Company operates the local Distribution Networks to the final gas consumers.

A Gas Consumer is a person or organisation that burns or uses gas.

International Gas Transit is the transportation of gas through the country from one border to the next.

A Published document is one that has been made public and is transparent to others.

Commercial Backhaul is a notional transaction that results in the transportation of gas in the opposite direction to the physical flow of gas in the pipeline. A backhaul transaction can be realised by non-delivery or a reduction in the physical flow of gas to a delivery point.

Physical Backhaul is a transaction that requires the transporter to reverse the direction of physical flow in the pipeline.

During the 2001 - 2003 period, SG 4.1 has analysed the evolution of the process in different countries represented in Committee 3 by means of questionnarires to assess the international development of Third Party Access and Network Codes. The interesting results justify continuing analysing the process for another period of three years to have a greater perspective of its evolution.

Thank you for taking time to complete the questionnaire for your country. Please could you return the completed questionnaire by 31/12/2005 to [email protected] and [email protected]

If you have any difficulties in the completion of this questionnaire please contact Stefano Affaba at [email protected], tel +39 02 52038141 or Roberta Pirotta at [email protected], tel +39 02 52048762.

A Network Code is a set of transparent and non discriminatory rules for access to the transportation system, to be applied to all gas quantities.

Francesco Caria (Leader IGU Study Group 3.1)Thank you

In return for the completion of the survey you will be provided with a report analysing the worldwide results.

S.G.3.1.

"REVIEW OF INTERNATIONAL THIRD PARTY ACCESS AND NETWORK CODES"

2005


If it is impossible to answer any questions, please give the reason at the end of the questionnaire.

Name of Person Completing Questionnaire

Name of Company

Position in Company

e-mail Address

Phone No.

Fax No.

General

1)

2)

3)%

Major Transporter Other Transporters Other Please Specify other

4) % % %

5) Km bar(g) bar(g)

mm mm

Min. Pressure

Min. Diameter

Name of major gas transporter (i.e. largest in terms of energy transportation)

The questionnaire has been designed to be filled in electronically and returned to [email protected] and [email protected]. If you cannot return the questionnaire electronically please contact Stefano Affaba on +39 02 52038141 or Roberta Pirotta on +39 02 52048762.

Questionnaire Procedure

Who owns the country's transmission network (percentage by length)

What percentage of the major gas transporter is state owned

LengthSize of the country's transmission network

Max. Pressure

Name of country

Max. Diameter

Please answer all questions considering the current position and what you predict it will be in 12 months time (please try to make a prediction). Please put an X in the appropriate box when giving an answer to a multiple choice question. For example if the answer to a particular question is Yes, you should put an X in the box labelled Yes.

In case of some data are confidential and not published, please try to give an estimates and specify this in the appropriate space provided at the end of the questionnaire.

Please take particular care when answering numerically to make sure that your answer is in the correct units specified in the question.

Before completing the questionnaire could you please fill in your details below

Please, note that you will find a short explanation for some questions. If any answers require further explanations please supply this in the space provided at the end of the questionnaire or if a question is not applicable please put an X in the N/A box.


6)

7)%

8)

9)

10)

12) N/A N/A% %

13)

14)

15) Number Number

of consumers of consumers

Market Share & Ownership of Assets

11) Does the major gas transporter allow third party access

Number of gas transporters (including major transporter)

Competition in Transport

Does the major gas transporter also supply gas to gas consumers

Do the majority of the distribution companies supply gas to gas consumers

Is there an organised gas trading system open to all suppliers

What percentage of the peak day energy gas transportation gas is transported by the major gas transporter

How many entry points are there into the country's transmission network (only for entry-exit systems)

How many shippers input gas into the transmission network

What percentage of volume of the country's gas consumption is transported on behalf of third parties

How many final consumers are directly supplied from the country's transmission network

Now Predicted in 12 months time



16) Number Number

of consumers of consumers

17)

N/A N/Amcm/yr. mcm/yr.

18)%/Tot %/Tot

LNG Salt Cavity Depleted Gas Field LNG Salt Cavity Depleted Gas Field

19)Underground Cavern Aquafer Underground Cavern Aquafer

None None

Major Transporter Suppliers Major Transporter Suppliers

% % % %Independent Storage Operator Independent Storage Operator

20) % %

Other Please Specify Other Other Please Specify Other

% %

21) Transporter Supplier Transporter Supplier

22)

Who owns the above gas storage facilities (percentage by volume)

How many gas consumers are there above this threshold (percentage by total)

What is the threshold above which the gas consumer can change their supplier (mcm/yr.)

Storage

Is there equality in access to the above storage facilities for all suppliers

Who has access to the above storage facilities

Predicted in 12 months timeNow

Are there any of the following gas storage facilities in your country (excluding storage used for balancing).


How many final consumers are supplied from the distribution networks

Competition in Supply


23)Other Please Specify Other Please Specify

24)




27)

28)

Licensing RegimeWho regulates gas supply and transportation

Are the gas quality requirements published (transparent to others)

Gas Quality

How often are the suppliers required to balance the difference between inputs and outputs

Who specifies the gas quality requirements

Predicted in 12 months time

Do transporters that can blend gas make a separate charge to suppliers for blending gas that doesn’t meet these requirements

Balancing Now

Now

Now



Who monitors the gas quality to make sure it reaches these requirements

Is there a competitive market in acquiring and disposing of gas for balancing


31)

32)

33)

35)

36)

37)

Other Please Specify Other Please Specify

34)

38)

30)

Network Code


Can suppliers trade capacity between themselves

How are capacity constraints resolved

Capacity

Is there an organised capacity trading system open to all

Do suppliers need a license to operate

Is there a private contract between transporter and individual suppliers

Is there a published network code available to all suppliers

If no network code applies are there regulations which govern access and balancing obligations

Do transporters need a license to operate

Are network codes approved by the government



39)

40)

41) Firm Non-Firm Commercial Firm Non-Firm Commercial

Transportation Transportation Backhaul Transportation Transportation Backhaul

Physical Backhaul Physical Backhaul

42) Before Construction During Pipeline When Pipeline Before Construction During Pipeline When Pipeline

of a new pipeline Construction is Operational of a new pipeline Construction is Operational

N/A N/A

43) Please Specify Please Specify

44)

45)

46)Please Specify Please Specify



Is the present situation in force on the basis of specific law/regulation or on the basis of free contractual arrangement between the parties?

How is this level of secutiry achieved in your gas system? (swing form production fields, storage, LNG, interruptible contracts)

Concerning the availability of gas, what are the design criteria concerning the minimum level of security that must be met?

Security of supplyIn the present situation of the gas market in your country, who is responsible for ensuring the availability (at all times) of sufficient quantities of gas to meet market demand?

How does the major gas transporter charge for transportation

Tariffs

In which of the following ways does the Major Transporter sell third party access for a new pipeline?


Which of the following transportation services does the Major Transporter provide?

Additional Questions for 2001

Does the major gas transporter provide published standard transport rates for all suppliers

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