warsaw, 16 october 2012
DESCRIPTION
New Gas Market Model in TNC. Warsaw, 16 October 2012. the system , that connects. Premises of the new TNC. Easier entrance on the gas market for new entities. Gas trading no longer associated with a physical location on the network. - PowerPoint PPT PresentationTRANSCRIPT
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Warsaw, 16 October 2012
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New Gas Market Model in TNC
1. Easier entrance on the gas market for new entities.
2. Gas trading no longer associated with a physical location on the network.
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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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Premises of the new TNC
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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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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.
TSO Cooperation with POLPX
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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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.
The Gas Year
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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.
Wobbe Index
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
15/10 15/08
Storage Service Rules Update
02/11
01/12/2012 Implementation of TNC, DNC/SSRand Tariffs of TSO/DSO/SSO
24/07/2012Approval of TNC and publishing in ERO Bulletin 15/09
1) Start of works on the DNC 2) publishing the DNC for consultation
3) submission of remarks & comments to the DNC 4) Works on final draft of DNC after end of consultation process
01/10
Approval
DNC
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
Contracted Capacity Allocation PP for DSO and SSO for the terms: 01.12.2012-31.12.2012
Application for Capacity Allocation CA
Works on TSO Tariff
Application Verification Submission of application in TSO capacity allocation procedure
Capacity allocation for term of 01.01.2013-30.09.2013
Capacity allocation for WPWYGG, WPWYOTC, WPWYOSP,
WPWYOSD, WPWYOSM
24/09
1. Calculation of Tariff rates for TSO,2. Works on the Tariff and calculation of Tariff rates of DSO/SSO
30/08 14/11
ApprovalTariffs of TSO/DSO/SSO
04/09 30/09
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Trading Company
Customer
Domestic Extraction Import LNG
Gas Sources
TransmissionStorage
Distribution
Polish Gas Market Model
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Trading Company
Customer
Domestic Extraction Import LNG
Gas Sources
TransmissionStorage
Distribution
Polish Gas Market Model
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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.
Polish Gas Market Model
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Cooperation with SSO
SSO
TSO
Pumping capacity Off-take capacity
Storage capacity
PWY PWE
1. 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.
2. No certainty available that the capacity at PWY/PWE at the TSO and the capacity at the SSO will be the same.
3. 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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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.
Change in Principles for Cooperation with the DSO and SSO
DSO DSO
TSOVirtual Point
SSODSO1
DSO2
TSO
Entry Entry
Exit to DSO1
Exit to DSO2
ExitExit
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DSO DSO
TSOVirtual Point
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.
Change in Principles for Cooperation with the DSO and SSO
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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.
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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.
DSO DSO
TSO
FPWETSO FPWETSOVirtual Point
Virtual Point
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DSO DSO
TSO
FPWETSOFPWETSOWPWY
Virtual Point
The transport of gaseous fuel to the Virtual Point (Gas Exchange, OTC Market)
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DSO DSO
TSO
FPWETSOFPWETSOWPWE
FPWYFC
PWYSSO
Virtual Point
The transport of gaseous fuel from the Virtual Point to the final customer of the the storage system facility.
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DSO DSO
TSO
FPWETSOFPWETSO
FPWYFC
PWYSSO
WPWE
WPWYDSO WPWYDSO
Virtual Point
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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FPWETSO
(Import, Mine)FPWYFC
(Final Customer)
Shipper1 Shipper2
Sold-100
Bought+100
Virtual Point
Shipper1: +100
Shipper2: -100
Balance: 0 Balance: 0
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Trading on the Gas Exchange
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Trading on the Gas Exchange
GAZ-SYSTEM S.A.:
+100
FPWETSO
(Import, Mine)FPWYFC
(Final Customer)
Shipper1 Shipper2
Sold-100
Bought+100
Virtual Point
Shipper1: 0 Shipper2: -100
Balance: -100 Balance: 0
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Trading on the Gas Exchange
GAZ-SYSTEM S.A.:
-100
FPWETSO
(Import, Mine)FPWYFC
(Final Customer)
Shipper1 Shipper2
Sold-100
Bought+100
Virtual Point
Shipper1: +100
Shipper2: 0
Balance: 0 Balance: +100
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Settlements
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DSOTSO
PW
PWE
Transmission fee Entry
Transmission fee Exit
Distribution fee
PWY/PWE PWY
TSO TSO DSOShipper(trading company)
Shipper(trading company/
final customer)
DSO
Transmission fee
PWYFC
TSO Shipper(trading company)
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Settlements
SSOTSO
WPW
PWE
Transmission fee Exit
Storage services fee
Storage Services Package
PWE/PWY
TSO SSO SSO Shipper(trading company/
final customer)
PWY/PWE
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Thank you for your attention
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