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Madrid, 19th November 2012

20th IG Meeting

South Gas Regional Initiative

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20th IG meeting SGRI- Agenda

I. Opening

I.1 Welcome

I.2 Approval of the agenda and minutes from the last meeting (for approval)

II. Capacity Allocation Mechanism harmonisation:

II.1 Coordinated CAM between Spain-Portugal. Update

II.2 Short –term OSP between Spain-France (for information by TSOs)

II.3 Coordinated CAM in the Region. Draft Roadmap on CAM harmonisation in the

SGRI (for information by NRAs and TSOs)

II.4 North West Capacity Allocation platform. Update (for information by TSOs)

III. CMP

Draft Roadmap on CMP harmonisation in the SGRI (for information by TSOs)

IV. Investment

IV.1 Status Record OS 2013-2015 (for information by TSOs)

IV.2 Update on PCI Identification (for information by NRAs and TSOs)

IV.3 Regional Investment Plan in the South Region (GRIP) (for information by TSOs

and NRAs)

V. AOB and next meetings

V.1 Meetings calendar for the first semester 2013 (for discussion)

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II. Capacity Allocation Mechanisms Harmonization

Area of work Responsible Starting Deadline

CAM harmonisation proposal (CAM pilot testing Sp‐Pt borders)

NRAs-TSOs Jan. 2011 Jun. 2012

CAM harmonisation proposal in the whole region NRAs-TSOs Jan.2012 Dec.2013

Set up a common TSO Allocation Platform TSOs Jan.2014 Dec.2014

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EVALUATION OF CAM PROCEDURE No capacity was allocated at the auction.

• Firm Yearly Products Auction

• Firm Monthly Products Auction

• Interruptible Products Auctions didn’t take place Bundled capacity at the border remains available in both directions There is a medium rate of utilization of capacity in the interconnection points

between SP and PT NRAs called for comments on the results of the coordinated auction

ONLY 1 SHIPPER has sent comments - confidential

II.1 Coordinated CAM between Spain-Portugal.

Update

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COMMENTS RECEIVED FROM 1 SHIPPER The coordinated process is welcome in order to identify regulatory differences

in both countries and to work in collaboration that it is important to create an Iberian gas market.

The auction results are considered as disappointing and a signal of lack of interest in the offered products.

The comments are focused on other aspects (mainly regulatory issues) they think the lack of interest can be explained by :

A) Spanish side:

• Transit contract: should be aligned with Directive 73/2009 and Regulation (EC) 715/2009

• Exit tariff: high price to be revised.

II.1 Coordinated CAM between Spain-Portugal.

Update

Note: the comments are shown as they were received, thus they may present inconsistencies and divergences

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COMMENTS RECEIVED FROM 1 SHIPPER

B) Portuguese side:

• Rule on annual maximum flow (to apply fix term of the tariff) lead to a disproportioned cost for small shippers.

• Flexibility on balancing rules, recently modified, recognized as a positive rule.

• They ask for harmonization in interconnection points management: same rules on contracting, programming and nomination, procedure, schedule…

• LNG terminal access in a non-discriminatory way.

II.1 Coordinated CAM between Spain-Portugal.

Update

Note: the comments are shown as they were received, thus they may present inconsistencies and divergences

To work on the definition of the next yearly auction procedure around mid 2013

PROPOSAL AND NEXT STEPS

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II.2 Short term OSP between Spain-France

(Information by TSOs)

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II.3 Coordinated CAM in the Region. Draft

Roadmap on CAM harmonisation in the SGRI

(Information by NRAs)

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II.3 Coordinated CAM in the Region. Draft

Roadmap on CAM harmonisation in the SGRI

Coordinated CAM in the Region FRANCE-PORTUGAL-SPAIN in 2014

CALENDAR

PRODUCTSREGULATORY

CONTEXT IT SYSTEMs

Early implementation of the Draft NC CAM

Points to be discussed/decided

GOAL

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II.3 Coordinated CAM in the Region. Draft

Roadmap on CAM harmonisation in the SGRI

1) CALENDAR and PRODUCTS

Standard products following CAM NC to be offered in 2014

All of them? Which products, when and in which interconnections?

Auction calendar to be established in line with CAM NC

Bundled capacity

Auction algorithm: ascending clock, uniform price...

Other aspects...

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II.3 Coordinated CAM in the Region. Draft

Roadmap on CAM harmonisation in the SGRI

PRODUCTFREQUENC

Y OF AUCTIONS

NUMBER OF PRODUCTS

PER AUCTIONSTART OF AUCTION

YearStarting on the 1st Oct

annual Y1 to Y15 1st Monday of March

Quarter1st Oct-1st Jan-1st Apr-1st

Jul

annual Q1 to Q4 1st Monday of June

Month1st day of each month

monthly M1 3rd Monday of each month

DaySingle gas day

daily D1 16:30 CET

Within-day hourly 19:00 CET d-1

Auction calendar according to Draft CAM NC

Useful for current Spanish-Portuguese auctions?

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II.3 Coordinated CAM in the Region. Draft

Roadmap on CAM harmonisation in the SGRI

… 2013 2014 2015 … 2016 … 2029 …

Au Se Oc No De Ja Fe Ma Ap Ma Ju Ju Au Se Oc No De Ja Fe Ma Ap Ma Ju

?

Draft Roadmap on CAM harmonisation

?

Annual yearly capacity auctions

Annual quarterly capacity auctions

Rolling monthly capacity auctions

Rolling day ahead capacity auctions

Within-day capacity auctions

Auction SP-PT

Prorata allocation

SP-FR

?

?

?

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II.3 Coordinated CAM in the Region. Draft

Roadmap on CAM harmonisation in the SGRI

2) REGULATORY CONTEXT

NRAs to adapt national regulation: coordinated work in CRE, ERSE and CNE Information Memorandum to be developed by TSOs identifying regulatory

needs Taking into account the interaction with other European legislation in process:

• NC on tariffs

• FG, NC on Interoperability and Data Exchange New models of contracts to book capacity at borders? Discussion related to tariffs: reserve price Previous harmonisation is needed (for example):

• SP-PT: gas day

• SP-PT: gas year

• Temp. to measure gas

Shipper licence (recognition in several countries?)

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II.3 Coordinated CAM in the Region. Draft

Roadmap on CAM harmonisation in the SGRI

3) IT SYSTEM

Platform availability + TSO IT in place

Best available technology

Data exchange assured

Functionalities

Shipper registration

Joint Northern CAM platform

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II.3 Coordinated CAM in the Region. Draft

Roadmap on CAM harmonisation in the SGRI

2012 2013 2014 (…)

Nov Dec Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun (…)

19th

SG21th

IG

20th

SG

22th

IG

Draft Roadmap on CAM harmonisation

CAM Roadmap design

Changes on national rules allowing auctions

Decisión on IT, IT specifiations, functionalities

Testing

Stakeholders involvement

Users information

and formation

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II.4 North West Capacity Allocation Platform.

Update

(Information by TSOs)

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III. CMP

Draft roadmap on CMP harmonisation in SGRI

Area of work Responsible Starting Deadline

CMP harmonization proposal between SP-FR NRAs-TSOs Jan. 2011 Dec. 2012

CMP harmonization proposal between SP-PT NRAs-TSOs Jan. 2012 Jan. 2013

(Information by TSOs)

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IV. Investment

Area of work Responsible

Starting

Deadline

Regular update and publication in CEER website of project status of OS 2013 and 2015

TSOs - NRAs Dec. (yearly)

Jun. (yearly)

Creation of a working group in the region in order to test the process of PCI identification

NRAs-TSOs Apr. 2012 Dec. 2012

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IV. 1 Status Record OS 2013-2015

(Information by TSOs)

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IV.2 Update on PCI Identification

(Information by NRAs and TSOs)

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Working group created by the CE with the aim of identifying PCIs in the N-S

corridor in Western Europe according to draft Regulation for trans-European

energy infrastructure.

Last meeting: 29th September.

EC has asked NRAs their opinion on the PCIs. To be deliver at the end of the

month in a individual or regional coordinated way

EC informs that new criteria has been adopted: Sustainability is evaluated in a qualitative way.

A new indicator has been established in the “market” group to avoid isolated markets.

Next meeting: 26th November: assessment of the new indicator’s weight.

The first list of PCIs is planned to be available in January 2013.

IV. TYNDP and PCIs IV.2 Update on PCIs identification

North-South gas interconnections in Western Europe

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IV.3 Regional Investment Plan in the South Region

GRIP

(Information by NRAs and TSOs)

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IV.3 Regional Investment Plan in the South Region

GRIP

NRAs welcome the publication of the first GRIP for the South region.

The GRIPs is a learning-by-doing process there is room for improvement (I):

Update with data on demand and supply in the Region. Need to focus on the interdependence of the three markets and its integration into Europe. Analyse flow patterns in the region, in light of the global market trends.

Considering not only infrastructure linking the countries inside the Region, but also coordination and integration with national investments and with infrastructures aimed to connect the Region with neighbouring Regions.

The simulations should further describe the congestions and potential remedies. Need to focus on the exact contribution of each infrastructure development or reinforcement being part of the wider projects of increasing the interconnection capacities.

NRAs FEEDBACK ON GRIP (I)

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IV.3 Regional Investment Plan in the South Region

GRIP

Room for improvement (II):

The valuable descriptions of the benefits expected should be complemented with a consideration of the specific needs of each market and also of the estimated costs of the projects. Providing this additional information in the GRIP would allow for a more robust assessment of the different projects, in line with the cost-benefit approach put forward in the Infrastructure Package.

Stakeholders to be involved at an earlier stage of the process, so their views and concerns can be addressed in the final version of the GRIP.

The GRIP facilitates the identification of the needs of the region and the assessment of the different investment projects, thus contributing to an efficient development of infrastructures.

An open dialogue is launched within the Implementation Group to translated the recommendations into concrete measures for the next GRIP.

NRAs FEEDBACK ON GRIP (II)

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V. AOB and next meetings

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NEXT MEETING: 19th SG MEETINGProposal to move from 13th December to 30th January

V.1 Meetings calendar for the first semester 2013

OCTOBER NOVEMBER DECEMBERM Tu W Th F Sat Sun M Tu W Th F Sat Sun M Tu W Th F Sat Sun

1 2 3 4 5 6 7 1 2 3 4 1 2 19 November 20th IG8 9 10 11 12 13 14 5 6 7 8 9 10 11 3 4 5 6 7 8 9 13 December 19th SG

15 16 17 18 19 20 21 12 13 14 15 16 17 18 10 11 12 13 14 15 1622 23 24 25 26 27 28 19 20 21 22 23 24 25 17 18 19 20 21 22 2329 30 31 26 27 28 29 30 24 25 26 27 28 29 30

JANUARY FEBRUARY MARCHL M X J V S D L M X J V S D L M X J V S D

1 2 3 4 5 6 1 2 3 1 2 37 8 9 10 11 12 13 4 5 6 7 8 9 10 4 5 6 7 8 9 10 30 Jaunary 19th SG

14 15 16 17 18 19 20 11 12 13 14 15 16 17 11 12 13 14 15 16 17 27 February 21th IG

21 22 23 24 25 26 27 18 19 20 21 22 23 24 18 19 20 21 22 23 2428 29 30 31 25 26 27 28 25 26 27 28 29 30 31

ABRIL MAY JUNEL M X J V S D L M X J V S D L M X J V S D

1 2 3 4 5 6 7 1 2 3 4 5 1 28 9 10 11 12 13 14 6 7 8 9 10 11 12 3 4 5 6 7 8 9 24 April 20th SG

15 16 17 18 19 20 21 13 14 15 16 17 18 19 10 11 12 13 14 15 16 12 June 22th IG

22 23 24 25 26 27 28 20 21 22 23 24 25 26 17 18 19 20 21 22 2329 30 27 28 29 30 31 24 25 26 27 28 29 30

30 31

Spanish Bank Holiday French Bank Holiday Portuguese Bank HolidaySG MeetingIG Meeting

SOUTH GRI Agenda 2012 - 2013

2012

2013