1 Madrid, 6 th May 2011 16 th IG Meeting South Gas Regional Initiative.

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Madrid, 6th May 2011

16th IG Meeting

South Gas Regional Initiative

2

16th IG meeting SGRI- Agenda

I. Opening

I.1 Welcome

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

II. Latest EU developments and potential impact on the South region

II.1 Discussions on the Gas target model (for information by NRAs)

II.2 Framework guidelines and network codes (for information by NRAs)

III. Tasks from the Action Plan 2011-2012

III.1 CAM harmonisation proposal – Pilot testing of FG CAM in Portugal-Spain

interconnection (for information by TSOs)

III.2 CMP country analysis and harmonisation proposals – Pilot testing of CMP guidelines for

comitology (for information by TSOs)

III.3 Update of the regional infrastructure plan and status of projects from OS 2013 and 2015

(for information by TSOs)

III.4 Harmonisation of cross border tariffs structures between Portugal and Spain (for

information by NRAs)

IV. Organisation and role of Gas Regional Initiatives under ACER coordination (for

information by NRAs)

V. AOB and next meetings

3

I.2. Approval of the agenda and minutes

4

II. Latest EU developments and potential impact

on the South region

5

II.1 Latest EU developmentsDiscussions on the Gas Target Model

• Mandate from the Madrid Forum: develop a target model to help preparing the network codes• Help completing the single market by 2014• Address long term issues, beyond 2014

• Workshops • Vienna, 3 December 2010: opening of work• Bonn, 22 February 2011: options and constraints• Florence, FSR workshop, 11 March 2011: open debate• London, 11 April 2011: ideas

• Call for evidence from stakeholders• 2 consultancy studies

• FSR & Clingendael• LECG

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• Consultants focused on technical options to deepen market integration• Connecting markets

• Merger of market areas

• Market coupling

• Focus on the development of wholesale markets and short term efficiency

• According to stakeholders and EERs, it is necessary to• Enlarge the scope: the main issue is to combine short and long term to

ensure competition and security of supply

• Address all the topics discussed in the third package implementation, including CAM

• Clarify the market coupling concept and associated benefits

• CEER paper should propose a « vision » seeking for consensus

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• What is missing in a South Region perspective?• LNG and storage have not been addressed per se

• Key for competition and security of supply

• Ensure that storage facilities are filled in during summer

• Promote Europe’s attractiveness for LNG

• Investment • Interconnection development and open seasons

• Concept of investment climate (long term visibility)

• Next steps• Preparation of a background document by CEER

• Conference in Brussels on 28 June 2011

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II.2 Latest EU developmentsFramework guidelines and network codes

• Dominant topics• Capacity allocations

• Balancing

• Tariffs

• Interoperability

• Lessons from the past processes• Preparing framework guidelines requires more time than foreseen in the

third package

• Identifying all the consequences of the preferred orientations is challenging

• Risk: requesting more harmonization than necessary (and concretely possible)

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Capacity allocation mechanisms

• Framework guideline• ACER consultation closed on 2 May

• The final version should be sent to the Commission by 3 September 2011

• Fora and workshops showed a large stakeholders’ opposition to the "sunset clause"

• Network code development• ENTSOG work has evidenced new issues regarding the implementation

of the framework guideline

• Bundled products: debate on the number of contracts, invoices and nominations. ERGEG view: a single nomination, at least

• Interruptible products: debate on infinite interruptible. Auctions and alignment on the two sides of the border should not allow infinite interruptible

• Capacity products: ENTSOG promotes quarterly products. The consequences on tariffs and cost recovery must be investigated

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Balancing

• Framework guideline• ACER consultation ongoing until 12 June 2011

• Final version by October 2011

• Main provisions of the framework guideline• Market based balancing as a target

• Imbalance charges should reflect costs

• TSOs to procure gas in short term wholesale market

• Improve transparency

• Remaining questions• Within day constraints could be different between two adjacent systems

• Consistency with CAM and CMP regarding nomination schedules

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Tariffs

• ACER/CEER work advancement• Problem identification completed• Development of policy options

• Dominant issues under scrutiny• Cost allocation: no discrimination between domestic and cross border entry or exit

points nor between different categories of users need to find a methodology to properly allocate costs

• Cost recovery: combination of ex-ante nd ex-post mechanisms reserve prices for auctions, regulatory account, commodity charge are debated

• Short term versus long term capacity products: how to calculate reserve prices what reference to costs, relevant reserve price for day-ahead products, seasonal reserve prices for short term products?

• Key questions• Zero reserve price for day-ahead products?• Since auctions are the standard CAM, what happens in the absence of congestion?

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III. Tasks from the Action Plan 2011-2012

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III Tasks from the Action Plan 2011-2012Actions and timetable

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III.1. CAM harmonisation proposal – Pilot testing

of FG CAM in Portugal-Spain interconnection

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III.1 Tasks from the Action Plan 2011-2012CAM harmonisation - Pilot testing Pt-Sp

(Information by TSOs)

Area of work Responsible

Starting Deadline

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

TSOs Jan. 2011 Jan. 2012

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III.2. CMP country analysis and harmonisation

proposals – Pilot testing of CMP guidelines for

comitology

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III.2 Tasks from the Action Plan 2011-2012CMP harmonisation - Pilot testing Fr-Sp

(Information by TSOs)


Starting Deadline

CMP country analysis and harmonisation proposals (pilot testing on comitology CMP guidelines)

TSOs Oct. 2010 May 2011

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III.3. Update of the regional infrastructure plan

and status of projects from OS 2013 and 2015

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III.3 Tasks from the Action Plan 2011-2012Update on status of projects from OS 2013 and 2015

• Status of projects received from

• Naturgas (updated at 14 March 2011)

• TIGF (updated at 6 May 2011)

• Enagas (updated at 6 May 2011)

• Missing information

• GRTgaz

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Infrastructures follow-up16th IG S-GRI

6th May 2011

Index

• OS 2013

• OS 2015

Larrau investments

1.1 Name of the infrastructure: Navarra CSTechnical characteristics 38 MW

1.2 Name of the responsible TSO: Enagás S.A1.3 Additional capacity from existing infrastructure (GWh/day)

1.4 Investment approved by TSO (YES/NO) Yes

Spain-France: 0

France-Spain:Max:100

Min: 50(W) / 40 (S)

2.1 Initial Planning 2.2 Updated forecast

Starting operation date 2009 May-09

Administrative milestones A) Application Date B) Concession Date

3.1 Initial (promoter choice) Apr-2004 May-2005

3.2 Environmental Assessment Jun-2007

3.3 Final (Authorisation for starting construction) Dec-2006 Nov-2007

Current project advance A) In previous review (%) B) Total (%)

4.1 Engineering 100% 100%

4.2 Procurement 100% 100%

4.3 Construction 100% 100%

4.4 Commissioning 100% 100%

Causes of delays (if applied)

COMMISSIONED1

2

3

4

5

Larrau investmentsCOMMISSIONED

1.1 Name of the infrastructure: Pipeline Lemona – HaroTechnical characteristics 92 km / 26"



Spain-France: 0


Min: 30(W) / 20 (S)


Starting operation date 2009 Ago-09


3.1 Initial (promoter choice) Mar-2006 Apr-2006

3.2 Environmental Assessment Sep-2007

3.3 Final (Authorisation for starting construction) May-2006 Dec-2007







1

2

3

4

5


1.1 Name of the infrastructure: Reinforcement of Haro CSTechnical characteristics 23 MW



Spain-France: 0


Min: 30(W) / 20 (S)


Starting operation date 2009 Ago-09


3.1 Initial (promoter choice) Mar-2006 Jul-2006

3.2 Environmental Assessment Apr-2007

3.3 Final (Authorisation for starting construction) Sep-2006 Dec-2007







1

2

3

4

5


1.1 Name of the infrastructure: Pipeline Castelnou – Tivisa (loop)Technical characteristics 91 km / 26"


1.4 Investment approved by TSO (YES/NO) YesSpain-France: 30(W) / 50 (S)

France-Spain: 100


Starting operation date 2009 Sep/Oct-09


3.1 Initial (promoter choice) Mar-2006 Feb-2007

3.2 Environmental Assessment Mar-2007 Apr-2009

3.3 Final (Authorisation for starting construction) Mar-2007 Oct-2009







1

2

3

4

5


1.1 Name of the infrastructure: Villar de Arnedo CSTechnical characteristics 35 MW



France-Spain: 100


Starting operation date 2010 Feb-11


3.1 Initial (promoter choice) Apr-2006 Feb-2008

3.2 Environmental Assessment Nov-2008

3.3 Final (Authorisation for starting construction) Jul-2008 Mar-2010







1

2

3

4

5

Larrau investments

1.1 Name of the infrastructure: Pipeline Tivisa – Paterna (loop)Technical characteristics 235 km / 40"



France-Spain: 100


Starting operation date 2009 Apr-12


3.1 Initial (promoter choice) Mar-2006 May-2007

3.2 Environmental Assessment Jun-2007 Jul-2009

3.3 Final (Authorisation for starting construction) Jun-2007 Jan-2011






Causes of delays (if applied)The pipeline is divided in 3 tranches (i.e North, Central, South). The information of section 4 is related to the North tranche. The South tranche (25%) is also under construction.

1

2

3

4

5

Larrau investments

1.1 Name of the infrastructure: Pipeline Zarza de Tajo - YelaTechnical characteristics 100 km / 30"



France-Spain: 100

2.1Initial Planning 2.2 Updated forecast

Starting operation date 2010 Sep-12


3.1 Initial (promoter choice) Apr-2006 Dec-2007

3.2 Environmental Assessment

3.3 Final (Authorisation for starting construction) May-2008







1

2

3

4

5

Larrau investments

1.1 Name of the infrastructure: Pipeline Yela – Villar de ArnedoTechnical characteristics 251 km / 30"



France-Spain: 100

2.1Initial Planning 2.2 Updated forecast

Starting operation date 2010 Dec-12


3.1 Initial (promoter choice) Apr-2006 Jun-2008

3.2 Environmental Assessment Nov-2010

3.3 Final (Authorisation for starting construction) Jul-2008 Dec-2010







1

2

3

4

5

Larrau investments

• OS 2013

• OS 2015

Biriatou investments

1.1 Name of the infrastructure: CS at the borderTechnical characteristics To be defined

1.2 Name of the responsible TSO: Application made by Enagás S.A for authorisation1.3 Additional capacity from existing infrastructure (GWh/day)

1.4 Investment approved by TSO (YES/NO) YesSpain-France: 60

France-Spain: 0


Starting operation date 2015 2015


3.1 Initial (promoter choice) Jun-2008

3.2 Environmental Assessment

3.3 Final (Authorisation for starting construction)







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2

3

4

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THANK YOU

6th May 2011

Status of infrastructures at 14 March 2011

Naturgas infrastructuresSummary

Irun Biriatou project TSO Status Mandatory Planning Date of operationBergara Zaldibia NET In operation A - Urgent In operationZaldibia Villabona NET In operation A - Urgent In operationVillabona Irún NET In Operation A - Urgent In operationBilbao Treto NET Environmental impact assesment 04/03/2011 A - Urgent 31.12.2013

CS Irún NET/ENAGASA - FID Arcangues Coudures comunicada TIGFPending TSO selection 01.04.2015

Naturgas infrastructuresBergara - Zaldibia

Interconnection Euskadour

Km 30,367 D(") 26 P(MW)

Winter Summer5 40 10

100%

2.2 Updated forecast (according to real works status)

2.1Initial Planning

A) Application Date B) Concession Date

1.3 Capacity with this infrastructure (GWh/day)

A) In previous review (%) B) Current (%)

01/07/2002

26/12/2001

16/01/2006

21/11/2006

YES

31/07/2008 02/02/2009

26/12/2001

14/03/2011Review date: (dd/mm/yyyy):

Gasoducto Bergara Zaldibia

NATURGAS ENERGIA TRANSPORTE

1.4 Investment approved by TSO (YES/NO)

100%

100%

100%

100%

1.1 Name of the infrastructure:

1.2 Name of the responsible TSO:

Spain-France (Common Value) :France-Spain (Common Value) :

Starting operation date

Technical characteristics:

Administrative milestones

3.1 Initial (promoter choice)

3.2 Environmental Assessment3.3 Final (Authorisation for starting construction)

Project advance

4.1 Engineering

Comments Pipeline in operation

4.2 Procurement

4.3 Construction

4.4 Commissioning


100%

100%

100%

Naturgas infrastructuresZaldibia - Villabona


Km 25,389 D(") 26 P(MW)




4.2 Procurement

4.3 Construction

4.4 Commissioning



Project advance

4.1 Engineering

0%

100%





Starting operation date 31/03/2009 22/05/2009

26/12/200101/07/2002

100%


Gasoducto Zaldibia Villabona


YES

100%

100%


26/12/2001

20/11/200616/01/2006

20/11/2006

100%

90%


100%


2.1Initial Planning




Naturgas infrastructuresVillabona - Irún


Km 35,043 D(") 26 P(MW)


100%


2.1Initial Planning




01/07/2002

26/12/2001

08/05/200904/12/2008

08/05/2009

YES

31/03/2010 01/07/2010

26/12/2001


Gasoducto Villabona Irun



100%

50%

0%

100%




Starting operation date





Project advance

4.1 Engineering


4.2 Procurement

4.3 Construction

4.4 Commissioning


100%

100%

100%

Naturgas infrastructuresBilbao - Treto


Km 45.336 D(") 26 P(MW)8.627 12


Review date: (dd/mm/yyyy): 14/03/2011

1.1 Name of the infrastructure: Gasoducto Bilbao TretoTechnical characteristics:

1.2 Name of the responsible TSO: NATURGAS ENERGIA TRANSPORTE1.3 Capacity with this infrastructure (GWh/day)


YESSpain-France (Common Value) :France-Spain (Common Value) :

2.1Initial Planning 2.2 Updated forecast (according to real works status)

Starting operation date 31/03/2010 31/12/2013


3.1 Initial (promoter choice) 23/02/2007 06/11/2006

3.2 Environmental Assessment 23/02/2007 04/03/2011

3.3 Final (Authorisation for starting construction) 23/02/2007 31/12/2013

Project advance A) In previous review (%) B) Current (%)






Comments Pending Authorisation

Status of infrastructures at 6 May 2011

TIGF infrastructuresReversibilité LACAL

Review date :

1.1 Name of the infrastructure :1.2 Name of the TSO :1.3 Additional capacity (GWh/d)

1,4 Total capacity of the infrastructure (GWh/d)

1.4 Possible entry points :1.5 Possible exit points :1.6 Description of the infrastructure :

2.1 Studies start :2.2 Preliminary studies :2.3 Environmental & safety studies :2.4 Decision :2.5 Application for administrative authorization :2.6 Construction start :2.7 Starting operation date :

50 (S) - 30 (W) ENAGAS -> TIGF

06/05/2011

1Project description

LACALTIGF

50 (S) - 30 (W) ENAGAS -> TIGF100 TIGF -> ENAGAS

ENAGAS - GRT Gaz - StorageENAGAS - GRT Gaz - Storage

Modifications Alcay metering station and Mont compression station to reverse the flow of LACAL

pipeline.

2Planning

Date as planned Date as realized2Q 2008 2Q 2008

2 nd half 2008 2Q 2008

2Q - 2010 2Q - 2010

4Q -2010 4Q - 2010

3Comments

TIGF infrastructuresArtère de Guyenne (phase A)

Review date :





70 (S) - 60 (W) GRTgaz -> TIGF

06/05/2011


Artère de Guyenne (phase A)TIGF

130 (S) - 180 (W) TIGF -> GRTgaz180 (S) - 150 (W) GRTgaz -> TIGF

230 TIGF -> GRTgazGRTGaz - NATURGAS-ENAGAS - StorageGRTGaz - NATURGAS-ENAGAS - Storage

70 km of pipeline Captieux-Mouliets and 2 compression stations developing 24 MW at Sauveterre and Lussagnet

2Planning

Date as planned Date as realizedQ4 2004Q1 2005

1st half 2005january 2006

(DUP pipe) 2007-03-22september 2007

4Q 2008 (pipe)3Q 2009 (comp. stations)

4Q 2008 (pipe)3Q 2009 (comp. Station)

3Comments

TIGF infrastructuresGirland (Artère de Guyenne - B)

Review date :





195 (S) - 65 (W) GRTgaz -> TIGF

06/05/2011


GIRLAND (Artère de Guyenne - B)TIGF

185 (S) - 190 (W) TIGF -> GRTgaz375 (S) - 215 (W) GRTgaz -> TIGF415 (S) - 420 (W) TIGF -> GRTgaz

GRTGaz - NATURGAS-ENAGAS - StorageGRTGaz - NATURGAS-ENAGAS - Storage

57 km of pipeline DN900 (36") Lussagnet - Captieux1 additional compressor (8 MW) at Sauveterre

2Planning Pipe


3Q - 2009 2Q - 20093Q - 2010 3Q - 20101Q - 2010 1Q - 20102Q - 20114Q - 2012

3Q - 2013 (pipe)3Q - 2014 (compressors) (*)

3Comments

(*) This additional compression capacity is not required, for the provision of the capacities OS2013, until Q3/2014.

TIGF infrastructuresArtère du Béarn (Lussagnet - Lacq)

Review date :




2.1 Studies start :2.2 Preliminary studies :2.3 Environmental & safety studies :2.4 Decision of investment:2.5 Application for administrative authorization :2.6 Construction start :2.7 Starting operation date :

115(S) - 135(W) ENAGAS -> TIGF

06/05/2011


Artère du Béarn (Pipeline Lussagnet Lacq)TIGF

65 TIGF -> ENAGAS165 ENAGAS -> TIGF165 TIGF -> ENAGASz

GRTgaz - ENAGAS - StorageGRTgaz - ENAGAS - Storage

57 km of pipeline DN800 (32") Lussagnet - Lacq

2Planning


2 nd half 2008 1Q 20092Q - 2009 2Q - 20091Q - 2010 1Q - 20101Q - 2010 1Q - 20103Q - 20114Q - 2012

3Comments

TIGF infrastructuresEuskadour (Arcangues-Coudure)

Review date :




2.1 Studies start :2.2 Preliminary studies :2.3 Environmental & safety studies :2.4 Decision of investment:2.5 Application for administrative authorization :2.6 Construction start :2.7 Starting operation date :

56 (S) - 55(W) NATURGAS -> TIGF

06/05/2011


Euskadour (Pipeline Arcangues-Coudure)TIGF

50 (S) 60 (W) TIGF -> NATURGAS60 (*) NATURGAS -> TIGF60 (*) TIGF -> NATURGAS

GRTgaz - NATURGAS - StorageGRTgaz - Storage

95 km DN600 (24") of pipeline Arcangues Coudure

2Planning

Date as planned Date as realized4Q - 2008 4Q - 20084Q - 2010 4Q - 20104Q - 20111Q - 2011 1Q - 20112Q - 20121Q - 20144Q - 2015

3

Comments(*) Physical capacity at the border (Biriatou) could be doubled, depending on agreements with Naturgas/Enagas.

Status of infrastructures

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III.4. Harmonisation of cross border tariffs

structures between Portugal and Spain

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III.4 Tasks from the Action Plan 2011-2012Harmonisation of cross border tariffs Pt-Sp

(Information by NRAs - ERSE)


Starting

Deadline

Harmonisation of cross‐border tariffs structures between Portugal and Spain

NRAs 2010 Dec. 2011

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IV. Organisation and role of Gas Regional

Initiatives under ACER coordination

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IV. Organisation and role of GRIsRegional Initiatives under ACER coordination

• ACER - CEER Meeting about Regional Initiatives (5th April 2011):

• General Objective: achieve the European Internal Energy Market in 2014

• Main conclusions:

• Regional Initiatives must have concrete, ambitious and realistic roadmaps.

• Governance: a project- oriented approach as a means to achieve a greater

number of goals (with a responsible NRA).

• RI must focus on implementation instead of regulation proposals.

• RI must develop consistent Roadmaps in 2 months.

• ACER may tackle cross border disagreements.

• There is an urgent need to establish the Roadmap until 2014, with clear

goals, responsibilities and deadlines.

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• Next meeting to be held in Ljubljiana in 2

months. Workplans 2011-2014 must be ready at

that time

• Annual conference on Regional Initiatives in

Ljubljiana in September

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• Letter from EC to CEER (18/04/11):

• Request to NRAs – under the coordination of Lead Regulators – to contribute to

elaborate a “European Energy Work Plan 2011-2014” by the end of June 2011

• To be sent jointly to the EC and ACER

• Aiming at determining, for each region and pan-European project, the steps

allowing to reach the common goal in 2014

• In particular, regarding implementation of target models for CAM and CMP

• The EC and ACER to use regulatory tools available in case of blocking (Art. 8

of Regulation EC/715/2009)

• A specific event to be organised in Fall 2011 at Commissioner’s level

• New working meeting between EC and CEER in May


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• Letter from EC to CEER (20/04/11): additional thinking on RI and next steps

• Target resulting from European Council concerning energy: IEM should

be completed in 2014. TSOs and NRAs in cooperation with ACER must

step up their work

• Time to shift “from governance to action”

• Results of Communication on Reg. Initiatives:

• Main tasks: implementation of EU Acquis, regional issues and pilot testing

• Composition: no consensus on changes. Keep existing scheme, although

legislative tools could be used by EC if progress is insufficient

• Governance: in order to involve Member States, EC in favour of a flexible

approach: each Lead Reg. to determine the best way to ensure governance

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• We need to step up work on implementation through specific projects.

Urgent action is needed

• Update of the Action Plan to meet EC deadline (end of June). Next steps

• Starting from the current Action Plan 2011-2012, draft a Work Plan 2011-2014 for

the South GRI (by NRAs)

• Send draft to operators and stakeholders by the end of May

• Request for comments and suggestions until 15th June

• Final version to be submitted to EC and ACER by the end of June

• Contents for the new Work Plan 2011-2014

• Extend the current Action Plan

• Contents of the current plan are in line already with EC request (CAM, CMP)

• More focus might be needed on implementation of target model and steps for

reaching the Internal Energy Market in 2014

IV. Organisation and role of GRIsNext steps to be taken in the South GRI

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V. AOB and next meetings

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V. AOB

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(Conclusions)

Next meeting (to be defined)

V. Conclusions and next meetingsV. Conclusions and next meetings

1 Madrid, 6 th May 2011 16 th IG Meeting South Gas Regional Initiative.

Documents

Transcript of 1 Madrid, 6 th May 2011 16 th IG Meeting South Gas Regional Initiative.