OS 2015: Information Memorandum Proposal by TSOs 11 th SG meeting

OS 2015: Information Memorandum

Proposal by TSOs

11th SG meeting

Paris

16th March 2010

Updated version (31/03/2010) with revised capacities

2

Index

1. Introduction

2. Capacities

3. Infrastructures

4. Schedule

5. Requirements to participate

6. Contact details

3

Introduction1

4

Content of the Info Memo

MAIN POINTS INCLUDED IN THE INFO MEMO

Background.

Capacities (market structure/capacities offered) / infrastructures.

Allocation Process.

Schedule.

Tariff Visibility.

Economic Test.

Requirements to participate in the OS.

Joint Allocation Office.

Contact.

NRAs

5

Capacities2

6

MidCat and Biriatou capacities Biriatou capacities to be included in the 2nd Phase.

Possible development scenarios for MidCat have been studied, maintaining in any case the same technical capacity from South to North (230 GWh/d).

All capacity will be jointly offered, and, if the OS is totally successful, all capacity will be developed. However, only MidCat or Biriatou might be developed if the OS is partially successful, according to the result of the Economic Test. This might have implications for coordinated requests, which will be described in the Information Memorandum, since MidCat and Biriatou imply different probabilities of development of the North-South link in France.

The possibility to decrease by 10% the amount of capacity reserved for short-term needs at the border has been discussed, in order to increase the probability of passing the Economic Test.

Capacity split (80/20 or 90/10) to be clarified by NRAs

7

Capacity reserved for short-term needs in Spain According to Royal Decree 949/2001:

“Las empresas transportistas destinarán a contratos de duración inferior a dos años al menos el 25 % de la suma de las capacidades de sus instalaciones de regasificación, almacenamiento y entrada al sistema de transporte y distribución. Cada comercializador no podrá acceder a más de un 50 % de las capacidades destinadas a este fin. Estos porcentajes podrán ser revisados por el Ministerio de Economía en función de la evolución del mercado.”

According to Ministerial Order ITC/2607/2008, from 11th September 2008, which establishes the rules to be applied in the allocation of capacities at interconnection points with France:

“La capacidad ofertada se dividirá, para su asignación, en capacidad a largo plazo y capacidad a corto

plazo. Con carácter general, en cada convocatoria se determinará el reparto entre capacidad ofertadalargo plazo y capacidad ofertada a corto plazo, con el objetivo de que se garantice que un mínimo del 20 por ciento de la capacidad total en el punto de interconexión quede destinada acontratos de capacidad a corto plazo, y teniendo en cuenta la viabilidad económica de las infraestructuras.”

Although offering 90% of the capacity under long-term contracts is not in contradiction with Royal Decree 949/2001, it could be in conflict with Ministerial Order ITC/2607/2008. However, such order already takes into account infrastructures viability, and, if the 90/10 split was agreed, it should not be a mayor concern because the Order can be easily modified.

8

Market structure Capacity will be offered under the same market structure included in the 1st

Phase, with three balancing zones in France and one in Spain:

Although it was agreed to include IP 4 (known as IP H during the non-biding round) in the 2nd Phase, some stakeholders in France claim that such capacity should be allocated on a second round once the allocation at the other IPs (1-2-3-5-6) is known.

Inclusion of IP 4 (IP H during the non-binding round) to be clarified by NRAs

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

9

Aggregated commercial capacities

Summer Winter

4.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00/ 19.08 0.00

4.00 0.00

This table assumes that 80% of capacity is offered on a long-term basis at the border

Capacities under study. Final figures to be provided in the Information Memorandum.

160.00/ 0.00

MultiannualCapacities

239.00

160.00/ 111.21

2015 CAPACITIES (GWh/d)(starting from 1st December 2015)

I nterconnection points and flow direction

MultiseasonalCapacities

I nterconnection Point

228.80

REFERENCE CASE: MidCat + Biriatou, full development case for I P5

The validation of developments at the border between Spain and France will be performed independently from the validation of the GRTgaz North-GRTgaz South link. Therefore, capacity at IP 3 and IP 4 might vary between the values indicated. See detailed tables for further clarification.

Note that this is the Reference Case for determining the maximum amount of capacity that can be requested by a shipper or group of companies

144.00/ 186.98

192.00

4

1

6

2

3

5

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

10

Aggregated commercial capacities

Summer Winter

4.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00/ 19.08 0.00

4.00 0.00



The validation of developments at the border between Spain and France will be performed independently from the validation of the GRTgaz North-GRTgaz South link. Therefore, capacity at IP 3 and IP 4 might vary between the values indicated. See detailed tables for further clarification.

192.00

MidCat + Biriatou, intermediate development case for I P5

160.00/ 111.21

160.00/ 0.00






100.00/ 122.98

228.80

239.00

4

1

6

2

3

5

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

11

Capacities associated to MidCat (full IP5)

Summer Winter

0.00

0.00 0.00

0.00

0.00

0.00/ 19.08 0.00

0.00 0.00



144.00

160.00/ 0.00 0.00

184/ 239

MidCat, full development case for I P5


0.00

0.00





184.00

Although Midcat and the development of the GRTgaz North-GRTgaz South link share some common infrastructures (Artère du Rhône, CS Etrez) the validation of these two developments will be performed independently. So capacity at IP 3 and IP 4 might vary between the values indicated.

160.00/ 111.21

144.00/ 186.98

4

1

6

2

3

5

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

12

Capacities associated to MidCat (int. IP5)

Summer Winter

0.00

0.00 0.00

0.00

0.00

0.00/ 19.08 0.00

0.00 0.00



Although Midcat and the development of the GRTgaz North-GRTgaz South link share some common infrastructures (Artère du Rhône, CS Etrez) the validation of these two developments will be performed independently. So capacity at IP 3 and IP 4 might vary between the values indicated.

0.00

0.00

0.00


MidCat, intermediate development case for I P5





184.00

184/ 239

160.00/ 111.21

100.00/ 122.98

160.00/ 0.00

144.00

4

1

6

2

3

5

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

13

Capacities associated to Biriatou

Summer Winter

4.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

4.00 0.00



Biriatou and the development of the GRTgaz North-GRTgaz South link project do not share some common infrastructures, and thus the validation of the former does not contribute to the validation of the latter. Therefore, capacity in IP3 and IP4 might vary between the values indicated.

100.00/ 122.98

48.00

160.00/ 0

44.80



Biriatou




55.00

160.00/ 111.21

4

1

6

2

3

5

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

55

1

2

4 3 3

4

6

6

14

Infrastructures3

15

Infrastructures in FranceMIDCAT

MIDCAT + BIRIATOU

BIRIATOUGRTgaz North-

South

X XX X

CS Barbaira X XPipeline Artêre du Rhône X X XPipeline Morelmaison - Palleau XCS St Martin de Crau X XCS Etrez X X XPipeline Arcangues-Coudures X X

X X

Figueras-French Border X XCS Martorell X XCS Border X X

SPAIN

Infrastructure Development

FRANCE

Spanish Border-Barbaira

Pipeline Lupiac - Barren

CS Montpellier (required for full IP5)

16

Infrastructures in France

km D (") P (MW)Estimated Investment

(M€)

Pipeline Arcangues-Coudures 110 24 110

110


(M€)

120 32 240

28 32 40

CS Barbaira 10 40

Pipeline Artêre du Rhône 200 42-48 505

CS Etrez 20 49

CS St Martin de Crau 10 50

924

20 80

1,004


(M€)

Pipeline Artêre du Rhône 200 42-48 505

CS Etrez 20 49

Pipeline Morelmaison - Palleau 190 42-48 398

952

Spanish Border-Barbaira

Pipeline Lupiac - Barran

TOTAL

Infrastructure Development GRTgaz North - South

TOTAL

Infrastructure

CS Montpellier (required for full IP5)

TOTAL (full IP5)

Infrastructure Development MidCat

Infrastructure

Infrastructure Development Biriatou

Infrastructure

TOTAL

17

Infrastructures in Spain Information on infrastructure development in Spain was provided by

Spanish TSOs at the 13th IG meeting:

Infraestructure km D (") P (MW)

Pipeline Vergara-Irún (loop) 91 26 70

Vergara-Zaldivia 30 26 21

Zaldivia-Villabona 25 26 21

Villabona-Irún 35 26 28

Pipeline Lemona-Haro 92 26 56

Reinforcement CS Haro 23 29

New entry points in Cantabric Cornise (+ 400.000 Nm3/h)

61

Pipeline Bilbao-Treto 45+9 26+12 42

Pipeline Treto-Llanera 220 26 174

CS Border 21 35

467

Investment estimates based on Spanish standard unit costs approved by Order ITC/3520/2009

Estimated Investment (M€)

EN

AG

AS

+ N

AT

UR

GA

S

SPAIN's INVESTMENT (M€)

not included in MOUinfraestructure in operation

SP

AIN

BIRIATOU

standard costs based


real

real

Infraestructure km D (") P (MW)

Pipeline Martorell-Figueras 165 36 165 real

CS Martorell 36 54

Pipeline Figueras-French Border 30 36 32

250


SPAIN's INVESTMENT

Estimated Investment (M€)

SP

AIN

EN

AG

AS

MIDCAT


18

Infrastructures in Spain Additional infrastructures in Spain triggered by the OS:

MIDCAT+IRUN MIDCAT IRUN

N --> S 240 180 60

S --> N 290 230 60

Midcat (Spain)- Figueras-French border- CS Martorell

85 X X

Biriatou (Spain)- CS Border 35 X X

120 85 35


SPAIN's INVESTMENT (M€)

Capacity (GWh /d)

19

Schedule4

20

Proposed schedule

TSOs propose the following schedule to proceed with the Second Phase of the OS (2015 capacities).

This calendar is based on the assumption that capacities and infrastructures will be totally agreed by end-April.

The proposed schedule has not been agreed with regulators and is presented for discussion.

21

Proposed scheduleMARCH – APRIL 2010:

16th March: S-GRI SG meeting

31st March: Deadline for comments from stakeholders

7th/12th April: S-GRI IG meeting (final decisions)

MAY 2010:

3rd May: Publication of final documents

Information Memorandum.

Allocation Rules for 2015 capacities.

Application forms and related letter of commitment for 2015 capacities.

Non-Disclosure Agreements between each TSO and interested subscribers (to be signed only by new participants).

Capacity booking contract between each TSO in France and subscribers interested in capacities between GRTgaz South-TIGF and/or TIGF-Spain.

Transmission contract between each TSO in Spain and interested subscribers.

Before 30th May: Signing of Confidentiality Agreements between each TSO and interested subscribers not participating in the First Phase.

22

Proposed scheduleMAY – JUNE – JULY 2010:

SG required?.

10th-12th May: Information meetings for stakeholders organised by TSOs (Spain and France).

17th May/31st May: Starting date for submitting requests in the Second Phase of the OS.

31st May/14th June: Deadline for submitting requests in the Second Phase of the OS.

30th June/8th July: Publication of results of the Second Phase of the OS.

31st July: Deadline for the signing of contracts.

JANUARY 2011:

31st January 2011: Approval of GRTgaz and TIGF global investment programs by their respective Boards of Directors.

31st January 2011: Approval of GRTgaz and TIGF global investment programs by CRE.

23

Requirements to participate in the OS5

24

Requirements to participate in the OSNON-DISCLOSURE AGREEMENT

Shippers willing to participate in the 2nd Phase of the Open Season must sign and submit the Non-Disclosure Agreement. This is identical to the one published for the 1st Phase.

Shippers having already signed and submitted the NDA during the 1st Phase do not need to take any further action, since the NDA is valid.

LICENSES

In France, shippers are not require to obtain any license in advance in order to participate in the 2nd Phase of Open Season.

In Spain, the Service Directive* has already been transposed by Law 25/2009. Article 80 of the Hydrocarbons Law has been modified, and thus, it is not necessary to go through the former authorisation process. However, a communication of the starting of activity, and a declaration that all duties are fulfilled, is still required.

* Directive 2006/123/EC of 12 December 2006 on services in the internal market

CNE / MITyC to clarify whether such communication will be required in advance to participate (this will be clarified in the Info Memo).

25

Joint Allocation Office and Contact details6

26

Joint Allocation Office Applications forms together with the corresponding letter(s) of commitment

should be sent to:

Joint Allocation OfficeEnagás, DATR

Paseo de los Olmos, 19, 3A28005Madrid

Espagne/España

e-mail: [email protected]

Joint Allocation OfficeEnagás, DATR

Paseo de los Olmos, 19, 3A28005Madrid

Espagne/España


27

Contact Any requests for additional information should be sent to:

Enagás, S.A.Dirección de Gestión ATRAtt. Fernando Impuesto NoguerasPaseo de los Olmos, 1928005 MADRIDSPAIN


Enagás, S.A.Dirección de Gestión ATRAtt. Fernando Impuesto NoguerasPaseo de los Olmos, 1928005 MADRIDSPAIN


Naturgás Energía Grupo, S.A. Departamento de Regulación Pío Baroja Nº 3 48001 Bilbao, España


Naturgás Energía Grupo, S.A. Departamento de Regulación Pío Baroja Nº 3 48001 Bilbao, España


GRTgazDirection CommercialeAtt. Carole Baron2 rue Curnonsky75017 PARISFrance


GRTgazDirection CommercialeAtt. Carole Baron2 rue Curnonsky75017 PARISFrance


TIGFDirection Developpement CommerceAtt. M. MIGLIO17 chemin de la Plaine64140 BILLEREFrance


TIGFDirection Developpement CommerceAtt. M. MIGLIO17 chemin de la Plaine64140 BILLEREFrance


Thank you for your attention!

Documents

OS 2015: Information Memorandum Proposal by TSOs 11 th SG meeting