Energinet.dk. The Danish Gas Market Model and the Gas Release Programme. Torben Brabo / Pia Hammerum Nielsen. 22 June 2006

Transcription

1 Energinet.dk The Danish Gas Market Model and the Gas Release Programme 22 June 2006 Torben Brabo / Pia Hammerum Nielsen 22 June 2006

2 Overview of Presentation Energinet.dk - Danish gas and power TSO The Danish approach Advantages in the Danish gas sector Network Code Market Model Transmission model (Entry-Exit) Products and Secondary markets Nomination and matching on GTF Standard shipper registration Preliminary shipper registration Questions? Contacts!

3 The Danish Gas Infrastructure Transmission network 860 km high-pressure pipeline system 46 M + M/R stations Distribution networks Approx. 17,000 km pipelines Storage billion m³ storage volume Upstream system 640 km pipeline system Exit zone: 4.0 bcm and 320,000 consumer One virtual storage point 0.8 bcm 7.1 bcm Dragør 0.9 bcm Exports to NL 2.1 bcm Ellund 2.7 bcm (0.4 back haul)

4 Energinet.dk and our role Complete unbundling of gas-tso by state ownership since 1 Jan Energinet.dk is the result of the merger between the Danish gas & power TSOs as of 1 January 2005 The Danish transmission systems natural gas power Relatively small country and gas market Few and efficient net-companies Our mission is: As the owner of the main energy infrastructure, we are responsible for the supply of gas and power and for the development of the gas and power markets

5 Energinet.dk in Dialogue Focus on co-operation via an open dialogue with: Customers at Shipper Forum meetings Distribution Companies in technical working groups Authorities at regular meetings and at Shipper Forums English is the language of choice in order to reduce barriers for foreign shippers and suppliers

6 Advantages in the Danish Gas Market One Exit Zone (possibility of pooling capacities) Free daily balance margin of +/- 15 (and 5%) of max capacity (only related to Exit Zone capacity) Most services are free of charge (GTF, CTF, BTF) Flexible collateral options in relation to credit approval Comply with the EU Regulation and the Madrid Guidelines for Good Practice (TSOGGP) English version of network code (Rules for Gas Transport) is the legally binding version. Later this year, both the Danish and English versions will be legally binding

7 EON 80% 70% 60% 50% 40% 30% 20% 10% 0% New Benchmark of TSO s from EFET 2005/06 id E nerginet.d k GdF Gasunie BEB Enagas Fluxys Gassco Snam RWE WIN OMW National Gr

8 Network Code (Rules for Gas Transport) 22 June 2006

9 Roles in the Danish Gas Market Transmission Distribution Shippers Suppliers "Commercial World" Storage Lager Tilstødende Production Tilstødende systemer Physical World" ndms DMS Adj. sys. Tilstødende systemer

10 Transmission Model : Entry-Exit Exit Zone Denmark Gas Transfer Facility (*) - a virtual trading point 1 virtual storage point (*) Nybro Dragør Connection to the NL from the North Sea Ellund *Gas Release Programme *New storage setup from 1 May

11 Products and Secondary Markets 22 June 2006

12 Products offered by Energinet.dk Daily capacity Weekly capacity Monthly capacity Annual capacity Emergency supply Balance Service Agreement Capacity Daily capacity Weekly capacity Monthly capacity* Annual capacity* Time * Only available from the beginning of a month

13 Capacity Reservations - The Order Procedure An order received before 9:00 am is confirmed before 5:00 pm on the same business day. An order received in the weekend or later than 9:00 am on a business day, will be dealt with before 5:00 pm on the following business day. Energinet.dk MUST receive the order 2 business days before the first gas day of the ordered capacity period commences Business days: D-2 D-1 D 9:00 Energinet.dk Ordre! receives the order! 2:00 pm Ordre the! shipper nominates to Energinet.dk Before 5:00 pm Order confirmation 6:00 am the gas transport begins

14 Capacity trading - CTF Transport capacity can be traded via the Capacity Transfer Facility alternative to buying capacity from Energinet.dk The price of the transferred capacity is not known by Energinet.dk Both parties notify Energinet.dk of the capacity transfer Even if shipper A has transferred his capacity to shipper B, shipper A still receives the invoice Trading of capacity in smaller parts is possible down to a period of one day Capacity Daily Capacity Weekly Capacity Capacity bought via CTF Monthly Capacity Capacity sold via CTF Annual Capacity Time

15 Gas Trading - GTF Energinet.dk operates a Gas Transfer Facility Gas can be traded between shippers The GTF is a part of the daily nomination Flexible nomination options (before and during the Gas Day) Successful shippers of Gas Release Program Exchange information Exchange shipper id s Shipper A Nominates to Energinet.dk Energinet.dk Shipper B Nominates to Energinet.dk Daily GTF trade since start (Dec 04) Completes match Accepts or reduces the nominations Rejects nominations

16 Nomination * GAS DAY (D-1): Time GAS DAY (D): Time Time line (06:00): Gas Day (D-1) begins (14:00): Nomination before the Gas Day (D) (16:00-18:00): 00): Matching with adjacent systems (Before 18:00): Shippers will receive a confirmation (Before 21:00): A renomination is sent (23:00): The renomination is in effect for the remaining 7 hours of the Gas Day (23:00-06:00) Shipper receives a confirmation (03:00): Last renomination (06:00): Gas Day (D) ends * Comply with EASEEgas CBP

17 Matching Principle If nominations to adjacent systems are inconsistent, they are reduced to the lowest nomination due to the lesser-of-rule Border Shipper A Shipper B Nomination Nomination Matching Lesser of Approved nomination Approved nomination Renomination 250 Matching Shipper B s intention

18 Conditions for Becoming a Shipper 22 June 2006

19 Conditions for Becoming a Shipper 1 - Submit electronic template with base data To be approved and registered in the Register of Players, the shipper must: 4 - Communication set-up 2 - Need for credit limit approval (and collateral if requested) 3 - Conclude Framework Agreement (contract) with Energinet.dk Register of Players Unique Registration Base Data Status Information 5 - Energinet.dk assigns shipper code/ id Contract, credit limit, base data and status information must be in place one month and thirteen days prior to the month in which the gas transport starts

20 Credit Approval Based on the shippers last annual report and their Dun & Bradstreet credit rating the credit limit is set: A rating: 5% of the shipper s equity AA-rating: 7.5% of the shipper s equity AAA-rating: 10% of the shipper s equity In case the shipper is unable to document adequate equity, credit approval with collateral is necessary Options for credit approval with collateral: Guarantee payable on demand App. 9 in Rules for Gas Transport Bank guarantee same wording as App. 9 in Rules for Gas Transport Profit & Loss Agreement same wording as App. 9 in Rules for Gas Transport Deposit of payment to Energinet.dk

21 A Preliminary Acceptance Procedure for Becoming a Shipper Before the Gas Release Auction Energinet.dk can offer potential bidders to the auction a preliminary acceptance for the Register of Players This preliminary acceptance agreement must be signed by Energinet.dk and the potential bidder prior to the Gas Release Auction A preliminary acceptance can be completed in 7 business days

22 Requirements for a Preliminary Acceptance The potential bidder must supply the following information: Filled in template for the Register of Players Acquired from Library on Latest published annual report for the company in question along with any later published financial statements Preferred credit limit towards Energinet.dk address (or addresses) to be used for the ordering procedure Preferred latest start date for the preliminary acceptance Submit the information to anmodning@energinet.dk

23 From Preliminary Acceptance to Shipper After the Gas Release Auction A successful bidder is already accepted for the Register of Players and can become a shipper with short notice by completing a Framework Agreement EAN registration number for the Danish Gas Market Acquired through Deadline - 13 business days prior the month when the gas transport commences A preliminary acceptance procedure and the requirements are parallel to the regular procedure and requirements for becoming a shipper

24 Tariffs Identical Tariffs for Annual Capacity for Entry, Transit or Exit Zone: DKK per kwh/hour/year Commodity Charge for transport to Exit Zone and Transit: DKK per kwh No Commodity Charge on Entry volumes Max capacity: 1,000,000 kwh/h Example A - From GTF with delivery at Ellund Border (transit): Annual Capacity Charge (Transit): DKK x 1,000,000 DKK 15,550,000 Commodity Charge: DKK x 1,000,000 DKK 1,930 Total Cost: DKK 15,551,930 Example B - At Ellund Border (Entry) to be traded on the GTF: Annual Capacity Charge (Entry): DKK x 1,000,000 DKK 15,550,000 Commodity Charge: None on entry volumes 0 Total Cost: DKK 15,550,000 Example C - At GTF to be resold on the GTF: Annual Capacity Charge: No capacity charge on GTF DKK 0 Commodity Charge: None on entry volumes DKK 0 Total Cost: DKK 0

25 Contacts in Energinet.dk Market - Customers: Torben Brabo , TBR@energinet.dk May-Britt Harring Christjansen , MBH@energinet.dk Pia Hammerum Nielsen , PHN@energinet.dk Dorte Gren Kristiansen , DGK@energinet.dk Lene Sonne, Market Director , LSO@energinet.dk