INDICATIVE TERMINALLING PROGRAMME OF THE ZEEBRUGGE LNG TERMINAL

Transcription

1 INDICATIVE TERMINALLING PROGRAMME OF THE ZEEBRUGGE LNG TERMINAL FOR THE PERIOD: (PROPOSED ON THE BASIS OF ARTICLE 9 OF THE ROYAL DECREE OF 4 APRIL 2003 ON THE CODE OF CONDUCT FOR ACCESS TO THE NATURAL GAS TRANSMISSION NETWORKS) (IT IS UNDERSTOOD THAT THE PROGRAMME IS PURELY INDICATIVE) Version 4.0

2 1 SERVICES OFFERED, Reception and unloading of LNG from an LNG tanker Storage of LNG Send-out The slot service The Automatic Reservation System (ARS) Bunkering Truck Loading Cooldown Measurement Allocation at the point of delivery CALCULATION OF THE TECHNICAL CAPACITIES Calculation of the regasification capacities Calculation of the volume capacities Total Volume, Effective Volume and Usable Volume: definitions Calculated volumes for the years : Calculation of the reception capacities Truck Loading Capacity SCHEDULING FOR THE UNLOADING OF LNG Before year (n) During year (n) CAPACITY ALLOCATION RULES Long-term capacities Short-term capacities PROPOSED TOLERANCE VALUES TYPE AND DURATION OF THE CURRENT TERMINALLING CONTRACTS Types of contract Duration of the contracts PROCEDURE FOR CAPACITY SUBSCRIPTION AT THE LNG TERMINAL Primary Market Secondary Market Operation of the secondary market Organisation of the secondary market Version 4.0 2/20

3 1 SERVICES OFFERED, The services offered in the period at the Zeebrugge LNG terminal comprise: 1.1 Reception and unloading of LNG from an LNG tanker The Zeebrugge LNG terminal offers the service of reception and unloading of LNG from an LNG tanker. This service comprises: - the reception of an LNG tanker at the Zeebrugge LNG terminal (at high tide) in accordance with the maritime rules applicable to the port of unloading, - the unloading of the LNG from an LNG tanker at the port of unloading. Only LNG tankers that have successfully passed the Ship Approval Procedure may be received at the Zeebrugge LNG terminal. Details of this procedure and the unloading rules will be given in the Network Code of the Zeebrugge LNG terminal. The number of slots that the Zeebrugge LNG terminal can accept in the period is 60 slots per year. 1.2 Storage of LNG The service for the storage of LNG prior to its regasification and its send-out to the network comprises: - Basic storage: Basic storage (expressed in days) is the length of storage time that a user of the LNG terminal usually needs to regasify the quantity of LNG unloaded and send it out to the transmission network. For an unloaded quantity greater than or equal to 125,000 m 3 of LNG, the basic storage period is five days. Insofar as possible, Fluxys LNG undertakes (reasonable endeavour) to extend the basic storage period to six days, as illustrated below. For an unloaded quantity of less than 125,000 m 3 of LNG, the basic storage period is reduced in proportion to the quantity unloaded, as illustrated below. Version 4.0 3/20

4 - Level of stock Unloaded quantity of LNG 125,000 m³ Unloaded quantity of LNG less than 125,000 m³ 6 Number of days in stock Flexibility storage: Flexibility storage (expressed in days and in m³ of LNG) gives the user of the LNG terminal additional quantities of storage in order, in particular, to cover the irregularities associated with the maritime supply route. If the total storage period that the user of the LNG terminal needs to send out the unloaded quantities of LNG to the transmission network is greater than the basic storage period, he must reserve flexibility storage in order to cover this additional length of time. The amount of flexibility storage reserved must be at least equal to the level of stock at the end of the basic storage period. This concept is explained in the graph below. Version 4.0 4/20

5 Level of stock BASIC STORAGE FLEXIBILITY STORAGE 6 Number of days in stock 1.3 Send-out The send-out capacity comprises: - the vaporisation of the LNG - the send-out to the transmission network The send-out capacity from the Zeebrugge LNG terminal to the transmission network amounts to a maximum of 950,000 m 3 (n)/h and comprises: - a firm capacity of 600,000 m 3 (n)/h. This capacity is always available for the user of the LNG terminal, - an interruptible capacity of 350,000 m 3 (n)/h. This capacity may be interrupted by the Terminal Operator for technical and operational reasons which are not necessarily solely linked to the operation of the Zeebrugge Terminal. The user of the LNG terminal who subscribes for firm capacity is automatically entitled to a certain amount of interruptible capacity: for 1 m 3 (n)/h of firm capacity subscribed for, he is entitled to 0.58 m 3 (n)/h of interruptible capacity. The user of the LNG terminal who has subscribed for the send-out capacity is also entitled: - to nominate from the LNG terminal to the transmission network, - to nominate from the transmission network to the LNG terminal from 2006 onwards, - to make available and/or subscribe for day-ahead send-out capacity. This day-ahead capacity is the non-nominated send-out capacity which is made available by the user of the LNG terminal to the other users of the LNG terminal on a day-ahead basis. The initial Version 4.0 5/20

6 user of the LNG terminal may at all times take back the capacity made available on a day-ahead basis. The day-ahead capacity will be available from 17 December 2005 onwards. The terms and usage rules for these capacities are detailed in the Network Code. 1.4 The slot service The user of the LNG terminal may conclude a standard contract for a slot which gives him the right to: a) the reception of an LNG tanker at the Zeebrugge Terminal (during high tide) in accordance with the maritime rules applicable to the port of unloading and the unloading of LNG from this LNG tanker. To this end, the user of the LNG terminal has a window of five consecutive high tides for the unloading. The operating rules for the reception and unloading are described in the Network Code; b) the storage of the LNG (buffer storage). The user of the LNG terminal is entitled to basic storage of five days (*). For an unloaded quantity greater than or equal to 125,000 m 3 of LNG, the length of the basic storage is five days. Fluxys LNG undertakes insofar as possible (reasonable endeavour) to extend the basic storage period to six days. For an unloaded quantity less than 125,000 m 3 of LNG, the length of basic storage is reduced in proportion to the quantity unloaded. Level of stock Unloaded quantity of LNG 125,000 m³ Unloaded quantity of LNG less than 125,000 m³ 6 Number of days in stock If the total storage period the user of the LNG terminal needs to send out the unloaded quantities of LNG to the transmission network is greater than the basic storage period, the user of the LNG terminal must reserve flexibility storage in order to cover this additional length of time. The amount of flexibility storage reserved must be at least equal to the Version 4.0 6/20

7 level of stock at the end of the basic storage period. This concept is explained in the graph below. Level of stock BASIC STORAGE FLEXIBILITY STORAGE 6 Number of days in stock c) regasification and send-out of the LNG to the transmission network. The user of the LNG terminal is entitled to a send-out capacity in function of the quantity unloaded and in function of five days storage. The standard contract for a slot comprises the commercial terms and conditions and the operating rules concerning this standard slot service. The user of the LNG terminal must also subscribe to the Network Code, which gives him access to the Automatic Reservation System (see 1.5). 1.5 The Automatic Reservation System (ARS) Aside from its contract (the Capacity Subscription Agreement), the user of the LNG terminal must also sign the Network Code of the Zeebrugge Terminal in order to gain access to the terminal s services. This Network Code will contain all the operating rules. From 17 June 2005 onwards, the user of the LNG terminal may, at his discretion and in addition to those services that he has subscribed for, use an automatic reservation service through an electronic system. The user of the LNG terminal, in function of the rights he is granted, may then: - verify the standard services offered by the ARS, - gain access to the information needed to reserve and subscribe to services (e.g. the standard slot service), - automatically reserve and apply for services offered by this system, - check the status of the services he reserved by means of the ARS. Details of how the ARS is used will be included in the Network Code of the Zeebrugge Terminal. Version 4.0 7/20

8 1.6 Bunkering Fluxys LNG places its bunkering installations at the disposal of the users of the LNG terminal. The users of the LNG terminal agree amongst themselves as to the organisation of the bunkering. Fluxys LNG does not assume any responsibility for the quality of the fuel oil purchased by the users of the LNG terminal. The availability of these installations for the users is not considered to be a service. 1.7 Truck Loading The truck loading service comprises the unloading of LNG volumes from the storage to the trucks transporting this LNG. For the period , this service is included in the basic services. Fluxys LNG currently has an operating permit that only allows truck loading of the trucks for the peak shaving at Dudzele. The operational procedures for truck loading will be included in the Network Code. 1.8 Cooldown Fluxys LNG currently does not have an operating permit for the cooldown of the LNG tankers. Therefore, Fluxys LNG cannot offer any cooldown service. 1.9 Measurement The measuring services are included in the basic services. This measuring service comprises: - at the unloading point: measurement of the quantities unloaded, - at the storage: measurement of the stored quantities, - at the point of delivery: hourly and monthly measurement of the quantities sent out, - at the fuel gas station point: monthly measurement. The operational procedures for measurement will be included in the Network Code Allocation at the point of delivery The allocation service is included in the send-out services. This allocation service comprises: - the hourly and monthly allocation of the quantities sent out, - the monthly allocation of the quantities of fuel gas actually used, - the hourly and daily calculation of the quantities in stock per user of the LNG terminal, - the hourly communication of the quantities allocated. Version 4.0 8/20

9 The rules governing allocation of the quantities will be included in the Network Code. 2 CALCULATION OF THE TECHNICAL CAPACITIES 2.1 Calculation of the regasification capacities The firm capacities are: 5 vaporisers x 120,000 m 3 (n)/h = 600,000 m 3 (n)/h (1) The interruptible capacities are: CHP (Combined Heat Power Plant) x 200,000 m 3 (n)/h = 200,000 m 3 (n)/h (2) capacity of the TSO (Fluxys) x m 3 (n)/h = 150,000 m 3 (n)/h (3) Thus a total send-out capacity of = 950,000 m 3 (n)/h (1) The send-out capacity provided by the vaporisers is considered as firm because it takes into account one reserve vaporiser (rule n+1). (2) The send-out capacity provided by the CHP is considered as interruptible because the operation of the CHP depends on the electricity market, and is thus not linked to the functioning of the LNG terminal itself. (3) The send-out of the TSO is a capacity that may be interrupted according to the TSO s requirements for balancing its network and for implementing the OBA (Operator Balancing Agreement) applicable to the LNG terminal s exit point. This capacity must therefore be considered as interruptible for the users of the LNG terminal. Version 4.0 9/20

10 2.2 Calculation of the volume capacities Total Volume, Effective Volume and Usable Volume: definitions In accordance with Articles 5 to 8 of the main conditions, the definitions of Total Volume, Effective Volume and Usable Volume are as follows: The Total storage Volume of the LNG terminal corresponds to the physical volume of the LNG storage tanks within the LNG terminal. The Effective storage Volume of the LNG terminal is the difference between the total volume and (i) (ii) the heel volume (volume that cannot be extracted under normal operating conditions) and, the dead volume which cannot be filled under normal operating conditions (volume above the alarm levels and which cannot be filled in order to maintain the possibility of LNG circulating between the various LNG storage tanks). The Usable storage Volume of the LNG terminal is the difference between: (i) (ii) the effective storage volume, and the storage volume for the operational needs of Fluxys SA given its legal obligations and its cooperation agreements with other transport companies in order to ensure the integrity of transmission infrastructure in Belgium, in so far as they have been approved by the CREG. Version /20

11 The volume available at a given time is the part of the non-allocated usable volume still available for the users of the LNG terminal Calculated volumes for the years : For the years 2005 and 2006, the above-mentioned values are as follows: Total Storage Volume: m x 4,068 m² x 3 = 265,681 m³ LNG Effective Storage Volume: Heel Volume: 1 m x 4,068 m² x 3 = 12,204 m³ of LNG Dead Volume: 0.77 m x 4,068 m² x 1 = 3,132 m³ of LNG 1.27 m x 4,068 m² x 2 = 10,333 m³ of LNG Effective Storage Volume: = ± m³ of LNG The Effective Storage Volume comprises: 140,000 m³ of LNG for the basic storage 100,000 m³ of LNG for the flexibility storage. Usable Storage Volume: Basic storage: Storage for operational requirements of Fluxys S.A.: Flexibility storage: 140,000 m³ of LNG 6,000 m³ of LNG 94,000 m³ of LNG Available Storage Volume: 234,000 m³ of LNG (Usable Volume) 234,000 m³ of LNG (sold) = 0 m³ of LNG Version /20

12 2.3 Calculation of the reception capacities The theoretical maximum number of slots is the minimum of the quantities calculated under three constraints: a. constraint linked to the reception capacity: 141 slots b. constraint linked to the regasification capacity: 66 slots c. constraint linked to the storage capacity: 75 slots The theoretical maximum number of slots for the years is the most restricting of the three constraints, i.e. the minimum of the three values calculated: min. (141; 66; 75) = 66 slots / year. The theoretical maximum number of slots per year is calculated on an indicative basis. This number is moreover reduced taking into account the constraints below (Main conditions: Chapter I - Section 4 Article 16): the impact of the number of slots on the users of the LNG terminal, in particular on the costs of the integrated LNG chain for those users; the planning constraints linked to the production and transport of LNG; the needs for flexibility and guarantees of availability of the reception installations which the users of the LNG terminal require; the unforeseen events linked to maritime transport; the transit time between the loading ports and the LNG terminal of Fluxys LNG. The practical maximum number of slots is 60 slots / year. 2.4 Truck Loading Capacity The LNG capacity of a truck is 39 m³ of LNG and the loading capacity is a maximum of 13 journeys per day. The operational procedures for the truck loading will be included in the Network Code. Version /20

13 3 SCHEDULING FOR THE UNLOADING OF LNG The scheduling for the unloading is organised in the following manner (see Article 31, III and IV of the main conditions): 3.1 Before year (n) The user of the LNG terminal will inform Fluxys LNG, before 01/08 of every year n, of: the annual indicative unloading programme for the period from 01/10 of year n through to 30/09 of year n During year (n) The user of the LNG terminal will inform Fluxys LNG at the latest on the 20th of every month M, of: the number of slots that he is programming for month M+3, the dates of the slots nominated for month M+2. Version /20

14 4 CAPACITY ALLOCATION RULES 4.1 Long-term capacities The long-term capacities at the Zeebrugge LNG terminal are currently fully reserved. 4.2 Short-term capacities Parties interested in short-term (spot) cargoes may sign up for slots which become available during performance of the above-mentioned contract. The allocation rules for this service are, in order of priority: (i) (ii) (iii) The user of the LNG terminal who, for technical reasons, has not had the opportunity to use these slots during the year (n), The user of the LNG terminal who, for reasons of force majeure, has not had the opportunity to use these slots in the past year (n-1), The other users of the LNG terminal on the basis of the First Committed / First Served principle. Version /20

15 5 PROPOSED TOLERANCE VALUES There are no tolerance values applicable to the terminalling activities. 6 TYPE AND DURATION OF THE CURRENT TERMINALLING CONTRACTS 6.1 Types of contract The Zeebrugge LNG terminal offers the following types of contract: long-term contract standard contract per slot 6.2 Duration of the contracts The duration of the contract is for: the current long-term contract: the end of the current contract is scheduled for 30 September 2006, the long-term contracts applicable from 2007 onwards: 20 years, the standard contract per slot: five consecutive high tides for the unloading; five consecutive days, from the date of unloading, for send-out to the transmission network. Version /20

16 7 PROCEDURE FOR CAPACITY SUBSCRIPTION AT THE LNG TERMINAL 7.1 Primary Market A potential user of the LNG terminal may subscribe for capacity in the following way (see diagram below): a) He signs a Master Agreement, i.e. the Capacity Services Agreement, which is the contract containing the commercial conditions of the contract, b) He subscribes to the Network Code of the LNG Terminal which contains the operating rules, by signing the Articles of Agreement of the Network Code (which also gives him access to the ARS service), c) He subscribes to the Terminalling services by using the Service Request Forms. (see diagram in Annex 1) NWC = Network Code ITP ARS = Indicative Transmission Programme = Automatic Reservation System TARIF = The annual tariffs for Fluxys LNG s regulated services CSA SRF = Capacity Subscription Agreement = Service Request Form Version /20

17 7.2 Secondary Market Operation of the secondary market For indicative purpose, the diagram below shows, in schematic form, the way the secondary market operates: Nomination of the number of slots for month M Confirmation of the dates of the slots for month M User of the LNG terminal complete slot negotiated price complete slot and separate services negotiated price Fluxys LNG slots communicated by the User complete slot (*) regulated price Time (month) M-3 M-2 M-1 M 20th day 20th day 20 days D 20 (*) from D-10 onwards, separate services D = date of start of slot The secondary market operates in the following manner: ii. iii. More than 20 days before the start date of the slot, the user of the LNG terminal can only sell its slots on the secondary market in the form of full slots (without breaking them down to their constituent services). From 20 days before the start date of the slot, the user of the LNG terminal may sell the various services that constitute a slot separately on the secondary market. Before the 20th day of month M-3, the user of the LNG terminal nominates the number of slots that it is scheduling for month M. Before the 20th day of month M-2, the user of the LNG terminal notifies the dates of the slots that it has nominated. Version /20

18 iv. On the 1st of month M-2 at the latest, the user of the LNG terminal must notify Fluxys LNG of the slots that it does not intend to use. Through this notification, the user of the LNG terminal authorises Fluxys LNG to sell, on behalf of the user of the LNG terminal, the slot in question. v. Fluxys LNG sells the slots that it has been notified in accordance with point (iii). These slots are published on Fluxys LNG s website, and are sold as complete slots (without breaking them down to their constituent services) at the regulated tariff up to 10 days before the start date of the slot and are allocated on the basis of the principle of First Committed First Served. Ten days before start date of the slot, the capacities that constitute the slot are marketed by Fluxys LNG in a dissociated way at the regulated price. Fluxys LNG shall immediately notify the user of the LNG terminal when the slot or the constituent capacity have been allocated. vi. vii. Without prejudice to points (iii) and (iv) of this article and without prejudice to Article 46, paragraph 3 of the code of good conduct, the user of the LNG terminal still retains the possibility of selling the slots (and, from 20 days before the start date of the slot, the services making up this slot - see point (ii)) on the secondary market, at a negotiated price. If the user of the LNG terminal has sold a slot (or capacities constituting a slot) that has been the subject of a notification in accordance with point (iii) of this article, the user of the LNG terminal will immediately notify Fluxys LNG, which will discontinue the sale of the slot in question. If the user of the LNG terminal has sold capacity in a dissociated way, the possible residual capacity not sold ten days before the start date of the slot will be marketed by Fluxys LNG in accordance with point (iv). Fluxys LNG enters in a record of capacity utilisation of the LNG terminal, any slot nominated by the user of the LNG terminal pursuant to the point (ii) of this article but not used, provided that this slot was not the subject of a notification pursuant to point (iii) of this article Organisation of the secondary market The secondary market could be organised as follows: a) The assignment of capacity with or without release of the assignor results in the assignment of all contractual rights and obligations as well as associated characteristics, without modifying them towards to Fluxys LNG. b) In the event of assignment without release of the assignor, the assignor remains jointly and severally liable vis-à-vis Fluxys LNG with the assignee for all obligations ensuing from the terminalling contract. The assignor and the assignee who have concluded an assignment of capacity agreement without release of the assignor must inform Fluxys LNG of this in Version /20

19 writing at least 5 working days before the date of performing the service (this time is reduced to 2 days when the automatic reservation system is available), without prejudice to the Ship Approval Procedure. Any assignment without release of the assignor must in any event comply with the operational mechanisms put in place by Fluxys LNG. c) A capacity assignment with release of the assignor is subject of the prior, written notification to Fluxys LNG, which has the right to accept or refuse it. Fluxys LNG may not unreasonably refuse its agreement. Fluxys LNG will give its agreement with regard to an assignment with release of the assignor providing the following conditions are met: 1 the assignee obtains, for the use of the assigned capacity, access to the LNG terminal of Fluxys LNG, in accordance with the code of conduct. Fluxys LNG deals with the access request of the assignee, in a non-discriminatory and transparent way, just like a new access request. In particular, Fluxys LNG checks that the financial guarantees are complied with. 2 the absence of any debt owed by the assignor to Fluxys LNG, unless the assignee irrevocably and unconditionally undertakes to pay any such debts to Fluxys LNG. Independently of the assignment of capacities, the transfer of quantities of stored LNG (or the rights to these quantities) of a user of the terminal to another is authorised within the limit of the storage volumes that have been allocated. Version /20

20 ANNEX 1 : NWC / ARS / MASTER AGREEMENT DIAGRAM ITP (2 years) Tariff (1 year) NWC ARS Articles of Agreement CSA SRF SRF SERVICES Version /20