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New Gas Market Model in TNC. Warsaw, 16 October 2012. the system , that connects. Premises of the new TNC. Easier entrance on the gas market for new entities. Gas trading no longer associated with a physical location on the network.
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New Gas Market Model in TNC Warsaw, 16 October 2012 the system,that connects
Premises of the new TNC • Easier entrance on the gas market for new entities. • Gas trading no longer associated with a physical location on the network. Separation of physical entry and exit points, i.e. enabling gas transport from physical entry points to virtual point and from virtual point to physical exit points. Gas system use rules simplified. 2 the system,that connects
Virtual Point • The TNC introduces a 'virtual point' – without a concrete location that makes gas trade possible between customers inside the transmission network. • Gaseous fuel is the product on offer at the virtual point – E high methane gas. • Nitrified natural gas (Lw) will not be available at the virtual point. 3 the system,that connects
TSO Cooperation with POLPX • The TNC regulates cooperation between the TSO and the Polish Power Exchange (POLPX). • Possibilities of selling and purchasing gaseous fuel on the exchange at market driven prices and in complete observance of anonymity of transactions. • A sales agreement concluded on the Gas Exchange is valid, effective between the Parties that concluded it and is performed by the TSO. • In the event of no physical possibilities of performing the agreements, the TSO executes agreements using balancing instruments. 4 the system,that connects
The Gas Year Change in the duration of the gas year in order to adapt to EU solutions and consequently to facilitate commercial transactions(Gas Year = Oct. – Sept. instead of Jan. – Dec. calendar year). The gas day effective as of 1 July 2012 lasts from 6:00 am until 6:00 am the next day. 5 the system,that connects 5
Wobbe Index • Supported by a series of gas facility and equipment tests, a change in the admissible gas quality parameters (WI) to adapt to the amended Polish Standards and to enable import of new, more calorific gas via the LNG terminal. • The scope of WI variables for the E group gaseous fuel introduced by the new draft TNC is 45.0 – 56.9 MJ/m3. 6 the system,that connects 6
Implementation Schedule for the TNC, DNC and the TSO and DSO Tariff Storage Service Rules Update 1) Start of works on the DNC 2) publishing the DNC for consultation 3) submission of remarks & comments to the DNC 4) Works on final draft of DNC after end of consultation process Approval DNC 01/12/2012 Implementation of TNC, DNC/SSRand Tariffs of TSO/ DSO/SSO 24/09 24/07/2012 Approval of TNC and publishing in ERO Bulletin 15/10 02/11 14/11 15/08 30/08 04/09 15/09 30/09 01/10 TSO and DSO and TSO and SSO contain ITC, and order contracted capacity allocation for the terms: 01.12.2012-31.12.2012 Contracted Capacity Allocation PP for DSO and SSO for the terms: 01.12.2012-31.12.2012 Capacity allocation for WPWYGG, WPWYOTC, WPWYOSP, WPWYOSD, WPWYOSM Application for Capacity Allocation CA TSO/Shipper: Change in existing transmission contracts into Framework Contracts with CCA/CA ApprovalTariffs of TSO/ DSO/SSO 1. Calculation of Tariff rates for TSO, 2. Works on the Tariff and calculation of Tariff rates of DSO/SSO Works on TSO Tariff 7 Submission of application in TSO capacity allocation procedure Capacity allocation for term of 01.01.2013-30.09.2013 Application Verification 7 the system,that connects
Polish Gas Market Model Gas Sources Domestic Extraction Import LNG Transmission Trading Company Storage Distribution Customer
Polish Gas Market Model Gas Sources Domestic Extraction Import LNG Transmission Trading Company Storage Distribution Customer
Polish Gas Market Model • Trading company is currently responsible for the entire gas transport process from the entry point to the customer, including to the final customer that receives the gaseous fuel. • Agreeing Transport Routes • Ordering contracted capacity at entry and exit points at the TSO; DSO and SSO, including ordering contracted capacity at interconnectors. • Problem with establishing the quantity of gaseous fuel off-taken by the customers of a given trading company in a given distribution zone.
TSO Cooperation with SSO PWY PWE SSO Pumping capacity Off-take capacity Storage capacity • At present, in order to use the storage service a market participant has to: • conclude a transmission contract and reserve contracted capacity a the exit and entry point with the TSO; • conclude a storage services contract specifying the pumping capacity and the off-take capacity. • No certainty available that the capacity at PWY/PWE at the TSO and the capacity at the SSO will be the same. • The TSO suggests that the SSO who will determine the capacity at PWY and PWE through the connection agreement to the storage facilities, to order capacity at the connection of both systems and make it available within storage services.
Change in Principles for Cooperation with the DSO and SSO Entry Entry The change in the conditions for cooperation with the distribution system operators and storage system operators will make it easier for customers to perform gas transmission between transmission systems and distribution and storage systems. Only the DSO and SSO will purchase capacity at physical point connecting their systems with the GAZ-SYSTEM S.A. transmission system. Simplification of the rules for purchasing capacity at TSO/ DSO and SSO connections, simplified allocation rules for quantities of gaseous fuel. TSO Virtual Point TSO Exit to DSO2 SSO DSO2 Exit to DSO1 DSO1 DSO DSO Exit Exit
Change in Principles for Cooperation with the DSO and SSO According to EP, the operators are responsible for the development of the transmission, distribution and storage system infrastructure – TSO, DSO, and SSO, respectively. The DSO and SSO determine the size of the demand for capacity at interconnectors concluding connection agreement, and then the ITC. Virtual Point TSO DSO DSO • The gas transport route to the final customer will be agreed between the SSO, DSO and TSO. The DSO and SSO will reserve at the TSO contracted capacity (capacity) at the connection to both systems. The DSO will be responsible for exceeded capacity.
Virtual Point TSO Virtual Point FPWETSO FPWETSO DSO DSO Ordering contracted capacity takes place at physical entry points to the transmission systems and at the physical exit points to the final customer from the distribution (or transmission) system.
Virtual Point TSO FPWETSO FPWETSO WPWY DSO DSO The transport of gaseous fuel to the Virtual Point (Gas Exchange, OTC Market)
Virtual Point TSO FPWETSO FPWETSO WPWE FPWYFC DSO DSO PWYSSO The transport of gaseous fuel from the Virtual Point to the final customer of the the storage system facility.
Virtual Point TSO FPWETSO FPWETSO WPWE FPWYFC WPWYDSO DSO DSO WPWYDSO PWYSSO The transport of gaseous fuel from the Virtual Point to the distributoin zone (via the Virtual Exit Point to the distribution zone), which customers are connected with.
Trading on the Gas Exchange Virtual Point Shipper1 Shipper2 Sold-100 Bought+100 Balance: 0 Balance: 0 FPWETSO(Import, Mine) FPWYFC(Final Customer) Shipper1: +100 Shipper2: -100 18
Trading on the Gas Exchange Virtual Point Shipper1 Shipper2 Sold-100 Bought+100 Balance: -100 Balance: 0 FPWETSO(Import, Mine) FPWYFC(Final Customer) GAZ-SYSTEM S.A.: Shipper1: 0 Shipper2: -100 +100 19
Trading on the Gas Exchange Virtual Point Shipper1 Shipper2 Sold-100 Bought+100 Balance: 0 Balance: +100 FPWETSO(Import, Mine) FPWYFC(Final Customer) GAZ-SYSTEM S.A.: Shipper1: +100 Shipper2: 0 -100 20
Settlements Shipper(trading company) TSO DSO TSO PWYFC PW PWE PWY/PWE PWY Transmission fee Entry Transmission fee Exit Distribution fee Transmission fee TSO Shipper(trading company) DSO Shipper(trading company/final customer) TSO DSO
Settlements SSO TSO PWE/PWY WPW Storage Services Package PWE PWY/PWE Transmission fee Exit Storage services fee Shipper(trading company/final customer) SSO TSO SSO
Thank you for your attention the system,that connects piotr.bujalski@gaz-system.pl