Madrid 15 th July 2009

Madrid

15th July 2009

OS for the development of new gas

interconnection capacity between

Spain and France after 2012

9th SG meeting

2

Index

1. Introduction

2. Information Memorandum

3. Allocation Rules

4. Application forms and accompanying letters

5. Confidentiality agreements

6. Relevant contracts for 2013 capacities

7. Other

3

Introduction1

4

Documentation The documentation which regulates the Open Season jointly conducted by

Enagás, GRTgaz, Naturgás Energía Transporte and TIGF to asses market demand for the interconnection projects under discussion between France and Spain includes the following:

Information Memorandum

Allocation Rules for 2013 capacities

Letter of Commitment (2013 capacities)

Application form for 2013 capacities (binding)

Letter of Intent (2015 capacities)

Application form for 2015 capacities (non-binding)

Non-Disclosure Agreement between the TSO and the shipper (1 version per country)

Capacity booking contracts and/or transmission contracts.

5

2 Information MemorandumInformation Memorandum

6

Contents of the Info Memo The final Info Memo has been updated taking into consideration the latest

inputs from stakeholders.

The main contents of the Information Memorandum are:

Market Structure

Marketing of Capacities

Physical capacities

Products

Allocation Process & Allocation Principles

Coordination with other OSPs developed by the TSOs

Schedule.

Tariff Regulation.

Test of the CRE to validate the capacity allocation in France

Joint Allocation Office & Contact info

Appendices

7

Market structure The Open Season is organised based on the current market structure in

France.

NORTH

SPAIN

SOUTH

TIGF

8

Spain – France interconnection projects

2013 CAPACITIES:

Larrau: development of an existing interconnection (Enagás / TIGF).

Biriatou: development of an existing interconnection (Enagás / Naturgás / TIGF).

GRTgaz South – TIGF interface: development of an existing interconnection (GRTgaz / TIGF).

2015 CAPACITIES:

Perthus: development of a new interconnection (Enagás / GRTgaz / TIGF).

GRTgaz North – GRTgaz South link: development of an existing interconnection (GRTgaz).

2013 CAPACITIES:

Larrau: development of an existing interconnection (Enagás / TIGF).

Biriatou: development of an existing interconnection (Enagás / Naturgás / TIGF).

GRTgaz South – TIGF interface: development of an existing interconnection (GRTgaz / TIGF).

2015 CAPACITIES:

Perthus: development of a new interconnection (Enagás / GRTgaz / TIGF).

GRTgaz North – GRTgaz South link: development of an existing interconnection (GRTgaz).

9

Spain – France interconnection projects

LACALLACAL

EUSKADOUR

EUSKADOURAr

tère

GUY

ENNE

Artè

re G

UYEN

NE

Artè

re R

HÔNE

Artè

re R

HÔNE

Artère MIDIArtère MIDI

MID

CAT

MID

CAT

Zarza de Tajo

Paterna

Tivissa

Castelnou

HARO

LUSSAG NET

MONT

SAUVETERRE

CHAZELLES ETREZ

NAVARRA ST. MARTIN

VILLAR ARNEDO

MARTORELL

Figueras

MONTPELLIER

Laprade

Palleau

Voisines

Morelmaison

Existing I nfrastructures

Future Developments

Compression Station

WESTERN CORRIDORWESTERN CORRIDOR

EAST CORRIDOREAST CORRIDORExisting I nfrastructures

Future Developments

MAIN TRANSMISSION AXES

Pipeline

LINK NORTHLINK NORTH--SOUTH ZONESOUTH ZONE

Future Developments (** )

* *A fter Tais ruères´development (2013)

LACALLACAL

EUSKADOUR

EUSKADOURAr

tère

GUY

ENNE

Artè

re G

UYEN

NE

Artè

re R

HÔNE

Artè

re R

HÔNE

Artère MIDIArtère MIDI

MID

CAT

MID

CAT

Zarza de Tajo

Paterna

Tivissa

Castelnou

HARO

LUSSAG NET

MONT

SAUVETERRE

CHAZELLES ETREZ

NAVARRA ST. MARTIN

VILLAR ARNEDO

MARTORELL

Figueras

MONTPELLIER

Laprade

Palleau

Voisines

Morelmaison


Future Developments

Compression Station



Future Developments


Pipeline





Future Developments

Compression Station



Future Developments


Pipeline




10

Physical capacities

LARRAU PROJECT Incremental Capacities*

Total capacities

Spain to France +55GWh/d 165 GWh/d

France to Spain +65GWh/d 165 GWh/d

* The incremental capacities detailed in these tables are only those related to investments triggered by this Open Season process.* The incremental capacities detailed in these tables are only those related to investments triggered by this Open Season process.

BIRIATOU PROJECT Incremental Capacities*

Total capacities

Spain to France +55GWh/d 60 GWh/d

France to Spain +60GWh/d 60 GWh/d

GRTGAZ SOUTH – TIGF INTERFACE

PROJECT

Incremental Capacities*

Total capacities

TIGF to GRTgaz South +180 GWh/d 255 GWh/d

GRTgaz South to TIGF +50 GWh/d 375 GWh/d

11

Physical capacities

* The incremental capacities detailed in these tables are only those related to investments triggered by this Open Season process.* The incremental capacities detailed in these tables are only those related to investments triggered by this Open Season process.

PERTHUS PROJECT Incremental Capacities*

Total capacities

Spain to France +230 GWh/d 230 GWh/d

France to Spain +180 GWh/d 180 GWh/d

GRTgaz North – GRTgaz South link

PROJECT

Incremental Capacities*

Total capacities

GRTgaz North to GRTgaz South

+200 GWh/d 430 GWh/d

GRTgaz South to GRTgaz North

+100 GWh/d 330 GWh/d

12

Capacity Products to be marketed

Detailed capacities to be marketed, split in multiannual and multiseasonal capacities are detailed in Appendix II of the Information Memorandum.

Only firm capacities are proposed to the market in the Open Season.

The annual capacities proposed represent, unless otherwise stated, 80% of the capacity available after investments, and after deduction of capacity assigned to existing long-term commitments.

13

Capacity Products to be marketed by 2013

2013201320132013PRODUCTSPRODUCTS From South to NorthFrom South to North From North to SouthFrom North to South

GRTgaz North-GRTgaz SouthGRTgaz North-GRTgaz South 138*138* 00

GRTgaz South-TIGFGRTgaz South-TIGF 204204 238238

TIGF-SpainTIGF-Spain 180180 118118

* 60% of marketable capacities, according to CRE’s deliberation on 2nd July 2009.* 60% of marketable capacities, according to CRE’s deliberation on 2nd July 2009.

14


For the purpose of capacity allocation, these capacities are identified as follows:

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

5 5 1

24

3 3

4

NORTH

SPAIN

SOUTH

TIGF

South → North

1

2

North → South

5 5 1

24

3 3

4

20132013PRODUCTS From South to North From North to South

GRTgaz North-GRTgaz South 138 0

GRTgaz South-TIGF 204 238

TIGF-Spain 180 118

201320132013201320132013PRODUCTSPRODUCTSPRODUCTS From South to NorthFrom South to NorthFrom South to North From North to SouthFrom North to SouthFrom North to South

GRTgaz North-GRTgaz SouthGRTgaz North-GRTgaz SouthGRTgaz North-GRTgaz South 138138 00

GRTgaz South-TIGFGRTgaz South-TIGFGRTgaz South-TIGF 204204 238238

TIGF-SpainTIGF-SpainTIGF-Spain 180180 11811851

2 4

3

15

2015201520152015ProductsProducts From South to NorthFrom South to North From North to SouthFrom North to South

GRTgaz North-GRTgaz SouthGRTgaz North-GRTgaz South between 80* and 264between 80* and 264 between 160* and 282 between 160* and 282

France – SpainFrance – Spain184

to be split between option 1 & 2

184 to be split between

option 1 & 2

144 to be split between option

1 & 2

144 to be split between option

1 & 2

Option 1Option 1 GRTgaz South - SpainGRTgaz South - Spain 0 to 1840 to 184 0 to 1440 to 144

Option 2Option 2GRTgaz South – TIGFGRTgaz South – TIGF 0 to 1840 to 184 0 to 1440 to 144

TIGF – SpainTIGF – Spain 0 to 1840 to 184 0 to 1440 to 144

MID

CA

TM

IDC

AT

LINKLINK


• Shippers will be asked in the non-binding phase which capacity product they want. This input will be used to define a split between the 3 components in the France – Spain products.

* 80% of newly-created capacities, according to CRE’s deliberation on 2nd July 2009. * 80% of newly-created capacities, according to CRE’s deliberation on 2nd July 2009.

16

Capacity Products to be marketed by 2015 For the purpose of capacity requests during the non-binding round, these

capacities are identified as follows: NORTH

SPAIN

SOUTH

TIGF

South → North

C

G

North → South

D D C

GH H

B A

F E EF

H

B A

G

20152015Products From South to North From North to South

GRTgaz North-GRTgaz South between 80* and 264 between 160* and 282

France – Spain184


144to be split between option

1 & 2

Option 1 GRTgaz South - Spain 0 to 184 0 to 144

Option 2GRTgaz South – TIGF 0 to 184 0 to 144

TIGF – Spain 0 to 184 0 to 144

20152015Products From South to North From North to South

GRTgaz North-GRTgaz South between 80* and 264 between 160* and 282

France – Spain184



1 & 2

Option 1 GRTgaz South - Spain 0 to 184 0 to 144

Option 2GRTgaz South – TIGF 0 to 184 0 to 144

TIGF – Spain 0 to 184 0 to 144

201520152015201520152015ProductsProductsProducts From South to NorthFrom South to NorthFrom South to North From North to SouthFrom North to SouthFrom North to South

GRTgaz North-GRTgaz SouthGRTgaz North-GRTgaz SouthGRTgaz North-GRTgaz South between 80* and 264between 80* and 264 between 160* and 282between 160* and 282

France – SpainFrance – SpainFrance – Spain184


184to be split between

option 1 & 2


1 & 2


1 & 2

Option 1Option 1Option 1 GRTgaz South - SpainGRTgaz South - SpainGRTgaz South - Spain 0 to 1840 to 184 0 to 1440 to 144

Option 2Option 2Option 2GRTgaz South – TIGFGRTgaz South – TIGFGRTgaz South – TIGF 0 to 1840 to 184 0 to 1440 to 144

TIGF – SpainTIGF – SpainTIGF – Spain 0 to 1840 to 184 0 to 1440 to 144DC

G H

BA

FE

17

Marketing of capacities: Allocation Process

All capacities will be proposed to the market in two phases:

1st phase: to be launched before mid-July 2009:

Capacities available by 2013: Binding requests.

Capacities available by 2015: Non-binding requests.

2nd phase: to be launched by February 2010. 2015 capacity will be offered regardless the result for 2013 capacities during the 1st phase:

Capacities available by 2015: Binding requests.

18

Marketing of capacities: One OS, two phases

FIRST PHASE

July-November 2009

2013 Capacities

SINGLE ROUND

2015 Capacities

NONBINDING ROUND

SECOND PHASE

February-June 2010

2015 Capacities

SINGLE ROUND

BINDING REQUESTS

BINDING REQUESTSNONBINDING REQUESTS

19

Allocation process & principles

Capacity allocation principles and rules for 2013 capacities are described in the Appendix VI: Allocation rules.

The available capacities to which these rules will be applied are detailed in Appendix II: Available capacities.

Capacity allocation principles and rules for 2015 capacities will be developed before February 2010.

Capacity requests for 2015 capacities will be taken by TSOs as indicative, and no allocation process will be performed. Nevertheless, an indication of the global demand for 2015 capacities will be provided to stakeholders.

20

Indicative schedule

JULY 2009:

15th July: Publication of final documents proposed by TSOs:

Information Memorandum.

Allocation Rules for 2013 capacities.

Application forms and related Letter of Commitment for 2013 capacities and Letter of Intent for 2015 capacities.

Non-Disclosure Agreements between each TSO and interested subscribers.

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.

21

Indicative schedule

SEPTEMBER-OCTOBER 2009:

Early September: Presentation(s) by TSOs and information meeting with stakeholders about the OS.*

Before 15th September: Signing of Non-Disclosure Agreements between each TSO and interested subscribers.*

September 15th: Starting date for submitting requests in the First Phase of the OS.*

September 30th: Deadline for submitting requests in the First Phase of the OS.*

October 30th: Publication of results of the First Phase of the OS.*

* Detailed calendar to be officially confirmed on ERGEG’s website. * Detailed calendar to be officially confirmed on ERGEG’s website.

22

Indicative scheduleNOVEMBER 2009

Before November 30th: Signature of a capacity booking contract or transmission contract between each TSO and interested subscribers (2013 capacities).

JANUARY 2010

Approval of GRTgaz and TIGF global investment programs by their respective Boards of Directors (2013 capacities).

Approval of GRTgaz and TIGF global investment programs by CRE (2013 capacities).

FEBRUARY 2010

Starting date of the Second Phase of the OS.

JUNE 2010

Publication of results of the Second Phase of the OS.

JULY 2010

Signing of capacity booking contract or transmission contract between each TSO and interested subscribers (2015 capacities).

23

Indicative scheduleJANUARY 2011

Approval of GRTgaz and TIGF global investment programs by their respective Boards of Directors (2015 capacities).

Approval of GRTgaz and TIGF global investment programs by CRE (2015 capacities).

24

Tariff Regulation The CRE and the CNE have been consulted prior to the publication of the

Information Memorandum in relation with the tariff framework applicable to the capacities marketed through the coordinated Open Season process.

The CRE and the CNE will act within their respective areas of competence, as defined in the relevant national regulations.

Test of the CRE to validate the capacity allocation in France Information on the conditions for validation by the CRE has been provided.

25

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

(2013 capacities) or letter(s) of intent (2015 capacities) 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


26

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


27

3Allocation Rules for 2013 capacitiesAllocation Rules for 2013 capacities

28

Allocation Rules for 2013 capacities The Allocation rules presented at the 8th SG last 27th April remain

essentially unchanged.

The same allocation options for multiannual capacity requests have been maintained: OPTION A “Independent Allocation per Point”, and OPTION B “Coordinated Allocation”.

The latter includes two types of coordination, Option B. I. “Non-flat Capacity Allocation” and Option B.II. “Flat Capacity Allocation”.

The requirements on the starting date have been relaxed, particularly for multiannual capacity requests; in this case, the first day of any month during the 20-year period staring on 1st April 2013 can be chosen as the starting date.

29

Priority rules

Capacity requests will be first ranked granting higher priority to capacity requests with an earlier date of commencement, being 1st April 2013 the earliest possible date.

Capacity requests with the same starting date will be ranked granting higher priority to capacity requests of longer duration. Multiannual capacity requests with a duration equal to or higher than 120 months will be

granted the highest priority between capacity requests with the same starting date. No differentiation will be made in terms of priority between multiannual capacity requests with a duration equal to or higher than 120 months.

Multiseasonal capacity requests with a duration equal to or higher than 10 seasons will be granted the highest priority between capacity requests with the same starting date. No differentiation will be made in terms of priority between multiseasonal capacity requests with a duration equal to or higher than 10 seasons.

Capacity requests will be prioritised first according to the starting date of the service, and then to the duration of the request.

During the Single Round of the First Phase of the OS, for the purpose of capacity allocation:

Capacity requests will be prioritised first according to the starting date of the service, and then to the duration of the request.

During the Single Round of the First Phase of the OS, for the purpose of capacity allocation:

Allocation of capacities between capacity requests with the same level of priority will be made on a pro-rata basis taking into account the amount of capacity requested.

Allocation of capacities between capacity requests with the same level of priority will be made on a pro-rata basis taking into account the amount of capacity requested.

30

Allocation stages

FIRST PHASE

July-November 2009

2013 Capacities

SINGLE ROUND

BINDING REQUESTS

1st Allocation Stage:

• Initial allocation

Submission of requests for the

First Round

2nd Allocation Stage:

• Step 1: Minimum capacity requirement check

• Step 2: Coordinated requests check (Flat Capacity Allocation)

3rd Allocation Stage:

• Re-allocation of freed-up capacities

Capacity freed up Application of priority rules

Provisional allocation after 1st Allocation Stage

Provisional allocation after 2nd Allocation Stage

(minimum capacity allocation

guaranteed)

Final allocation

Application of priority rules

September 2009 October 2009

31

4Application forms and accompanying letters

Application forms and accompanying letters

32

Application Form for 2013 capacitiesThe Application Form for 2013 capacities is the document containing the identification data of the requesting parties, and where the following information must be completed:

type of capacity request (multiannual or multiseasonal),

the allocation options,

the amount of capacity requested per Interconnection Point,

the minimum capacity required to accept allocation at each Interconnection Point,

the duration for which capacity is requested at each Interconnection Point,

the starting date of the service,

the signature of the parties and the request date.

An Application Form for 2013 capacities might contain up to 5 capacity requests.

Up to 4 shippers may request capacity through a single Application Form.

33

Letter of CommitmentBy the Letter of Commitment the company:

Asks for the reservation of the capacity stated in the Application Form for 2013 capacities.

Undertakes to subscribe the capacity allocated to it by the Joint Allocation Office.

Acknowledges being aware of the conditions of access to the relevant transmission system.

The Letter of Commitment remains valid until the signature of the agreement to reserve capacity on the relevant transmission system(s) and/or transmission contract or of an amendment to the existing transmission contract.

The Letter of Commitment shall be mandatorily joined to the related Application Form duly filled in, being integral part of it.

The Letter of Commitment remains valid until the signature of the agreement to reserve capacity on the relevant transmission system(s) and/or transmission contract or of an amendment to the existing transmission contract.


34

Application Form for 2015 capacitiesThe Application Form for 2015 capacities is the document containing the identification data of the requesting parties, and where the following information must be completed:

type of capacity request (multiannual or multiseasonal),

the allocation options,

the amount of capacity requested per Interconnection Point,

the duration for which capacity is requested at each Interconnection Point,

the starting date of the service,

the signature of the parties and the request date.

As regards the allocation options (OPTION A and OPTION B, including B.I. and B.II), the same definitions as for the allocation of 2013 capacities are assumed.

35

Letter of Intent

By the Letter of Intent the company:

Expresses its interest for a future reservation of the capacity stated in the Application Form for 2015 Capacities.

Acknowledges to submit an indicative level of interest in good faith. The level of interest shall fairly reflect the capacity the company intends to request in the subsequent binding phase of the process.

The Letter of Intent shall not constitute a binding capacity request.


The Letter of Intent shall not constitute a binding capacity request.


36

5Non-Disclosure AgreementsNon-Disclosure Agreements

37

Non-Disclosure Agreements A Non-Disclosure Agreement must be signed between each TSO and each

shipper.

Two templates have been produced: one for France and another one for Spain.

The NDAs establish standard confidentiality conditions for an OS process.

The NDAs are essentially similar, except for the “Settlement of Disputes” sections, which have been developed in accordance to the legal framework in each country.

38

6Relevant contracts for 2013 capacities

Relevant contracts for 2013 capacities

39

Capacity booking contract* in France (principles**) Purpose

To establish the conditions of the commitment for capacities booking taken by a shipper during the Open Season process

Commitments of the shipper

Signature of a Transport Contract before 1st April 2013

Provision of a financial guarantee : capacity reserved x 2009 annual tariff x 9/12

Commitments of the French TSO

For new capacity, subject to the Final Investment Decision :

Regular information concerning the progress in the capacities development project

Signature of a Transport Contract corresponding to capacities reserved

No invoicing if, at a certain interconnection point, capacity is not available due to delays caused by the adjacent TSO (period limited to 6 months)

* For GRTgaz South to GRTgaz North capacity, signature of the standard transmission contract** Principles to be confirmed by the CRE* For GRTgaz South to GRTgaz North capacity, signature of the standard transmission contract** Principles to be confirmed by the CRE

40

Transmission contract in Spain The transmission contract in Spain will be the standard Transmission

Contract, with additional annexes reflecting the particularities of the Open Season process.

The annexes* will establish:

The necessary coordination with the French system of the starting date of the provision and invoicing of the service, including a period of 6 months during which the service will not be invoiced if, at a certain interconnection point, capacity is not available due to delays caused by the adjacent TSO.

The termination of the contract in case of negative investment decision by the French TSOs.

This amended standard Transmission Contract will be included in the OS documentation (binding Spanish version), alongside a non-binding English version.

The standard transmission contract in Enagás system is available at:

http://www.enagas.es/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1146242597955&ssbinary=true

* Principles to be confirmed by the Spanish regulators* Principles to be confirmed by the Spanish regulators

41

7OtherOther

42

Contractual framework between TSOs

A Non-Disclosure Agreement between the four TSOs was signed in May 2009 to ensure confidentiality during the process.

A Memorandum of Understanding setting the terms and conditions of the coordinated development program and coordinated decision making processes has been agreed between the four TSOs. It will be signed in July 2009.

The contractual framework also includes other bilateral agreements between TSOs, dealing with technical conditions at the interconnection points.

Thank you for your attention!

Madrid 15 th July 2009

Documents

Transcript of Madrid 15 th July 2009