GRTgaz services. A new take off. Bernard Prost MARKETING AND SALES

Transcription

1 GRTgaz services A new take off Bernard Prost MARKETING AND SALES

2 What makes a market attractive? Significant gas volumes Diversified sources Gas exchange Setting a strong & stable regulatory framework Flexibility tools Transparency Confidence GRTgaz acting as a market facilitator MARKETING AND SALES -2-

3 A high degree of harmonization in France achieved Dunkerque Taisnières (H & L) Storage Obergailbach One stop shopping Montoir Distribution Storage Oltingue LNG terminal operators Storage operators TIGF (Midi) Midi Distribution Distribution Coordinated by GRTgaz Fos Tonkin Fos Cavaou Independent booking Adjacent foreign TSOs Coordinated Open Seasons MARKETING AND SALES -3-

4 2009 : a huge step forward in simplifying network access to the benefit of the market Merger of zones Reorganisation of storage Easy access for end consumers More balancing tolerances for small and medium portfolios MARKETING AND SALES -4-

5 New advanced services to boost liquidity Launch of a French gas exchange Common platform Fluxys GRTgaz to support the secondary market capacity trading MARKETING AND SALES -5-

6 Enhancing access to capacity New capacities in Obergailbach +120 GWh/d December GWh/d December % for short-notice booking Enhanced access to south Capacity redistribution process 62% marketed on North-South link Twice as many shippers in 2009 New short term UIOLI New supplies from the South New LNG terminal: Fos Cavaou : +200 GWh/d GRTgaz Sud TIGF : + 30 GWh/d (summer) MARKETING AND SALES -6-

7 Confidence through transparency Network code & capacities Ten year investment plan 30,00 Market price 25,00 Information agency 20,00 15,00 January 09 : aggregated nominations 10,00 5,00 and more : MARKETING AND SALES Prix Vente Nord Zee_bid_Nord_H 29/08/ /09/ /09/ /09/ /09/ /10/ /10 / /10 / /10 / /10 / /11 / /11 / /11 / /11/ /12/ /12/ /12/ /12/ /08/ /08/ /07 / /07 / /08 / /08/ /06/ /06/ /07 / /07 / /05/ /05/ /06/ /06/ /04 / /04/ /04/ /05/ /05/ /05 /2007

8 PEG North : one of Europe s most attractive Hubs Flexibility : 870 TWh/y entry capacity 510 TWh/y entry flow Full entry / exit Capacity / flow = 1,7 Storage : 75 TWh MARKETING AND SALES Shippers number 30,00 25,00 20,00 15,00 10,00 5, /04 / /04/ /04/ /05 / /05 / /05 / /05/ /05 / /06 / /06/ /06 / /06 / /07 / /07/ /07 / /07 / /08/ /08 / /08 / /08 / /08 / /09 / /09 / /09 / /09/ /10 / /10 / /10 / /10/ /10 / /11 / /11/ /11 / /11 / Prix Vente Nord Zee_bid_Nord_H 05/12 / /12/ /12 / /12 / counterparts janv-05 juil-05 janv-06 juil-06 janv-07 juil-07 janv-08 juil-08 janv-09 juil-09 janv-10

9 Have a good and successful race! MARKETING AND SALES -9-

10 CAMG Gestion Opérationnelle des Contrats 2009 Tariff Operational rules

11 A simplified transmission system and new services for shippers New point codes North-South link New Short-Term Use-It-or-Lose-It service (UIOLI 2009) CAMG Gestion Opérationnelle des Contrats -2-

12 A simplified transmission system and new services for shippers New point codes North-South link New Short-Term Use-It-or-Lose-It service (UIOLI 2009) CAMG Gestion Opérationnelle des Contrats -3-

13 Zone merger West North East North South South TIGF TIGF CAMG Gestion Opérationnelle des Contrats -4-

14 New point codes 2 balancing zones: North Zone: Balancing section H Balancing section B South Zone CAMG Gestion Opérationnelle des Contrats -5-

15 New point codes A single North zone (ZT000N) merging the former North, East and West zones For consistency reasons, new codes for South zone (ZT000S) and North L zone (ZT000B) Single interconnection point with TIGF: Midi, IR0055 (removal of Hérault and Dordogne interconnection point) Change in codes: Delivery Pools (PL) Cumulated Imbalance Accounts (CE) Allocation Difference Accounts (CA) Title Transfer Points/PEG (EG) (nomination, confirmation and allocation processes remain unchanged) CAMG Gestion Opérationnelle des Contrats -6-

16 New point codes Focus : PITS Centre from January 1 to March 31, 2009 Reorganisation of the interface with the Centre storage group: creation of PS0007N and PS0007S Nomination on PS0007N and PS0007S Consistency with the current system PS0007N ZT000N Nomination in the same direction for both points : injection (Delivery) or withdrawal (Receipt) One nomination in the Storage operator IT system Allocation = Confirmation PS0007S ZT000S CAMG Gestion Opérationnelle des Contrats -7-

17 A simplified transmission system and new services for shippers New point codes North-South link New Short-Term Use-It-or-Lose-It service (UIOLI 2009) CAMG Gestion Opérationnelle des Contrats -8-

18 NORTH-SOUTH LINK Creation of the North-South link as a fully-fledged point: NS0001 ZT000N Daily, auction and UIOLI capacities available in both directions Nomination on NS0001 DEL (Delivery) Direction North to South NS0001 Single nomination REC (Off-take) South to North Consistency checks Allocation = confirmation ZT000S So you will make nominations on this point for delivery (DEL) when you carry natural gas from North to South or for off-take (REC) when you carry gas from South to North. CAMG Gestion Opérationnelle des Contrats -9-

19 A simplified transmission system and new services for shippers New point codes North-South link New Short-Term Use-It-or-Lose-It service (UIOLI 2009) CAMG Gestion Opérationnelle des Contrats -10-

20 New Short-Term Use-It-or-Lose-It service (UIOLI 2009) Continuously available service, even in the event of reductions in capacity Points concerned: Dunkerque, Obergailbach, Taisnières H, Taisnières B, Oltingue and Midi PIR (Interconnection Points) in the main flow direction North-South and South-North link Service unchanged at PITS (Storage Group) CAMG Gestion Opérationnelle des Contrats -11-

21 New Short-Term Use-It-or-Lose-It service: Basic principles Offered continuously from 2pm day-ahead to 3am within-day whatever the capacity reduction rate and whatever the day Calculation of available UIOLI capacities at the end of each nomination cycle -> publication on ECT website Priority given to primary rights owners CAMG Gestion Opérationnelle des Contrats -12-

22 New Short-Term Use-It-or-Lose-It service: More information within the operational capacity Operational capacity (CO): Annual, monthly and daily subscriptions Right-of-use transfers/acquisitions Takes into account maintenance or interruptibility Firm capacity Interruptible capacity Operational Capacity Interruptibility or maintenance Nominations beyond CO = request for UIOLI capacity CAMG Gestion Opérationnelle des Contrats -13-

23 New Short-Term Use-It-or-Lose-It service: Calculation and tariff principle Chargeable rights Tariff = 1/500th of firm annual capacity UIOLI request Interruptible rights Nomination Firm rights Your subscription CO CAMG Gestion Opérationnelle des Contrats -14-

24 New Short-Term Use-It-or-Lose-It service: Calculation and tariff principle Chargeable rights Nomination UIOLI request Interruptible rights Firm rights Priority order in allocation UIOLI capacities CO CAMG Gestion Opérationnelle des Contrats -15-

25 New Short-Term Use-It-or-Lose-It service : Example Shipper A Shipper B Shipper C Shipper D Works: 100% reduction in interruptible capacity 50% reduction in firm capacity Firm capacity Interruptible capacity Shipper A Shipper B Shipper C Shipper D Firm capacity Interruptible capacity COR CAMG Gestion Opérationnelle des Contrats -16-

26 New Short-Term Use-It-or-Lose-It service : Example Shipper A Shipper B Shipper C Shipper D Firm capacity Interruptible capacity CO Nomination Nomination Chargeable rights Interruptible rights UIOLI Requests : Firm rights Interruptible rights SUM Firm rights Chargeable rights CO UIOLI Offer Confirmation CAMG Gestion Opérationnelle des Contrats -17-

27 New Short-Term Use-It-or-Lose-It service : North-South link On the North South link, UIOLI capacity also available An offer based on a netting system in order to maximise the allocated quantities We both take into account nomination in North-South and South-North directions CAMG Gestion Opérationnelle des Contrats -18-

28 Conclusion and Additional information A significant simplification of the contractual diagram : 4 zones => 2 zones Single interface with TIGF Optimisation of capacity use: the UIOLI 2009 An uniform service Available even if constraints Communication and regular updates on our website For more information,feel free to contact your operational contact: transmission-ops@grtgaz.com CAMG Gestion Opérationnelle des Contrats -19-

29 A platform to foster liquidity in the gas capacity market MARKETING AND SALES October 20, 2008

30 A new service on the GRTgaz market Shippers demand A multilateral market to exchange capacities GRTgaz as the initiator of an exchange platform Today On the ECT website: registration of OTC transactions only --> no matching of supply and demand Launch of secondary market capacity To give the shippers an opportunity to valorize their capacities An alternative source to primary market capacity: to find capacity at the best price To stimulate liquidity on the GRTgaz market offered through an adapted tool MARKETING AND SALES October 20,

31 A PLATFORM TO FOSTER LIQUIDITY IN THE GAS CAPACITY MARKET GRTgaz Shippers meeting October 20,

32 capsquare : your access to GRTgaz s secondary market capacity AGENDA A wide range of products Services proposed by capsquare capsquare fits in with your business environment One single tool for two markets How to become a market participant? Focus on the contractual and pricing scheme Choose the capsquare tariff adapted to your trading profile capsquare: how does it work? Why join capsquare? 2

33 A wide range of products Instruments GRTgaz interconnection points (Dunkerque, Obergailbach, Oltingue, Taisnieres, Midi) North / South link Right-of-use products D+1, D+2, D+3, WE, WDNW, Month Extended opening hours: 8 am 6 pm Title transfer (assignment) products Annual capacities 10-day opening period per month Multilateral & OTC transactions 3

34 Services proposed on capsquare A unique space for matching supply and demand Swift trading of short-term capacity (right-of-use) Transaction directly checked by the TSO The shipper s portfolio is adjusted to reflect the capacity exchanged Short transaction lead time (<2.5 hours) No constraints on transaction price Possibility to re-trade any capacity exchanged on the platform The firm capacity offered remains firm 4

35 capsquare fits in with your business environment A process compatible with the commodity market Definition of trading partners Anonymity of orders before being submitted A proven technology Based on the well-known Trayport GlobalVision Technology Standard capsquare interface or integration in RORC No additional Trayport licence Transparency on multilateral transactions As a unique platform for capacity exchange, capsquare provides an overall view of multilateral transactions (except counterparts names) 5

36 One single tool for two markets capsquare is a joint initiative by Fluxys and GRTgaz One single platform for both markets with the possibility to exchange capacity on GRTgaz and Fluxys markets same short-term and medium-term products same tariff structure (transaction fees) a single platform operator and a single membership agreement with the platform operator 6

37 How to become a market participant? To become member of capsquare, you need to: hold a transmission contract with GRTgaz sign a capsquare standard agreement (CPSA) with the capacity platform operator EFET will publish an annex to the EFET Gas Market Agreement for the secondary market capacity in France & Belgium It includes the risk & credit management provisions for capacity products It provides for documentary cover of capacity trades in general Focus on the contractual and pricing diagram 7

38 Focus on the contractual and pricing diagram 8

39 Choose the capsquare tariff that fits your trading profile Tariff structure Fixed monthly membership fee Variable transaction fee 2 different tariffs adapted to the shipper s trading profile Possibility to switch-over to the alternative profile Membership fees will be invoiced by capsquare to the members No additional fee for using the GRTgaz grid No additional cost for Trayport Global Vision 9

40 Choose the capsquare tariff that fits your trading profile 10

41 capsquare interface : how does it work? Interface and examples of transactions 11

42 Capsquare : 1 tool, 2 markets, 3 screens 12

43 Capsquare : Screen structure 13

44 Capsquare : Authorised Trading Partners Orders blue-colored are submitted by user 1 s authorised trading partners Orders red-colored are submitted by user 1 s non-authorised trading partners Orders in a green cell are submitted by user 1 s own traders 14

45 Capsquare : Transaction Process (Multilateral) User 1 wishes to post an order 15

46 Capsquare : Transaction Process (Multilateral) User 1 fills order details in 16

47 Capsquare : Transaction Process (Multilateral) User 1 bids centeur 17

48 Capsquare : Transaction Process (Multilateral) User 2 wishes to post an order 18

49 Capsquare : Transaction Process (Multilateral) User 2 fills order details in 19

50 Capsquare : Transaction Process (Multilateral) User 1 bids centeur User 2 offers centeur 20

51 Capsquare : Transaction Process (Multilateral) User 2 wishes to adjust its order 21

52 Capsquare : Transaction Process (Multilateral) User 2 adjusts the order details 22

53 Capsquare : Transaction Process (Multilateral) User 1 bids centeur User 2 offers centeur 23

54 Capsquare : Transaction Process (Multilateral) User 1 wishes to deal the offer of User2 (Agressor) 24

55 Capsquare : Transaction Process (Multilateral) User 1 confirms the transactions details (Agressor) 25

56 Capsquare : Transaction Process (Multilateral) A confirmation including all transaction details is sent to both parties transactions 26

57 Capsquare : Transaction Process (Over the Counter) User 1 wishes to post an OTC transaction 27

58 Capsquare : Transaction Process (Over the Counter) User 1 fills OTC deal details in 28

59 Capsquare : Transaction Process (Over the Counter) User 2 receives a confirmation request 29

60 Capsquare : Deal List 30

61 Why join capsquare? Opportunity to sell at market price a capacity you do not intend to use, or to source alternative capacity For the wide range of services Access to two TSOs secondary markets for capacities OTC, multilateral Main network points Short-term (day), medium-term (month) and long-term (year) products Capacity right-of-use & Capacity title transfer For all information on capsquare : Website: Usb stick containing the CPSA agreement, capsquare brochure Contact your Key Account manager 31

62 Thank you for your attention 32

63 Powernext Gas Exchange GRTgaz Shippers Meeting October 20th

64 Hubs and Gas Exchanges in Europe Several gas exchanges have been launched over the past years with various success 2

65 Why a gas exchange now in France? The liquidity of the French wholesale gas market should develop quickly in the years to come : Merger of the West/North/East zones on January 1st 2009 Large zone of consumption Simplification of trading removing some operational risks Increase of international arbitrage opportunities (pipeline & LNG) Numerous CCGT are planned and will start operation Fos Cavaou will be operational and other LNG terminals are planned New capacities will be made available by TSOs Retail market will continue to open Number of shippers is increasing rapidly 3

66 Powernext Gas Products Spot contracts on Nord, Sud and TIGF PEGs. Futures contracts with physical delivery on the PEG Nord Nord Sud TIGF WD Powernext Gas Spot DA WE Months 3 in 2009 Powernext Gas Futures Quarters Seasons 2 3 4

67 Trading System Powernext is using the industry standard (Trayport GV 8) 5

68 Trading session Organization Settlement Period Powernext Gas Futures Balancing GRTgaz Within-Day Auction Balancing GRTgaz Day-Ahead Auction 16h30 16h45 11h15 16h15 09h30 17h30 11h00 12h30 15h45 17h15 Core Period 1 Quotation Providers Core Period 2 Quotation Providers Powernext Gas Spot & Futures Market Opening Core Periods Powernext Gas Spot & Futures Market Closure 6

69 Choice of Clearing House From the start, Powernext decided not to create its own clearing house In 2001, Powernext selected LCH.Clearnet SA to rationalise power clearing (Endex and ICE were using it at the time) In 2008, ECC (based in Leipzig, subsidiary of EEX) becomes the main central counterparty for clearing of energy contracts Gas (EGT, BEB) Power Coal CO 2 Gas (PEG) Power Gas (TTF) Power 7

70 ECC, Powernext, TSOs : contractual framework Clearing Service Agreement ECC Hub Agreement + Side Letter Clearing Licence Clearing Rules Powernext Clearing Member (CM) TSOs NCM/CM Agreement Trading Agreement Market Rules Trading Participant (NCM) Hub Agreement 8

71 Future enhancements Depending on members demands and development of liquidity, the following enhancements will be considered: Cross-margining with Endex and EEX Convergence Exchange/Balancing platform study Negative prices Third-party trading + Give-up/Take-up Exchange access for non-shippers (+ close-out) EFPs (Exchange for Physical) OTC Clearing New maturities for months, quarters and seasons New standard products : calendar, WDNW Spread products Market coupling study Secondary markets study International developments (expansion & cooperation) 9

72 Development of new gas routes 1- Belgium / France 2- Spain / France Shipper s meeting - Paris - October 20 th, 2008

73 1 - Belgium / France Capacity expansion project Taisnières H Open Season -2-

74 Brief overview of Taisnières H developments Proposed product: Taisnières H firm entry capacity into the North Zone on GRTgaz transmission system from Belgium Three development steps are envisaged Capacity (GWh/d) Created Total Available Step Step Step Capacity allocated through this open season process to be made available on December 1, 2013 Amount of capacity kept for short-notice bookings Currently 93 GWh/d Level to be set by the CRE Step 0 takes into account current commercial capacity and existing subscriptions of 210 GWh/d -3-

75 Allocation rules Consistency Rule Target: to ensure consistency in developments on both sides of the border Responsibility to remain with shippers themselves: each shipper submits requests to GRTgaz, that are consistent with capacity (to be) subscribed on Fluxys network by himself and/or its counter-parties at the flange Max [ Cz(E, MN);Cse(E, MN) ] Σ E [ R(E, d, n) ]+S(E, MN) Cz(E, MN) + Cse(E, MN) Final check by GRTgaz: comparison of the total of capacity allocations on both GRTgaz and Fluxys networks Requests stacked by priority groups according to duration / starting date Last priority group only to be pro-rated Capacity C Reservations by level of priority Reservations reduced (α pro-rata) Duration of reservation Reservations 100% served Existing Subscription Short notice -4-

76 Price of the capacity at Taisnières H Proposed by the CRE, decided by the Ministry Historical prices in MWh/d per year: ATRT2 ATRT3 ATRT ,80 91,80 78,03 78,03 90,00 Indicative ratio Regulated Asset Base / Entry Capacity Offered Presented in GRTgaz 10-Year development statement Over the period: on average above-inflation increase between 1 and 2%, i.e. close to 3 or 4% per annum. -5-

77 How to participate? This new binding phase in the process is scheduled to end on December 12, under the following coordinated timetable: November 7 GRTgaz receives binding requests for entry capacity into the North Zone from Belgium on GRTgaz s transmission system. November 21 GRTgaz notifies shippers of the results of the capacity allocation process. December 3 Fluxys receives binding requests for North-South capacity on the Fluxys transmission system. December 12 Fluxys notifies shippers of the results. Binding requests received by GRTgaz before January 30, 2008 have been cancelled The capacity available at the Taisnières H entry point between December 1, 2012 and November 30, 2013 is again accessible under GRTgaz s usual allocation rules -6-

78 Contact us! -7-

79 2 - New routes between Spain and France South GRI Open Season -8-

80 A Need : Development of new gas routes connecting North of France to Spain Limited connection between Spanish and French Gas Markets Spain: connected to NW Europe Markets through France France: an additional mean to foster liquidity on the South Zone Need expected in both directions South GRI: A strong demand from Market and Regulators for new routes from Spain to North Zone, to be developed through Open Season process -9-

81 A new connection to be built : Perthus Western connection (Larrau): can be optimised by 2013 Eastern route connecting Midi with Catalonia via Perthus Larrau Perthus : Proximity with GRTgaz network TIGF Perthus : part of a route to be built from Northern France to Spain by 2015 Perthus -10-

82 GRTgaz investments related to Perthus A whole new route to build from Northern France to Spain Otherwise, Perthus limited to local needs Bourgogne Major investment program for GRTgaz 1 to 1,5 billion Euros TIGF Midi Rhône «MidCat» connection : only 20% of the whole program MidCat -11-

83 Market design and tariff structure (from 1st of January, 2009) PIR Midi (prices in MWh/d per year) 75 Entry / Exit GRTgaz South 75 Entry / Exit TIGF Nord Sud Larrau (prices in MWh/d per year) Exit from TIGF : 285 Entry in TIGF : 90 Larrau TIGF Midi -12-

84 Market design : options to consider MARKET DESIGN 1 MARKET DESIGN 2 Nord Sud.. or.. Nord Sud TIGF Midi TIGF Midi Larrau Perthus Larrau Perthus -13-

85 GRTgaz proposes direct connection GRTgaz South / Enagas A wider choice offered to the market MARKET DESIGN 2 A more direct route between Spain and PEG Nord Nord Sud Fair balance between revenues and investments Market Design 1: GRTgaz invests 25 x annual income Larrau TIGF Midi Perthus TIGF 3 x annual income Market Design 2: GRTgaz invests 9 x annual income GRTgaz proposes to build the whole route including MidCat GRTgaz proposes to market Perthus as pure Entry / Exit Enagas / GRTgaz S -14-

86 Next steps End October 2008: Market consultation to be launched by Regulators on Market design, tariff principles and Open Season schedules Mid November 2008: End of Consultation by Regulators and analysis December 2008: Choice of a market design January 2009: Publication of Info Memorandum 2009: Open Season for capacities 2013 &

87 Thank you for your attention -16-