GASTERRA GAS STORAGE SERVICES STORAGE YEAR 2017/2018

Transcription

1 GASTERRA GAS STORAGE SERVICES STORAGE YEAR 2017/2018

2 CONTENT Contractual Structure & Framework Products Auctions & Pricing Daily Operations INTERCONTINENTAL EXCHANGE 2

3 CONTRACTUAL STRUCTURE & FRAMEWORK

4 CONTINUATION COOPERATION GASTERRA ICE ENDEX Per Storage Year roughly 19 TW of storage capacity is offered, in the form of 13,229,456 Standard Bundled Units (SBUs) On 20 November 2013 ICE Endex sold 4,130,555 SBUs for the Contract Period 2014/2019. The remaining 9,098,901 SBUs for the Contract Period 2017/2018 will be divided over two auctions via a fixed price mechanism. INTERCONTINENTAL EXCHANGE 4

5 CONTRACTUAL STRUCTURE GasTerra (principal) offers via ICE Endex (mandatory) certain gas storage services ICE Endex acts in its own name, but for the risk and account of GasTerra ICE Endex will not be a physical storage operator, but will aggregate Customer s nominations Contractual structure: Should ICE Endex no longer be a party to a Cooperation Agreement with GasTerra: GasTerra undertakes to provide for a replacement independent and neutral entity, and ICE Endex will transfer all contents to such entity INTERCONTINENTAL EXCHANGE 5

6 ROLE OF ICE ENDEX Services provided by ICE Endex Auction administration Order handling and dispatching (storage operation) Invoicing, settlement, credit control Facilitating secondary trading Purpose of ICE Endex s involvement is to secure anonymity of Customers visà-vis GasTerra: ICE Endex will not disclose identity or any other commercially sensitive information regarding Customers to GasTerra INTERCONTINENTAL EXCHANGE 6

7 CONTRACTUAL FRAMEWORK Auction Rules Prerequisite for participation in an auction Sets forth the rules for qualification and participation Commitment by Customer to sign a Storage Service Agreement when being allotted SBUs by auction Storage Service Agreement (SSA) To be entered into by Customers being allotted SBUs Sets forth rights and obligations between parties, e.g. The product Payments and collateral Governs procedures in connection with the storage operation Operating Agreement (OA) Annex to the SSA Outlines detailed process flows and messaging protocols in connection with the storage operation INTERCONTINENTAL EXCHANGE 7

8 QUALIFICATION FOR NOVEMBER AUCTIONS Timeline: Wednesday 16 November :00 LET: receipt of Qualification Documents by ICE Endex Before the auction ICE Endex will organize a test auction (28 November) Wednesday 30 November 2016: Auction of 4,549,451 SBUs for the Contract Year 2017/2018 Wednesday 25 January 2016: Auction of 4,549,450 SBUs plus the possible remainder of the 30 November auction, for the Contract Year 2017/2018 Parties qualified for the November auction are automatically qualified for the February 2017 auction Parties that did not qualify for the November auction and want to participate in the February 2017 auction have to submit the Qualification Documents ultimately 11 January :00 LET. INTERCONTINENTAL EXCHANGE 8

9 QUALIFICATION FOR NOVEMBER AUCTIONS Qualification requirements (Article II of the Auction Rules): TTF shipper license Power of Attorney + copy of signatories passports Registered Party data Sheet: contact details Representations and Commitment Statement: amongst others, a firm commitment to acquire SBUs if successful in the Auction Further Qualification Documents: Extract of chamber of commerce (or similar) not older than 6 months Additional documents / information evidencing that signatories are duly authorized Articles of association Annual accounts of the two most recent years List of beneficial owners INTERCONTINENTAL EXCHANGE 9

10 PRODUCTS

11 CHARACTERISTICS OF A STANDARD BUNDLED UNIT (SBU): One year product: Contract year from gas day 1 April 2017 up to and including gas day 31 March 2018 Available storage space: 1440 kwh Injection capacity: kwh/h Injection factor: 1.0 Withdrawal capacity: 1.0 kwh/h Withdrawal factor: depends on the actual amount of Gas-in-Storage at the end of Hour H-1 as follows: Between 0 kwh and 864 kwh Gas-in-Storage the Withdrawal Factor increases linearly from 0.6 to 1; Between 864 kwh and 1440 kwh Gas-in-Storage the Withdrawal Factor equals 1 Delivery point: TTF Gas in store at beginning of Storage Year: No volume of gas in store at the contract start date at 06:00 hours (LET), unless Roll-over facility : option for the Buyer to retain gas in store at the end of the contract of the Storage Year if sufficient capacity booked for the next Storage Year Roll-over facility is also possible between two different Customers Conditional Service INTERCONTINENTAL EXCHANGE 11

12 AUCTIONS & PRICING

13 THE AUCTION The price mechanism is a fixed price mechanism. In the auctions the participant will submit a volume and a price in EUR/SBU. One day prior to the Auction the Reserve Price will be communicated to all Registered Parties via the Auction Bidding Website. Bids with a Price lower than the Reserve Price are not valid. Each Auction shall be conducted over at least two Rounds, and a maximum of five Rounds The Auction will start at hours LET and a Bidding Round will last 15 minutes The next Round will start 15 minutes after the closing of the previous Round A total of 9,098,901 SBUs will be offered Maximum Supply 30 November: 4,549,451 SBUs Maximum Supply 25 January: 4,549,450 SBUs plus the possible remainder of the November auction INTERCONTINENTAL EXCHANGE 13

14 ROUND 1 Start of Round Price for Round 1 will be equal to the Reserve Price Bidder has to submit at least 1 Bid in the first Round in order to participate in subsequent Rounds. Each Bidder has the possibility to submit a maximum of 3 Bids. Each Bid is a firm and irrevocable commitment to acquire SBUs Each Bid shall consist of a Price and a Volume in Round 1 Each Bid is subject to certain conditions for it to be valid, e.g. The volume of the Bids of a Bidder combined may not exceed the Bidder Limit (3,307,364 SBUs conditional on possible allocation for the Contract Period 2014/2019) The volume of a Bid will be expressed as a non-negative whole number The Price in a Bid will be expressed in EURO per SBU, as a multiple of 0.01 The Price must be equal to or higher than the Reserve Price The Bid has to be submitted during the opening of the Round If a Bidder does not submit a valid Bid in the first Round the Bidder shall not be allowed to participate in the subsequent Rounds During the opening of a Round the Bidder may adjust each of its maximum of three Bids. Only the last valid Bid received for each of the maximum of three Bids will be valid INTERCONTINENTAL EXCHANGE 14

15 AFTER ROUND 1 The Auction Operators, observed by a notary, shall calculate: The Aggregate Demand (sum of all Quantities demanded by Bidders in a given Round) End of Round Price (lowest Bid Price equal to or greater than the Reserve Price and at or within the Maximum Supply) Total Quantity (sum of all Quantities demanded by all Bidders at Price equal to or greater than the End of Round Price) There are 2 scenarios possible: No Bids in excess of Reserve Price At least one Bid in excess of Reserve Price Since the Auction consists of at least two Rounds, there will be a second Round Together with the results, the settings of the second Round will be communicated via the homepage of the Auction Bidding Website INTERCONTINENTAL EXCHANGE 15

16 SUBSEQUENT ROUNDS Only if a Bidder submitted at least one valid Bid in Round 1 the Bidder is able to participate in the next Round Volumes cannot be adjusted in subsequent Rounds If the Price of (one of) the Bid(s) submitted in a previous Round is lower than the Start of Round Price of the current Round (i.e. the Bid is out of the market), the Bidder has to submit a new Price greater than the Start of Round Price , or else the Bidder is unable to participate with that Bid in the rest of the Auction. If the Price of the only or last valid Bid is out of the market and the Bidder does not increase its Bid as stated above the Bidder will be out of the Auction If the Price of (one of) the Bid(s) submitted in a previous Round is equal or greater than the Start of Round Price of the current Round, its current Bid will remain valid and the Bidder will be able to participate in the rest of the Auction, until the Start of Round Price will be greater than the current Bid. During the opening of a Round, the Bidder can change the Price of its Bid given that the price is greater than the previous Price and greater than the Start of Round Price INTERCONTINENTAL EXCHANGE 16

17 AFTER THE SECOND ROUND There are 4 scenarios possible: End of Round Price R1 = Reserve Price and in R2 no Bids in excess of Reserve Price Auction over; no allocation End of Round Price R1 = Reserve Price and in R2 at least one Bid in excess of Reserve Price Next Round End of Round Price R1 > Reserve Price and End of Round Price R2 = End of Round Price R1 Auction over; all Bids > End of Round Price allocated End of Round Price R1 > Reserve Price and End of Round Price R2 > End of Round Price R1 Next Round INTERCONTINENTAL EXCHANGE 17

18 AFTER ROUND 3,4 & 5 There are 2 scenarios possible after Round three and four: End of Round Price of Round 3 or 4 = End of Round Price of Round 2 or 3 Auction over; all Bids > End of Round Price allocated End of Round Price of Round 3 or 4 > End of Round Price of Round 2 or 3 Next Round. There is 1 scenario possible after Round five: If no preceding Round was declared the Final Round, the fifth Round shall be the Final Round Auction over; all Bids > End of Round Price allocated INTERCONTINENTAL EXCHANGE 18

19 ALLOCATION If the Total Quantity demanded by all Bidders at a Price equal to or greater than the End of Round Price is greater than the Maximum Supply, the following allocation rules will be applied: Bids with a Price in excess of the End of Round Price will be allocated their entire Quantity If there is one Bid with a Price equal to the End of Round Price, that Bid shall be allocated the remainder Supply If there are more Bids with a Price equal to the End of Round Price, those Bids will be allocated in proportion of their Quantity Pay-as-bid INTERCONTINENTAL EXCHANGE 19

20 STORAGE SERVICES AGREEMENT The Bidder shall receive confirmation by ICE Endex of their allocation via and ICE Endex shall send a completed Storage Services Agreement that the Bidder will have to sign and send back to ICE Endex in order to become a Buyer. If a successful Bidder fails to do so within 15 (fifteen) Business Days following the Auction End Date, ICE Endex shall notify the Dutch competition authority thereof, and such Bidder shall immediately, without further action or formality being required, become liable to ICE Endex for an immediately due and payable penalty in the amount of 5% of the contract sum ensuing from the Auction, with a minimum of 250,000, without ICE Endex having to prove any loss or damage in addition if there are grounds for so doing. INTERCONTINENTAL EXCHANGE 20

21 DAILY OPERATIONS

22 FROM AUCTION TO OPERATIONS Once the auction has finished and you are a successful buyer of SBUs ICE Endex will send with required follow up actions We will send you a SSA+OA based upon the information sent by customer in reply Bank guarantee or cash deposit Signed SSA and appendices received by ICE Endex The bank guarantee/cash deposit and signed SSA have to be in the possession of ICE Endex within 15 business days Testing of communications prior to the Storage Year If all gates passed successfully you are ready to start nominating INTERCONTINENTAL EXCHANGE 22

23 DAILY PROCESS TIMELINE D-1 10:00 Storage Availability Notice (SAN) D-1 11:00 Storage Request Notice (SRN) D-1 12:00 ICE Endex sends aggregate request to GasTerra D-1 12:30 GasTerra replies to ICE Endex D-1 13:30 ICE Endex sends confirmation to customer (SRRN) D-1 13:30 Customer and ICE Endex send Nomination program to GTS Single sided nomination used *time in LET ICE Endex OPERATIONS will be available during business days between 09:00 LET and 15:00 LET and all other days between 09:00 LET and 13:00 LET Note: in case of irregularities in the process these times might be extended until the problem is deemed solved INTERCONTINENTAL EXCHANGE 23

24 DISCLAIMER The information contained in this document ( Presentation ) has been prepared by ICE Endex and is subject to change without notice. Copyright and intellectual property right protection exists in this Presentation and it may not be reproduced, distributed or published with any third party, in whole or in part, without the express prior written permission from ICE Endex. All rights are reserved. While reasonable care has been taken to ensure that the information contained herein is true and accurate, ICE Endex makes no representation to its correctness, reliability or completeness including likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters that may be contained in this Presentation. Neither ICE Endex nor any of its directors or employees accepts any liability in respect of the information contained in the Presentation or for any loss arising from the use of this Presentation, its contents or otherwise arising in connection with it. This Presentation does not constitute an offer, invitation or recommendation to any transaction and neither is it to be taken as any form of commitment on the part of ICE Endex to proceed with any transaction. INTERCONTINENTAL EXCHANGE 24