A PLATFORM TO FOSTER LIQUIDITY IN THE GAS CAPACITY MARKET GRTgaz Shippers meeting October 20, 2008 1
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
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
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
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
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
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
Focus on the contractual and pricing diagram 8
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
Choose the capsquare tariff that fits your trading profile 10
capsquare interface : how does it work? Interface and examples of transactions 11
Capsquare : 1 tool, 2 markets, 3 screens 12
Capsquare : Screen structure 13
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
Capsquare : Transaction Process (Multilateral) User 1 wishes to post an order 15
Capsquare : Transaction Process (Multilateral) User 1 fills order details in 16
Capsquare : Transaction Process (Multilateral) User 1 bids 5000 MWh @ 25 centeur 17
Capsquare : Transaction Process (Multilateral) User 2 wishes to post an order 18
Capsquare : Transaction Process (Multilateral) User 2 fills order details in 19
Capsquare : Transaction Process (Multilateral) User 1 bids 5000 MWh @ 25 centeur User 2 offers 5000 MWh @ 28 centeur 20
Capsquare : Transaction Process (Multilateral) User 2 wishes to adjust its order 21
Capsquare : Transaction Process (Multilateral) User 2 adjusts the order details 22
Capsquare : Transaction Process (Multilateral) User 1 bids 5000 MWh @ 25 centeur User 2 offers 5000 MWh @ 27 centeur 23
Capsquare : Transaction Process (Multilateral) User 1 wishes to deal the offer of User2 (Agressor) 24
Capsquare : Transaction Process (Multilateral) User 1 confirms the transactions details (Agressor) 25
Capsquare : Transaction Process (Multilateral) A confirmation including all transaction details is sent to both parties transactions 26
Capsquare : Transaction Process (Over the Counter) User 1 wishes to post an OTC transaction 27
Capsquare : Transaction Process (Over the Counter) User 1 fills OTC deal details in 28
Capsquare : Transaction Process (Over the Counter) User 2 receives a confirmation request 29
Capsquare : Deal List 30
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: www.capsquare.eu Usb stick containing the CPSA agreement, capsquare brochure Contact your Key Account manager 31
Thank you for your attention 32