Gas Ten Year Statement 2019 Gas Ten Year Statement 2019

Welcome > Welcome • How to use this document > • GTYS document suite > Executive • Welcome to our 2019 Gas Ten Year Statement > Executive summary > Introduction > summary >

Introduction >

Chapter 1 Drivers of change >

Chapter 2 Network capability >

Chapter 3 System Operator Chapter 1 Chapter 2 Chapter 3 Capability > Drivers of change > Network capability > System Operator capability > Chapter 4 Ongoing developments >

Chapter 5 Looking forward >

Appendix >

Chapter 4 Chapter 5 Ongoing developments > Looking forward > Appendix > Gas Ten Year Statement Welcome 2019 How to use this document

Welcome > We have published the 2019 Gas Ten Year Statement (GTYS) Executive as an interactive document. summary > Home Arrows This will take you to the Click on the arrows to move Introduction > home page. backwards or forwards a page.

Chapter 1 Drivers of change >

Chapter 2 Network ‘Defined’ content Information capability > Words underlined are defined An information icon shows there Chapter 3 System Operator in the glossary at the back is ‘further information’ included Capability > of this document. at the back of this document. Chapter 4 Ongoing developments > ‘Linked’ content

Chapter 5 Words in light blue and underlined Looking have links to other pages forward > Enlarge/reduce in this document, or are URLs. Appendix > The URLs have an additional Hover over the magnifying superscript number next to them, icon to make charts bigger These are listed in ‘Index of links’ or smaller. at the back of the book and give you the URLs in full.

GTYS | 2019 01 Gas Ten Year Statement Welcome 2019 GTYS document suite

Welcome > As part of the GTYS publication we produce a huge amount of analysis and data. For ease of use, we have not included all of this data within this GTYS publication. Instead, our Executive workbook is available online1 and contains the following: summary > • All graphs and tables contained • 1-in-20 peak day undiversified Introduction > in the GTYS 2019. demand per scenario out

• Actual demand for 2018 (TWh). to 2050. Chapter 1 • Peak day, maximum and • 1-in-50 peak day diversified Drivers of demand per scenario out change > minimum physical NTS entry flows for gas year 2018–19. to 2050. Chapter 2 • 1-in-50 peak day undiversified Network • Peak day, maximum and capability > minimum physical NTS exit demand per scenario out to 2050. Chapter 3 flows for gas year 2018–19. System Operator • Annual LDZ demand Capability > • Gas demand and supply volumes per scenario out per scenario. Chapter 4 Ongoing to 2050. • Peak and annual supply developments > • 1-in-20 peak day diversified by terminal out to 2050. Chapter 5 demand per scenario out Looking forward > to 2050.

Appendix >

GTYS | 2019 02 Gas Ten Year Statement Welcome 2019 to our 2019 Gas Ten Year Statement

Welcome > The economic landscape, developments in technology and I hope you find this document useful. Please share your views with consumer behaviour continue to change at a remarkable rate. us to help shape the future of the National Transmission System. This creates more opportunities than ever before for the gas You can find details of how to contact us on our website. Executive industry. Our 2019 Gas Ten Year Statement, along with our summary > other System Operator publications, aims to encourage and inform debate, leading to changes that ensure a safe, secure Introduction > and sustainable energy future for everyone in Great Britain.

Our mission is to deliver reliable and affordable energy for all Chapter 1 Drivers of consumers and enable the transformation to a sustainable gas system. change > The latest Future Energy Scenarios further emphasise the importance of gas in Great Britain’s energy mix. In all Future Energy Scenarios, Chapter 2 Network gas will continue to play a pivotal role in heat, industry, and flexible capability > power generation. As we transition to a net zero future, low-carbon Chapter 3 gases such as hydrogen and biomethane could play a key role in System Operator decarbonising the energy sector. Capability >

Chapter 4 As the pace of the energy transformation accelerates, we will continue Ongoing to enhance our approach to how we foresee usage of the gas network developments > evolving. This document provides a medium for us to engage with you Chapter 5 and capture your changing requirements. In doing so, we will make Looking sure we have the right tools and capabilities in place to maximise forward > market efficiency, whilst maintaining a safe and secure network. Appendix >

Ian Radley Head of Gas Operations GTYS | 2019 03 Gas Ten Year Statement 2019

Welcome >

Executive summary >

Introduction > Executive

Chapter 1 Drivers of summary change >

Chapter 2 Overview Network capability > Key messages Chapter 3 System Operator Capability >

Chapter 4 Ongoing developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 04 Gas Ten Year Statement Executive summary 2019 Overview

Welcome > The 2019 Gas Ten Year Statement (GTYS) provides you with an update on current and future changes that impact the way we plan and operate the gas Executive National Transmission System (NTS). The GTYS summary > outlines what we are doing to address these changes as the System Operator and Transmission Owner. Introduction > The key drivers of change In addition, due to recent that impact how we plan and legislation that amended the Chapter 1 operate the NTS include: UK’s 2050 greenhouse gas Drivers of change > emission target to net zero, we have included an additional Chapter 2 Network driver of change in the GTYS: capability >

Chapter 3 Our customers’ immediate System Operator needs, alongside their Capability > long-term needs as Chapter 4 articulated within the latest Net zero (net zero greenhouse Ongoing Future Energy Scenarios gas emissions) by 2050 developments >

Chapter 5 These drivers of change Looking can trigger our Network forward > Development Process, the Appendix > Asset management process we use for decision making, optioneering, and delivering all our projects.

Legislative change GTYS | 2019 05 Gas Ten Year Statement Executive summary 2019 Key messages

Welcome >

Executive summary >

Introduction > Customer needs Legislative change Net zero by 2050 Asset management Our customers’ needs are continually Legislative change, both in the UK and the In June 2019, the UK Government set It is vital that we comply with all safety Chapter 1 evolving. That includes both their immediate EU, plays a significant role in how we utilise a new target requiring the UK to bring legislation that applies to operating the Drivers of needs, and their longer term needs as our assets, plan and operate the NTS. all greenhouse gas emissions to net zero NTS, whilst also maintaining the current change > reflected in the Future Energy Scenarios by 2050. We recognise the urgent need level of network risk through maintenance (FES). In our role as System Operator and The Industrial Emissions Directive (IED) to address climate change and we support and replacement. With so many ageing Chapter 2 Transmission Owner, we need to ensure is the mandatory minimum emission the government’s commitment to net zero assets on our network, we have a growing Network we continually adapt our planning and standard that all European countries must by 2050. Gas has an important role to asset health challenge. An ageing network capability > operation to safely accommodate these comply with by 2023. The IED applies to play in supporting the transition to a needs more maintenance and we have needs on the NTS. In addition to this 22 of our 24 NTS compressor sites. Work decarbonised energy future by providing to balance this with our customers’ document, we use the Gas Future to ensure compliance has been ongoing the reliability and flexibility for low-carbon changing needs of the NTS. Chapter 3 Operability Planning documents as during 2018–19. Further improvements to electricity, heat, industry and transport. System Operator a vehicle for our customers to assess our compressor sites have been submitted A key aspect of our asset management Capability > their future needs of the NTS. as part of our RIIO-2 business proposal. During 2018–19, we launched our approach going into the future includes Hydrogen in the NTS (HyNTS) programme. the development of a new Methodology Chapter 4 In response to our customers’ changing In addition, through our role in an This is a programme of work that seeks for Network Output Measures (NOMs). Ongoing needs, we launched an online gas industry working group established to identify the opportunities and address This monetised risk based approach to developments > connections portal in January 2019. by the Institute for Gas and Engineering the challenges that transporting hydrogen the planning and targeting of our asset This can facilitate all connection Management (IGEM), we are reviewing within the NTS presents. This will help to investments, and the reporting of investment Chapter 5 applications, as well as applications GB gas quality specifications. The gas unlock the potential of hydrogen to support outcomes to Ofgem and key stakeholders, Looking to reserve capacity through the Planning quality specifications being developed the UK’s transition to a net zero future. has been agreed provisionally by Ofgem and Advanced Reservation of Capacity will help to ensure we continue to facilitate in 2018–19. forward > Agreement (PARCA) process. In addition, a diverse mix of supply sources onto by providing a suite of standardised the gas network, which will become Appendix > connection designs, we can facilitate increasingly important as the GB supply smaller and faster-to-market connections mix continues to change. at a lower cost than ever before. We are already seeing increasing interest from non-traditional NTS customers. We are currently facilitating our first biomethane and Compressed (CNG) connections.

GTYS | 2019 06 Gas Ten Year Statement 2019

Welcome >

Executive summary >

Introduction > Introduction

Chapter 1 Drivers of change > Introduction What do we do? Chapter 2 Network Our regulatory framework capability > Our key gas SO publications Chapter 3 System Operator Capability >

Chapter 4 Ongoing developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 07 Gas Ten Year Statement Introduction 2019

Welcome > We write the Gas Ten Year Statement (GTYS) to provide you Our network with a better understanding of how we intend to plan and The NTS plays a vital role in the secure transportation of gas and operate the National Transmission System (NTS) over the the facilitation of a competitive gas market. Our network includes Executive next ten years. summary > approximately 7,660 km of pipelines, presently operated at pressures of up to 94 bar (see Appendix 1 for a detailed view of NTS maps). The GTYS is published annually at the end of our annual planning Our network transports gas from entry terminals and storage Introduction > cycle. We use the GTYS to provide you with updated information facilities to exit offtake points from the network. At exit offtake points, to help you to identify connection and capacity opportunities on the gas is transferred to four distribution networks (DNs) for onward NTS. We summarise key projects, changes to our internal processes Chapter 1 transportation to domestic and industrial customers, or to directly Drivers of that may impact you, as well as highlighting key developments that connected customers including storage sites, power stations, large change > provide further information on our gas System Operator activities. industrial consumers and interconnectors (figure 0.1). Chapter 2 Network What do we do? capability > Figure 0.1 Key: Our role The National Transmission System Chapter 3 NTS pipeline System Operator We are the System Operator and Transmission Owner of the gas Capability > NTS in Great Britain. Our primary responsibility is to transport gas Liquified Natural Gas (LNG) from supply points to exit offtake points safely, efficiently and reliably. St Fergus import terminals Chapter 4 Ongoing As System Operator, we manage the day-to-day operation of the Natural gas entry terminals developments > network. This includes balancing supply and demand, maintaining Moffat to system pressures and ensuring gas quality standards are met. As the Republic Interconnectors Chapter 5 of Ireland Moffat Looking System Operator, we are also responsible for identifying the long-term interconnector NTS compressor sites forward > Ireland Teesside needs of the network. As Transmission Owner, we must make sure Barrow Appendix > all of our assets on the NTS are fit for purpose and safe to operate. Easington Burton Point aan t atn We develop and implement effective maintenance plans and asset ne The Netherlands replacement schedules to keep the gas flowing. Belgium

Interconnector Milford Haven (IUK) Isle of Grain

GTYS | 2019 08 Gas Ten Year Statement Introduction 2019

Welcome > Our regulatory framework Our key gas SO publications The RIIO (Revenue = Incentives + Innovation + Outputs) regulatory The Gas Ten Year Statement (GTYS) details how we will plan and framework was implemented by the Office of Gas and Electricity operate the gas network, with a ten year view. Executive summary > Markets (Ofgem) in 2013–14. RIIO uses incentives to drive innovation in order to develop and deliver more sustainable energy. The GTYS is published at the end of the annual planning process and provides the platform on which the next annual planning process Introduction > We are currently within the RIIO-1 period (2013–21); under this is built. framework, we have set outputs which have been agreed with Chapter 1 our stakeholders. We deliver these outputs in return for an agreed The Gas Future Operability Planning (GFOP) describes how our Drivers of changing customer and stakeholder needs may affect the future change > revenue allowance from Ofgem. You can find more information on our delivered outputs for RIIO-1 in Our Performance1 publication. operability of the National Transmission System (NTS). Chapter 2 Network The GFOP acts as a vehicle for our customers and stakeholders to capability > assess their future needs of the NTS out to 2050, with the aim of Chapter 3 RIIO-2 Spotlight setting the direction for solutions that benefit all market participants. System Operator Capability > We are currently finalising We sought stakeholder views through our business plan for the RIIO-2 a three stage engagement process that Chapter 4 Ongoing period (2021-2026), and will submit included: developments > our final plan to Ofgem by the end • establishing stakeholder priorities of 2019. Chapter 5 • building the details of our business Looking To build our business plan, plan with our stakeholders forward > we carried out our most extensive • checking our plan will deliver what listening exercise to understand our stakeholders need. Appendix > stakeholder priorities and future

requirements. Our draft business plan submission is now available online. The final business plan will be submitted to Ofgem in December 2019.

GTYS | 2019 09 Gas Ten Year Future Energy Scenarios Statement Introduction July A range of credible 2019 pathways for the future of energy from today to 2050. Scenarios are unconstrained by network issues. To see how the GTYS fits Welcome > The ETYS and GTYS take the unconstrained The operability publications consider the in with other National Grid scenarios in FES to develop requirements for unconstrained scenarios in FES to explore planning and operating the electricity and gas operability risks and associated requirements and National Grid ESO transmission systems over the next 10 years. of the transmission networks and services. Executive publications, you may summary > also be interested in the following documents: Introduction > Needs case Options Electricity Ten Network Options System Operability Operability Strategy Year Statement Assessment Framework Report November January How the changing Highlights the challenges The likely future The options energy landscape we face in maintaining transmission available to meet will impact the an operable electricity Chapter 1 requirements on the reinforcement operability of the system, and summarises Drivers of electricity system. requirements on the electricity system. Ad-hoc, insights the work we are undertaking electricity system. -led productions to ensure we meet change > and reports those challenges.

Gas Ten Ten Year Network Gas Future Future Gas Chapter 2 Year Statement Development Plan Operability Planning Supply Patterns Network November Overview of the How the changing How variability in supply How the gas European gas energy landscape will pattern seasonally and day- capability > network is planned and electricity impact the operability to-day has changed, and and operated, with infrastructure and its of the gas system. could change in the future. Chapter 3 a ten-year view. future developments. System Operator Capability >

Chapter 4 Ad-hoc reports that develop shorter-term plans Annual short-term reports that explore any Ongoing for more specific elements of operational assets security of supply or operational challenges developments > and services, where the need arises. anticipated over the summer and winter periods.

Chapter 5 System Needs and Product Roadmap Transmission Winter Review Summer Looking Product Strategy for Restoration Thermal and Consultation Outlook Report Our view of future Our plan to develop Constraints June April forward > electricity system restoration products. Management A review of last Our view of the needs and potential Our plan for the winter’s forecasts gas and electricity Appendix > improvements management of versus actuals and systems for the to balancing thermal constraints. an opportunity to summer ahead. services markets. share your views on the winter ahead.

Wider Access Product Winter Electricity to the Balancing Roadmap for Outlook Report Capacity Report Mechanism Reactive Power October Capacity Market Roadmap Our plan to Our view of the auctions for delivery Our plan to develop reactive gas and electricity in a year ahead and widen access power products. systems for the four years ahead. to the balancing winter ahead. mechanism. GTYS | 2019 10 Gas Ten Year Statement 2019

Welcome >

Executive summary >

Introduction > 1>Drivers

Chapter 1 Drivers of of change change >

Chapter 2 1.1 Introduction Network capability > 1.2 Network Development Process: stage 1 Chapter 3 System Operator 1.3 Customer needs Capability > 1.4 Asset management Chapter 4 Ongoing 1.5 Legislative change developments > 1.6 Net zero by 2050 Chapter 5 Looking forward >

Appendix >

GTYS | 2019 11 Gas Ten Year Statement Drivers of change 2019 1.1 Introduction

Welcome > This chapter describes the drivers of change that can trigger stage one of our Network Development Process (NDP), please see figure 1.1. Executive summary >

Figure 1.1 Introduction > Drivers of change that can trigger our Network Development Process

Chapter 1 Drivers of Customers’ immediate change > Legislative change and future needs Chapter 2 Key messages Network capability >

Chapter 3 Certain drivers of change can trigger our NDP because they System Operator affect our current network capability and future system operability. Capability > We articulated these drivers in the introduction of this GTYS and Chapter 4 they include: our customers’ immediate and future needs, asset Ongoing management, legislative change, and net zero by 2050. developments >

Chapter 5 Looking forward >

Appendix > Asset management Net zero by 2050

GTYS | 2019 12 Gas Ten Year Statement Drivers of change 2019 1.2 Network Development Process: stage 1

In the GTYS, we aim to make our investment decision Figure 1.2 Welcome > Our Network Development Process process as transparent as possible by outlining the initial stages of our Network Development Process (NDP)

Executive as shown in figure 1.2. Drivers of change that can trigger summary > our Network Development Drivers of Process include immediate and long term customer needs, asset The NDP defines our method for optioneering, developing, Change management, legislative change and 1 decarbonisation targets, including Introduction > net zero by 2050. sanctioning, delivering and closing projects that address our drivers of change. Our goal is to deliver projects with the lowest whole-life We analyse the required network capability of the National Network Transmission System over the short, cost, that are fit for purpose and meet our customer, stakeholder medium, and long term to address Chapter 1 Capability our drivers of change. Drivers of and RIIO requirements. 2 change > In the GTYS, we focus on the first three stages of the NDP (Drivers We develop non-asset solutions Chapter 2 (commercial rules and operational System Operator tools) to address our drivers Network of Change, Network Capability and System Operator Capability) as of change. capability > these outline our internal decision-making process. The final stage 3 Capability Chapter 3 of the NDP details asset investment options that have been identified Asset investments to address our System Operator as the preferred option to meet our stakeholders’ needs, and these Ongoing drivers of change. These investments Capability > deliver best value for our customers are discussed in chapter 4 – Ongoing Developments. and end consumers. When the Developments optional solution is selected, the 4 project is developed, sanctioned, Chapter 4 executed, reviewed and closed. Ongoing In this chapter, we explore the drivers of change that can developments > trigger stage one of our NDP. Chapter 5 Looking forward >

Appendix >

GTYS | 2019 13 Gas Ten Year Statement Drivers of change 2019 1.3 Customer needs

Welcome > Our immediate customer needs include the connection 1.3.1 Connection and capacity application process and capacity processes. When these are initiated by our If you need a new connection or a modification to an existing NTS customers, they are a key driver of change that triggers our connection, you will need to go through the Application to Offer (A2O) Executive Network Development Process (NDP). We need to assess process. Our connection (A2O) and capacity processes (Planning summary > what impact a new or modified connection, or a capacity and Advanced Reservation of Capacity Agreement – (PARCA)) are change, will have on our current network capability and separate. You can find a detailed description of our connection and Introduction > our operational strategies. capacity application processes in Appendix 3. Anyone who wants to connect to the NTS can arrange for a Chapter 1 If you have any queries about our connection or capacity processes, Drivers of connection directly with us and we can reserve capacity for them. please contact the gas customer team directly, you can find their change > However, a shipper must buy and hold capacity for a customer. contact details in Appendix 4. Our Gas Transporters Licence stipulates we can only enter Chapter 2 Network transportation arrangements with shippers and Gas Distribution capability > Network Operators, as detailed in the Uniform Network Code (UNC). Chapter 3 System Operator In addition, for any new entry connection to our system, Capability > the connecting party should tell us as soon as possible what the gas Chapter 4 composition is likely to be. We will then determine whether gas of this Ongoing composition would be compliant with our statutory obligations and developments > our existing contractual obligations. Please see Appendix 2 for further Chapter 5 information on network entry gas quality specifications and the latest Looking forward > gas quality developments in Great Britain.

Appendix >

GTYS | 2019 14 Gas Ten Year Statement Drivers of change 2019 1.3 Customer needs

Welcome > 1.3.2 Evolving our connection process Historically, connection requests to the NTS were typically required to support large scale entry and exit connections or facilitate storage. Executive However, more recently, we have been approached by customers summary > aiming to connect smaller projects. These projects are fundamentally different to traditional NTS customers, as they are generally fast Introduction > to market and the associated costs for a connection represent a significant portion of their total project budgets. Chapter 1 Drivers of These non-traditional customers see value in connecting to the change > NTS because of the system location and/or the benefits of a higher Chapter 2 pressure network. This emerging customer base includes those Network developing non-traditional gas sources, for example, biomethane. capability > Our spotlight on facilitating flexible connections includes more Chapter 3 information on how we are engaging with these new customers System Operator and beginning to facilitate these new connections to the NTS. Capability > Chapter 4 You can find out more information on how we are evolving Ongoing developments > our connection process by viewing our new online NTS gas connections portal1 that we launched in January 2019. Chapter 5 Looking forward >

Appendix >

GTYS | 2019 15 Gas Ten Year Statement 2019 Facilitating flexible connections for gas customers Spotlight

The outputs of our innovation project The future for gas Welcome > Project CLoCC (Customer Low Cost connections Connections) simplified the process Biocow – first biomethane Fordoun – first Compressed The new gas connections portal of connecting to the NTS for a new connection Natural Gas (CNG) connection generation of gas customers by is now live and customers are able Executive to register to use the portal to summary > reducing the cost and time to connect to the NTS. generate cost estimates and apply for a gas connection online. Interest Introduction > in using the portal has been high, Project CLoCC closed on 29 October 2018 and delivered its innovation we currently have 66 companies outputs to the National Grid business registered to use it. Chapter 1 for implementation. In July 2019, Drivers of Ofgem agreed to award 100 per We have a number of new change > cent of Successful Delivery Reward connections in discussion and are looking to build on the work that Chapter 2 Criteria, reflecting the fact that Network National Grid Gas Transmission Project CLoCC started to make capability > had delivered the CLoCC project further improvements for customers. to a satisfactory standard, on time This will include reviewing the services Chapter 3 and under budget. we offer to our increasingly diverse System Operator customer base, and reviewing our Capability > We are continuing our work to evolve costs, on a regular basis. Chapter 4 gas transmission connections – Ongoing developments > creating many firsts for the NTS in For more information on the process. Read the two examples gas connections, please get Chapter 5 on this page to find out more about in touch with the Gas Contract Looking this work. forward > Management Team at Box.UKT.customerlifecycle@ Appendix > nationalgrid.com or via our website through accessing the online gas connections portal.

GTYS | 2019 16 Gas Ten Year Statement Drivers of change 2019 1.3 Customer needs

1.3.3 Capacity at Interconnection Points Figure 1.3 Welcome > Map of the UK highlighting interconnector infrastructure The UK currently has three direct gas pipelines (gas interconnectors) connecting the NTS Key: Executive to other states (figure 1.3). These include: summary > NTS pipeline • Moffat to the Republic of Ireland St Fergus Liquified Natural Gas (LNG) Introduction > import terminals • Balgzand to Bacton Line (BBL) to the Netherlands • Interconnector UK (IUK) to Belgium. Natural gas entry terminals Chapter 1 Interconnectors Drivers of You can find a detailed description of our capacity application change > process for interconnectors in Appendix 3. at t NTS compressor sites te e Chapter 2 rean Network Moffat In July 2019, the interconnector BBL developed capability nternnetr capability > for two-way flow. Please see our spotlight on BBL to find Chapter 3 out more information. Ireland Teesside System Operator Capability > Barrow

Chapter 4 Easington Ongoing Burton Point aan t atn developments > ne Chapter 5 The Netherlands Looking Belgium forward > Appendix > nternnetr

Milford Haven Isle of Grain

GTYS | 2019 17 Gas Ten Year Statement 2019 Bacton Balgzand Line (BBL) Facilitating modifications to existing customer connections Spotlight

Welcome > Increasingly, our customers 3. We shall accommodate gas to BBL, are choosing to modify where possible, by utilising existing For more information existing connections. W e engaged with a wide capacity products and being flexible on gas connections and range of customers and in our approach, whilst maintaining modifications, please get in Executive touch with the Gas Contract summary > Bacton Balgzand Line (BBL) stakeholders to understand our obligations to customers. their views and priorities. We will continue to assess and Management Team via Reverse flow project email or via the online gas facilitate modifications to connections Introduction > 4. W e identified solutions, connections portal. BBL is the operator of the including (subject to maintenance to our network. interconnector between the UK and network capability) releasing (Bacton, Norfolk) and the Netherlands daily exit interruptible exit Chapter 1 (Balgzand) commissioned in 2006. capacity at BBL to facilitate Drivers of change > BBL initially operated only in physical additional flow out from Bacton. forward flow from the Netherlands Chapter 2 to the UK. Following approval from Ofgem, as Network of July 2019, the revised Interconnector capability > In 2017, BBL approached National Agreement is now in place and Chapter 3 Grid to discuss the potential for the consequently BBL have the contractual System Operator addition of physical reverse flow rights to physically offtake gas from Capability > capability from UK to the Netherlands the NTS. with a target date to be in operation Chapter 4 by autumn 2019. Ongoing This has enhanced UK connectivity developments > with Europe by fully linking the 1. UK with one of the largest markets Chapter 5 in Europe for the first time, with Looking Ther e were significant thebenefit of strengthening the forward > challenges for us to overcome. UK’s security of supply. Appendix > 2. 

W e completed studies and network analysis to explore our ability to facilitate BBL’s request.

GTYS | 2019 18 Gas Ten Year Statement Drivers of change 2019 1.3 Customer needs

1.3.4 Future Energy Scenarios Figure 1.4 Welcome > The FES 2019 scenario matrix Our long term customer needs are articulated within National Grid’s Future Energy Scenarios (FES). We use the latest Future Energy Executive Scenarios as the starting point for all our future network planning. Consumer Community summary > Evolution Renewables The FES are produced each year to identify a range of credible Introduction > scenarios for the next 30 years and beyond (figure 1.4). These scenarios consider how much energy might be needed and where Chapter 1 it could come from. They look at what the potential changes over Drivers of this time period might mean for the industry and for its customers. change >

Chapter 2 Network Note Steady Two capability > Progression Degrees Chapter 3 At the time the 2019 FES scenarios were developed, the legally System Operator binding target included an 80 per cent reduction in greenhouse Level of decentralisation Capability > gas emissions compared to the 1990 levels. This has now Chapter 4 moved to a target of net zero greenhouse gas emissions by 2050. Ongoing developments > To reflect this, sensitivity analysis was carried out for a net zero pathway in addition to the four scenarios in FES 2019. Chapter 5 Looking forward > Speed of decarbonisation Appendix >

In the GTYS, document we only show the latest FES results as far *Please note, in response to stakeholder feedback, our GTYS charts as 2030* instead of 2050, as this period is of the greatest relevance and tables workbook now also includes the data from the FES out to decisions that need to be taken on the gas network today. to 2050. The GTYS does not repeat the FES, it instead shows a comparison between now and 2030 to highlight key potential changes to gas supply and demand over the next decade. GTYS | 2019 19 Gas Ten Year Statement Drivers of change 2019 1.3 Customer needs Figure 1.5 1.3.5 Gas demand Figure 1.5 Welcome > Comparison of gas demand by Future Energy Scenario between 2018 and 2030 Figure 1.5 shows a comparison of gas demand by scenario between 2018 and 2030. The following paragraphs detail the 100 Executive consumer choices and technological developments that influence summary > 90 the composition of UK gas demand for each Future Energy Scenario by 2030. 80 Introduction > 0

The Two Degrees scenario shows how the UK’s decarbonisation 0 0 Chapter 1 target could be met using more centralised technologies. Residential 0 Drivers of gas demand declines as homes become more thermally efficient. bcm/year change > Decarbonisation of heating is starting to be achieved by using 0 Chapter 2 hydrogen as an energy source. This is produced from natural gas, 20 Network via a process known as steam methane reforming, combined 10 capability > with carbon capture utilisation and storage (CCUS). Successful 0 Chapter 3 development of CCUS allows the technology to be used in some 2018 200 200 200 200 System Operator large-scale gas-fired power stations as well. T Stea mmnt nsmer Capability > erees rressn eneaes tn Chapter 4 Steady Progression shows a muted reduction in demand from Year Ongoing esidential ommercial Industrial ower generation (NTS) developments > today’s levels due to low energy efficiency improvements and the ports ydrogen conversion Transport continued use of natural gas-fired . However, this Chapter 5 Looking scenario does include a low (<5 per cent) hydrogen blend into the forward > existing gas networks by 2028. The highest gas demand in our scenarios by 2030 is found in Consumer Evolution. In this scenario, limited progress is made Appendix > Community Renewables, explores how the UK’s decarbonisation towards decarbonising heat and there are only small improvements target could be achieved through a more decentralised energy in thermal efficiency as current heating technologies retain their landscape. Gas demand in this scenario is the lowest of the scenarios market share. by 2030. Residential gas demand declines as homes become more thermally efficient and heat pumps (air source and hybrid) become the dominant heating technology. Gas is increasingly used in small power stations to provide flexibility in electricity supply. GTYS | 2019 20 Gas Ten Year Statement Drivers of change 2019 1.3 Customer needs Figure 1.6

Welcome > Peak daily demand Figure 1.6 Gas peak day demand is illustrated in figure 1.6. Generally, it mirrors Peak demand 1-in-20 the movement of annual gas demands represented in the Future ,00 Executive Energy Scenarios, as many of the factors that influence annual summary > demand also influence peak demand. However, the declines are ,000 not as rapid in peak daily demand. ,00 Introduction > ,000 Gas is required in each of the Future Energy Scenarios. It is used ,00 Chapter 1 for a diverse range of purposes including supporting electricity ,000

Drivers of generation when intermittent power generation is producing less GWh/day change > or for heating in gas boilers, hybrid heating systems or hydrogen ,00 ,000 Chapter 2 production, depending on the scenario. Network 2,00 capability > 2,000 Chapter 3 2010–11 201–1 2020–21 202–2 200–1 System Operator Year Capability > ommunity enewables Two egrees Steady rogression onsumer volution istory Chapter 4 Ongoing developments >

Chapter 5 H H Looking 2 2 forward >

Appendix >

H2

H2 H2

GTYS | 2019 21 Gas Ten Year Statement Drivers of change 2019 1.3 Customer needs

1.3.6 Gas supply Figure 1.7 Welcome > NTS gas supply terminals On the NTS, we have eight primary gas supply terminals (figure 1.7). These deliver gas from the UK Continental Shelf Key: Executive (UKCS), the Norwegian Continental Shelf (NCS), Europe, summary > NTS pipeline and the world market delivered as liquefied natural gas (LNG). St Fergus Liquified Natural Gas (LNG) Introduction > import terminals Over the past two decades, the UK has transitioned from being self-sufficient in gas (delivered from the UKCS) in 2000, Natural gas entry terminals Chapter 1 to being dependent on imported gas for 56 per cent of our Interconnectors Drivers of gas demand by 2018. Due to the decline of the UKCS, there change > is potential for the UK to reach 72 per cent dependency Moffat to NTS compressor sites the Republic Chapter 2 on imported gas by2030. The current and potential sources Entry point Network of indigenous gas in the UK include: of Ireland Moffat (click for more information) capability > interconnector • UK Continental Shelf (UKCS) Chapter 3 Ireland Teesside System Operator • shale Capability > Barrow • biomethane. Chapter 4 Easington Ongoing Burton Point Balgzand to Bacton developments > As the UKCS continues to decline, the UK is increasingly reliant on imported gas from continental Europe and from worldwide Line (BBL) Chapter 5 The Netherlands Looking sources of LNG. Imported gas provides greater flexibility for forward > us to manage the operational challenges of a rapidly-changing Belgium gas system. Appendix > Interconnector On the following page, figure 1.8 shows a comparison of the Milford Haven (IUK) UK’s gas supply composition between 2018 and 2030 for each Isle of Grain Future Energy Scenario.

GTYS | 2019 22 Gas Ten Year Statement Drivers of change 2019 1.3 Customer needs Figure 1.8 Figure 1.9

Welcome > In Two Degrees, gas is used to produce hydrogen as well as Peak supply electricity, with the hydrogen production decarbonised via CCUS. In all our scenarios, we assess whether there will be enough gas Significantly more gas is imported from Europe than in to supply peak demand. To make sure that demand can be met Executive Community Renewables. even if there is a failure in the network, we carry out an assessment summary > assuming that the single largest piece of infrastructure is not Steady Progression includes shale gas (although at a lower scale available. For us, this means that in our analysis we remove the Introduction > than in Consumer Evolution) with increasing reliance on imported pipeline connecting the two LNG terminals at Milford Haven to gas from Europe and Norway and worldwide supplies of LNG. the rest of the network. This is known as the N-1 test and is used Chapter 1 by the government in assessing security of gas supply. Drivers of In Community Renewables, gas demand is the lowest of all the change > scenarios by 2030, with a significant proportion met by local sources In figure 1.9, we show the margin of supply over peak demand under of green gas connected to the distribution networks. Chapter 2 N-1 conditions. The figure shows that supply exceeds peak demand Network in all scenarios out to 2030. capability > In Consumer Evolution, shale gas connects at scale to both Chapter 3 distribution and transmission networks. System Operator Figure 1.9 Capability > Peak supply margin under N-1 conditions

Chapter 4 180 Ongoing Figure 1.8 developments > Comparison of gas supply by scenario between 2018 and 2030 10 10 90 Chapter 5 120 Looking 80 forward > 0 100 0 80 Appendix > 0 0 0 bcm/year 0 Margin (mcm/day) 0 20 20 10 0 0 2018 200 200 200 200 2018 2021 202 202 200 T Stea mmnt nsmer Year erees rressn eneaes tn ommunity enewables Two egrees Steady rogression Year onsumer volution S Shale reen gas Imports GTYS | 2019 23 Gas Ten Year Statement Drivers of change 2019 1.3 Customer needs

Welcome > 1.3.7 Gas Future Operability Planning In October 2019, we published a summary of our stakeholder 2 In addition to using the FES data as the starting point for all of our feedback from the past 18 months of GFOP, please click here to view network analysis, we also use the FES to explore how our customers’ it online. In this document, we identified a number of areas we could Executive long term needs (out to 2050) may affect the future operability of the undertake future operability studies on. These included: summary > NTS. We document potential operability challenges within our Gas Future Operability Planning (GFOP) publications to share with our Introduction > customers and stakeholders.

Chapter 1 We use the GFOP to help our customers and stakeholders engage Drivers of with us and explore solutions to potential operability challenges change > on the NTS considering commercial options (rules), operational Undertake study to further Explore impacts of gas-fired Chapter 2 arrangements (tools) and physical investments (assets). explore the flexibility re-notification Network capability > requirements for frequency and magnitude Engage with us distribution networks. increasing further in the future. Chapter 3 System Operator Regular engagement with our customers and stakeholders allows Capability > us to better understand your changing needs. This helps us to make sure that we can continue to deliver your requirements going into Chapter 4 Ongoing the future, whilst meeting our statutory and commercial obligations. developments >

Chapter 5 The GFOP acts as a vehicle for our customers and stakeholders to: Looking • challenge our assumptions about future operability challenges Insight pieces into increasing Further study to forward > low-carbon gas in the determine the impact • share views on the changes our customers and stakeholders Appendix > network, considering of increasing linepack envisage and what they require from the gas transmission decarbonisation targets. swing on our network. network going into the future.

Your views are really important to us. Please contact us to tell us what you think are the most important operability questions for us to focus on during 2020. GTYS | 2019 24 Gas Ten Year Statement Drivers of change 2019 1.4 Asset management

Welcome > The NTS is ageing, and this means that managing our asset We have developed asset maintenance and asset health programmes health is becoming an increasingly important driver of change to maintain the health of the NTS. Our asset maintenance programme and trigger for our Network Development Process. focuses on delivering routine maintenance and monitoring the Executive health of our assets versus our expected asset life cycles. The asset summary > Asset health driven work accounts for over 50 per cent of health programme addresses assets that are either end of life or our capital plan. Over the RIIO-1 period, we are planning have failed, typically through invasive works such as replacement Introduction > to invest a total of £685m to maintain the health of our assets or refurbishment. These programmes ensure that we can consistently

to continue to deliver a safe and reliable network for deliver a safe and reliable system to meet the needs of our our customers. customers and stakeholders. Chapter 1 Drivers of change > The NTS comprises of approximately 7,660 km of pipeline, 24 compressor sites with 75 compressor units, 20 control valves Chapter 2 Network and 530 above-ground installations. The network was built quite capability > rapidly from the late 1960s with the majority of the network as Chapter 3 we know today in place by 1990. With a typical asset design life System Operator of 40 years, over 70 per cent of our network will be beyond its Capability > original life expectancy by the end of RIIO-1. This isn’t to say that Chapter 4 all our assets beyond their design life need replacing, but it does Ongoing mean that careful management of these ageing assets is required. developments > Our current asset health strategy is to first consider whether the Chapter 5 asset is still required on the NTS. Once the need is established, Looking we will consider all options and adopt an appropriate intervention forward > type (maintain, re-life, replace, remove). Appendix >

GTYS | 2019 25 Gas Ten Year Statement Drivers of change 2019 1.4 Asset management

1.4.1 Developing our asset management approach Figure 1.10 Welcome > Developing our asset management approach We manage our assets as efficiently as possible, however we recognise that our current approach is more reactive than we Transformation programme Spotlight Executive would like. Through our ISO55001 accreditation, we are continuously summary > improving our asset management processes to ensure our asset strategies effectively manage network risk and deliver value for our Introduction > customers. During 2018–19, we have been developing our asset management approach through investment in processes, data and Chapter 1 technology systems, as detailed in figure 1.10. Drivers of change > Another key aspect of improving our asset management approach Chapter 2 is the development of a monetised risk based approach. This new Network approach to the planning and targeting of investments and reporting capability > of investment outcomes to Ofgem involves a new Methodology Chapter 3 for Network Output Measures (NOMs). Through improved System Operator understanding of our asset base, how our assets can fail, their Capability > probability and consequence of failure, we can better understand Chapter 4 risk across our network. With this improved understanding, Ongoing During 2018–19, we launched and delivered an internal change and developments > we can target our investments to deliver further value to our customers and stakeholders. transformation programme intended to provide improved asset Chapter 5 management processes, systems, data, cost and management, Looking policies and investment planning. forward >

Appendix >

GTYS | 2019 26 Gas Ten Year Statement Drivers of change 2019 1.4 Asset management

Figure 1.12 Welcome > Ofgem have provisionally accepted our new NOMs methodology, and a proposed rebased RIIO-1 asset health target (using Monetised Risk, Measures of risk see figure 1.11) was submitted in January 2019. Full acceptance was Category Service risk measure Executive delayed pending final validation of the methodology and submission summary > of a Calibration, Testing and Validation (CTV) report. This work has Safety Health and safety of the general public and employees now been completed and final versions of our rebased RIIO-1 target Compliance with Health and Safety legislation Introduction > and CTV report were submitted to Ofgem in July 2019. Environment Environmental incidents

Figure 1.11 Compliance with environmental legislation and permits Network Output Measures methodology Chapter 1 Volume of emissions Drivers of change > Asset base Probability of Consequence Value of failure Noise pollution Availability and reliability Impact of network constraints Chapter 2 failure of failure Network Compensation for failure to supply capability > Financial NTS shrinkage incentive to minimise the cost of gas and electricity Chapter 3 procurement for shrinkage components System Operator Impact of operating costs Capability > Societal and company Property damage Chapter 4 Ofgem has undertaken tests to confirm that our new monetised risk Ongoing target is as challenging as the target set at the beginning of RIIO-1. Transport disruption developments > We understand these have been successful but are awaiting final Reputation Chapter 5 confirmation. We are also awaiting final Ofgem confirmation of the Looking process and timescales for undertaking the Licence change to embed forward > Our new monetised risk based approach to investment planning is the new target and provide “acceptance” of our NOMs methodology. central to the development of our business plan for the next regulatory Appendix > period, RIIO-2. To provide further information, figure 1.12 describes the measures of risk that comprise our new monetised risk based asset Our RIIO-2 business plan submission identifies an increase in asset management approach. investment expenditure from our RIIO-1 levels of spend, driven by an increased volume of work to maintain current levels of availability and reliability on our ageing asset base. You can find out more information in our RIIO-2 submission online. GTYS | 2019 27 Gas Ten Year Statement Drivers of change 2019 1.5 Legislative change

Figure 1.13 Welcome > This chapter outlines the key legislative changes that can trigger our Network Development Process, as these Impact of the IED on our current compressor fleet changes will impact how we plan and operate the National Executive Transmission System over the next ten years. TS mssns summary > 1A 1 1 1 esatn Smmar 2A 2 2 mane e 2 2 St ergus 1.5.1 Industrial Emissions Directives erogated unit Compressor Introduction > A site (click The Industrial Emissions Directive (IED) is the biggest change to Aberdeen M noncompliant unit for more information) environmental legislation in over a decade, and consolidates several A I ompliant unit irriemuir Chapter 1 European emissions-related directives. These include the Integrated lectric unit Drivers of Pollution Prevention and Control Directive (IPPCD) and the Large change > Combustion Plant Directive (LCPD). These European Union agreed isconnected unit 1A 1 2A 2 Wooler Chapter 2 targets and directives determine how we must our control emissions. Avonbridge A Work in progress Network capability > s st 2019 The IED forms the new mandatory minimum emission standards that A ishop Auckland Moffat A Chapter 3 all European countries must comply with by 2023 and came into force Teesside System Operator on 6 January 2013. The IED heavily impacts our current compressor Capability > arnforth fleet (figure 1.13) with implications for everyone who relies on the NTS. arrow A Chapter 4 A Nether ellet Ongoing Warrington developments > We are committed to reducing emissions from our compressor asington oint of Ayr A atton stations as we work towards our ambition of operating the gas A Chapter 5 networks carbon free. Works to achieve IED compliance at our Looking Alrewas Wisbech A acton forward > compressor sites have been submitted as part of our RIIO-2 business A A ings ynn hurchover A proposal. You can read our RIIO-2 business proposal online. eterborough Appendix > elindre A untingdon ambridge A A A A iss Milford aven A Wormington A A helmsford Aylesbury Isle of rain

A ockerley GTYS | 2019 28 Gas Ten Year Statement Drivers of change 2019 1.5 Legislative change

Welcome > Industrial Emissions Directive – chapter II A network-wide approach is described in the annual Network Chapter II of the IED applies to 22 of our 24 NTS compressor sites. Review carried out by National Grid NTS to review all emissions Chapter II of the IED details an integrated environmental approach from compressor sites. The findings are discussed and agreed Executive to the regulation of certain industrial activities as well as requirements with the Environmental Agency (EA), Natural Resources Wales (NRW) summary > based on the use of Best Available Techniques (BAT). and the Scottish Environment Agency (SEPA). Further information and a copy of the Network Review may be obtained from the Introduction > environmental agencies. Chapter II of the IED also incorporates requirements from the Integrated Pollution Prevention and Control Directive (IPPCD) Chapter 1 that was implemented in 2008. The IPPCD requires progressive Drivers of pollution reduction and applies at a fleet level across the NTS. change > We have to ensure that all of our compressor installations covered Chapter 2 by the IPPC regime have a permit. Network capability > To obtain the obligatory IPPCD permits, we must demonstrate Chapter 3 that BAT has been employed on the permitted installation to prevent/ System Operator reduce emitting pollutants through an assessment. The IPPCD Capability > permits will specify the maximum Emission Limit Values (ELVs) Chapter 4 to the air for each unit, along with other operating conditions. Ongoing developments > The utilisation of National Grid’s compressor installations varies Chapter 5 Looking greatly across the fleet. Consequently, environmental benefits can forward > be maximised if a network-wide approach is employed, focusing on high utilisation installations (in order, for example, to maximise Appendix > reduction of total mass emissions within the UK) with due consideration given to potential local environmental impacts.

GTYS | 2019 29 Gas Ten Year Statement Drivers of change 2019 1.5 Legislative change

Welcome > Industrial Emissions Directive – chapter III IED chapter III details the regulation of large industrial installations and incorporates requirements of the (now obsolete) Large Combustion Executive Plant Directive (LCPD) that was implemented in 2001. Chapter summary > III of the IED also affects a significant number of our compressor units on the NTS, impacting in total 16 of our 64 gas turbine driven Introduction > compressor units. It sets clear emission targets for pollutants such as Nitrous Oxides (NOx) and Carbon Monoxide (CO) at a combustion Chapter 1 unit level, and applies to industrial emissions for units with a thermal Drivers of input of 50 MW and above. change >

Chapter 2 All of our compressor units that fall within the IED chapter III directive Network must meet the ELVs defined in the directive. ELVs set out in the capability > directive can be met in one of two ways: Chapter 3 System Operator • Choose to opt in – must comply with the ELV or plan to upgrade Capability > to comply by a pre-determined date.

Chapter 4 • Choose to opt out – must comply with restrictions defined Ongoing in the derogation including Limited Lifetime Derogation developments > or the Emergency Use Derogation. Chapter 5 Looking forward > Significant works to ensure compliance by 31 December 2023 have been completed, with more works planned. Appendix >

GTYS | 2019 30 Gas Ten Year Statement Drivers of change 2019 1.5 Legislative change Figure 1.14

Welcome > Medium Combustion Plant Directive (MCPD) This directive fills the regulatory gap at EU level between large Please see figure 1.14 for an overall summary of the IED legislation. combustion plants (> 50 MWth) covered by the Industrial Emissions Executive Directive (IED), and smaller appliances (heaters and boilers Figure 1.14 summary > Industrial Emissions Directive legislation key features <1 MWth) covered by the Ecodesign Directive. IPPCD LPCD Introduction > Apply for permit which states emissions limits to be achieved Defines emissions limits for 50 MW and above units. MCPD was transposed into UK legislation in December 2017. using Best Available Techniques (BAT). The emissions compliance derogation for gas driven compressors IED Chapter 1 was originally 2025; however, National Grid has secured a longer Industrial Emissions Drivers of derogation for gas compressors required to ensure the safety and Directive. change > security of a national gas transmission system and now have a further IED and MCPD key features Chapter 2 five years (to 2030) to comply with the requirements. The MCPD also Network applies to further emissions targets from 1 January 2030 onwards. IED Set new ELV for Compressors Through Limited Operators can BAT Reference capability > nitrogen oxide not meeting Lifetime use affected Documents (BREF) 50 MW 50mg/Nm3 new new ELVs had Derogation compressors documents draw and plant; 75mg/Nm3 to stop operating the operator that do not conclusions on what Chapter 3 The MCPD applies to smaller gas compressors and will affect a for existing plant. by 31 December declares not comply with the BAT is for each System Operator further 39 of the NTS compressor units. Other combustion plants, above 2015 unless to operate ELVs for sector affected by IED. Capability > entered into plant beyond ‘emergency use’ such as pre-heat systems, are also captured as part of this directive. Set new ELV Limited Lifetime 31 December for less than 500 for Carbon Derogation 2023 or for hours per year. BREF documents Chapter 4 Monoxide or 500 hours more than for >50 MW plants The impact assessment that we completed in 2016–17 is now 3 100mg/Nm emergency use. 17,500 hours. issued in 2017. Ongoing for new and Compliance developments > being used to develop mitigation plans. existing plant. required by 2021.

Chapter 5 The impacted units include some of the oldest compressors MCPD Installations must Permits specify Looking below be operated with the ELVs to be forward > we operate, many of which are beyond their design life. There are a permit. complied with 50 MW which are based four main methods for us to achieve MCPD compliance: replacement on BAT. Appendix > of units with compliant ones, modification, derogation (i.e. limited/ emergency use) or decommissioning. Works to achieve MCPD compliance at our compressor sites have been submitted as part of our RIIO-2 business proposal. You can read our RIIO-2 business proposal online.

GTYS | 2019 31 Gas Ten Year Statement Drivers of change 2019 1.5 Legislative change

Welcome > 1.5.2 Additional EU legislation pan-European organisations to support its detailed development Following the UK’s referendum result on EU membership in June and implementation. The Third Energy Package creates a framework 2016, we note that EU rules and regulations will continue to apply to promote cross-border trade and requires several legally binding Executive until the UK has formally left the EU. Guidelines and Network Codes to be established and implemented summary > with the aim of promoting market liquidity, improving integration We will continue to take forward implementation of EU requirements between Member States’ gas markets, and promoting the efficient Introduction > use of interconnectors to ensure that gas flows in response whilst the terms of the EU Withdrawal Agreement and the future EU/UK energy relationship and arrangements are defined. As part to price signals (i.e. to where it is valued most). Chapter 1 of this process, we will engage with both the UK Government and Drivers of Ofgem to understand the impact of the UK’s exit from the EU on the These EU legislative requirements take priority over GB domestic change > implementation of future EU energy market requirements. legislation and associated regulations and codes, including the Uniform Network Code (UNC). Over recent years, as the Transmission Chapter 2 Network We will continue to engage in the European Network for Transmission System Operator (TSO), National Grid has raised a series of EU- capability > System Operators for Gas (ENTSOG) and Gas Infrastructure Europe related UNC Modifications to comply with the EU legislation. Chapter 3 (GIE) to represent the needs of the domestic gas industry and System Operator consumers at a European level and will support, as appropriate, BEIS, The primary focus in the last year has been on the Revision of the Capability > Ofgem and stakeholders as discussions progress on a potential new Regulation on Gas Security of Supply ((EU) 2017/1938 of 25 October Chapter 4 European legislative package expected to be focused on gas and 2017). This replaces Regulation (EU) 2010/994 and introduces Ongoing decarbonisation. greater cooperation between Member States. It came into effect developments > on 1 November 2017 with a phased implementation timetable. The Chapter 5 European Union Third Energy Package solidarity principle is the last element to be implemented and work is Looking ongoing with BEIS and Ofgem in conjunction with the Commission forward > One of the most important pieces of European gas and electricity for BEIS to fulfil this obligation. Further details on UNC changes and Appendix > markets legislation is referred to as the Third Energy Package. implemented modifications can be found on the Joint Office website.

The Third Energy Package comprises several EU regulations For more information on EU legislative activity, please refer establishing harmonised arrangements for EU gas markets and to Appendix 5.

GTYS | 2019 32 Gas Ten Year Statement Drivers of change 2019 1.6 Net zero by 2050

Welcome > Over the past year we have seen a number of policy commitments Spring Statement to the gas industry, including significant changes to the UK’s The Chancellor’s Spring Statement included several commitments decarbonisation targets. to clean growth of relevance to the gas industry. The statement set Executive out a commitment to the Future Homes Standard, to be introduced summary > Net zero by 2050 by 2025, to future-proof new build homes with low-carbon heating The UK Government legislated to achieve net zero greenhouse gas and improve energy efficiency. It also set out a commitment to ‘green Introduction > emissions by 2050 in June 2019, which was an important step to the gas grid’ – to accelerate the decarbonisation of gas supplies by support domestic and international ambitions on climate change. increasing the proportion of green gas in the grid. Chapter 1 Drivers of National Grid has used the Future Energy Scenarios (FES) to build this BEIS roadmap for heat decarbonisation change > driver of change into our Network Development Process. The FES In December 2018, the UK Government’s Department for Business, Chapter 2 2019 includes a new, standalone sensitivity analysis on how net zero Energy and Industrial Strategy (BEIS) published Clean Growth – Network carbon emissions could potentially be achieved by 2050. capability > Transforming Heating to review the evidence on options for achieving long term heat decarbonisation. The Government aims to develop and Chapter 3 System Operator publish a new roadmap for policy on heat decarbonisation in 2020. Capability > CCUS Action Plan Chapter 4 Ongoing The Carbon Capture Usage and Storage (CCUS) Action Plan developments > was launched at the end of November 2018. Government, industry Chapter 5 and stakeholders have since been working together to progress the Looking forward > Action Plan, such as through the CCUS Advisory Group and recent government consultations in order to support the decarbonisation of Appendix > heat, industry and transport (including through hydrogen production).

H 2 H2

GTYS | 2019 33 Gas Ten Year Statement 2019

Welcome >

Executive summary >

Introduction > 2>Network

Chapter 1 Drivers of capability change >

Chapter 2 2.1 Introduction Network capability > 2.2 Network Development Process: stage two Chapter 3 System Operator 2.3 Customer needs Capability > 2.4 Asset management Chapter 4 Ongoing 2.5 Legislative change and net zero developments > by 2050

Chapter 5 2.6 New network capability metrics Looking forward >

Appendix >

GTYS | 2019 34 Gas Ten Year Statement Network capability 2019 2.1 Introduction

Welcome > This chapter explores the second stage of our Network Development Process (NDP) (figure 2.1). Here, we analyse the required capability of our National Transmission System (NTS) Executive to address drivers of change. summary > Figure 2.1 Our Network Development Process Introduction >

Chapter 1 Drivers of change that can trigger Drivers of our Network Development change > Drivers of Process include immediate and long term customer needs, asset Chapter 2 Change management, legislative change and 1 decarbonisation targets, including Network net zero by 2050. capability > Key

Chapter 3 We analyse the required network messages System Operator capability of the National Network Transmission System over the short, Capability > medium, and long term to address Capability our drivers of change. When drivers of change trigger Chapter 4 2 our NDP, understanding our Ongoing developments > network capability allows us to determine where rule, tool Chapter 5 We develop non-asset solutions (commercial rules and operational or asset solutions need to Looking System Operator tools) to address our drivers forward > Capability of change. be found. Appendix > 3

Asset investments to address our drivers of change. These investments Ongoing deliver best value for our customers and end consumers. When the Developments optional solution is selected, the 4 project is developed, sanctioned, executed, reviewed and closed. GTYS | 2019 35 Gas Ten Year Statement Network capability 2019 2.2 Network Development Process: stage two

Welcome > Our network capability and the development of the NTS is managed through the NDP. This chapter describes what happens when drivers of change have triggered stage one and we enter Executive stage two of the NDP. Here, we analyse the required capability summary > of the NTS to address drivers of change.

Introduction > We initially look at the ‘counterfactual’ option. This is the minimum

or ‘business-as-usual’ action we could take (ensuring compliance with legislation). This may mean no investment or minimum investment Chapter 1 Drivers of that still meets our safety and licence requirements. The change in change > risk is then calculated and used to support optioneering to explore commercial options (rules) and operational arrangements (tools) Chapter 2 Network or physical investments (assets). Each option (rule, tool, asset) capability > is then assessed, and either discounted if not feasible or fed into Chapter 3 a cost-benefit analysis. System Operator Capability > In chapter three, we discuss how we explore commercial and Chapter 4 operational arrangements options. In chapter four, we discuss Ongoing how we explore physical investments options to address drivers developments > of change in order to deliver required network capability. Chapter 5 Looking In this chapter, we summarise the past year of our forward > analysis on the network capability of the NTS required Appendix > to address drivers of change.

GTYS | 2019 36 Gas Ten Year Statement Network capability 2019 2.3 Customer needs

Welcome > Our annual planning process considers the network capability that Spotlight on network capability may be required to respond to exit and entry capacity signals from required for Milford Haven Spotlight the market. Executive summary > Understanding our customers’ immediate gas demand (exit capacity) and gas supply (entry capacity) needs across the NTS Introduction > allows us to plan and operate our system efficiently and effectively,

in order to deliver the network capability our customers need now and into the future. Chapter 1 Drivers of change > When we receive an exit capacity or entry capacity request, we complete analysis to assess what impact an increase in demand Chapter 2 Network has on the capability of our current network. This allows us to identify capability > and plan for any geographical constraints (where flows exceed the Chapter 3 network capability), which may arise from increasing customer exit During 2018–19, we received The customer has indicated they System Operator capacity or entry capacity demand in an area of the NTS. an application for additional would like to proceed to phase Capability > entry capacity at the Milford two of the PARCA process, and Where constraints to our current network capability are detected, Haven Aggregated System we have reserved additional Chapter 4 Entry Point (ASEP). capacity for the customer. Ongoing we use our Network Development Process to identify options developments > Currently (November 2019), that meet our customers’ needs in the most cost effective and After receiving this application, we we are in the process of finalising Chapter 5 efficient way. entered phase one of the Planning a shortlist of strategic options. Looking and Advanced Reservation of forward > You can find a detailed description of our entry and exit capacity Capacity (PARCA) process. Appendix > application process in Appendix 6. Phase one has been completed, and the results indicate that physical reinforcement of the network is required.

GTYS | 2019 37 Gas Ten Year Statement Network capability 2019 2.3 Customer needs

Welcome > 2.3.1 Future Energy Scenarios Our long term customer needs are articulated within the Future Energy Scenarios (FES). We use the latest Future Energy Scenarios Executive as the starting point for our analysis of our network capability. If our summary > analysis indicates we may not have the network capability to maintain customer needs going into the future, this can trigger our Network Introduction > Development Process. A key example of our network capability analysis concerning our long term customer needs is included below. Chapter 1 Drivers of Scotland 1-in-20 change > The lower gas supply through St Fergus due to declining UKCS Chapter 2 supply is making it increasingly difficult to meet our 1-in-20 winter Network capability > demand obligations for customers. This is consistent across all FES scenarios. To secure Scotland under our 1-in-20 obligation, we have Chapter 3 System Operator continued to assess our network capability for the Scotland 1-in-20. Capability > During 2018, the step change in the flows through the St Fergus Chapter 4 Ongoing terminal continued, but at a reduced level with supplies peaking at developments > 92 mcm/d; 14 mcm/d less than the previous period. The average Chapter 5 flow through St Fergus reduced to 68 mcm/d, from 89 mcm/d Looking in 2017–18. forward >

Appendix > If the current levels of supply remain or decline further, this could lead to a situation where it is no longer possible to maintain the current Assured Operating Pressures (AOPs) obligation in Scotland.

GTYS | 2019 38 Gas Ten Year Statement Network capability 2019 2.4 Asset management

Welcome > We are managing an ageing network with many assets at the end Redundant assets of their design life. The decisions we make today have lasting impacts We have identified redundant assets, sites and groups of assets on the level of network capability we can offer to stakeholders. that we are proposing to decommission within RIIO-2. Based on the Executive environmental impact of our redundant assets, our opinion is that summary > A significant proportion of our network capability analysis relates intervening now rather than later is the correct approach to take. to asset health projects. We look at the impact of removing asset(s) We have developed our programme to prioritise investment on assets Introduction > or site(s) from the network, and assessing the potential impact on that pose the greatest environmental and safety risks and to comply the network capability of the NTS. Optioneering is then completed, with our contractual obligations. looking at the full range of rules, tools or asset solution options. Chapter 1 Drivers of Key examples of our network capability analysis concerning asset You can find out more information on our asset management change > management are included below. proposals within our RIIO-2 submission online1. Chapter 2 Network Bacton capability > The Bacton terminal is a key gas entry point to the UK. Chapter 3 System Operator In 2019, the Bacton Balgzand Line interconnector was modified Capability > to enable the capability of bi-directional flows. Please view our Chapter 4 spotlight on BBL to find out more information. Ongoing developments > Changing UK gas supply and demand patterns mean that we need Chapter 5 Looking to continue to assess the future requirements of Bacton to efficiently forward > invest in its asset health. The site requirements have been defined and will be monitored continuously. A detailed Cost Benefit Analysis Appendix > is in progress to determine what functionality needs to be retained as the site is rationalised, and the finalised optimal solution is part of the RIIO-2 business case submission.

GTYS | 2019 39 Gas Ten Year Statement Network capability 2019 2.5 Legislative change and net zero by 2050

Welcome > The Industrial Emissions Directive (IED), as discussed in chapter 1, forms the mandatory minimum emission standards that all European countries must comply with by 2023. We are committed to reducing Executive emissions from our compressor stations as we work towards our summary > ambition of operating the gas networks carbon free.

Introduction > The IED heavily impacts our current compressor fleet, and a

significant proportion of our network capability analysis relates to the impact of the IED. For example, our network capability analysis Chapter 1 Drivers of indicated that Huntingdon and Peterborough compressor sites change > needed investment during RIIO-1. Please view chapter 4 to learn more about the physical investments we are currently completing Chapter 2 Network at Huntingdon and Peterborough compressor sites to deliver IED capability > compliance on each site. Chapter 3 System Operator Our analysis considering the IED looks at the impact of removing Capability > asset(s) or site(s) from the network, and assessing the potential Chapter 4 impact on the network capability of the NTS. Next, optioneering is Ongoing completed looking at the full range of rules, tools or asset solutions. developments > Chapter 5 Please view our RIIO-2 business proposal online for more Looking information on our proposed further works to maintain compliance forward > with the IED legislation. Appendix >

GTYS | 2019 40 Gas Ten Year Statement Network capability 2019 2.6 New network capability metrics

Welcome > Understanding the capability of our network Spotlight

Executive summary > As part of our business plan We worked with our stakeholders submission for RIIO-2, we on how we articulate and measure have developed new Network the capability of the NTS to Introduction > Capability metrics to describe demonstrate we understand our how the capability of the NTS stakeholders’ needs, show how meets our stakeholder needs. our network meets those needs, Chapter 1 and highlight how our RIIO-2 Drivers of Understanding the ability of business plan will continue to change > our network to meet the needs meet those needs going forward. of our stakeholders is essential Chapter 2 Network to how we plan and operate the You can find more detail on our capability > NTS, now and going into the new Network Capability metrics future. Determining and delivering within our RIIO-2 business plan Chapter 3 the network capability our submission online. System Operator Capability > stakeholders need will inform how much we spend on running and Chapter 4 maintaining the network, the level Ongoing of risk that we’re prepared to take developments > in operating the network, and give Chapter 5 an indication of the financial and Looking operational impacts on customers forward > of the network.

Appendix >

GTYS | 2019 41 Gas Ten Year Statement 2019

Welcome >

Executive summary >

Introduction > 3>System

Chapter 1 Drivers of Operator change >

Chapter 2 capability Network capability > 3.1 Introduction Chapter 3 System Operator 3.2 Our SO capability Capability > 3.3 Our SO capability Chapter 4 Ongoing 3.4 Developing our SO capability developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 42 Gas Ten Year Statement System Operator capability 2019 3.1 Introduction

Welcome > This chapter explores the third phase of our Network Development Process (NDP) (figure 3.1). This chapter details how the gas System Operator (SO) develops non-asset options Executive (commercial rules and operational tools) to deliver the required summary > network capability to address our drivers of change. Figure 3.1 Introduction > Our Network Development Process Drivers of change that can trigger Key Chapter 1 Drivers of our Network Development Drivers of Process include immediate and change > long term customer needs, asset messages Change management, legislative change and 1 decarbonisation targets, including Chapter 2 net zero by 2050. Network As the SO, we must operate capability > We analyse the required network a safe and reliable network. capability of the National We know that you want to flow Chapter 3 Network Transmission System over the short, System Operator medium, and long term to address gas using within-day profiles Capability > Capability our drivers of change. 2 that meet your operational, Chapter 4 commercial and contractual Ongoing needs, with minimum developments > We develop non-asset solutions (commercial rules and operational restrictions. This chapter Chapter 5 System Operator tools) to address our drivers describes how the SO makes Looking of change. forward > Capability efficient investment decisions 3 that maximise our current Appendix > network capability before we Asset investments to address our consider building new assets. drivers of change. These investments Ongoing deliver best value for our customers and end consumers. When the Developments optional solution is selected, the 4 project is developed, sanctioned, executed, reviewed and closed.

GTYS | 2019 43 Gas Ten Year Statement System Operator capability 2019 3.2 Our SO capability

Welcome > In this chapter we describe how we are developing our SO We are committed to developing our people to make sure we have capability to make the most of our current network capability. the right knowledge, skills and experience to drive efficiency. This Developing our SO capabilities means we can continue to plan maximises our process and system performance to make sure we Executive to operate, and then operate, the NTS safely and efficiently. continue to deliver a reliable network and address drivers of change. summary > Our SO capabilities include what we do to produce outputs 3.3.1 Deciding between commercial arrangements Introduction > that address our drivers of change. To make sure our outputs or operational tools and asset based solutions are fit for purpose, each SO capability requires a combination As SO, we are constantly reviewing our current systems and of efficient business processes, effective technology, and skilled processes in order to refine what we do and how we do it. Chapter 1 and knowledgeable people (see figure 3.2). Drivers of This maximises the value we get from our existing network change > Figure 3.2 through improved forecasting, analysis, risk assessment and Chapter 2 Key inputs required for our SO capabilities decision making (across all time horizons) before we invest Network in asset solutions. capability > Chapter 3 This chapter explores how, as SO, we can better use rules System Operator Capability > Process (commercial arrangements) and tools (operational strategies) to make more efficient use of the network. Chapter 4 (Ongoing Chapter 4 developments) will follow on from this by discussing how asset Ongoing developments > solutions are developed. Systems/ Chapter 5 Tools Looking forward >

Appendix >

Knowledge/ Skills

GTYS | 2019 44 Gas Ten Year Statement System Operator capability 2019 3.3 Our SO capability continued

Welcome > Here, we provide further information on how we decide between SO capability and physical asset investment to address drivers of change.

Executive To make sure that identified solution options represent the most value summary > for end consumers, we assess the options using Cost Benefit Analysis (CBA). This involves calculating the net present value (NPV) for each Introduction > option to compare the costs and benefits of a project.

The CBA produces an NPV by considering a wide range of costs Chapter 1 Drivers of for each option, such as purchasing new assets, ongoing asset change > health works, changes to site configuration, compressor fuel usage, constraint management costs, site operation and Chapter 2 Network commercial contracts. capability >

Chapter 3 To ensure a wider range of options are considered, we also System Operator perform a qualitative assessment. This will include operational Capability > issues, impacts on maintenance and future flexibility. Chapter 4 Ongoing The solution options to address drivers of change are progressed developments > based on both their NPV and the qualitative assessment. Chapter 5 Looking We continue to actively work with our customers and stakeholders forward > to make sure we understand our drivers of change, so that together Appendix > we can make informed decisions that are right for end consumers. The following chapters discuss how we consider and improve the capability of the network using our SO capabilities.

GTYS | 2019 45 Gas Ten Year Statement System Operator capability 2019 3.4 Developing our SO capability

Figure 3.3 Welcome > Our SO capabilities can be grouped into categories which Our SO operational processes have been summarised in figure Supply and demand Planning Operational control Executive 3.3. This gives an example of forecasting summary > how information flows between Prepare NTS our operational capabilities; Long-to-medium-term Validate customer 1 to 10 years access plan Deliver NTS Introduction > supply and demand requirements against it does not represent our ahead risk assessment (maintenance/ access plan forecasting business rules organisational structure. construction)

Chapter 1 Drivers of We use a combination of these change > capabilities to deliver our daily Short-term 1 month to Define Execute Take constraint operational strategies and supply and demand 1 week ahead operational operational management/residual Chapter 2 forecasting risk assessment strategy strategy balancing actions Network plans which make sure we capability > provide a safe and reliable Operational strategy Chapter 3 network for our customers System Operator and stakeholders. Emergency Capability > Review operational On-the-day Real-time data provision Improve all areas planning and performance risk assessment and monitoring Chapter 4 The following chapters provide management (telemetry) Ongoing more detail on each of our key developments > operational capabilities, including Review Situational awareness Chapter 5 how we are improving our Looking processes and the investments forward > we are making to develop our Appendix > systems and tools.

GTYS | 2019 46 Gas Ten Year Statement System Operator capability 2019 3.4 Developing our SO capability

Welcome > What is it? We aim to maximise the efficiency of our current 3.4.1 Supply • Effective and accurate forecasting of gas supply processes through our existing tools and systems. and demand and demand is critical to our SO decision-making As we develop new forecasting tools, we revise and forecasting Executive processes, particularly with increasingly uncertain optimise our existing processes to make the most summary > future supply and demand patterns. of new technology.

Introduction > • Our supply and demand forecasts are based on the Future Energy Scenarios as well as the latest market information. Forecasts are produced annually, monthly, Chapter 1 weekly and daily, depending on the forecasting activity Drivers of being undertaken. change > • The forecasts feed into Planning Network Access Chapter 2 Network (one to ten years ahead), Planning and Procuring capability > activities (one week to one year ahead), and real Chapter 3 time Operational Control and Situational Awareness System Operator of the NTS (day ahead to within day). Capability > • We share our forecasts with you through our Chapter 4 information provision systems to facilitate an efficient Ongoing developments > market, helping you manage your supply/demand balance position. Chapter 5 Looking forward > How are we improving?

Appendix > We continuously improve our long-to-medium term supply and demand forecasts by ensuring we have an effective feedback loop between our operational and short-term forecasting teams and our longer-term forecasting teams. This helps us to capture and resolve any data gaps or inconsistencies quickly and effectively.

GTYS | 2019 47 Gas Ten Year Statement System Operator capability 2019 3.4 Developing our SO capability

Welcome > What is it? • Our focus on asset management means that we • Planning considers a time horizon of approximately one are likely to continue to undertake a large number of 3.4.2 Planning to ten years ahead. We use analytical risk assessments maintenance activities in order to maintain our network. Executive (incorporating commercial and physical factors) to Our aim is always to minimise the impact on our summary > identify and quantify possible future system constraints, customers and stakeholders, through effective planning which may affect our network capability. and clear communication. Introduction > • We assess the capability of our network to operate • We also complete network capability analysis for safely while meeting our regulatory and contractual Operating Margins (OM) gas. We can use OM when Chapter 1 obligations and continuing to deliver your anticipated there is an operational balancing requirement which Drivers of flow profile requirements. If the network has insufficient cannot be satisfied by taking other system balancing change > capability, we are able to use our SO constraint actions, or as a result of damage or failure on any Chapter 2 management tools (including capacity substitution, part of the NTS. Network capability > bilateral contracts and on-the-day flow swaps) as part of long-term commercial and operational strategies Chapter 3 System Operator to deliver a reliable service for our customers Capability > and stakeholders.

Chapter 4 • Our NTS Access Plan is where we agree mutually Ongoing acceptable timescales with the Transmission Owner developments > (TO) for maintenance and construction activities. Chapter 5 This enables us to notify our customers and Looking forward > stakeholders when critical maintenance activities affecting their assets will be carried out. Appendix >

GTYS | 2019 48 Gas Ten Year Statement System Operator capability 2019 3.4 Developing our SO capability

Welcome > How are we improving? • Considering future planning, during our RIIO-2 • We continue to improve our relationship and ways of stakeholder engagement, our stakeholders told us 3.4.2 Planning working with our TO colleagues in National Grid Gas it is important that we continue our work to enable Executive Transmission to ensure construction and maintenance and support the drive towards a sustainable and summary > activities can be delivered without risking our ability to decarbonised future. Please see our spotlight on the provide a safe and reliable network for our customers Gas Markets Plan (GMaP) for more information on how Introduction > we are introducing a collective gas industry plan to and stakeholders. ensure market frameworks support the changing way • We are developing our ability to undertake multi- we will supply and use gas going into the future. Chapter 1 scenario network analysis over planning and operational Drivers of timescales. This will help us to better assess future change > network capability requirements and evaluate Chapter 2 network access requests. When combined with our Network capability > improvements in long-to-medium term supply and demand forecasting capabilities, this further helps us Chapter 3 System Operator to develop more comprehensive, robust and long-term Capability > commercial, investment and operational strategies, thereby minimising costs. Chapter 4 Ongoing • The above improvements allow us to develop a developments > more informed NTS Access Plan with reduced risk Chapter 5 of maintenance activities on assets being cancelled Looking forward > or deferred. • Looking to the future, within our RIIO-2 business Appendix > submission, we have included a proposal to further develop our planning capabilities, including our network analysis capability. Please view our spotlight on RIIO-2 SO capability to learn more.

GTYS | 2019 49 Gas Ten Year Statement 2019 Gas Markets Plan (GMaP) Spotlight

Background to the The Gas Markets Plan Industry engagement The Steering Group Welcome > Gas Markets Plan work packages Industry engagement is a vital A newly created body of industry In November 2016, National Grid Given the uncertainty in the role of gas component in ensuring the success leaders to provide direct leadership, launched its Future of Gas (FOG) in the future energy system, the GMaP of the GMaP and the GMaP work strategic direction and cross industry Executive stakeholder engagement programme will consider a variety of topics that packages. The collective knowledge support by bringing together a broad summary > to gather evidence, discuss and test could influence market evolution needs, of the need for market change and range of perspectives. The Steering the role of gas in the UK’s transition and determine which factors to prioritise potential solutions will help to ensure Group will help to develop and define Introduction > to a low-carbon economy. and take forward in the forthcoming outcomes that are in the best interests priorities for the GMaP. A call for A commitment from the FOG year. As new policies in addition to new of end consumers. To further enhance members was launched during the programme was to work with technical and market developments industry engagements, we have first Forum in May 2019, and the first stakeholders to develop a long-term emerge, it will be necessary to reassess created two new engagement routes: meeting of the Steering Group was Chapter 1 GMaP. The Gas Markets Plan will Drivers of the big questions that the market will The Forum and the Steering Group. held in September 2019. change > proactively prepare for and co- need to address. Therefore, GMaP will ordinate market change over the be periodically reviewed to determine The Forum Chapter 2 2 to 10 year time horizon, driving the next set of work. Once the priorities A platform for engagement on the Network consumer value and enabling the are determined, detailed work capability > GMaP, the work packages, and related energy transition. packages will be developed and industry activity. The aim is to allow Chapter 3 undertaken that (depending on the discussion and debate on the direction System Operator The Gas Markets Plan nature of the project and urgency for and outputs from the GMaP to help Capability > The GMaP aims to introduce market change) could include reports, shape and guide future work. It will also recommendations for further work, Chapter 4 a collective gas industry plan for help raise awareness of ongoing activity Ongoing evolving market frameworks in Unified Network Code (UNC) proposals to support the industry in debating and developments > an agile way to ensure the market or licence change proposals. developing solutions for the future. Chapter 5 supports the changing way we supply Looking and use gas. This plan will seek to forward > build proactive market development, considering future energy system Appendix > developments. For more information on the GMaP or the FOG programme, please contact the Gas Market Development Team.

GTYS | 2019 50 Gas Ten Year Statement System Operator capability 2019 3.4 Developing our SO capability

Welcome > What is it? How are we improving? 3.4.3 Operational • Within our operational strategy activities, we develop • We regularly review and develop our short-term strategy Strategy short-term plans to make sure that we configure our processes to ensure efficiency and to confirm that we Executive network and associated assets in an optimum way are continuing to deliver the needs of our control room, summary > to meet your flow and pressure requirements each who, in turn, deliver for our customers and stakeholders. Gas Day. Introduction > • The multi-scenario network analysis enhancements • These short-term plans are developed from described earlier in this chapter can also be used approximately one month ahead of the Gas Day through to realise benefits in our planning and procurement Chapter 1 to week-ahead and end with on-the-day control room activities. These analysis enhancements allow us Drivers of support. Our plans are based on our long-term risk to target our efforts into more detailed, in-depth change > assessments and are continually refined and optimised analysis for areas at higher risk of impacting our ability Chapter 2 using up-to-date market and customer intelligence, plus to meet customer needs. Network capability > the latest supply and demand forecasts.

Chapter 3 • Our short-term plans identify and mitigate risks for the System Operator safe and reliable operation of the network. We provide Capability > our control room with the latest up-to-date commercial Chapter 4 and physical information, so that they can facilitate Ongoing NTS access while maximising the capability of the developments > network for you to use. Chapter 5 Looking • We identify opportunities to perform against our forward > SO incentives, which have been structured and agreed with the regulator to deliver value for our customers Appendix > and stakeholders.

GTYS | 2019 51 Gas Ten Year Statement System Operator capability 2019 3.4 Developing our SO capability

Welcome > What is it? How are we improving? 3.4.4 Situational • In Situational Awareness, we receive, process, • We continue to integrate the real-time version of our Awareness and interpret real-time data to determine current network analysis software, SIMONE (Online), into GCS. Executive and future operational risks. SIMONE (Online) is connected to our Supervisory summary > • Situational Awareness is the first of our operational Control and Data Acquisition (SCADA) systems and receives customer flow notifications as well as our Introduction > capabilities that relates to the real-time operation of the NTS. telemetered data. SIMONE (Online) allows us to undertake current state and predicted future operational • During day-to-day operation, our control room must be Chapter 1 risk assessments which include current and predicted Drivers of aware of the level of operational risk and how this affects status of assets, flows, pressures, linepack, gas quality change > our ability to meet our daily customer needs. Real-time parameters and national energy balance. information allows us to make informed decisions to Chapter 2 • We are also changing the way we work by automating Network ensure that we efficiently operate the system so that capability > out customers can flow gas safely. previously manually delivered processes, improving efficiency and allowing us to focus our efforts on areas Chapter 3 • We monitor and assess both the current and predicted System Operator of value for our customers and stakeholders. Capability > status of assets, flows, pressures, linepack, gas quality parameters and national energy balance. Chapter 4 Ongoing developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 52 Gas Ten Year Statement System Operator capability 2019 3.4 Developing our SO capability

Welcome > What is it? How are we improving? 3.4.5 Operational • In Operational Control, we resolve any system issues • With GCS, we have greater ability to use data Control to maintain safe and efficient operation. visualisation and analytics software to bring together Executive relevant information from our operational capabilities summary > • Our activities within Operational Control use inputs from all of our other operational capabilities to ensure and external data sources. This helps our control room to make operational decisions and take control actions Introduction > that our control room can make informed and efficient decisions when operating the network. based upon the most up-to-date data and analysis. This improves our ability to mitigate issues and minimise • The processes and systems that we use in this the risk of your operation being affected. Chapter 1 function enable us to operate NTS assets, react to Drivers of • Looking to the future, within our RIIO-2 business change > unplanned events, validate customer flow notifications against commercial rules, take commercial actions submission, we have included a proposal to continue Chapter 2 to enhance our data visualisation and analytics software. Network such as energy balancing or constraint management capability > and engage effectively with customers to initiate Please view our spotlight on RIIO-2 SO capability to learn more. Chapter 3 third party actions. System Operator Capability > • As gas flows and our customers’ behaviours continue to evolve, more control actions will Chapter 4 be required to ensure: Ongoing developments > – our system operates safely, Chapter 5 – we maintain a national energy balance and Looking forward > – we meet our customers’ daily needs. Appendix > The tools and communication methods we currently use are fit for purpose. However, as the complexity of the actions required and the levels of risk being managed increase, we may need to develop these tools and systems to ensure they continue to be fit for purpose in the future. GTYS | 2019 53 Gas Ten Year Statement System Operator capability 2019 3.4 Developing our SO capability

Welcome > What is it? • Our data visualisation and analytics software embedded • We are continuously improving how we operate our within GCS will help us to draw conclusions faster 3.4.6 Review network to make sure we are providing the best service than we were previously capable of, ensuring effective Executive for you. learning is developed and fed back into our other summary > operational processes and systems so that we • Given the changing, increasingly uncertain supply and continuously improve our service to you. Introduction > demand environment, we need to find new ways of informing how we operate our network. This places • Looking forward to RIIO-2, our proposal includes IT greater emphasis on effective feedback from our investment focused on sustaining the technology Chapter 1 review process into our Planning and Operational health of our core SO IT systems that we use to Drivers of Control activities. operate the network. The challenges of an ageing change > gas asset infrastructure and our targets of enabling a • We increasingly monitor our customers’ compliance Chapter 2 decarbonised network, in line with the Government’s Network with contractual obligations and technical standards. net zero carbon targets, means we need to continue capability > We provide feedback to parties that may be operating to innovate and digitise our technology capabilities Chapter 3 outside their obligations, particularly if their operation to facilitate the energy system of the future. For more System Operator impacts our ability to deliver a reliable service. information on our proposed IT investments on our Capability > core SO IT systems, please view our spotlight on Chapter 4 How are we improving? our proposal to improve SO capability during RIIO-2, Ongoing developments > • We want to continue to improve our relationships and in addition to our draft RIIO-2 submission online. ways of working with our customers and stakeholders. Chapter 5 • We are sharing more information on our operational Looking When customer compliance incidents occur, particularly performance with you in the Operational and forward > those which affect the ability of our customers and System Operator forums. For more information, stakeholders to operate, we always review and, where Appendix > please see our spotlight on the operational data possible, share any lessons learned to reduce the risk enhancement programme. of repeat occurrences.

GTYS | 2019 54 Gas Ten Year Statement 2019 Operational data enhancement programme Spotlight

Acting upon your feedback, we have Welcome > fast-tracked the delivery of two new data sources: • Instantaneous Demand Data (now Executive Introduction Engagement available alongside supply data) summary > Project delivery so far: • Hourly breakdown of National Grid To improve the quality of data and An integral part of our data As a result of your feedback, we Balancing Trades and Price. Introduction > information provided by National Grid enhancement project included created an interactive community to industry, and to improve the gathering feedback from across platform where users can post in We have also been re-designing transparency of our commercial the industry on what data you discussion boards, vote on data the prevailing view screen to provide and operational decisions, we set use, what you don’t use, how requirements, and comment on trial Chapter 1 you with a better single screen up the data enhancements project. you access it, and what else data and our latest news. This Drivers of snapshot of a Gas Day, and link into All decisions throughout this project could be provided. platform will be used on an ongoing change > our other data sources. This is part have been driven by stakeholder basis to continue transparency of our ongoing online data system Chapter 2 feedback, signalling where we can of our operations and improve re-design programme. Network drive efficiencies in the market and our communication with the capability > ultimately deliver value to the end energy industry. Chapter 3 consumer through these efficiencies. System Operator You can view the community Capability > platform here. Chapter 4 We engaged with Ongoing developments > you through a variety Chapter 5 of methods, including Looking working groups, forward > operational forums, Appendix > bilateral meetings, and our website.

GTYS | 2019 55 Gas Ten Year Statement 2019 RIIO-2 SO people capabilities Spotlight

As the gas energy landscape continues to evolve at an unprecedented Welcome > pace and scale, we need to continuously adapt our SO capabilities to address our drivers of change.

Executive Our greatest asset is our people and we need to make sure we have the right summary > skills, knowledge and experience to continue to deliver our SO commitments. This spotlight describes five people-focused capabilities for the SO that we have included in our RIIO-2 business plan proposal. Please view our proposal Introduction > online to find out more.

Chapter 1 Drivers of change >

Chapter 2 Network capability > Engineering remains at the heart Data and analytics capabilities are Leading the debate requires us to use Change management is essential Innovation needs to become part of everything we do and one of required to support almost all of our our SO expertise to collaborate with to make sure we meet our business of everything we do. Chapter 3 our core capabilities. It is essential key SO processes. energy leaders across the public and plan commitments. System Operator both in terms of network capability private sectors. Together, we can shape Innovation will help us to keep pace Capability > forecasting and analysis, and We use data and analytics to provide an energy landscape for Great Britain In order to embrace change, we with the evolving energy landscape, network planning, including outages information and insights to help market that is fit for the future. need to be more agile in our approach harness the potential of new Chapter 4 and real-time operations. participants make informed decisions. to implementing and absorbing change technologies, encourage new Ongoing This supports the efficient functioning Looking forwards, we need to across our business and the wider industry. energy participants, and embrace developments > Engineers will be managing of the gas market. demonstrate strategic thinking across changes to regulation. unprecedented amounts of data the energy landscape, articulate how the Looking forwards, we need to enable Chapter 5 which will need to be processed. Looking forwards, we will need to landscape is evolving and raise awareness our leadership to lead us through change, Looking forwards, we will develop Looking develop our capability to analyse and influence key stakeholders on key to empower our people to deliver through our capabilities to explore and harness forward > Looking forwards, we will need mass quantities of data in real-time changes to the energy landscape. periods of uncertainty. We also need to different types of innovation. to develop greater automation to via integrated IT systems and our develop our resilience to manage the Appendix > process data and our data literacy, analysis techniques so that they can Developing our capability to lead the “unknowns” to come, for example the Increasing our knowledge and skills in including a step change in our be consistently used to steer decisions debate allows us to champion consumers’ introduction of new gases. delivering innovation will support Great analytics capabilities. in a predictive way. best interests, ensuring value for money Britain’s energy agenda to decarbonise and security of supply. Improving our change management the gas industry. This is essential to help Enhancing our engineering capability By enhancing our capability in data capability will help make sure we achieve net zero by 2050. as well as our systems capabilities and analytics, we will be able provide continue to deliver the best outcome will be key to addressing our drivers enhanced data, information and for stakeholders and consumers. of change. insights to the market.

GTYS | 2019 56 Gas Ten Year Statement 2019

Welcome >

Executive summary >

Introduction > 4>Ongoing

Chapter 1 Drivers of developments change >

Chapter 2 4.1 Introduction Network capability > 4.2 Network Development Process: stage four Chapter 3 System Operator 4.3 Our asset investment programme Capability > 4.4 Protecting our assets from Chapter 4 external threats Ongoing developments > 4.5 Innovation

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 57 Gas Ten Year Statement Ongoing developments 2019 4.1 Introduction

Welcome > This chapter describes the fourth phase of our Network Development Process (NDP), when physical changes to our network are required to address our Executive drivers of change (figure 4.1). summary > Figure 4.1 Introduction > The Network Development Process

Drivers of change that can trigger Key Chapter 1 Drivers of our Network Development Drivers of Process include immediate and change > long term customer needs, asset messages Change management, legislative change and 1 decarbonisation targets, including Chapter 2 net zero by 2050. Network This chapter includes capability > We analyse the required network our sanctioned NTS capability of the National maintenance projects, Chapter 3 Network Transmission System over the short, System Operator medium, and long term to address reinforcement projects, Capability > 2 Capability our drivers of change. projects under construction Chapter 4 in 2018–19, and potential Ongoing future investment options. developments > We develop non-asset solutions (commercial rules and operational Chapter 5 System Operator tools) to address our drivers Looking of change. forward > 3 Capability Appendix >

Asset investments to address our drivers of change. These investments Ongoing deliver best value for our customers and end consumers. When the Developments optional solution is selected, the 4 project is developed, sanctioned, executed, reviewed and closed.

GTYS | 2019 58 Gas Ten Year Statement Ongoing developments 2019 4.2 Network Development Process: stage four

Welcome > Stage four of our NDP is only reached if the optimal solution to a driver of change cannot be found within our existing network capability or met by our System Operator capabilities. Executive summary > The aim of this stage of the NDP is to investigate a range of asset investment options, including a ‘Do minimum’ option. This allows Introduction > for the comparison of a broad range of options in terms of

effectiveness at delivering network capability and overall cost.

Chapter 1 Drivers of During this stage we also facilitate stakeholder workshops to provide change > us the opportunity to receive feedback on our options. With this feedback, our asset investment options are narrowed down to identify Chapter 2 Network a preferred option that addresses our drivers of change and delivers capability > a legally compliant solution. Our aim is to provide the best value for Chapter 3 end consumers, as we continue to operate the NTS safely System Operator and efficiently. Capability >

Chapter 4 This chapter details where asset investment has been identified Ongoing as the preferred option to address our drivers of change. developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 59 Gas Ten Year Statement Ongoing developments 2019 4.3 Our asset investment programme

Table 4.1 Welcome > Where an asset investment is required to address our drivers of change, similar works are bundled together into campaigns Current asset health investment campaigns to ensure their cost effective delivery. We simplify scopes of work Category Description Executive for our contractors, use Standard Designs, and streamline project summary > St Fergus Critical entry point to the NTS commissioned in the early 1970s documentation to drive down costs. This approach makes better requiring significant investment to re-life for continued operation. use of network outages to ensure that our asset delivery isn’t Bacton Critical entry point to the NTS commissioned in the late 1960s Introduction > constrained or customers unnecessarily impacted. requiring significant investment due to asset health challenges to re-life for continued operation. During 2018–19, we continued to deliver our asset investment Above-ground installation Renovation of valves, above ground pipework and supporting renovation structures at sites across the NTS. Chapter 1 programme, investing £130m in the health of our assets to keep Drivers of Compressor train Overhaul of compressor train assets across the fleet. change > our network running safely and reliably. Pipelines In-line inspection and remediation of buried pipelines and refurbishment of ancillaries such as corrosion prevention assets. Chapter 2 Our current asset health investment campaigns are included Network Peterborough Critical asset health works to support the replacement of capability > in table 4.1. compressor units under the Industrial Emissions Directive. Chapter 3 Huntingdon Critical asset health works to support the replacement of System Operator compressor units under the Industrial Emissions Directive. Capability > Electrical Refurbishment of electrical distribution boards, uninterruptable power supplies and back-up generators. Chapter 4 Ongoing Pressure systems Inspection and remediation of pressurised vessels to comply with developments > Pressure Systems Safety Regulations. Cab infrastructure Refurbishment of compressor cabs and associated assets such as Chapter 5 exhaust stacks and safety systems. Looking forward > Control Systems and Replacement of the industrial control systems on compressor units Cyber Security and increasing the resilience of control systems from cyber threats. Appendix > Gas quality, metering Replacement of gas analysers and metering equipment required to and telemetry comply with Gas Safety Management Regulations. Pre-heating Replacement of unreliable gas preheating systems typically required at power station offtakes.

GTYS | 2019 60 Gas Ten Year Statement Ongoing developments 2019 4.3 Our asset investment programme

Welcome > 4.3.1 Key asset investment works 2018–19 Once operational, the compressors will reduce NOx emissions by around 95 per cent over 20 years, with a 16 per cent reduction in Feeder 9 project – Humber Crossing CO2 over the same timeframe. Executive Our river Humber Gas Pipeline Replacement Project to replace summary > an underwater section of the Feeder 9 pipeline with a tunnelled RIIO-2 solution is progressing well. This pipeline section is one of the Our asset health investment plan for the RIIO-2 period will set out how Introduction > most critical to UK gas supplies on the NTS and removing the risk we manage and invest in our existing asset infrastructure to maintain

associated with both tidal estuary erosion and third party interference the levels of safety, reliability and flexibility that our customers and is essential in continuing to provide a reliable and secure gas supply consumers have told us they expect. Chapter 1 Drivers of to our customers. In 2018–19, the tunnel boring machine made change > significant progress completing 3,402m of the 4,862m total tunnel Given we are managing an ageing network with many assets at the length. Tunnelling was completed on 10 September 2019, and the end of their design life, we are observing an increased volume of Chapter 2 Network next phase includes installing the pipeline. In addition, the final condition-related issues. Our RIIO-2 plan addresses these known capability > weld on the eight 650m long pipeline sections was completed in condition issues and ensures we continue to meet customer and Chapter 3 September 2018. The project is due for completion in 2022–23. consumer needs, providing a valued and consistent level of service System Operator You can track progress of the project on our website. now and into the future. You can view our RIIO-2 business Capability > proposal online. Chapter 4 Industrial Emissions Directive (IED) works Ongoing We are currently completing works at Huntingdon and developments > Peterborough compressor sites to deliver two new IED compliant Chapter 5 gas turbines on each site. Looking forward > The new units, each 15.3 MW in size, are manufactured Appendix > by Solar Turbines. They are gas turbine driven compressors that use dry low emissions (DLE) technology, recognised as the next generation of low-carbon compressors, and feature computer- controlled combustion systems and low emission burners. They will replace existing infrastructure, the Peterborough units were commissioned in the 1970s and those at Huntingdon in the late 1980s. GTYS | 2019 61 Gas Ten Year Statement Ongoing developments 2019 4.4 Protecting our assets from external threats

Welcome > Our network is subject to a multitude of security threats, which are ever-changing and increasing in sophistication and persistence. These threats include criminality, espionage, activists and extremists, Executive vulnerabilities within systems and vulnerability from insider action. summary > Additionally, there is a rapidly growing threat to Industrial Control Systems from cyber-attacks from a range of hostile forces. Introduction >

The Physical Security Upgrade Programme (PSUP) was launched by the government to enhance physical site security to mitigate Chapter 1 Drivers of risks to cyber security. The NIS (Network and Information Systems) change > directive also came into force in the UK on the 10 May 2018, to co-ordinate and raise overall levels of cyber security across the Chapter 2 Network European Union (EU). capability >

Chapter 3 Since the level, nature and response to cyber threats is evolving System Operator and inherently uncertain, two PSUP reopeners, one in May 2015 and Capability > one in May 2018, have been submitted during RIIO-1. An Enhanced Chapter 4 Security costs reopener, relating to cyber security enhancements, Ongoing was also submitted in May 2018. developments > Chapter 5 Further investments have been included in our RIIO-2 submission Looking for the continuation of our activities in both these areas with a forward > significant increase in cyber security on our assets to combat Appendix > the increasing risk of cyber-attacks.

GTYS | 2019 62 Gas Ten Year Statement Ongoing developments 2019 4.5 Innovation

Welcome > At National Grid, innovation is integral to our business. We aim During 2018–19 we undertook 36 NIA projects across our five to deliver better outcomes for our customers and communities, key innovation themes. Particular successes this year have included whilst being more agile, flexible, responsive and maximising value. projects such as our: Executive summary > Throughout 2018–19, we have embedded the Gas Network Innovation Strategy published in March 2018, realigning our innovation Introduction > portfolio and assessing our performance against five key themes: Overpipe geogrid protection Intrusion detection system • Future of Gas. against third party damage Chapter 1 • Safety and Emergency. Drivers of change > • Reliability and Maintenance.

Chapter 2 • Environment and Low carbon. Network capability > • Security.

Chapter 3 System Operator In 2018–19, we spent £4.67m of the £4.82m from our annual Capability > Network Innovation Allowance (NIA).

Chapter 4 Ongoing Our total Network Innovation Competition (NIC) expenditure developments > incurred in 2018–19 for Project GRAID (Gas Robotic Agile For more information on NIA projects, please see the 2018–19 Chapter 5 Inspection Device) and Project CLoCC (Customer Low Cost Network Innovation Allowance Summary. During 2018–19, we also Looking Connections) totalled £2.9m. launched our Hydrogen in the NTS (HyNTS) programme. Please view forward > our spotlight on HyNTS to find out more. Appendix > Both of these NIC projects are now concluded, and both received 100 per cent of the Successful Delivery Reward Criteria (SDRC) from Ofgem.

GTYS | 2019 63 Gas Ten Year Statement 2019 Hydrogen in the NTS (HyNTS) Spotlight

HyNTS is a programme of work that seeks to identify the Currently we have three projects live in our HyNTS programme: Welcome > opportunities and address the challenges that transporting Project cavendish Hydrogen flow loop NTS hydrogen injection hydrogen within the National Transmission System (NTS) A review of the potential Offline test loop to To identify the presents. This will unlock the potential of hydrogen to of the Isle of Grain evaluate metallurgy requirements to enable a Executive deliver the UK’s 2050 net zero targets. region to use existing changes on existing physical trial of hydrogen summary > infrastructure to supply NTS steel pipe and injection into the NTS, hydrogen to London and Key: the South East including new MASIP pipe when identifying the gaps Introduction > hydrogen generation, exposed to 30 per cent in the safety case and NTS pipeline storage, transport hydrogen, identifying indicating the most St Fergus Liquified Natural Gas (LNG) and CCS. next steps to assess suitable NTS location Chapter 1 import terminals the NTS’ suitability for a live small-scale trial. Drivers of to transport hydrogen. change > Natural gas entry terminals

Chapter 2 Moffat to Interconnectors Two projects are under development: Two projects are now completed: Network the Republic capability > NTS compressor sites of Ireland Moffat Hydrogen deblending Feasibility of hydrogen in the NTS To assess a variety of hydrogen A feasibility study with the aim of Chapter 3 interconnector HyNTS programme recovery technologies and develop determining the capability of the System Operator Ireland Teesside Capability > concept designs for selected options NTS to transport hydrogen. Includes Barrow including a techno-economic review a review of relevant assets, pipeline Chapter 4 Easington and identify the requirements for case study and draft scope for Ongoing Burton Point developments > Balgzand to Bacton a demonstration project. offline trials. Line (BBL) Chapter 5 The Netherlands H21 Network operations NIC 2019 bid Aberdeen vision Looking Belgium Supporting NGN’s 2019 NIC bid A feasibility study for the generation forward > alongside the other GDNs to address of hydrogen at St Fergus using Appendix > Interconnector the impact of 100 per cent hydrogen the NTS (up to 2 per cent) to supply Milford Haven (IUK) distribution from LTS offtake to the the city of Aberdeen. Includes Isle of Grain consumers’ meters, encompassing the hydrogen generation, injection, potential impact on current operational separation and transport. and maintenance activities, regulations and procedures.

GTYS | 2019 64 Gas Ten Year Statement 2019

Welcome >

Executive summary >

Introduction > 5>Looking

Chapter 1 Drivers of forward change > Chapter 2 5.1 Introduction Network capability > 5.2 Continuous development of the GTYS Chapter 3 System Operator 5.3 Your feedback Capability > 5.4 Future engagement Chapter 4 Ongoing developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 65 Gas Ten Year Statement Looking forward 2019 5.1 Introduction

Welcome > This chapter outlines our plans to continue the development of the GTYS and how we propose to engage with you over the coming year. Executive summary >

Introduction > 5.2 Continuous development of the GTYS Chapter 1 Drivers of The GTYS is an opportunity for us to outline our current operational change > and asset-based plans for developing the NTS to ensure that Chapter 2 we continue to meet your needs. We want to continue to engage Network with you by involving you in our NDP, providing transparency capability > on our processes, and keeping you informed of our plans. Chapter 3 System Operator Capability > We have adopted the following principles to ensure the GTYS continues to add value for our customers and stakeholders: Chapter 4 Ongoing • We seek to identify and understand your views and opinions. developments > • We provide opportunities for engagement throughout the Chapter 5 GTYS process. Looking forward > • We create an open and two-way communication process Appendix > around our NDP. • We respond to your feedback and demonstrate how this has been considered.

GTYS | 2019 66 Gas Ten Year Statement Looking forward 2019 5.3 Your feedback 5.4 Future engagement In addition, we welcome your feedback on whether the GTYS: Welcome > We welcome your feedback and comments on this interactive edition of the GTYS. It helps us to better tailor the document to include • satisfactorily explains the process we follow in order information you value, and to format the document to make it easier to develop the NTS Executive for you to navigate. Over 2019–20, we are keen to hear your views summary > • illustrates future needs and development of the NTS on the following areas of our gas transmission business: in a coordinated and efficient way • new Network Capability metrics Introduction > • provides the information you need to assist you in identifying • future system operability challenges opportunities to connect to the NTS. • asset management Chapter 1 We also welcome your feedback on: Drivers of • GB gas quality specifications development change > • which areas of the GTYS are of most value to you • Network Development Process Chapter 2 • which areas of the GTYS we can improve Network • the transition to net zero. capability > • whether there is there any additional information you would like to see included in the GTYS. Chapter 3 System Operator Capability > If you would like to provide feedback, please contact us. Chapter 4 We look forward to hearing from you. Ongoing developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 67 Gas Ten Year Statement 2019

Welcome >

Executive summary >

Introduction > Appendix

Chapter 1 Drivers of Appendix 1: National Transmission change > System maps Chapter 2 Appendix 2: Gas quality Network capability > Appendix 3: Connection and capacity Chapter 3 application process System Operator Capability > Appendix 4: Meet the teams

Chapter 4 Appendix 5: EU activity Ongoing developments > Appendix 6: Exit and entry capacity application process Chapter 5 Looking Appendix 7: Conversion metrics forward > Appendix 8: Import and storage Appendix > infracstructure

Further information

Glossary

Index of links

GTYS | 2019 68 Gas Ten Year Statement Appendix 1 2019 National Transmission System maps

Welcome > This appendix includes maps of the NTS that indicate the current network.

Executive Figure A1.1 Figure A1.2 summary > Scotland (SC) – NTS North (NO) – NTS

Introduction > a b

100(1) 00(1) 100(8) St ergus 900(2) oldstream 00(11) Scotland 100(9) Chapter 1 00() 1200(0) umbleton 900() 900(1) Wooler Drivers of Aberdeen inknockie 900() 00() change > 100() 1200(0) c1 Chapter 2 900() ongtown Network irriemuir 900(8) d

ochside 100() 900(2) capability > 900(1) Terminal 900(2) Saltwick Terminal boundary 900(19) areston 900() Teesside 900(18) 900(1) boundary isting pipeline ishop Chapter 3 900() Tow aw 900() (with distance marker) 900(29) Auckland 900(12) algray isting pipeline System Operator eld Wetheral 100(22) 100(29) owpen (with distance marker) 100(2) ipeline diameter (mm) 0(18) ewley Capability > 900(22) ength (km) 900() ipeline diameter (mm) 00(1) enotes a crossing ength (km) Chapter 4 100(8) point between s lton ittle 00() 0() enotes a crossing Ongoing 900() Ongoing proposed pipeline urdon point between s 100(0) 0(2) rum Offtake e developments > i Ongoing proposed pipeline 900(0) Storage facility f Offtake isting compressor Chapter 5 athgate 00() 100() Storage facility Looking 00(18) 00(1) New compressor or h lenmavis compressor modifications Thrintoft isting compressor 00(1) 0(1) forward > Armadale 00(1) Alternative route New compressor or 900(8) roburn North ast compressor modifications 900(2) 00(1) North West Soutra prating of pipelines Appendix > Alternative route lvanfoot ume Ongoing emissions 900(1) a g proects prating of pipelines Nether owcleugh b 900(11) Moffat Ongoing emissions 900(2) proects 900() 900(1) North 900(1) c1 900(29)

ockerbie To N. Ireland ire d

GTYS | 2019 69 Gas Ten Year Statement Appendix 1 2019 National Transmission System maps

Figure A1.3 Figure A1.4 Welcome > North West (NW) – NTS North East (NE) – NTS

Executive North summary > e

900(1) f Introduction > 900(1) North 100(1) upton arrow i 0(0) 900(1) Nether ellet h 100(1) Chapter 1 aldersby arnforth ickering Drivers of 1200(9 North ast Terminal 0 () 900(9) Terminal ) change > 100() g 100(8) boundary

100() boundary Samlesbury Treales 900(21) 0(1) 100(1) isting pipeline eeford 900(8) isting pipeline Chapter 2 100(1) (with distance marker) 1200(2) (with distance marker)

anstead 0(1) Network 0(2) ipeline diameter (mm) 900(2) ipeline diameter (mm) capability > 900(2) 100(0) ength (km) ength (km) urscough lackrod urley ank aull 0() 1200() 900(2) enotes a crossing Asselby enotes a crossing Towton 900() 900() Chapter 3 point between s 1200(2.2) point between s ast Midlands 1200(9) 100() 100() 900(2) awcliffe ohill 100(1) System Operator Warrington Ongoing proposed pipeline 100(1) annal asington Ongoing proposed pipeline 1200() Capability > Offtake 900(1) Warburton Offtake 900() artington

0(1) Storage facility urton 900(22) Walesby Storage facility Chapter 4 Weston 900() isting compressor Ongoing oint oint North West isting compressor 0(10) New compressor or MickleTrafford 0(2) olmes hapel k New compressor or developments > 900(18) compressor modifications compressor modifications 00 (2) ccleston r1 Alternative route Alternative route 0(1) 900(0) Chapter 5 r2 prating of pipelines ast Midlands prating of pipelines Looking r 00() 00(2) s Ongoing emissions Ongoing emissions forward > t Shocklach Malpas proects proects Wales West Midlands Appendix >

GTYS | 2019 70 Gas Ten Year Statement Appendix 1 2019 National Transmission System maps

Figure A1.5 Figure A1.6 Welcome > (EM) – NTS West Midlands (WM) – NTS

Executive North East North West summary >

j k

900(11) r1 900(5) r2 Introduction > Audley 900(5) r 900(2) 750(1) s Aspley 900(18)

900(14) 1050(55) North 100() Milwich

1050(55) West 900(2) 900(32) Blyborough 900(34) Chapter 1 1 ast Midlands Drivers of 750(36) Theddlethorpe 2 900(17) Terminal change > Hatton Terminal 900(1) boundary Austrey boundary 900() 1050(25) 0(1) isting pipeline Chapter 2 Kirkstead isting pipeline Shustoke Network 1200(45) 900(29) (with distance marker) (with distance marker) 1050(10) SilkWilloughby ipeline diameter (mm) hurchover ipeline diameter (mm) capability > Wales p Alrewas ength (km) q1 Gosberton ength (km) 00() 900(25)

ugby 900(2) 900(51) 1050(38) enotes a crossing Chapter 3 q2 900(17) enotes a crossing 00(1) point between s 900(35) point between s Blaby eamington System Operator m1 m2 Tur 00(20) Ongoing proposed pipeline n Sutton Bridge Ongoing proposed pipeline Stratford pon Avon Capability > Langton 900(2) Offtake Offtake West 00(18) Newbold acey 00() Storage facility Storage facility t1 t2 Chapter 4 Midlands 900(19) o 900(16) 900(2) isting compressor Ongoing jj isting compressor ower uinton Caldecott u 900(24) New compressor or developments > Market New compressor or South West p compressor modifications Harborough Eastern compressor modifications South Alternative route Chapter 5 Alternative route prating of pipelines Looking prating of pipelines Ongoing emissions forward > Ongoing emissions proects South proects Appendix >

GTYS | 2019 71 Gas Ten Year Statement Appendix 1 2019 National Transmission System maps

Figure A1.7 Figure A1.8 Welcome > Wales (WN & WS) – NTS Eastern (EA) – NTS

Executive summary > ast Midlands North West

m2 Introduction > m 900(8) acton 900() t eterborough 900(1) 0() risley Tydd 900(2) 100(10) 900(9) 900(28) St iles Maelor n 900(11.) 900() ings 1200() 900(10) Chapter 1 West ynn 900(9) 900(2) Winch 900() Drivers of 900(2) 900(2) 100(2) Terminal 900(12) 900(1) West Midlands ye Terminal change > 900(18) 900() Wisbech oudham 100(19) boundary o utton eath elverton boundary 900(18) Wales North isting pipeline 900() isting pipeline Chapter 2 untingdon reat

(with distance marker) 900() (with distance marker) Wilbraham Network 900(8) ipeline diameter (mm) iss ipeline diameter (mm)

capability > 900(2) helmsford Wales South ength (km) 900(1) ength (km) 900(1) Matching reen enotes a crossing ambridge 900(1) 900(90) enotes a crossing Chapter 3 point between s 900() 900(1) point between s 900(21) 1200() Stapleford System Operator 900(21) Ongoing proposed pipeline 900(1) 00(20) Ongoing proposed pipeline 1200(18) Steppingley owell 00(2) Capability > 900(2) oyston yffryn Offtake Offtake 00(1) 00(2) y lydach 00(8) v 900(1) 900(28) 00() South 900(2) lanvetherine Storage facility Whitwell 900() Storage facility Chapter 4 owlais ilwern 00(19) 1 isting compressor 900(1) Ongoing 1200(128) isting compressor Milford aven elindre 2 0() aa South West New compressor or New compressor or developments > compressor modifications compressor modifications North Thames Alternative route Chapter 5 yy Alternative route Looking prating of pipelines prating of pipelines Ongoing emissions Ongoing emissions forward > proects proects Appendix >

GTYS | 2019 72 Gas Ten Year Statement Appendix 1 2019 National Transmission System maps

Figure A1.9 Figure A1.10 Welcome > North Thames (NT) – NTS South East (SE) – NTS

Executive Eastern summary > y aa North Thames yy Introduction > 00(8) Peters Green 900(2) Luxborough 900(20) bb cc Lane South

00(1.) 00(1.) Chapter 1 Horndon Drivers of Terminal 0(2) 00(20) Terminal

0(9) change > 900(9.) Shorne LDZ boundary Isle of LDZ boundary rain 900(2.) Chapter 2 bb cc Existing pipeline Existing pipeline (with distance marker) (with distance marker) 0(1) Network dd Pipeline diameter (mm) 0(1) Pipeline diameter (mm) capability > 0(1) South East Length (km) Length (km) 0(2) arningham Winkfield Denotes a crossing Denotes a crossing Chapter 3 point between LDZs Tatsfield point between LDZs System Operator Ongoing proposed pipeline Ongoing proposed pipeline Capability >

Offtake South Offtake Chapter 4 Storage facility Storage facility Ongoing Existing compressor Existing compressor New compressor or New compressor or developments > compressor modifications compressor modifications Alternative route Alternative route Chapter 5 Looking Uprating of pipelines Uprating of pipelines Ongoing emissions Ongoing emissions forward > projects proects

Appendix >

GTYS | 2019 73 Gas Ten Year Statement Appendix 1 2019 National Transmission System maps

Figure A1.11 Figure A1.12 Welcome > South (SO) – NTS South West (SW) – NTS

West ast West Midlands Executive Midlands Midlands summary > Eastern

1 t 1200(186) Evesham u 2 Introduction > 900(1) Wormington 600(4) Hardwick 600(5) Fiddington 600(14) 900(8) South West 900(29) Ross Aylesbury 600(8) v 600(44) 600(4) 900(30) 900(26) 600(38) Chapter 1 Wales South 900(42) Drivers of 900(2) 150(9) Terminal 600(17) Cirencester Terminal change > Nuffield 900() Easton Grey LDZ boundary 600(24) boundary 0(1) Littleton Drew Ipsden North Thames 900(2) Existing pipeline isting pipeline Chapter 2 450(2) Pucklechurch (with distance marker) 450(26) (with distance marker) Network dd Seabank Pipeline diameter (mm) ipeline diameter (mm) capability > 900() Length (km) Avonmouth ength (km) w South Denotes a crossing enotes a crossing Chapter 3 00(21) South ast point between LDZs point between s 450(60) System Operator 900(31) 0(19)00(2) Lockerley Ongoing proposed pipeline 600(16) Ongoing proposed pipeline

Ilchester600(9) Capability > 0() 600(36) Braishfield Offtake Offtake 0() 600(15) Mappowder Storage facility 500(36) Barrington Storage facility Chapter 4 600(10) Existing compressor isting compressor Ongoing 600(15) 500(10) w New compressor or 600(32) 500(15) Aylesbeare New compressor or developments > compressor modifications compressor modifications Kenn

Alternative route 600(33) Alternative route Chapter 5 Choakford Uprating of pipelines prating of pipelines Looking Ongoing emissions Ongoing emissions forward > projects proects

Appendix >

GTYS | 2019 74 Gas Ten Year Statement Appendix 2 – Gas quality 2019 2.1 Network entry quality specification

Table A2.1 Welcome > For any new entry connection to our system, the connecting party should tell us as soon as possible what the gas composition is likely Gas quality specifications to be. We will then determine whether gas of this composition Parameter Quality requirement Executive would be compliant with our statutory obligations and our existing Hydrogen sulphide Not more than 5 mg/m3 summary > contractual obligations. Total sulphur Not more than 50 mg/m3 Hydrogen Not more than 0.1% (molar) Introduction > From a gas quality perspective, our ability to accept gas supplies *Oxygen Not more than 0.001% (molar)

into the NTS is affected by a range of factors, including the Hydrocarbon dewpoint Not more than -2°C at any pressure up to 85 barg composition of the new gas, the location of the system entry point, Water dewpoint Not more than -10°C at 85 barg Chapter 1 volumes provided and the quality and volumes of gas already Wobbe number 3 Drivers of (real gross dry) The Wobbe number shall be in the range 47.20 to 51.41 MJ/m change > being transported within the system. Incomplete combustion Not more than 0.48 Chapter 2 In assessing the acceptability of the gas quality of any proposed factor (ICF) Network Soot index (SI) capability > new gas supply, we will consider: Not more than 0.60 *Carbon dioxide Not more than 2.5% (molar) Chapter 3 • our ability to continue to meet statutory obligations, including Containments The gas shall not contain solid, liquid or gaseous material that might System Operator but not limited to the GS(M)R interfere with the integrity or operation of pipes or any gas appliance, Capability > within the meaning of regulation 2(1) of the Gas Safety (Installation • implications of the proposed gas composition on system Chapter 4 and Use) Regulations 1998, that a consumer could reasonably be Ongoing running costs expected to operate. Organo halides 3 developments > • implications of the new gas supply on our ability to meet Not more than 1.5 mg/m Radioactivity Not more than 5 becquerels/g Chapter 5 our existing contractual obligations. Looking Odour Gas delivered shall have no odour that might contravene any forward > statutory obligation. The odourisation requirements in GS(M)R do For indicative purposes, the specification in Table A2.1 is usually not apply where the gas is at a pressure above 7 barg. Appendix > acceptable for most locations. This specification encompasses, Pressure The delivery pressure shall be the pressure required to deliver but it is not limited to, the statutory requirements set out natural gas at the delivery point into our entry facility at any time, taking into account the back pressure of our system at the delivery in the GS(M)R. point, which will vary from time to time. The entry pressure shall not exceed the maximum operating pressure at the delivery point. Delivery temperature Between 1°C and 38°C *Requests for higher limits will be considered. GTYS | 2019 75 Gas Ten Year Statement Appendix 2 – Gas quality 2019 2.1 Network entry quality specification

Welcome > Please note that the incomplete combustion factor (ICF) and soot index (SI) have the meanings assigned to them in Schedule 3 of the GS(M)R. Executive summary > The calorific value (CV) of gas, which is dry, gross and measured at standard conditions of temperature and pressure, is usually Introduction > quoted in Megajoules per cubic metre (MJ/m3). CV shall normally

be in the range of 36.9MJ/m3 to 42.3MJ/m3 but the Wobbe number provides the overriding limit. Chapter 1 Drivers of change > In addition, where limits on gas quality parameters are equal to those stated in GS(M)R (hydrogen sulphide, total sulphur, hydrogen, Chapter 2 Network Wobbe number, soot index and incomplete combustion factor), capability > we may require an agreement to include an operational tolerance Chapter 3 to ensure compliance with the GS(M)R. We may also need System Operator agreement on upper limits of rich gas components such as Capability > ethane, propane and butane in order to comply with our Chapter 4 safety obligations. Ongoing developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 76 Gas Ten Year Statement Appendix 2 – Gas quality 2019 2.2 Gas quality developments

Welcome > EU gas quality harmonisation GB developments The European Committee for standardisation (CEN) published its The Institute of Gas Engineers and Managers (IGEM) has established gas quality standard EN 16726 in December 2015. The standard an industry working group seeking to make changes to the GB Executive covers a number of gas quality parameters but does not include gas quality specification currently in Schedule 3 of the Gas Safety summary > the key safety parameter of Wobbe Index because EU level (Management) Regulations 1996 (GS(M)R) and incorporate the agreement could not be reached. revised specification into an IGEM standard. At the same time, Introduction > a review of the other sections of GS(M)R is taking place. Since then, CEN has continued its work on a harmonised Wobbe Chapter 1 Index for inclusion in the standard and the European Committee The objective is to have a specification that can be developed Drivers of stated it would revisit harmonisation again upon its conclusion. more easily in the future as GB’s gas supply diversifies, and to allow change > The Sector Forum Gas Committee within CEN established a number a wider quality of gas to be conveyed in GB networks, subject to Chapter 2 of taskforces to achieve this, and National Grid is currently able to appropriate demonstration of safety and consideration of impacts Network monitor developments, contribute via ENTSOG, and provide progress on industry stakeholders. capability > updates to the industry via the Transmission Workgroup meeting. Chapter 3 A draft standard has been developed which proposes to increase System Operator The main challenge has proved to be that a wide range is desirable the upper limit of Wobbe Index from 51.41 MJ/m3 to 52.85 MJ/m3, Capability > at system entry (driven by the need to attract LNG which has a replace the soot index and incomplete combustion factor parameters Chapter 4 high Wobbe Index, yet also facilitate biomethane and increased with relative density, and increase the legal limit for oxygen content Ongoing developments > concentrations of hydrogen which require a lower Wobbe Index) from 0.2 mol per cent to 1.0 mol per cent. The group is also whilst the end use at some offtakes is sensitive to variation and considering the impacts of reducing the lower limit for Wobbe Index. Chapter 5 Looking therefore requires a narrower range. forward > It is currently expected that a proposed standard will be finalised by This challenge has led to a proposal to de-couple the entry and exit the end of 2019, following which it will be subject to a consultation Appendix > specifications with a wide range at entry and offtakes categorised and impact assessment process led by the HSE in 2020. according to the Wobbe Index of the gas they are expected to receive, with TSOs having a role in determining and monitoring this. A public consultation on the proposals is expected later in 2019, with the standard EN 16726 being updated in 2020.

GTYS | 2019 77 Gas Ten Year Statement Appendix 2 – Gas quality 2019 2.2 Gas quality developments

Welcome > Following consultation with industry on a number of issues related to gas quality in 2017–18, we are exploring the potential for National Grid to offer a gas quality blending service at St Fergus and Bacton, being Executive the NTS entry locations where multiple sources of gas are delivered summary > into and comingled within the National Grid terminal prior to being discharged onto NTS pipelines. Introduction >

Our first step is to assess the technical feasibility of such a service by modelling the blending capability of these terminals, Chapter 1 Drivers of which we intend to complete via a study funded by our Network change > Innovation Allowance. In parallel, we plan to consider the safety assurance and commercial and regulatory issues that would need Chapter 2 Network to be addressed prior to such a service being available and capability > intend to consult more widely with industry in due course. Chapter 3 System Operator Capability >

Chapter 4 Ongoing developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 78 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.1 Connection and capacity application process

Welcome > If you need a new connection or a modification to an existing NTS connection, you will need to go through the Application to Offer (A2O) process. Our connection (A2O) and capacity Executive processes (Planning and Advanced Reservation of Capacity summary > Agreement – (PARCA)) are separate.

Introduction > We have produced a high-level overview of our connection and

capacity application processes in table A3.1 with links to help you to navigate to the relevant chapter of this year’s GTYS. Chapter 1 Drivers of change > Our customers have the flexibility to initiate these two processes at their discretion. However, the two processes Chapter 2 Network can become dependent on each other. capability >

Chapter 3 The PARCA process has been designed to run in parallel with System Operator the A2O process to prevent the possibility of stranded capacity. Capability > We will only allocate reserved capacity if a full connection offer Chapter 4 (FCO) has been progressed and accepted. Typically, customers Ongoing should allow between 6 and 12 months to progress and sign developments > an FCO. This means that the A2O process (if required) needs Chapter 5 to be initiated at least 6 months before the capacity allocation Looking date defined in the PARCA contract. forward > Appendix > In some cases, we may need to reinforce our system to ensure we can meet our customer’s connection or capacity requirements. This was one of the key drivers for implementing the PARCA process as we can now align works we need to complete with our customer’s projects.

GTYS | 2019 79 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.1 Connection and capacity application process

Table A3.1 Welcome > Our connection and capacity application process

Our connection and capacity processes Executive Our customers and their key service Find more information in GTYS: Gas shipper Distribution network (DN) Customers summary > requirements: (Signatory to the UNC) B4:B9 Rights to offtake Introduction > gas from the system. Connections Application to Offer (A2O) Appendix 3, chapter 3.2

Chapter 1 Disconnection/ Appendix 3, chapter 3.2 Drivers of decommissioning change > Entry and exit capacity Quarterly system entry Appendix 3, chapter 3.3 Chapter 2 capacity auctions Network Exit application windows Appendix 3, chapter 3.4 capability >

Chapter 3 Exit application window. Appendix 3, chapter 3.4 System Operator Enduring annual Capability > NTS exit capacity

Chapter 4 Flexible capacity for flow changes Appendix 3, chapter 3.4 Ongoing developments > Entry/Exit planning and advanced Appendix 3, chapter 3.6 reservation of capacity agreement Chapter 5 Looking CAM incremental Incremental entry/exit capacity trigger Appendix 3, chapter 3.5 and 3.7 forward > process for Interconnection Points (IP). This follows the principles of PARCA. Appendix >

GTYS | 2019 80 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.2 Connecting and disconnecting to/from our network

Connection and disconnection Table A3.2 Welcome > NTS gas connection and disconnection Table A3.2 summarises the four different NTS gas connections that are currently available, as well as the process of disconnecting NTS gas connection and disconnection Executive and decommissioning. Entry connections Connections to delivery facilities processing gas from gas summary > producing fields or Liquefied Natural Gas (LNG) vaporisation (importer) facilities, biomethane facilities or any other gas delivery Please note, we offer four types of connection to the NTS. facility, for the purpose of delivering gas into the NTS. Introduction > We also offer the possibility to modify existing NTS connections. Exit connections These connections allow gas to be supplied from the NTS If you need to modify an existing connection arrangement, this to the premises (a supply point), to a distribution network (DN) or to connected systems at connected system exit points (CSEPs). Chapter 1 request will be considered using the same approach as a new Drivers of NTS connection. Storage connections Connections to storage facilities, for supplying gas from the NTS change > and delivering it back later. International These are connections to pipelines that connect Great Britain Chapter 2 interconnector to other states. They can supply gas from and/or deliver gas Network connections to the NTS. capability > Disconnection and Disconnection is the positive isolation from the NTS and the Chapter 3 decommissioning customer’s facilities through a physical air gap between the two System Operator assets. Decommissioning is where the site is returned to its original Capability > state. All assets are disconnected and removed including the removal of pipeline. Chapter 4 Ongoing developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 81 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.2 Connecting and disconnecting to/from our network Figure A3.3

Welcome > Customer connections – Application to Offer (A2O) Figure A3.3 summarises the A2O process and the timescales The Uniform Network Code (UNC) provides a robust and associated with each stage. These timescales are indicative for transparent framework for new customer connections construction, and each connection project has a bespoke programme Executive and modifications to an existing connection. for the detailed design, construction and commissioning phase. summary > The UNC provides: Figure A3.3 Introduction > Application to Offer (A2O) process • a formal connection application process (TPD V.13) • definition of the content of an initial connection offer Non Standard Design Standard Design Chapter 1 2 2 Drivers of • definition of the content of a full connection offer nta nnetn er (optional) mnts nta nnetn er (optional) mnts change > nr em me east east • how to request a modification to a full connection offer sme st st rere (feasibility nt rere Chapter 2 study east east east Network • timescales for National Grid to produce a connection offer not reuired) st st mnts st mnts capability > nnetn nnetn • timescales for customers to accept an initial/full connection ant esn er mnts er er mnts Chapter 3 offer (up to three months) System Operator ant esn er mnts nnetn nnetn nnetn Capability > • application fee principles for an initial connection offer er er er mnts and full connection offer Chapter 4 etae esn 122 Ongoing nstrtn an mmssnn mnts • requirement for National Grid to review the application ant esn er mnts developments > fees on an annual basis. Chapter 5 Looking forward > On our website, you can find more information on the A20 connection process. Appendix > etae esn 2 nstrtn an mmssnn mnts

GTYS | 2019 82 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.2 Connecting and disconnecting to/from our network

Welcome > Connection application charges Shippers may also request a ‘specified pressure’ for any supply meter Our charging policy for all customer connections is set point, connected to any pressure tier, in accordance with the Uniform out in the publication The Statement for Gas Transmission Network Code Section J 2.2. Executive Connection Charging, which complies with Licence summary > Condition 4B. General connection pressure information NTS offtake pressures tend to be higher at entry points and outlets of Introduction > When you connect to the NTS, the connection costs operating compressors, and lower at the system extremities and inlets are calculated based on the time and materials used to operating compressors. Chapter 1 to undertake the activity. Drivers of Offtake pressure varies throughout the day, from day-to-day, season- change > Connection pressures to-season and year-to-year. We currently plan normal NTS operations Chapter 2 There are four primary types of defined pressure on the NTS: with start-of-day pressures no lower than 33 barg. Note that these Network pressures cannot be guaranteed as pressure management is a capability > • Standar d Offtake Pressures as defined in the UNC fundamental aspect of operating an economic and efficient system. Chapter 3 • Assured Offtake Pressures (AOP) as defined in the UNC System Operator Ramp rates and notice periods Capability > • Anticipated Normal Operating Pressures (ANOP) Directly connected offtakes have restrictions in terms of ramp rates Chapter 4 • Maximum Operating Pressure (MOP). Ongoing and notice periods written into NExAs and SCAs. developments > These pressures will be stated in the Network Entry Agreement Chapter 5 (NEA), Network Exit Agreements (NExA) or Storage Connection A ramp rate of 50 MW/minute can be offered for a simple connection. Looking Agreement (SCA) depending on the connection you require. Higher ramp rates can be agreed subject to completion of a ramp rate forward > assessment or study. Appendix > When agreeing or revising a NExA, we can provide information regarding historical pressures which should help you to Notice periods will only be enforced in these circumstances when understand how we assess pressures and indicate how system flexibility is limited. More detail regarding access to system AOPs and ANOPs relate to typical operating pressures. flexibility can be found on our website in the Short Term Access to System Flexibility Methodology Statement.

GTYS | 2019 83 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.2 Connecting and disconnecting to/from our network

Welcome > Reinforcements to our network The Gas Act 1986 (as amended 1995) states we “must develop and maintain an efficient and economical pipeline Executive system and comply with any reasonable request to connect summary > premises, as long as it’s economic to do so”.

Introduction > Connecting a new supply or demand may require system reinforcement to maintain system pressures and Chapter 1 capability. Depending on the scale, reinforcement projects Drivers of may require significant planning, resourcing and construction change > lead-times. Therefore we need as much notice as possible. Chapter 2 Project developers should approach us as soon as they Network are in a position to discuss their projects so that we can capability > assess the potential impact on the NTS and help inform Chapter 3 their decision making. System Operator Capability > The PARCA process was designed to encourage Chapter 4 developers to approach us at the initial stages of their project Ongoing developments > (see Appendix 3.6). This process allows alignment between both the developer’s project timeline and any reinforcement Chapter 5 Looking works required on the NTS to accept or deliver capacity. forward >

Appendix >

GTYS | 2019 84 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.3 NTS entry capacity

Welcome > Entry capacity provides shippers with the right to flow gas onto the NTS. Only licenced shippers can apply NTS entry capacity auctions Spotlight for and obtain entry capacity. A licenced shipper Executive is considered a ‘User’ of the NTS under the terms To obtain firm entry capacity, a shipper • Annual Monthly System Entry summary > of the Uniform Network Code (UNC). can bid for capacity on the Gemini Capacity (AMSEC) system and European Platform • Rolling Monthly Trade & Transfer Introduction > NTS entry capacity types (PRISMA) through a series of auctions. (RMTnTSEC). For long-term capacity, shippers can National Grid make firm and interruptible NTS entry capacity bid in three auctions: Information on Interconnection Points Chapter 1 available to the market at each Aggregated System Entry • Quarterly System Entry Capacity entry capacity auctions can be found Drivers of Point (ASEP). (QSEC) – Please see figure A3.4 in Appendix 3 chapter 3.5. change > for more information on the results from this year’s QSEC Chapter 2 The volume of firm capacity made available at each ASEP Network consists of the following: capability > • Baseline NTS Entry Capacity (obligated) Incremental obligated capacity Chapter 3 System Operator • Funded Incremental NTS Entry Capacity (obligated) In order to increase the obligated level of entry capacity at an ASEP, Capability > • Non-Obligated NTS Entry Capacity. shippers or developers should submit a PARCA application1. If this Chapter 4 capacity can be made available via capacity substitution, then the Ongoing baseline capacity at the location will be increased. If this request for developments > Interruptible NTS entry capacity can be made available to the market at ASEPs; the volume of interruptible NTS additional capacity leads to a requirement to reinforce the network, Chapter 5 it can only be triggered when the customer enters into a PARCA. Looking entry capacity available at an ASEP consists of two parts: forward > • Use it or Lose it (UIOLI) An economic test is applied prior to the decision to release incremental Appendix > • Discretionary. obligated capacity, further details of this test can be found within the Entry Capacity Release methodology statement. If insufficient revenue If there are concerns for network stability then we may is received to pass the economic test, capacity in excess of the limit interruptible NTS entry capacity rights without any obligated baseline level can be released on a non-obligated basis. compensation for the Users affected.

GTYS | 2019 85 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.3 NTS entry capacity

Figure A3.4 Welcome > 2019 QSEC auction

Executive summary >

Introduction >

Chapter 1 1 2 3 Drivers of change >

Chapter 2 The QSEC auctions opened Bids were received for No bids were Network on Monday 18 March and non-obligated entry received at any capability > closed on Wednesday capacity at Murrow, which other ASEPs. Chapter 3 20 March 2019. was allocated. System Operator Capability >

Chapter 4 Ongoing developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 86 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.4 NTS exit capacity

Welcome > Exit capacity provides shippers and Distribution NTS exit capacity application windows Network Operators (DNO) with the right to take gas and auctions Spotlight off the NTS. Only licenced shippers and DNOs can Executive apply for and obtain exit capacity. A licenced shipper To obtain firm exit capacity a shipper • Enduring Annual Exit (Flat) Capacity summary > or DNO is considered a ‘User’ of the NTS under the can apply for capacity through Increase (EAFLEC) terms of the UNC. three auctions, these relate to • Enduring Annual Exit (Flat) Capacity Introduction > Interconnection Points, and four Decrease (EAFLEC) exit capacity application windows: NTS exit capacity types • Ad-hoc Enduring Annual Exit (Flat) • Annual NTS (Flat) Exit Capacity Capacity. Chapter 1 National Grid makes firm and off peak capacity available to the (AFLEC) Drivers of market at each offtake point. The volume of firm capacity made change > available at each offtake point consists of the following: For our DNO Users, we also make NTS exit (flexibility) capacity Chapter 2 • Baseline NTS Exit Capacity (obligated) Network available. This allows the DNO to vary the offtake of gas from the NTS capability > • Incremental NTS Exit Capacity (obligated) over the course of a Gas Day. DNOs can apply for NTS exit (flexibility) Chapter 3 • Non-Obligated NTS Exit Capacity. capacity during the 1 to 31 July enduring annual exit (flat) capacity System Operator application window. Capability > Off peak capacity is made available to the market at offtake Chapter 4 points. The volume of off peak capacity available at an offtake All capacity requests are subject to network analysis to assess Ongoing consists of three parts: the impact on system capability. Where the capacity requested developments > can be accommodated through substitution, the capacity request Chapter 5 • Use it or Lose it (UIOLI) is accepted. If incremental capacity cannot be met via substitution, Looking forward > • Unutilised Maximum NTS Exit Point Offtake Rate (MNEPOR) the customer will need to enter into a PARCA as reinforcement • Discretionary . works may be required to meet the capacity request. Appendix >

Off peak capacity rights may be curtailed by National Grid without any compensation for the Users affected if there are low pressures on the network; in addition, the Gas National Control Centre may curtail off peak capacity in the event of a constraint on the NTS. GTYS | 2019 87 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.5 Capacity at Interconnection Points

Welcome > The UK currently has three direct gas pipelines (gas The Annual Quarterly auctions will be held four times a year as follows: interconnectors) connecting the NTS to other states. These include Moffat to the Republic of Ireland, Balgzand • The first is held on the 1st Monday of August, capacity will be Executive to Bacton Line (BBL) to the Netherlands and IUK to Belgium. auctioned for all four quarters (October–December, January–March, summary > Please see the spotlight on BBL to learn more about the April–June and July–September). recent modification to this interconnector to facilitate • The second is held on the 1st Monday of November, capacity Introduction > capability of two-way flow. will be auctioned for the quarters January–March, April–June and July–September. The Interconnection Point auctions are held in accordance Chapter 1 with the Capacity Allocation Mechanisms (CAM) EU network • The third is held on the 1st Monday of February, capacity will be Drivers of auctioned for the quarters April–June and July–September). change > code. There are a total of six long term Interconnection Point auctions, three for entry and three for exit: • The fourth is held on the 1st Monday of May, capacity will be Chapter 2 Network auctioned for the last quarter (July–September). capability > Entry: Chapter 3 Interconnection Point Annual Yearly auctions (IPAYSEC) The Rolling Monthly auction will be held once a month. It will open on System Operator Interconnection Point Annual Quarterly auctions (IPAQSEC) the third Monday of each month for the following monthly standard Capability > Interconnection Point Rolling Monthly auctions (IPRMSEC) capacity product. Chapter 4 Ongoing Exit: *Please note: as part of the modification to facilitate capability developments > of two-way flow from BBL, we release daily exit interruptible Chapter 5 Interconnection Point Annual Yearly auctions (IPAYNEX) capacity at Bacton BBL. Looking Interconnection Point Annual Quarterly auctions (IPAQNEX) forward > Interconnection Point Annual Rolling Monthly auctions Appendix > (IPRMNEX)

The Annual Yearly auction opens on the 1st Monday of July Please view this page2 for an explanation of how the trading of and makes bundled/unbundled firm* capacity available from gas with European states will operate in the event of a no-deal October Y+1 to September Y+15 (where Y is the current Brexit and the actions you will need to take to prepare. gas year).

GTYS | 2019 88 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.6 PARCA framework

Welcome > The Planning and Advanced Reservation of Capacity A customer might be a gas shipper, DNO or any other third party Agreement (PARCA) is a bilateral contract that allows long-term such as a developer and may or may not be a party signed up to the NTS entry and/or exit capacity to be reserved for a customer Uniform Network Code (UNC). The PARCA arrangements apply to all Executive while they develop their project. The customer can buy the NTS entry and exit points, NTS storage and NTS interconnectors. summary > reserved capacity at an agreed future date. A key aspect of the PARCA is that it helps the customer and Introduction > The PARCA framework is based on a development of the us to progress our respective projects in parallel. It also assures the

long-term NTS entry and exit capacity release mechanisms customer that capacity has been reserved with the option to buy it and extends the UNC ad hoc application provisions that later. Financial commitment to the capacity (allocation of capacity) is Chapter 1 Drivers of allow users to reserve enduring NTS exit (flat) capacity and only required once the customer is certain that their project will change > NTS entry capacity. go ahead.

Chapter 2 Network Baseline capacity, non-obligated capacity and incremental The PARCA framework is split into four logical phases: Phase 0 to capability > capacity that can be provided via substitution will be made Phase 3 (See figure A3.5). This phased structure gives the customer Chapter 3 available through the Quarterly System Entry Capacity natural decision points where they can choose whether to proceed System Operator (QSEC) auction(s) and enduring annual NTS exit (flat) capacity to the next phase of activities. The PARCA process is flexible to allow Capability > processes, and can also be reserved through a PARCA by the customer to leave the process at any time before full financial Chapter 4 a developer or a User (both DNO and shipper). commitment to the capacity through capacity allocation. Please note, Ongoing a reservation of capacity through a PARCA does not provide developments > Incremental capacity that cannot be provided via substitution an NTS connection. Chapter 5 is only guaranteed for release where a PARCA has been Looking agreed by National Grid and a developer or a User (both More information on the PARCA process is provided on our website, forward > DNO and shipper). including the full PARCA customer guide. Appendix > 3.6.1 PARCA framework structure Initially, a customer will submit a PARCA application requesting the capacity they need. We will use the information provided in the PARCA application to determine how and when the capacity requested can be delivered. GTYS | 2019 89 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.6 PARCA framework

Figure A3.5 Welcome > PARCA framework process

Executive Customer summary > Customer submits approaches Informal assessment PARCA application National Grid Phase 0 completed and PARCA for initial project Introduction > application fee discussions

Chapter 1 Drivers of National Grid change > Within ten business National Grid provides formal National Grid will days National confirms receipt acceptance of National Grid issue the customer Chapter 2 Phase 1 Grid may trigger a of the application a competent initiates with the Phase 1 Network PARCA window and Up to 6 months within two application to the Phase 1 Works Output Report and capability > an ad hoc QSEC business days customer within six the PARCA contract capacity auction Chapter 3 business days System Operator Capability >

Chapter 4 Where customer National Grid Customer provides National Grid Ongoing is a non-code party, will reserve the National Grid demonstration formally allocate developments > Phase 2 nominates a User(s) capacity on behalf initiates the information and the capacity to at least one month Up to 60 months of the customer Phase 2 works annual financial the customer Chapter 5 prior to capacity (reservation date) security (allocation date) Looking allocation date forward >

Appendix >

National Grid will Phase 3 conduct network Capacity is delivered Up to 24 months reinforcement (registration date) if this is required

GTYS | 2019 90 Gas Ten Year Statement Appendix 3 – Connection and capacity application process 2019 3.7 Incremental capacity at Interconnection Points

Figure A3.6 Welcome > In order to harmonise the development process for incremental capacity at Interconnection Points, rules for Phases of releasing incremental capacity incremental capacity have been included in the network Market Design NRA Ascending Economic Non CAM Executive code on Capacity Allocations Mechanism (CAM NC). demand phase approval clock test (Capacity summary > Assessment (consultation) auctions Allocations This development process includes several phases (figure Mechanism) Article 26 Article 27 Article Article 29 Introduction > A3.6). Incremental projects can be initiated based upon 28 Planning market demand and new capacity requirements. The market demand assessment is conducted in accordance with the Detailed Chapter 1 UNC European Interconnection Document (EID) Section E. Alternative Articles design Drivers of allocation 22–25 change > mechanism Construction The 2019 Market Demand Assessment window opened Chapter 2 Network on 1 July for 8 weeks to 26 August 2019. The report with Article 30 capability > the results of this process is published on our website. Chapter 3 System Operator Capability > Please view this page3 for an explanation of how the trading of Chapter 4 gas with European states will operate in the event of a no-deal Ongoing developments > Brexit and the actions you will need to take to prepare.

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 91 Gas Ten Year Statement Appendix 4 – Meet the teams 2019

Welcome > 4.1 Customer Projects Contact 4.2 Operational Liaison and Management team Business Planning team Executive summary > Our role within the Gas Connections Contract Management team Our Operational Liaison team facilitates our best customer practice is to manage and deliver all commercial aspects of your National across Gas Operations by managing our engagement and Introduction > Transmission System (NTS) connection, diversion and/or PARCA improvement strategy. We deliver a range of customer processes. We deliver all of the commercial and contractual and stakeholder facing meetings and forums, including: Chapter 1 requirements including new and/or modifications to your NTS • Gas Operational Forum Drivers of connection, reservation of capacity on the NTS (PARCA), diversions, change > distribution network offtake arrangements, associated operator • Annual Liaison Meetings. Chapter 2 agreement changes and framework changes, and UNC Network customer lifecycle processes. We also co-ordinate Last Mile Commissioning (the system set-up for capability > connections and biomethane sites), and are the business custodian Chapter 3 Our dedicated Contract Management team will manage your for Operational Data. System Operator connection, diversions and all PARCA applications: Capability > Find out more about the work completed by our Operational Liaison Chapter 4 The Gas Connections Contract team – and Business Planning teams at our Operations or Data Community Ongoing [email protected] pages or contact our dedicated Operational Liaison and Business developments > Planning team directly: Chapter 5 Looking Daniel Caldecote Claire Gumbley The Operational Joshua Bates forward > Tim Dart Louise McGoldrick Liaison team – Martin Cahill Appendix > Jeremy Tennant Richard Hounslea Box.OperationalLiaison@ Manesh Bulsara James Abrahams Steven Ruane nationalgrid.com Juliet Crouch Nicola Lond Avita Rai Belinda Agnew

GTYS | 2019 92 Gas Ten Year Statement Appendix 5 2019 EU activity

Welcome > In chapter 1.5.2, we discussed the European Union (EU) In accordance with Article 6 of CAM, we continue to meet Third Energy Package of legislation which was introduced once a year with adjacent TSOs at Bacton and Moffat to discuss, in 2009. Since then, we have worked with multiple analyse and agree the amount of available capacity at Interconnection Executive stakeholders to enable the development of several Points (IP) that would be offered in the annual yearly capacity auction. summary > EU gas Network Codes including: • Capacity Allocation Mechanisms (CAM) We have carried out extensive work with GB shippers to review GB Introduction > charging arrangements under UNC modifications 0621 and 0678

• Balancing (BAL) (and their various alternatives) in accordance with the harmonised tariff • Interoperability and Data Exchange (INT) arrangements required under the TAR code. Whilst the compliance Chapter 1 date for this TAR code obligation is 31 May 2019 for the following Drivers of • Tariffs (TAR). change > tariff year, the final modification report for 0678 was discussed at a UNC Modification Panel in May 2019 and is currently with Ofgem for Chapter 2 We play an important role in representing domestic consumer Network and stakeholder interests at a European level, including in decision. We expect a Regulatory Impact Assessment to be carried capability > the development and implementation of legislation. We have out prior to any implementation decision being made. We are working Chapter 3 influenced the EU code developments and supported the GB to implement as soon as reasonably practicable following System Operator October 2019. Capability > industry and our customers through a process of extensive dialogue. This involved stakeholder working sessions, technical Chapter 4 workshops and several consultations. We have worked closely with the UK Government and Ofgem to Ongoing assess the impact of the revised Regulation on Gas Security of Supply developments > We have also worked closely with other TSOs at Bacton – (EU) 2017/1938 – and the activities required for its implementation. Chapter 5 (connecting to Belgium and the Netherlands) and at Moffat This regulation requires closer cooperation between EU Member Looking States, whose ‘competent authorities’ are required to work together forward > (connecting Northern Ireland and the Republic of Ireland to Great Britain) to put in place the necessary technical and to develop regional risk assessments and preventive action plans, Appendix > with ‘solidarity principles’ to be applied in the event of a prolonged commercial arrangements to ensure we comply with EU legislation. supply emergency. We have jointly developed a proportionate implementation plan with BEIS and Ofgem which does not require licence changes or Uniform Network Code (UNC) modifications.

GTYS | 2019 93 Gas Ten Year Statement Appendix 5 2019 EU activity

Welcome > With the current European Commissioners’ term of office The UNC modifications to implement the EU Codes and Guidelines ending in December 2019, the Commission’s forward that have been completed since the previous 2018 GTYS or are thinking is now focussed on future gas market improvements ongoing include: Executive from 2020, which will improve market liquidity across all • 0662 (Revenue Recovery at Combined ASEPs). Raised 12 June summary > Member States and be fit for purpose to support the EU’s 2018 and currently under development, this modification decarbonisation agenda. This package was expected to focus proposal seeks to apply the TAR code to charges for storage Introduction > on ‘mirroring’ common topics from the Clean Energy Package at combined ASEPs. into gas arrangements; strengthening market functioning and the future role of gas. This may change under the new • 0678/A/B/C/D/E/G/H/I/J (Amendments to Gas Transmission Chapter 1 European Commission. As members of both European Charging Regime). Sent by the UNC Panel to Ofgem for decision Drivers of on 23 May 2019. change > Network of Transmission System Operators for Gas (ENTSOG) and Gas Infrastructure Europe (GIE), we have been supporting Chapter 2 Network the increasingly important input these organisations have capability > in shaping these potential future market developments. Chapter 3 System Operator We are working closely with Ofgem, BEIS and stakeholders Capability > in preparation for EU Exit, and will continue to engage with Chapter 4 domestic and European stakeholders to prepare for the Ongoing future UK/EU relationship. developments > Chapter 5 Finally, the Uniform Network Code (UNC) modifications Looking to implement the EU Codes and Guidelines that have been forward > completed to date and have been closed are available Appendix > online and are listed in the previous versions of GTYS online.

GTYS | 2019 94 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.1 Exit capacity on the NTS

Welcome > Understanding our customers’ gas demand (exit capacity) Following the Planning Act (2008), significant new pipelines require requirements across the NTS allows us to plan and operate a Development Consent Order (DCO). This can result in capacity lead our system efficiently and effectively. When we receive an exit times of 72 to 96 months. Construction of new compressor stations Executive capacity request, we complete analysis to assess what impact may also require DCOs if a new high-voltage electricity connection summary > an increase in demand has on our current network capability. is needed and, subject to local planning requirements, may require This allows us to identify and plan for any geographical similar timescales to pipeline projects. Introduction > constraints which may arise from increasing customer exit

capacity demand in an area of the NTS. Where constraints 6.1.1 Available (unsold) NTS exit (flat) capacity to current network capability are detected, we identify options Chapter 1 The obligated exit capacity level is the amount of exit capacity that we Drivers of to meet our customers’ needs in the most cost effective and make available through the application and auction processes (please change > efficient way. see Appendix 3 for a detailed description of our capacity application Chapter 2 and auction process). Network In this chapter of the GTYS, we provide shippers, DNOs and capability > developers with information about the lead time for gaining If we have unsold NTS exit (flat) capacity available at an existing exit Chapter 3 NTS exit capacity. The same timescales apply to entry capacity. point, then it can be accessed through the July application process System Operator Figure A6.1 summarises these lead times. for the following winter. Capability > Chapter 4 Please note, works on our existing sites, including modification We can increase exit capacity above the obligated levels when Ongoing of compressors and above-ground installations (AGIs), may not developments > our network capability allows, through capacity substitution and require planning permission. This may result in shorter via funded reinforcement works. Further information on capacity Chapter 5 lead times. Looking release and capacity substitution can be found online in the capacity forward > methodology statements. If capacity substitution is not possible, Figure A6.1 we will consider whether further network capability analysis is required Appendix > Capacity lead times to investigate rules, tools, and asset solutions. If capacity can be made available: without investment, with simple medium- with more significant for example by a term works or capacity reinforcement works, contractual solution substitution including new pipelines and compression

< 36 months 36 months > 36 months GTYS | 2019 95 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.1 Exit capacity on the NTS

Table A6.1 Welcome > Table A6.1 includes the quantities of unsold NTS exit (flat) capacity in each zone of our NTS exit capacity map that could Quantities of unsold NTS exit (flat) capacity also be used to make capacity available at other sites through Obligated Unsold Executive exit capacity substitution. summary > % Region change Region % of unsold This table has been updated to shows how unsold capacity number (GWh/d) (GWh/d) from Introduction > has changed since the publication of the 2018 Gas Ten capacity 2018 Year Statement. GTYS 1 Scotland and the North 719 156 22 +1 Chapter 1 Drivers of 2 North West and West 1,110 423 38 +1 change > As a result of stakeholder feedback received during Midlands (North) RIIO-2 business plan engagement on our capacity Chapter 2 2.1 North Wales and 315 204 65 +1 Network baselines and general access arrangements, 3 North East, Yorkshire 1,566 252 16 -12 capability > National Grid Gas has raised UNC request and Lincolnshire Chapter 3 0705R – NTS Capacity Access Review, which 4 South Wales and West 569 50 9 0 System Operator has the following purpose: Midlands (South) Capability > 5 Central and East Midlands 281 113 40 -7 Chapter 4 To review the principles and establish long-term strategy 6 Peterborough to Aylesbury 126 29 23 0 Ongoing for the NTS capacity access regime. Ensuring the regime 7 Norfolk 367 119 32 0 developments > is appropriate for commercial behaviours experienced 8 Southern 526 294 56 -3 Chapter 5 today, simplified and adaptable whilst being consistent Looking 9 London, Suffolk and the 1,504 372 25 -7 forward > with relevant obligations. To make recommendations for change and addressing short-term problems South East Appendix > in accordance with the long-term ambition. 10 South West 461 64 14 -7

More detail on this request can be found online.

GTYS | 2019 96 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.1 Exit capacity on the NTS

6.1.2 NTS exit capacity map Figure A6.2 Welcome > NTS exit capacity map The NTS exit capacity map divides the NTS into zones based on key compressor stations, and multi-junctions (figure A6.2). Executive These zones are purely for information and were created for summary > the GTYS.

Introduction > Within these zones, any new connection and/or capacity request is likely to be met through capacity substitution within the zone. It is likely that substitution within a zone will be close to a 1 Legend Chapter 1 1 — Gas pipeline Drivers of to 1 basis. All of our substitution analysis is carried out to the — Gas pipeline – sensitive area — Exit capacity area change > ! substitution methodology statement rules and while it is very ! Edinburgh Glasgow Chapter 2 likely that capacity will be substituted from within a zone, it is Network not guaranteed. capability > ! Newcastle Chapter 3 In the following chapter we have provided a commentary System Operator explaining the potential capacity lead times and likelihood of 2 Capability > substitution in each zone, including areas of sensitivity. This Chapter 4 information is an indication, and actual capacity lead times and ! Ongoing Leeds ! developments > availability will depend on the quantity of capacity requested Manchester from all customers within a zone and interacting zones. This 3 Chapter 5 2.1 Looking information recognises the impact Electricity Market Reform forward > may have on interest in NTS connections and capacity. ! 5 Birmingham 7 Appendix > 4 6

! ! Cardiff London 10 8 9

GTYS | 2019 97 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.1 Exit capacity on the NTS Figure A6.3 Figure A6.4

Welcome > Region 1 – Scotland and the North Region 2 – North West and West Midlands (North)

Figure A6.3 Figure A6.4 Region 1 – Scotland and the North Region 2 – North West and West Midlands (North) Executive summary > Legend Legend Key sites Key sites — Gas pipeline — Gas pipeline Longtown ● — Gas pipeline – sensitive area ● — Gas pipeline – sensitive area — Exit capacity area Newcastle — Exit capacity area

St Fergus ● 2 ● Introduction > ● 3 Inverness

● Aberdeen Nether Kellet ●

1 Kirriemuir ● ● Samlesbury ● ● NTS location: Preston Leeds NTS location: Blackrod Chapter 1 ● North of Longtown South of Longtown, ● ● Manchester Drivers of and Bishop Liverpool North of Alrewas Elworth 2.1 ● change > Auckland Audley and East of Elworth ● Bathgate ● Glenmavis ● ● ● Edinburgh Glasgow Alrewas Chapter 2 NTS/DN exit ● NTS/DN exit 5 zones: ● zones: Network Birmingham SC1, 2, 3, 4, 4 NW1, WM1 capability > Longtown ● Wormington ● ● NO1, 2 Newcastle

3 Bishop Auckland Chapter 3 2 ● Middlesbrough ● System Operator Capability > Chapter 4 This region is sensitive to St Fergus flows. High St Fergus This region is highly sensitive to national supply patterns and use Ongoing flows mean that exit capacity will be available, as flows from the of storage; this area was historically supplied with gas from the North developments > St Fergus terminal are predominately in a North to South direction. but increasingly receives gas from the South and from the East across Chapter 5 As St Fergus flows reduce, exit capacity will be constrained. the Pennines. The amount of unsold capacity in the region indicates Looking forward > that capacity could be made available by exit capacity substitution. There is only a small quantity of substitutable capacity in the A capacity request in zone 2 is likely to be met through substitution Appendix > area, but compressor flow modifications, including reverse from zone 2, including zone 2.1, and then from the downstream flow capability, can be delivered to provide significant quantities zones, in this case zone 5. Capacity is likely to be available on the of capacity without requiring Planning Act timescales. main feeder sections between Carnforth and Alrewas. Potential Capacity may be more limited in the sensitive area (Feeder 10 non-Planning Act reinforcements could release capacity, but then Glenmavis to Saltwick) due to smaller diameter pipelines. significant pipeline reinforcement would be required, particularly in the sensitive regions between Nether Kellett and Blackrod on Feeder 11. GTYS | 2019 98 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.1 Exit capacity on the NTS Figure A6.5 Figure A6.6

Welcome > Region 2.1 – North Wales and Cheshire Region 3 – North East, Yorkshire and Lincolnshire

Figure A6.5 Figure A6.6 Region 2.1 – North Wales and Cheshire Region 3 – North East, Yorkshire and Lincolnshire Executive summary > Legend Legend Longtown Key sites !( Key sites — Gas pipeline ! — Gas pipeline Longtown Newcastle ● — Gas pipeline – sensitive area — Gas pipeline – sensitive area ● Newcastle — Exit capacity area — Exit capacity area Bishop Auckland !( 2 3 ● Introduction > ! Middlesbrough NTS location: Nether Kellet ● Nether Kellet South of Bishop !( Auckland, North of Samlesbury ● ● ● Preston Leeds NTS location: Chapter 1 Blackrod Peterborough and ● ! West of Elworth and ! ● Preston Leeds Easington Drivers of ● Manchester !( Wisbech and East Liverpool Audley (Feeder 4)

Elworth of Nether Kellet change > ● 2.1 ! Audley 3 ● Manchester ! Sheffield NTS/DN exit Hatton !( NTS/DN exit Alrewas ● Elworth Chapter 2 zones: !( Audley zones: 5 NW2, WA1 !( ● Network Birmingham ! NE1, 2, EM1, 2 4 Nottingham capability > Wisbech E W Alrewas !( !( Wormington ●

!

Leicester ! 7 5 Peterborough ! Churchover Chapter 3 Birmingham !( Huntington 4 6 !( ! Cambridge System Operator Northampton ! Capability > Chapter 4 This is an extremity of the system with limited local supplies There are numerous power stations in this region and this may Ongoing (Burton Point) and a significant number of storage facilities. impact on future ramp rate agreements. The amount of unsold developments > capacity in the region indicates that capacity could be made Chapter 5 The quantity of unsold capacity within the region indicates a good available through exit capacity substitution. Looking forward > probability that capacity could be made available via exit capacity substitution. However, this would be available at direct connect Further capacity should be available without needing reinforcement, Appendix > offtakes where capacity can be booked. Potential non-Planning Act assuming stable North-East supplies; however, this may be limited reinforcements could release small amounts of additional capacity, on smaller diameter spurs, including between Brigg and Blyborough but significant pipeline reinforcement would be required, resulting on Feeder 7. Non-Planning Act reinforcements, including in long (Planning Act) timescales. compressor modifications, could be carried out to make additional capacity available.

GTYS | 2019 99 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.1 Exit capacity on the NTS Figure A6.7 Figure A6.8

Welcome > Region 4 – South Wales and West Midlands South Region 5 – Central and East Midlands

Figure A6.7 Figure A6.8 Region 4 – South Wales and West Midlands South Region 5 – Central and East Midlands Executive ! ! Preston ! summary > Legend Leeds Legend Easington Key sites ! Key sites ! — Gas pipeline — Gas pipeline ! Manchester ! Liverpool Sheffield — Gas pipeline – sensitive area — Gas pipeline – sensitive area

— Exit capacity area ! 3 — Exit capacity area !( Manchester Sheffield 2.1 Elworth ! !( 3 Introduction > Hatton Audley ! !( Nottingham Elworth ! !( Alrewas NTS location: Audley NTS location: ! ! Leicester 5 Nottingham 2 ! ! West of Churchover South of Alrewas, Birmingham !( Churchover North of

Alrewas Wisbech E W Chapter 1 4 NTS/DN exit ! ! Churchover, !( Leicester Wormington ! zones: Peterborough West of Wisbech Drivers of 5 !

!( ! WM3, SW1, WA2 ! Oxford change > Herbrandston Churchover ! ! Birmingham

Swansea ! Huntington 7 NTS/DN exit ! Swindon ! ! Cardiff Bristol Northampton ! Cambridge 4 ! zones: Chapter 2 10 Bedford 6 ! Cambridge EM3, 4, WM2 ! Milton Keynes Wormington ! Network ! !( !( Lockerley Ilchester ! Luton Whitwell capability > Southampton Aylesbury ! ! !

! ! Exeter Oxford Bournemouth 10 !

Chapter 3 ! 8 Swindon Plymouth !

! Reading System Operator ! London Capability > Chapter 4 Exit capacity availability is highly sensitive to Milford Haven flows. The unsold capacity here indicates a limited scope for substitution. Ongoing Low Milford Haven flows result in reduced South Wales pressures, Potential non-Planning Act reinforcements could be carried out developments > which limit capacity. High Milford Haven flows result in reduced to release a small amount of capacity, but significant pipeline Chapter 5 pressures in the West Midlands which may limit capacity. reinforcement would be required, particularly for the sensitive area Looking forward > on Feeder 14 between Austrey to Shustoke. The quantity of unsold capacity within the region indicates a limited Appendix > quantity of capacity could be substituted. Potential non-Planning Act reinforcements could release small quantities of capacity, but significant pipeline reinforcement would be required, particularly in the sensitive area on Feeder 2, South of Cilfrew between Dyffryn Clydach and Gilwern, due to the different pressure ratings.

GTYS | 2019 100 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.1 Exit capacity on the NTS Figure A6.9 Figure A6.10

Welcome > Region 6 – Peterborough to Aylesbury Region 7 – Norfolk

Figure A6.9 Figure A6.10 Region 6 – Peterborough to Aylesbury Region 7 – Norfolk Executive summary > Legend Legend Key sites Key sites — Gas pipeline — Gas pipeline — Gas pipeline – sensitive area — Gas pipeline – sensitive area Wisbech E W ! — Exit capacity area — Exit capacity area Hatton Introduction > !( Leicester ! Peterborough ! 3 NTS location: NTS location: 5 North of Aylesbury, North of Diss and Bacton Churchover !( ! South of Cambridge, East

Chapter 1 Huntington Wisbech E W ! Peterborough and of Wisbech 7 !

Norw! ich Northampton Wisbech, West of Drivers of ! Camb! ridge Peterborough change > 6 Huntingdon ! NTS/DN exit Bedford ! 7 Cambridge zones: !

Milton Keynes Diss ! NTS/DN exit !( EA1, 2, 3 Huntington Chapter 2 zones: !( Cambridge Network ! Luton Whitwell EA6, 7 ! ! Aylesbury Cambridge ! !( Ipswich capability > !

Oxford 9 ! 9

Luton Whitwell Chapter 3 ! !( 8 Chelmsford System Operator ! Capability > Chapter 4 Capacity availability is sensitive to demand increases downstream in This region is sensitive to South East demand; if demand increases Ongoing region 10, the South West. The quantity of unsold capacity indicates in the South East, capacity may become more constrained. developments > limited scope for exit capacity substitution from the single offtake Chapter 5 in the region, but there may be scope for substitution from the Unsold capacity here indicates a good probability that capacity could Looking forward > Southern region downstream of Aylesbury. Potential non-Planning be substituted. Additional capacity could be made available without Act reinforcements could be carried out to release capacity. reinforcement works, assuming stable Bacton supplies. Appendix >

GTYS | 2019 101 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.1 Exit capacity on the NTS Figure A6.11 Figure A6.12

Welcome > Region 8 – Southern Region 9 – London, Suffolk and the South East

Figure A6.11 Figure A6.12 Region 8 – Southern Region 9 – London, Suffolk and the South East Executive

! !( summary > Legend Legend Bedf! ord Cambridge Wisbech E W 6 ! Key sites ! Key sites Norwich Milton Keynes — Gas pipeline ! — Gas pipeline Wormington ! ! — Gas pipeline – sensitive area — Gas pipeline – sensitive area Peterborough — Exit capacity area ! — Exit capacity area

Luton Whitwell 7 ! ! Aylesbury ! Introduction > Diss ! Huntington Oxford ! 10 !

! Cambridge NTS location: 6 ! NTS location: Bedford 9 ! Cambridge ! Ipsw! ich South of Aylesbury Milton Keynes South Diss, Swindon ! ! and North of Cambridge, ! Luton Whitwell Reading ! ! Chapter 1 ! London Lockerley East of Whitwell Chelmsford Drivers of 9 ! change > 8 NTS/DN exit NTS/DN exit

! Isle of Grain zones: ! zones: SO1, 2 London EA4, 5, NT1, 2, 3, Lockerley Chapter 2 ! SE1, 2 Southampton Network ! Folkestone 8 !

Brig!hton Portsmouth capability > !

Bo!urnemouth

Brigh! ton Chapter 3 System Operator Capability > Chapter 4 The region is sensitive to demand in the South West; if demand The region is sensitive to Isle of Grain flows, with low flows limiting Ongoing increases, capacity may become more constrained. The amount of capacity. Capacity may be more limited in the sensitive areas at the developments > unsold capacity indicates a good chance that capacity could be made extremities of the system, for example at Feeders 5 and 18 from Chapter 5 available via exit capacity substitution. Potential non-Planning Act Shorne to Tatsfield, and Feeder 3 from Whitwell to Peters Green. Looking forward > reinforcements (compressor station modifications) could release a small amount of capacity. The significant number of power stations in the region may impact Appendix > on future ramp rate agreements. Unsold capacity indicates some capacity could be made available via exit capacity substitution; however, exchange rates may vary between locations. Potential non- Planning Act reinforcements could be carried out to release small quantities of additional capacity but significant pipeline reinforcement would be needed. GTYS | 2019 102 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.1 Exit capacity on the NTS Figure A6.13

Welcome > Region 10 – South West

Figure A6.13 Region 10 – South West Executive summary > 5 Legend ! Churchover ! Key sites Birmingham — Gas pipeline — Gas pipeline – sensitive area 4 — Exit capacity area

Wormington Introduction > !

! Oxford ! NTS location:

Swansea ! South of Swindon ! Wormington ! Bris! tol Reading! Chapter 1 Cardiff and Lockerley Drivers of 10 8 NTS/DN exit change > Lockerley Ilchester ! ! zones: Southa! mpton

Portsmouth ! SW2, 3 Exeter ! Bournemouth Chapter 2 ! Network

Plymouth capability > !

Chapter 3 System Operator Capability > Chapter 4 The quantity of unsold capacity in this region indicates limited scope Ongoing for capacity being made available through exit capacity substitution. developments > Exchange rates may be high due to small diameter pipelines. Potential Chapter 5 non-Planning Act reinforcements could release small quantities of Looking forward > additional capacity, but significant pipeline reinforcement would be needed, resulting in long (Planning Act) timescales, particularly in the Appendix > sensitive area from Pucklechurch to Seabank on the Feeder 14 spur due to small diameter pipelines.

There is also sensitivity to low Milford Haven flows. During peak demand with low Milford Haven flows, it becomes more difficult to maintain assured pressures in the South West. GTYS | 2019 103 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.1 Exit capacity on the NTS

Welcome > 6.1.3 Directly connected exit points Table A6.2 shows which region the current directly connected (DC) offtakes fall within the NTS exit capacity map. There are Executive no such offtakes in region 6. summary > Table A6.2 Introduction > Direct connect offtakes by NTS exit capacity map zone

Region Offtake Region Offtake Region Offtake Region Offtake Blackness (BP Grangemouth) Pickmere (Winnington Power Station) Sutton Bridge Power Station Didcot Power Station Chapter 1 Fordoun Industrial Shellstar (Aka Kemira) Teesside (BASF) 8 Humbly Grove Storage Drivers of Glenmavis (Storage) Shotwick (Bridgewater Paper) Teesside Hydrogen Marchwood Power Station change > 2.1 1 Gowkhall (Longannet) Stublach Storage Teesside () Power Station Barking (Horndon) Moffat Irish interconnector Weston Point (Rocksavage) Power Station Thornton Curtis (Humber Refinery) Coryton 2 (Thames Haven) Power Station Chapter 2 3 Network St Fergus (Peterhead) Willington Power Station Thornton Curtis (Killingholme) Epping Green (Enfield Energy) capability > St Fergus (Shell Black Start) Aldborough Storage West Burton Power Station Grain Power Station Barrow (Bains) ICI Whitehill Storage 9 Medway (Isle of Grain) Power Station Chapter 3 Barrow (Blackstart) Blyborough (Brigg) Wragg Marsh (Spalding) Middle Stoke (Damhead Creek) Power System Operator Barrow (Gateway) Blyborough (Cottam) Zenica (ICI Avecia) Station Capability > Carrington (Partington) Power Station Caythorpe Storage Abergelli Power Station Ryehouse Ferny Knoll (AM Paper) Eastoft (Keadby Blackstart) Abernedd Power Station Stanford Le Hope (Coryton) Chapter 4 2 Fleetwood (Preesall) Storage Eastoft (Keadby) Hirwaun Power Station Abson (Seabank) Power Station Ongoing 4 Avonmouth Storage developments > Enron Billingham Pembroke Power Station Sandy Lane (Blackburn) Power Station Goole (Guardian Glass) Tonna (Baglan Bay) Centrax Industrial Chapter 5 Power Station Hatfield Moor Storage Upper Neeston (Milford Haven) Refinery 10 ICI Sevenside Looking Trafford Power Station 3 Hatfield Power Station Caldecott (Corby) Power Langage Power Station forward > Wyre Power Station Hatfield West Storage Station Refinery Portland Storage 5 Burton Point (Connahs Quay) Hornsea Storage Seabank Power Station Appendix > Deeside Power Station Phillips Petroleum Teesside Peterborough Power Station Harwarden (Aka Shotton Paper) Rosehill (Saltend) Power Station Bacton (Baird) Storage Hill Top Farm Storage Rough Storage Bacton (Deborah) Storage 2.1 Hole House Farm Storage Saltend BPHP Bacton (Esmond Forbes) Storage Holford Storage Saltfleetby Storage 7 Bacton Great Yarmouth Hollingsgreen (Hays Chemicals) Spalding 2 (South Holland) Power Station Bacton IUK Interconnector ICIR (CastnerKelner_ICI_Runcorn) Stalingborough Saddle Bow (Kings Lynn) Power Station King Street Storage Staythorpe St Neotts (Little Barford) GTYS | 2019 104 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.1 Exit capacity on the NTS

6.1.4 NTS/DN exit zones Figure A6.14 Welcome > NTS/DN exit zones Figure A6.14 and Table A6.3 show which distribution network exit zones current NTS/DN offtakes fall within. Please note, the Executive NTS/DN exit zone map below is separate to the previous NTS summary > exit capacity maps. The NTS/DN exit zones below are defined by the Notice of Gas Transmission Transportation Charges. Introduction >

Table A6.3 NTS/DN exit zones Chapter 1 Drivers of change > Exit zone Offtake Exit zone Offtake Exit zone Offtake Exit zone Offtake Exit zone Offtake Eye EM3 Tur Langton NO2 Melkinthorpe SC2 Armadale Ilchester Chapter 2 West Winch Market Harborough Tow Law Hulme SW2 Pucklechurch Network EA1 EM4 SC3 capability > Brisley Caldecott NT1 Winkfield (NT) Soutra Seabank Bacton Terminal Towton Horndon Nether Howleugh Kenn NT2 Chapter 3 Bacton Terminal Rawcliffe Luxborough Lane Lockerbie Aylesbeare System Operator EA2 Great Wilbraham Baldersby NT3 Peters Green Pitcairngreen SW3 Lyneham NE1 (Choakford) Capability > Roudham Heath Pannal Blackrod SC4 Bathgate Asselby NW1 Salmesbury Stranraer Coffinswell Bacton Terminal Chapter 4 EA3 Burley Bank Lupton Glenmavis WA1 Maelor Yelverton Ongoing Ganstead Mickle Trafford Drum Dyffryn Clydach Matching Green developments > NE2 Pickering Malpas Tatsfield WA2 Dowlais Royston EA4 Paull Warburton SE1 Shorne Gilwern Chapter 5 Whitwell Aspley Looking Guyzance Weston Point Farningham NW2 WM1 Audley (WM) forward > EA6 Hardwick Cowpen Bewley Partington SE2 Winkfield (SE) Thornton Curtis Coldstream Holmes Chapel Ipsden Milwich EM1 SO1 Appendix > Walesby Bishop Auckland Ecclestone Winkfield (SO) Shustoke Kirkstead Corbridge Audley (NW) Mappowder WM2 Austrey NO1 SO2 Sutton Bridge Thrintoft Careston Braishfield Alrewas (WM) EM2 Silk Willoughby Saltwick Balgray SW1 Fiddington Ross (WM) SC1 Gosberton Humbleton Kinknockie Evesham Rugby Leamington Spa Blyborough Little Burdon Aberdeen SW1 Ross (SW) WM3 Alrewas (EM) Elton St Fergus Littleton Drew Lower Quinton SC1 EM3 Blaby Wetheral Mosside SW2 Easton Grey Stratford-Upon- NO2 Avon Drointon Keld SC2 Broxburn Cirencester GTYS | 2019 105 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.2 Entry capacity on the NTS

Welcome > As with exit capacity, it is important for us to understand and we encourage you to approach our Customer Contracts our customers’ gas supply (entry capacity) requirements team to discuss specific requirements. The following to the NTS to allow us to plan and operate our system information is just an indication; actual capacity availability Executive efficiently and effectively. will depend on the amount of capacity requested from all summary > customers at an ASEP and interacting ASEPs. When we receive an entry capacity request, we complete Introduction > analysis to assess what impact an increase in supply at 6.2.1 Gas supply diversity

a part of our system has on our current network capability. Chapter 1 discussed the diversity of our future gas This allows us to identify and plan for any geographical Chapter 1 supply mix arises from both existing supplies and potential Drivers of constraints which may arise from an increase in customer new developments. change > entry capacity in an area of the NTS. Where constraints to current network capability are encountered, we identify Chapter 2 Currently, the available gas supplies, in aggregate, are greater Network options that include rules, tools and asset solutions to than peak demand. capability > meet our customers’ needs in the most cost effective Chapter 3 and efficient way. The diversity of our future gas supply mix, however, does System Operator make it both unpredictable and uncertain. The uncertainty Capability > This chapter contains information about capacity availability is amplified by the Gas Transporters Licence requirements Chapter 4 and the lead time for providing NTS entry capacity as a guide for us to make obligated entry capacity available to shippers Ongoing for shippers and developers. Unsold NTS entry capacity developments > up to and including the gas flow day. This creates a situation available at an existing Aggregate System Entry Point (ASEP) where we are unable to take long-term auctions as the Chapter 5 can be accessed via the daily, monthly and annual entry definitive signal from shippers about their intentions to flow gas. Looking capacity auction processes. If unsold capacity is not available, forward > including at new entry points, the lead times may be longer. We are continuing to develop our processes to better manage Appendix > The GTYS aims to help you understand the likely lead time the risks that arise from such uncertainties as part of our Gas associated with new entry points. New entry points can Future Operability Planning (GFOP) work. result in significant changes to network flow patterns,

GTYS | 2019 106 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.2 Entry capacity on the NTS

6.2.2 Entry capacity zones Figure A6.15 Welcome > Zonal grouping of interacting supplies In the GTYS, we use the concept of entry zones which contain Legend groups of ASEPs to illustrate our entry capacity capability Terminal Executive (figure A6.15). The entry points in each entry zone often make Constrained LNG summary > Storage sites use of common sections of infrastructure to transport gas, and therefore have a high degree of interaction. There are also # Introduction > interactions between supplies in different zones, this means St Fergus interactions between supplies must also be determined when Chapter 1 undertaking entry network capability analysis. Drivers of change > Examples of zonal interaction include between Milford Haven NORTHERN TRIANGLE Chapter 2 and Bacton, or Easington and Bacton entry points, where Network shared infrastructure assists capacity provision at both ASEPs capability > by moving gas east–west or west–east across the country. Chapter 3 System Operator Teesside# Capability > Caythorpe Barrow# ! EASINGTON AREA !Hornsea Chapter 4 ! ! Fleetwood Hatfield Aldbrough Ongoing Moor # ! Easington developments > Burton # # Ho!lford Point !Stublach Theddlethorpe Chapter 5 Hole House # NORTH WEST Farm Looking Bacton forward >

Appendix > # SOUTH EAST Milford Haven ' # Avonmouth ! Isle of Grain SOUTH WEST Humbly Grove

GTYS | 2019 107 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.2 Entry capacity on the NTS

Welcome > 6.2.3 Customer entry capacity applications 6.2.4 Available (unsold) NTS entry capacity When we examine customer entry applications, key scenarios that Table A6.4 contains the ASEP names as defined in the NTS Licence, we analyse in our network capability analysis include geographical and indicates the quantities of obligated and unsold NTS entry Executive considerations such as: capacity at each ASEP within each entry zone. This table has been summary > • high west–east flows generated by increased entry flows updated to shows how unsold capacity has changed since the publication of the 2018 Gas Ten Year Statement. Introduction > in the West travelling East across the country, to support demands in the East and South East of the UK, including IUK export This unsold capacity (obligated less any previously sold or reserved) • high south–north flows created by reduced entry flows into Chapter 1 is available at each relevant ASEP and could also be used to make Drivers of St Fergus, with a corresponding increase in entry flows in the capacity available at other ASEPs through entry capacity substitution. change > South, requiring gas to be moved from south–north. Substitution may also be possible across entry zones. Chapter 2 Network In addition to the traditional geographical scenarios, we may also capability > investigate several commercially driven sensitivities, for example: As a result of stakeholder feedback received during RIIO-2 Chapter 3 • a sensitivity scenario with a reduction in imported gas, balanced business plan engagement on our capacity baselines and System Operator by high medium-range storage entry flows to meet winter demand. Capability > general access arrangements, National Grid Gas has raised UNC request 0705R – NTS Capacity Access Review, which Chapter 4 Historically, we have considered entry application scenarios Ongoing has the following purpose: To review the principles and developments > on an individual basis using ‘steady state’ gas flows consistent with establish long-term strategy for the NTS capacity access an overall ‘end of day’ energy balance. As customer requirements Chapter 5 regime. Ensuring the regime is appropriate for commercial Looking from the network evolve, it is increasingly necessary for us to consider behaviours experienced today, simplified and adaptable forward > the ability of the system to switch between different flow scenarios, whilst being consistent with relevant obligations. To make explicitly considering changing flows on the network. Appendix > recommendations for change and addressing short-term problems in accordance with the long-term ambition. If our network capability analysis indicates future requirements from More detail on this request can be found online. the network are outside of current capability, we would investigate a range of possible solutions. This ensures that a broad spectrum of options for solutions are identified.

GTYS | 2019 108 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.2 Entry capacity on the NTS

Welcome > Our charts and tables workbook provides further information about the level of booked and obligated entry capacity at each ASEP, excluding those that are purely storage. We also provide data points Executive representing historic maximum utilisation and the range of future summary > peak flow scenarios for these ASEPs.

Introduction > Table A6.4 Quantities of entry capacity by zone

Obligated Obligated Entry zone ASEP Unsold capacity Entry zone ASEP Unsold capacity Chapter 1 capacity capacity Drivers of 2019–2020 2023–2024 2024–2025 2019–2020 2023–2024 2024–2025 GWh/day GWh/day change > GWh/day GWh/day GWh/day GWh/day GWh/day GWh/day Chapter 2 Barrow 340.01 253.65 280.51 338.53 Caythorpe 90 0 0 0 Network Canonbie 0 0 0 0 Easington 1,4 07.15 106.20 393.98 531.91 Northern capability > Glenmavis 99 99 99 99 Garton (includes Triangle Aldborough 420 0 280 420 St Fergus 1,670.70 1,5 47.3 3 1,641.30 1,663.74 Chapter 3 Easington storage facility) System Operator Teesside 445.09 354.30 377.92 390.76 Area Capability > Hatfield Moor (onshore) 0.3 0.3 0.3 0.3 Burton Point 73.5 60.36 73.5 73.5 Hornsea 233.1 27.31 233.1 233.1 Chapter 4 Cheshire (ncludes Holford Hatfield Moor (storage) 25 3 3 3 Ongoing and Stublach storage 556.27 28.59 28.59 28.59 developments > facilities) Theddlethorpe 610.7 601.5 610.7 610.7 North West Fleetwood 350 350 170.95 35 Avonmouth 179.3 179.3 179.3 179.3 Chapter 5 Looking Hole House Farm Barton Stacey (includes (includes Hill Top Farm 296.6 13.16 13.16 13.16 Humbley Grove storage 172.6 82.6 172.6 172.6 forward > storage facility) facility) South West Appendix > Partington 201.43 201.43 201.43 201.43 Dynevor Arms 49 49 49 49 Milford Haven 950 0 95 95 Wytch Farm 3.3 3.3 3.3 3.3 Bacton IP 1,297.8 0 1,020.59 1,181.82 1,181.82 South East Bacton UKCS 485.60 0.00 0.00 0 Isle of Grain 699.68 35.38 35.38 177.0 8

GTYS | 2019 109 Gas Ten Year Statement Appendix 6 – Exit and entry capacity application process 2019 6.2 Entry capacity on the NTS

Figure A6.16 Welcome > Figure A6.16 provides further information on the available and potential for entry capacity within the NTS entry zones. NTS entry capacity by zone Legend Terminal Click for more Executive While all un-booked capacity can be considered for entry Constrained LNG information summary > capacity substitution, future bookings may change and the Storage sites gap between the scenario peak flow data and the obligated # Introduction > capacity level may be a better indication of the capacity St Fergus

available for substitution. Using this indicator, significant capacity for substitution exists at St Fergus and Theddlethorpe. Chapter 1 Drivers of NORTHERN TRIANGLE change >

Chapter 2 Network capability >

Chapter 3 # System Operator Teesside

Capability > Caythorpe Barrow# ! EASINGTON AREA !Hornsea ! ! Chapter 4 Fleetwood Hatfield Aldbrough Ongoing Moor # ! Easington developments > Burton # # Ho!lford Point !Stublach Theddlethorpe Chapter 5 Hole House # NORTH WEST Farm Looking Bacton forward >

Appendix > # SOUTH EAST Milford Haven ' # Avonmouth ! Isle of Grain SOUTH WEST Humbly Grove

GTYS | 2019 110 Gas Ten Year Statement Appendix 7 2019 Conversion matrix

Welcome > To convert from the units on the left-hand side to the units across the top, multiply by the values in the table.

Executive Table A7.1 summary > Conversation matrix Million Thousand Introduction > KWh GWh mcm therms toe GWh 1,000,000 1 0.091 0.034 0.086 Chapter 1 mcm 11,000,000 11 1 0.375 0.946 Drivers of Million 29,307,000 29.307 2.664 1 2.520 change > therms Chapter 2 Thousand 11,630,000 11.63 1.057 0.397 1 Network toe capability > KWh 1 0.000001 0.000000091 0.000000034 0.000000086 Chapter 3 System Operator Capability >

Chapter 4 Ongoing developments > Note: Chapter 5 Looking All volume to energy conversions assume a calorific value (CV) forward > of 39.6 MJ/m3. GWh = Gigawatt hours Appendix > mcm = Million cubic metres Thousand toe = Thousand tonne of oil equivalent MJ/m3 = One million joules per metres cubed KWh = Kilowatt hours

GTYS | 2019 111 Gas Ten Year Statement Appendix 8 – Import and storage infrastructure 2019 8.1 Import infrastructure

Welcome > Great Britain is served through a diverse set of import routes from Norway, the Netherlands, Belgium and from other international sources through the LNG import terminals. Executive Total import capacity is currently around 149 bcm/year, split summary > into three near equal parts: Continental Europe (43 bcm/year), Norway (56 bcm/year)* and LNG (49 bcm/year). Introduction >

Table A8.1 shows existing import infrastructure and table A8.2 shows proposals for further import projects. Chapter 1 Drivers of change > Table A8.1 Table A8.2 Existing import infrastructure Proposed import infrastructure* Chapter 2 Network Operator/ Capacity Capacity capability > Facility Type Location Operator/ developer (bcm/year) Project Type Location Start-up (bcm/ Status Developer Chapter 3 Interconnector IUK Pipeline Bacton 26.9 year) System Operator Capability > BBL Pipeline BBL Company Pipeline Bacton 16.4 Isle of National Grid LNG Kent ~ ~ Open Grain 4 Season Chapter 4 Isle of Grain 1-3 National Grid LNG Kent 20.4 Ongoing South Hook 1-2 Qatar LNG Milford Haven 21 *This list is in no way exhaustive; other import projects have at times been detailed in the press. developments > Petroleum and ExxonMobil Chapter 5 Looking Dragon 1 Shell / LNG Milford Haven 9.4 forward > Petronas Appendix > Langeled Gassco Pipeline Easington 26.3 Vesterled Gassco Pipeline St Fergus 14.2 Tampen Gassco Pipeline St Fergus 9.9 Gjoa Gassco Pipeline St Fergus 6.2 Total 150.7

*Norwegian import capacity through Tampen and Gjoa is limited by available capacity GTYS | 2019 112 in the UK FLAGS pipeline. Gas Ten Year Statement Appendix 8 – Import and storage infrastructure 2019 8.2 Storage infrastructure

Welcome > In the last 12 months, no proposals have attained Final It is important to note that due to operational considerations, Investment Decision (FID) for subsequent construction. the space and deliverability may not be consistent with that The following tables A8.3 and A8.4 detail UK storage in used for operational planning as reported in the 2019–20 Executive terms of existing storage sites, those under construction Winter Outlook report. summary > and proposed sites. The economics, particularly the winter to summer spread, Introduction > are very challenging for the development of new storage sites. Table A8.3 Existing storage sites Nevertheless, many new storage sites have been proposed over the past ten years and there are currently plans for nearly Chapter 1 Approximate Operator/ Space 9 bcm of space, both for medium-range fast-cycle facilities Drivers of Site Location max delivery Developer (bcm) change > (mcm/d) and long-range seasonal storage. Chapter 2 Aldborough SSE/Statoil East 0.2 31 Network Yorkshire capability > Hatfield Moor Scottish Power South 0.07 2 Chapter 3 Yorkshire System Operator Holehouse EDF Trading Cheshire 0.02 0 Capability > Farm Chapter 4 Holford E.ON Cheshire 0.2 22 Ongoing developments > Hornsea SSE East 0.24 12 Yorkshire Chapter 5 Humbly Grove Humbly Grove Hampshire 0.3 7 Looking Energy forward > Hill Top Farm EDF Energy Cheshire 0.06 14 Appendix > Stublach* Storenergy Cheshire 0.22 18 Total 1.31 106

*Curr ent works at the site are expected to be completed in January 2020, which will increase space to 0.4bcm and max delivery to 30mcm/d

GTYS | 2019 113 Gas Ten Year Statement Appendix 8 – Import and storage infrastructure 2019 8.2 Storage infrastructure

Table A8.4 Welcome > Please note that tables A8.1, A8.2, A8.3 and A8.4 represent Proposed storage projects* the latest publicly available information to National Grid at Operator/ Space the time the GTYS went to press. Developers are welcome Project Location Status Executive Developer (bcm) to contact us to assess or revise this data. summary > Gateway Stag Energy Offshore 1.5 Planning granted, Morecambe no FID Introduction > Bay

Deborah Eni Offshore 4.6 Planning granted, Bacton no FID Chapter 1 Islandmagee InfrasStrata County 0.5 Planning granted, Drivers of Antrim, no FID change > Northern Ireland Chapter 2 Network King Street King Street Cheshire 0.3 Planning granted, capability > Energy no FID

Chapter 3 Preesall Halite Energy Lancashire 0.6 Planning granted, System Operator no FID Capability > Saltfleetby Wingaz Lincolnshire 0.8 Planning granted, no FID Chapter 4 Ongoing Whitehill E.ON East 0.4 Planning granted, developments > Yorkshire no FID

Chapter 5 Total 8.7 Looking forward > *This list is in no way exhaustive; other storage projects at times have been detailed in the press. Appendix >

GTYS | 2019 114 Gas Ten Year Statement Further information 2019

Welcome > Spotlight on Facilitating When Somerset Farm begins the NTS to fill trailers to deliver This project is a trial and currently flexible connections for injecting its biogas into the CNG to a whisky distillery. under commissioning (September gas customers (page 16) NTS, it will be the first time a This is Europe’s largest “virtual” 2019). Once the project has been Executive biomethane producer will connect pipeline, transporting gas to approved for commercial go-live, summary > First NTS biomethane to the high-pressure National off-grid distilleries to support the we will conduct a lessons learned connection Transmission System. This transition from oil [used for raising exercise with the project Introduction > To help us prove the new underlines our support for the steam in the boilers] to cleaner participants. Following this, we concepts from project CLoCC, UK’s Clean Growth Strategy and natural gas with a 30 per cent will review the potential benefits we invited expressions of is an example of how the gas reduction in carbon emissions. to customers from this approach Chapter 1 Drivers of interest from potential pilot network can be used on the This is an exciting development and consider the technical and change > customers in January 2018. journey to decarbonise transport, as it is using the new concept of commercial aspects from a From nine interested applicants, heat and power generation. National Grid perspective in Chapter 2 Self Build. Under this approach, Network we selected Somerset Farm We will be working collaboratively the customer has been order to consider how this capability > in Cambridgeshire which is with Biocow and CNG Services responsible for the design and concept can be taken forward. Chapter 3 owned by Biocow Ltd, a leading to learn from the implementation build of the whole project System Operator operator of anaerobic digestion of the project and further review Spotlight on Bacton Balgzand Capability > including the NTS connection plants, and is supported by our policies and procedures in assets. In addition, following Line (BBL) (page 18) Chapter 4 CNG Services. light of this new connection. risk assessment, we were Ongoing 1. There were significant developments > Since then we have been working able to agree that there was with Biocow and CNG Services Fourdoun – First Compressed no requirement for a remotely challenges for us to overcome. Chapter 5 Natural Gas (CNG) connection Looking to develop the new connection operable valve to be installed There were operational, forward > for biomethane to enter the NTS, We have been working on a which helped to reduce the commercial and communication the first of its kind. This included new connection in Scotland with capital costs. This project has points to consider, as well as a Appendix > Air Liquide and CNG Services allowing a more flexible oxygen been able to accommodate a potential challenge in managing specification using a new risk which will be the first of its kind number of firsts in our approach the possible additional flow out assessment. We are working for the NTS (and for any other to the connection, including from Bacton whist maintaining towards the completion and 75 bar transmission grid in reducing costs to the customer all our obligations to current commissioning of the project the EU). This is a Compressed wherever possible. connected parties in addition for 2019. Natural Gas (CNG) Mother to meeting our own obligations. Station which will use gas from GTYS | 2019 115 Gas Ten Year Statement Further information 2019

Welcome > 2. We completed studies and Drivers of change Level of decentralisation Steady Progression network analysis to explore our 1.3 Customer needs (page 19) The level of decentralisation This scenario makes progress ability to facilitate BBL’s request. axis indicates how close energy towards decarbonisation through Executive Decarbonisation supply is to the end consumer, a centralised pathway, but does summary > We conducted a full Hazard and Operability study (HAZOP) of the Ready for decarbonisation moving up the axis from large- not achieve the 2050 target. assets, with BBL’s cooperation, includes a focus strongly on how scale central to smaller-scale Introduction > for physical reverse flow at the the National Transmission System local solutions. All scenarios Steady State key operational Bacton site. (NTS) will transport a blended show an increase in decentralised Steady State is one of the mix of ‘green’ gasses and focus production of energy compared Future Energy Scenarios. Chapter 1 We then carried out network Drivers of analysis to determine the on future technology to better with today. Please see chapter 2.3.1 change > capacity we could offer. manage the assets we own. for more information. Drivers of change Chapter 2 Network 3. We engaged with a wide Speed of decarbonisation 1.3 Customer needs (page 23) Drivers of change capability > range of customers and The speed of decarbonisation 1.3 Customer needs (page 24) Chapter 3 stakeholders to understand axis represents the take-up Community Renewables System Operator their views and priorities. of low-carbon solutions This scenario achieves the 2050 Linepack swing Capability > driven by policy, economic decarbonisation target in a The range between minimum We worked collaboratively Chapter 4 and technological factors, decentralised energy landscape. and maximum linepack in the Ongoing across all stakeholders including and consumer sentiment. NTS within a Gas Day. Linepack developments > Ofgem, shippers, HSE and All scenarios show progress Consumer Evolution is the amount of gas within the Chapter 5 other connected parties towards decarbonisation, with This scenario makes progress National Transmission System Looking through communicating via forward > Community Renewables and towards decarbonisation through at any time. various channels including Two Degrees meeting the 2050 decentralisation, but does not Appendix > industry workshops. target of an 80 per cent reduction achieve the 2050 target. in greenhouse gas emissions compared to 1990 levels. Two Degrees This scenario achieves the 2050 decarbonisation target with large- scale centralised solutions. GTYS | 2019 116 Gas Ten Year Statement Further information 2019

Welcome > Drivers of change Aylesbury: Chapter 2 – Spotlight on Spotlight on RIIO-2 SO people 1.5.1 IED (page 28) In 2017, CO oxidation catalysts Understanding the capability capabilities (page 56) were installed on exhaust stacks of our network (page 41) Executive St Fergus: at Aylesbury to reduce CO Fit for the future summary > In 2015 two new electric VSDs emissions to deliver our obligation Zones Fit for the future includes were installed to deliver our under the LCPD. Please note: it has been a safeguarding and preparing Introduction > obligation under IPPCD. We conscious decision to keep our assets for the challenges are currently in discussions with Warrington: utilising the existing zones within in operating for the next Ofgem to agree how to deliver Based on the current FES, the the capacity maps, instead 50 years and towards Chapter 1 Drivers of our obligations under LCPD Warrington compressor site is of utilising the new network a decarbonised future. change > and IPPCD at St Fergus. no longer required to support capability zones as described the NTS. Our business proposal in chapter 2.6, in order to keep Ongoing developments Chapter 2 Network Kirriemuir: online includes decommissioning in line with existing processes. 4.5 Innovation (page 63) capability > In 2015, one new electric this site. Chapter 3 VSD was installed to deliver System Operator capability Intrusion detection system System Operator our obligation under the IPPCD. Huntington: 3.4 Developing our SO The threat of cyber-attacks Capability > For 2022, we are on schedule capability (page 52) on IT networks and operational Chapter 4 Hatton: to deliver two new gas turbines technology is a growing challenge Ongoing In 2016, one new electric at Huntingdon to deliver our GCS for all network operators. One developments > VSD was installed to deliver obligations under the IPPCD. In July 2016 we replaced our core measure that’s used to good Chapter 5 our obligation under IPPCD. control room and support effect is intruder detection Looking forward > We are currently in discussions Peterborough: systems with the new Gas systems (IDS). Like a burglar with Ofgem to agree how to For 2022, we are on schedule Control Suite (GCS), which alarm, they provide an early Appendix > deliver our obligations under to deliver two new gas turbines provides enhanced telemetry and warning of cyber-attacks. the LCPD at Hatton. at Peterborough to deliver our data analytics functionality to the However, because these solutions obligations under the IPPCD. control room and support teams. are aimed at large, centralised GCS is a modular system, IT networks, they’re incredibly allowing us to continually review expensive and can cost and revise functionality, to optimise use throughout the SO. GTYS | 2019 117 Gas Ten Year Statement Further information 2019

Welcome > more than £100,000. This puts gas flowing. If it’s more serious, at risk and cause significant To test the warning mesh, we them out of reach for smaller we can take appropriate action. disruption. Costs can easily run installed it under half a metre of operational systems, such as our This will help us focus on the into the millions, especially if the soil. Excavators weighing 15 and Executive above-ground installations (AGI). most significant events and pipeline has to be shut down 22 tonnes then attacked it with summary > These sites, which are found ensure our essential services while the damage is repaired. their digger buckets from various along the route of our cross- continue to operate when the We’re also finding more examples positions. The high-visibility mesh Introduction > country pipeline, are managed risk is low. The project will provide of reduced soil cover and not only provided an early remotely from our central control a strong case for using open shallower ditch crossings above warning to the driver, it survived centre in Warwick using telemetry source technologies and low-cost our pipes, which only adds to attempts to lift and tear it. Chapter 1 Drivers of systems. With this project, we’re hardware to meet our cyber the challenge. We’ve carried out We installed the mechanical mesh change > exploring whether we can build security needs. Where current a number of innovation projects 0.3m above a 12m length of a low-cost IDS solution that can solutions would cost £125,000 to reduce the threat of third party 900mm diameter pipe and 0.8m Chapter 2 Network be fitted to existing telemetry a site, our new system would damage. These include the below ground level. It successfully capability > systems and give us an early cost a fraction of that – development of low-cost plastic resisted attack from the Chapter 3 warning if security at our AGIs is between £10,000 and £25,000. (PE) protection slabs and new excavators and the pipe remained System Operator compromised. We’ve successfully If successful, we’ll roll out the in-line inspections that accurately undamaged. An additional benefit Capability > built a platform that uses the solution to all our AGIs and measure soil depth. During of the mechanical mesh is it’s Chapter 4 Open Source Supervisory Control promote its use across the research for these projects, significantly cheaper than Ongoing And Data Acquisition (SCADA) distribution networks. we identified another potential installing concrete slabs. developments > system we developed for our solution – overpipe protective Our next step is to define types Chapter 5 SCADA project to host the IDS. Overpipe geogrid protection netting – which is used in parts Looking of high-risk areas where these forward > The next step is to engineer the against third party damage of Europe. For this project, we new protection measures can be platform so the IDS can work in Third party damage, caused put two versions of this protection best put to use. Once we’ve done Appendix > tandem with our telemetry units. by people digging or doing mesh through their paces – that, we’ll update our standards If we can do that, we’ll be able to agricultural work near our a yellow warning mesh, designed so these innovative solutions can identify how serious an attack is network, continues to pose to alert anyone working near be rolled out on future projects. likely to be and rank it accordingly. a significant threat to our gas our pipes, and a high-strength If it’s a low-risk attack, we can pipelines. A single incident protection mesh, designed balance that with the needs can put the safety of the public, to restrict the digging capabilities of the network and keep the contractors and our engineers of excavators. GTYS | 2019 118 Gas Ten Year Statement Further information 2019

Welcome > Spotlight on Ongoing Entry/Exit planning and currently connected customers Appendix 3 – Connection and developments (page 64) advanced reservation have capacity rights to flow capacity application process of capacity agreement gas onto and offtake gas from 3.3 NTS entry capacity Executive Decarbonised energy system PARCA – reserve unsold/ the system. (page 85) summary > A decarbonised energy system additional capacity and allocation. includes working predominantly Gas shipper Non-obligated basis Introduction > on hydrogen: how hydrogen will Exit application windows (Signatory to the Uniform Network A non-obligated basis would interact with the NTS, how trading Unsold within baseline capacity – Code (UNC)), Capacity Rights mean the obligated capacity could be managed and whether gas years y+1 to y+3. to flow gas onto the system level would not increase for Chapter 1 Drivers of direct offtakes for hydrogen can (short, medium long term). future auctions. change > support the transport and Enduring annual NTS commercial market. exit capacity Appendix 3 – Connection and PARCA Chapter 2 Network Ad-hoc – m+6 – Evergreen rights. capacity application process More information on the PARCA capability > Appendix 3 – Connection and 3.2 Connecting and Framework can be found in Chapter 3 capacity application process Quarterly System Entry disconnecting to/from Appendix 3 chapter 3.6. System Operator (page 80) Capacity (QSEC) our network (page 81) Capability > The QSEC auction is held every Appendix 3 – Connection and Chapter 4 Application to Offer (A2O) March and can be open for up CSEPs capacity application process Ongoing Includes physical pipeline to ten working days. NTS entry There are several types of 3.4 NTS exit capacity (page 87) developments > connections to the NTS capacity is made available in connected systems including: Chapter 5 (if required) for new connections, quarterly strips from October Ad-hoc enduring annual exit Looking • a pipeline system operated forward > modifications and diversions. Y+2 to September Y+16 by another gas transporter (flat) capacity (where Y is the current gas year). This application window allows Appendix > Disconnection/ QSEC – Gas years y+2 to y+17. • a pipeline operated by a party a User to apply between 1 decommissioning that is not a gas transporter, October to 30 June for capacity Follows the Application to Offer Customers for transporting gas to from Year Y. The capacity release (A2O) process. Disconnection New site developers (that premises consuming more date must not be earlier than from the NTS covers the creation are not signatory to the UNC) than 2,196 MWh per annum. of a physical air gap and the and/or currently connected removal of all assets. customers. Both new and GTYS | 2019 119 Gas Ten Year Statement Further information 2019

Welcome > the 1st of the month M+7 (where Enduring annual exit (Flat) Appendix 3 – Connection and We will explore a number of M is the month in which the capacity decrease (EAFLEC) capacity application process ways of delivering the requested application is made) and no This application window allows 3.6 PARCA framework capacity. This may be wholly Executive later than 1 October in Y+6. a User to decrease their enduring (page 90) through (or a combination of) summary > The User (or Users in aggregate) capacity holdings from Year Y+1 existing network capability, must hold equal to or more than (October following the July Phase 0 substitution of capacity, a Introduction > 125 per cent of the baseline NTS window). Further decreases and Phase 0 is a bilateral discussion contractual solution or physical exit (flat) capacity for the year in increases can be requested in between the customer and investment in the NTS. We also which the application is received subsequent application windows. National Grid with no defined release long-term NTS capacity Chapter 1 Drivers of or the application must exceed The application period for this timescales. It allows the customer through established UNC change > 1 GWh/day. auction is 1 to 15 July. and National Grid to understand capacity auction and application each other’s processes and processes. It’s important to bear Chapter 2 Network Enduring annual exit (Flat) Annual NTS (Flat) exit potential projects before the in mind that existing system capability > capacity increase (EAFLEC) capacity (AFLEC) customer decides whether capacity that could be used to Chapter 3 This application window is for This application window is for to formally enter the PARCA fully or partly satisfy a PARCA System Operator capacity covering the period capacity covering the period process. If the customer wants request may also be requested by Capability > Y+4 to Y+6 (where Y is the Y+1 to Y+3 in yearly strips. to proceed into the PARCA our customers through the long- Chapter 4 current gas year). The capacity The capacity allocated in this process after these discussions, term NTS capacity processes. Ongoing bought in this application window application window is not they must submit a valid PARCA The PARCA window is open developments > is enduring and can be increased enduring and therefore cannot application form and pay for a maximum of 40 consecutive Chapter 5 or decreased in a later application be increased or decreased. a PARCA application fee. business days, but will close after Looking forward > window (subject to User The application period for this 20 consecutive business days commitment). The application application window is 1 to 31 July. Phase 1 if no further PARCA applications Appendix > period for this auction is 1 to Successful applications submitted When National Grid receives have been received within that 31 July. Successful applications in the AFLEC window will be a valid PARCA application form time. There are two types of submitted in the EAFLEC window allocated within ten business days and payment of the application PARCA window: (both increases and decreases) of the application window closing. fee from the customer, we will tell will be allocated on or before them their PARCA application has 30 September. been successful and Phase 1 of the PARCA process will begin. GTYS | 2019 120 Gas Ten Year Statement Further information 2019

Welcome > • Entry window: triggered Phase 2 Phase 3 Appendix 6 – Exit and entry if a PARCA requests NTS When the contract is counter- Once the capacity is formally capacity application process entry capacity. signed, we will reserve the allocated, the PARCA contract 6.1 Exit capacity on the NTS Executive capacity on the customer’s expires and the capacity delivery (page 96) summary > • Exit window: triggered if a PARCA requests NTS behalf, from the date provided Phase 3 is initiated. This is where exit capacity. in the Phase 1 output report. we carry out necessary activities, NTS exit capacity map Introduction > If the output report shows that such as reinforcing the NTS to The NTS exit capacity map Only one entry and/or exit PARCA physical reinforcement of the deliver the allocated capacity. divides the NTS into zones based window can be open at any NTS is needed to provide the Please note that on allocation of on key compressor stations, and Chapter 1 one time. If a PARCA application Drivers of customer with their capacity, we any reserved NTS capacity, the multi-junctions. These zones are change > requesting entry/exit capacity will start the statutory planning Uniform Network Code (UNC) purely for information and were is deemed competent within an consent at this stage; either the user commitment applies. created for the Gas Ten Year Chapter 2 open entry/exit PARCA window, Network Planning Act or Town & Country Statement (GTYS). capability > an additional PARCA window will Planning. If no physical Appendix 5 not be triggered. Chapter 3 reinforcement is needed, we will 6.2 EU activity (page 93) Appendix 6 System Operator On completion of Phase 1, we continue to reserve the capacity 6.2 Entry capacity on the Capability > will provide the customer with in accordance with the timelines Multiple stakeholders NTS (pages 107 and 110) Chapter 4 a output report, which will include provided as part of the Phase 1 These stakeholders have Ongoing a Need Case report (establishes output report. included: Ofgem, other Northern Triangle: developments > and documents the potential Phase 2 ends when the reserved Transmission System Operators Northern Triangle ASEPs: Chapter 5 Need Case for investment, (TSOs), European Network of Barrow, Canonbie, Glenmavis, Looking capacity is allocated to the forward > a technical options report and customer or, where the customer TSOs for Gas (ENTSOG), the St Fergus, Teesside (and Moffat) a PARCA contract). is a non-code party, a nominated European Commission, the Appendix > Agency for the Cooperation code party(s). Once allocated and These northern supplies need the capacity is financially of Energy Regulators (ACER), to be transported down either committed to, the PARCA Ofgem, the UK Government, the east or west coast of contract ends and we begin and the wider energy industry. to reach major demand the capacity delivery phase. centres in the midlands and south of the country. GTYS | 2019 121 Gas Ten Year Statement Further information 2019

Welcome > The amount of unsold capacity non-Planning Act reinforcements, incremental capacity resulting in this region, combined with the including compressor reverse flow in long (Planning Act) timescales. reduced St Fergus forecast flows, modifications, could release some Executive indicates a high likelihood that additional capacity, but significant North West: summary > capacity could be made available pipeline reinforcement would then North West ASEPs: Burton Point, through entry capacity substitution. be required resulting in long Cheshire, Fleetwood, Hole House Introduction > Potential non-Planning Act (Planning Act) timescales. Farm, Partington reinforcements, including compressor reverse flow South West: These five ASEPs use common Chapter 1 Drivers of modifications, could South West ASEPs: Avonmouth, infrastructure and the main change > release further quantities Barton Stacey, Dynevor Arms, west coast transportation route of additional capacity. Milford Haven, Wytch Farm to move gas into the rest of Chapter 2 Network the system. capability > South East: This zone enables sensitivity Chapter 3 South East ASEPs: Bacton analysis around potential LNG The unsold capacity in this region System Operator UKCS, Bacton IP, Isle of Grain supplies from Milford Haven. indicates that some capacity Capability > The quantity of unsold capacity could be made available via entry Chapter 4 The ASEPs use common in this zone is principally at the capacity substitution; however, Ongoing infrastructure away from the Avonmouth and Dynevor Arms entry capability will not necessarily developments > Bacton area. While there is a high ASEPs associated with the LNG match entry capacity and Chapter 5 degree of interaction between the storage facilities. Due to the short exchange rates may be greater Looking forward > Bacton (UKCS & IP) and Isle of duration of deliverability of these than one to one. Potential non- Grain ASEPs, the quantity of facilities, it is unlikely that the Planning Act reinforcements, Appendix > unsold capacity in this zone capacity could be made available including compressor reverse cannot be interpreted as an for entry capacity substitution flow modifications, could release indication of suitability for entry other than for equivalent facilities. additional capacity but significant capacity substitution. This is due Significant pipeline reinforcement pipeline reinforcement would then to constraints on the network in and additional compression be required, resulting in long terms of the ability to transport would be required to provide (Planning Act) timescales. gas south to north. Potential GTYS | 2019 122 Gas Ten Year Statement Glossary 2019

Welcome > 1-in-20 Annual monthly system entry use detailed network models Assured Offtake Pressures The 1-in-20 peak day demand capacity (AMSEC) of the NTS under different (AOPs) is a level of daily demand that, The AMSEC auction is run every supply and demand scenarios These are minimum pressures Executive in a long series of winters, with February and NTS Entry Capacity in order to understand how required to maintain security summary > connected load held at the levels is sold in monthly strips from April the system may behave under of supply to our DN customers. appropriate to the winter in Y+1 through to September Y+2. different conditions over a ten A significant number of these Introduction > question, would be exceeded This auction is ‘pay as bid’ and year planning horizon. assured pressures are set at in 1 out of 20 winters, with subject to a minimum reserve 38 barg, the anticipated minimum each winter counted only once. price. The auction is open for four Anticipated Normal pressure in most sections of the Chapter 1 Drivers of The 1-in-20 peak day is days from 8am to 5pm. Each Operating Pressures (ANOP) NTS under normal operating change > calculated from a statistical auction window is separated by These are advisory pressures and conditions. distribution of simulated historical two business days as detailed indicate to our directly connected Chapter 2 Network peak days. It is not the highest in the UNC. The processing customers the minimum pressure Assured Operating Pressures capability > demand in the last 20 years, nor and allocation is completed likely to be available on the NTS Minimum pressures at an offtake Chapter 3 is it the demand that would be after 5pm on each day. in their connection area under from the NTS to a DN that is System Operator expected in the coldest weather normal operation. If our network required to support the downstream Capability > experienced in the last 20 years. Annual planning cycle analysis shows an increasing network. AOPs are agreed and Chapter 4 National Grid commences its likelihood that these pressures revised through the annual Offtake Ongoing Annual liaison meetings annual planning cycle after initial will not be met under normal Capacity Statement process. developments > These help us maintain a positive data has been gathered through operation, the customer will be Chapter 5 relationship with connected sites the Future Energy Scenarios notified of revised ANOPs with Bacton Looking forward > by formally meeting face to face process. The data is used to at least 36 months’ notice. Bacton manages a large volume for individually tailored operational compile long term supply and of the nation’s gas, and is a critical Appendix > discussions, including topics such demand scenarios. The annual ASEP component of the gas transmission as gas quality and maintenance. planning process will consider Aggregated System Entry Point. network now and going into the the capability that may be future. Bacton is a key dynamic required to respond to entry swing node for a large subset and exit capacity signals from of our customer base at an the market. National Grid will interdependent part of the network. GTYS | 2019 123 Gas Ten Year Statement Glossary 2019

Welcome > In addition, Bacton bridges GB Biomethane assets. Exit Capacity Substitution December 2017 with EU via two interconnectors Whilst production of biomethane is the transfer of unsold Non- The requirements for the (BBL and IUK), and controls flows is growing rapidly worldwide, Incremental Obligated Exit MCPD are detailed in Pollution Executive into the South East to ensure significant investment and Capacity from one NTS Exit Prevention and Control (Scotland) summary > security of supply for London innovation is still needed for it to Point (the donor NTS Exit Point) (Amendment) Regulations 2017 and the west–east transit route become a major source of gas to another (the recipient NTS that came into force 19 December Introduction > for LNG into Europe. supply in the UK. The Chancellor’s Exit Point) where there is 2017 and for England and Wales 2019 Spring Statement included demand for Incremental in the Environmental Permitting Baseline NTS entry new proposals to advance the Obligated Exit Capacity. (England and Wales) (Amendment) Chapter 1 Drivers of capacity (obligated) decarbonisation of gas supplies Regulations 2018 that came into change > Defined by our Gas by increasing the proportion of Constraints force 29 January 2018. Transporters Licence. green gas in the grid, helping to A restriction affecting part of the Chapter 2 Network reduce dependence on burning system which results in the gas Discretionary – entry capability > Baseline NTS exit capacity natural gas in homes and flows in that part of the system National Grid can make Chapter 3 (obligated) businesses. The consultation is being limited. additional interruptible entry System Operator Defined by our Gas expected to consider continued capacity available to the Capability > Entry – where a pressure Terminal Transporters Licence. support for biomethane after Flow Advice is in place at an market at its discretion. Chapter 4 funding for the Renewable ASEP and firm entitled flow rate Ongoing Best Available Techniques Heat Incentive comes to an is greater than the capability/TFA. Discretionary – exit developments > (BAT) end in 2021. National Grid can make Chapter 5 BAT assessments provide Exit – Failure (or forecast) to additional exit off-peak capacity Looking meet a required offtake pressure forward > a balance between the costs Capacity substitution available to the market. to the operator against the Capacity substitution involves obligation. Either the User elects Appendix > benefits to the environment. moving unused capacity from one not to offtake gas at a pressure ELVs or more system points to a point lower than obligated or NTS The ELVs are legally enforceable where there is excess demand. pressure so low that gas will limits of emissions to air for IED physically not flow through chapter II and III units. This is intended to avoid the offtake and down stream users unnecessary construction of new affected or low pressure safety limit reached. GTYS | 2019 124 Gas Ten Year Statement Glossary 2019

Welcome > Electricity Market Reform confidence that everything we Gas Operational Forum Incremental NTS exit (EMR) do will promote competition and An industry-wide forum to discuss capacity (obligated) The Government’s Electricity is ultimately for the benefit of key operational topics with the Firm capacity made available Executive Market Reform (EMR) programme consumers. While the FES is gas community. This is typically over and above baseline, in summary > has the goal of ensuring adequate an ESO publication, the analysis attended by a wide variety of response to market demand and capacity within an electricity continues to consider the whole customers and stakeholders, supported by User commitment. Introduction > system, that in the future will rely energy system – ensuring the including shippers, Terminal This increase in capacity increasingly on intermittent wind, implications for, and interactions Operators, Storage Sites, Power is permanent. and inflexible nuclear generation. across, electricity, gas, heat and Stations, Transmission Operators, Chapter 1 Drivers of transport are fully considered. and Industrial Sites. Integrated change > End of Gas Day This integrated environmental ‘End of day’ refers to the end Funded incremental NTS entry Green gas approach means that emissions Chapter 2 Network of the Gas Day at 5pm. capacity (obligated) In the FES scenarios, ‘green to air, water (including discharges capability > Firm capacity made available over gas’ is utilised to include both to sewer) and land, plus a range Chapter 3 Exchange rates and above baseline, in response biomethane and bioSNG. of other environmental effects, System Operator The ratio between donated to market demand and backed must be considered together. Capability > capacity to received capacity. by User commitment. Hybrid heating system Chapter 4 An integrated system using a Integrated Pollution Ongoing FES Gas Control Suite (GCS) heat pump alongside a traditional Prevention and Control developments > As of 2019, the FES is now In July 2016, we replaced our installation such as a gas boiler Directive (IPPCD) Chapter 5 published as an Electricity System core control room and support to provide year-round efficient It states that any installation Looking forward > Operator (ESO) document. The systems with the new Gas and flexible heating. A heat pump with a high pollution potential ESO became a legally separate Control Suite (GCS), which is a device that transfers heat e.g. oxides of nitrogen (NOx) Appendix > entity within the National Grid provides enhanced telemetry and energy from a lower temperature and Carbon Monoxide (CO) Group on 1 April 2019. data analytics functionality to the source to a higher temperature must have a permit to operate. Separating the ESO business control room and support teams. destination. A heat pump can from National Grid’s Electricity GCS is a modular system, be ground source or air source. Transmission Owner business allowing us to continually review provides transparency in our and revise functionality, to decision-making and gives optimise use throughout the SO. GTYS | 2019 125 Gas Ten Year Statement Glossary 2019

Welcome > ISO55000 accreditation Non-obligated NTS exit Project CLoCC II. Innovative physical connection ISO55000 is the international capacity Project CLoCC (Customer Low solutions tailored to the needs asset management standard At our discretion, we can release Cost Connections) has spent a of non-traditional NTS gas Executive against which we are audited. additional firm capacity at an total of £4.5m to simplify the connections at high pressure. summary > We endeavour to improve offtake point over and above process of connecting to the This workstream was tasked how we do asset management obligated levels. National Transmission System with completing a global Introduction > and use the standard as a (NTS) for a new generation of gas technology watch, developing framework. National Grid have Notice periods customers, opening up the NTS conceptual designs and been accredited for a number Notice periods are required to a wider range of gas sources conducting field trials Chapter 1 Drivers of of years now. to ensure that pressures can from smaller and larger of the proposed engineering change > be maintained at times of system connections. The project has connection solution(s). Maximum Operating stress including high demand. successfully delivered against Chapter 2 III. Optimising commercial Network Pressure (MOP) Notice periods are typically its three objectives: processes to meet the capability > This is the maximum pressure defined as the number of hours’ I. Cr eating an online connections requirements of non-traditional Chapter 3 that each section of the NTS notice for increases of up to platform to facilitate the NTS gas customers. System Operator can operate at and is relevant 25 per cent, up to 50 per cent, Capability > customer experience. The Considering areas such as to connected NTS Exit and and greater than 50 per cent goal of this workstream was payment terms, fees and Chapter 4 NTS Entry Point/Terminals. of maximum offtake rate. to consider what elements of contract optimisation. Ongoing the current Application to developments > Non-obligated NTS entry Office of Gas and As a result of the project, we Offer (A2O) process (a National have demonstrated time and Chapter 5 capacity Electricity Markets (Ofgem) Grid procedure specified within Looking At our discretion, we can release A government body formed cost savings by considering the forward > the Uniform Network Code) new Standard Design connection additional firm NTS entry capacity to promote competition and could be supported by Appendix > journey a customer follows and at an ASEP, over and above protect consumer interests. development of an online gas obligated levels. a number of customers have customer connections portal indicated they will be applying and what functionality would to National Grid for a Standard be most beneficial to potential Design connection as the project future customers. is implemented.

GTYS | 2019 126 Gas Ten Year Statement Glossary 2019

Welcome > Project GRAID III. Minimise the occurrence confidence in the assessment Shale Project GRAID (Gas Robotic Agile of unnecessary excavations of the condition of the Future availability of UK Inspection Device) has spent a and eradicate premature unpiggable pipeline. indigenous shale gas remains Executive total of £6.5m over the project replacement of assets, highly uncertain. In July 2018, summary > lifecycle to design and develop a reducing significant carbon Ramp rates BEIS launched a consultation on remotely operable robot that can emissions and generating The rate at which the offtake including major shale gas projects Introduction > be inserted into live, high pressure cost savings of circa £58m of gas can be increased at in the Nationally Significant 100 bar(g), mild steel pipework over 20 years. the offtake. Infrastructure Project regime. The systems to undertake both visual consultation recognised that the Chapter 1 IV. Minimise the likelihood Drivers of and physical inspection of the of asset failure through Reinforcement development of onshore gas change > otherwise inaccessible buried proactive asset management, Reinforcement is the resources could reduce UK sections of the system. The enhancement of network reliance on imported gas and Chapter 2 thereby significantly reducing Network project has successfully delivered the risk of a high-pressure gas capability by building new deliver substantial economic capability > against its four main objectives: release into the atmosphere or modifying existing assets. benefits to the UK economy, but Chapter 3 I. T o accurately and reliably and the consequential financial, relies heavily upon support from System Operator Rolling monthly trade and local communities. The proportion Capability > determine the condition of environmental and high-pressure below ground reputational impact. transfer (RMTnTSEC) of people opposed to fracking Chapter 4 pipework at above-ground The RMTnTSEC is held on a reached its highest point since Ongoing Following completion of the NIC monthly basis at the month ahead first surveyed, increasing from developments > installations (AGIs) using an project, we have begun an NIA internal inspection robot. stage. Any unsold quantities from 35 per cent in December 2018 Chapter 5 project to assess the suitability Annual Monthly System Entry to 40 per cent in March 2019, Looking II. To generate a proactive, of using Acoustic Resonance forward > Capacity (AMSEC) are made and only 12 per cent of people rather than reactive, risk Technology (ART) sensors on available in the RMTnTSEC support fracking, according to Appendix > based approach to the the GRAID robotic platform, auction and sold in monthly the BEIS public attitudes tracker. management and maintenance which would significantly improve bundles. The auction is ‘pay as of ageing assets, based the quality, quantity and speed bid’, and subject to the same on the knowledge of the of an inspection. This in turn will reserve price as AMSEC. actual condition of pipework. save money on site during the inspection and provide additional

data which will strengthen the GTYS | 2019 127 Gas Ten Year Statement Glossary 2019

Welcome > Shipper Third Energy Package Unutilised maximum NTS exit A shipper is a company that This was transposed into law point offtake rate (MNEPOR) transports gas through our in Great Britain (GB) by GB At 13:30 hrs D-1, the NTS Executive network to gas customers. Regulations that came into demand forecast is published. summary > force in 2011. Where this demand forecast Solidarity principles is less than 80 per cent of the Introduction > The solidarity principles are the UKCS annual peak 1-in-20 demand last element to be implemented Production from the UK forecast, National Grid is and work is currently proceeding Continental Shelf (UKCS) obligated to release any remaining Chapter 1 Drivers of with BEIS and Ofgem (in is in decline. In recent years, the capacity up to the MNEPOR change > conjunction with the Commission) discovery of new gas fields has level as off peak capacity. for BEIS to fulfil this obligation. resulted in a short-term increase Chapter 2 Network in UKCS production. However, Use it or lose it (UIOLI) – exit capability > Standard offtake pressures the challenges of decarbonisation Any firm exit capacity that Chapter 3 A minimum pressure of 25 barg are expected to reduce hasn’t been used over recent System Operator of gas will be made available at investment in exploration for new days can be resold to the Capability > NTS supply meter point offtakes. fields. Production from UKCS will market as interruptible capacity. Chapter 4 For NTS/Local Distribution Zone therefore decline as existing fields Ongoing (LDZ) offtakes see Assured are depleted, but not replaced. Use it or lose it (UIOLI) – entry developments > Offtake Pressures. Any firm entry capacity that Chapter 5 UNC hasn’t been used over recent Looking forward > Substitution The Uniform Network Code days can be resold to the Substitution involves moving (UNC) forms the basis of the market as interruptible capacity. Appendix > unused capacity from one or commercial rights and more offtakes to a point where responsibilities of all providers there is excess demand. and users of the NTS. It also gives all parties equal access to available transportation services.

GTYS | 2019 128 Gas Ten Year Statement Index of links 2019

Welcome > Welcome Chapter 2 1 1 https://www.nationalgridgas.com/insight- https://www.nationalgridgas.com/about-us/ and-innovation/gas-ten-year-statement-gtys business-planning-riio/have-your-say-our- future-business-plans Executive summary > Introduction Appendix 1 https://www.nationalgridgas.com/about-us/ 1 https://www.nationalgridgas.com/ Introduction > business-planning-riio/how-were-performing connections/reserving-capacity-parca-and- cam 2 https://www.gov.uk/government/ Chapter 1 publications/trading-gas-with-the-eu-if- 1 https://gas-connections.nationalgrid.com/ theres-no-brexit-deal/trading-gas-with-the- Chapter 1 CustomerPortal/#/landing Drivers of eu-if-theres-no-brexit-deal 2 https://www.nationalgridgas.com/ 3 change > https://www.gov.uk/government/ document/128446/download publications/trading-gas-with-the-eu-if- Chapter 2 theres-no-brexit-deal/trading-gas-with-the- Network eu-if-theres-no-brexit-deal capability >

Chapter 3 System Operator Capability >

Chapter 4 Ongoing developments >

Chapter 5 Looking forward >

Appendix >

GTYS | 2019 129 Gas Ten Year Statement Disclaimer 2019

Welcome > This statement is produced for National Grid would wish to Copyright National Grid 2019, the purpose of and in accordance emphasise that the information all rights reserved. No part of with National Grid Gas plc’s must be considered as illustrative the Document or this site may Executive obligations in Special Condition only and no warranty can be or be reproduced in any material summary > 7A3 of its Gas Transporter is made as to the accuracy and form (including photocopying Licence relating to the National completeness of the information and restoring in any medium or Introduction > Transmission System and section contained within the Document. electronic means and whether O4.1 of the Transportation Neither National Grid Electricity or not transiently or incidentally) Principal Document of the Transmission, National Grid Gas without the written permission Chapter 1 Uniform Network Code in reliance nor the other companies within of National Grid except in Drivers of change > on information supplied pursuant the National Grid group, nor the accordance with the provisions to section O of the Transportation directors, nor the employees of the Copyright, Designs and Chapter 2 Network Principal document of the Uniform of any such company shall be Patents Act 1988. capability > Network Code. Section O1.3 under any liability for any error or Chapter 3 of the Transportation Principal misstatement or opinion on which System Operator document of the Uniform Network the recipient of this Document Capability > Code applies to any estimate, relies or seeks to rely other than Chapter 4 forecast or other information fraudulent misstatement or Ongoing contained in this statement. fraudulent misrepresentation and developments > For the purpose of the remainder does not accept any responsibility Chapter 5 of this statement, National Grid for any use which is made of the Looking Gas plc will be referred to as information or Document which or forward > National Grid. (to the extent permitted by law) for Appendix > any damages or losses incurred.

GTYS | 2019 130