TransportTransport Insight Insight 2010 2010
An annual behind -the- scenes view in North West European gas transmission
A publication of Gasunie Transport Services
A publication of Gasunie Transport Services Gasunie Transport Services
Content
Foreword 3
1 Introduction 5
2 Gas transmission in 2009 7 2.1 Infrastructure developments 7 2.2 Quality conversion 7 2.3 Developments in EU policy concerning gas transmission 7 2.4 Gas balance in the Netherlands 9
3 Utilisation of the Gasunie grid in 2009 11 3.1 Network clusters 11 3.2 General picture 12 3.3 Emden/Oude Statenzijl cluster 13 3.4 Entry-Exit Emden-Oude Statenzijl Dutch H-gas Cluster 14 3.5 Entry-Exit Emden-Oude Statenzijl German H-gas Cluster 17 3.6 Exit Emden-Oude Statenzijl Dutch L-gas Cluster 19 3.7 Entry Emden-Oude Statenzijl German L-gas Cluster 21 3.8 Entry Ellund H-gas Cluster 23 3.9 Exit Drohne L-gas Cluster 25 3.10 Exit Winterswijk-Zevenaar L-gas Cluster 2009 27 3.11 Exit Zuid-Limburg H-gas Cluster 29 3.12 Exit Hilvarenbeek L-gas Cluster 2009 31 3.13 Entry Zelzate H-gas Cluster 33 3.14 Exit Julianadorp H-gas Cluster 37 3.15 Exit Other Border Points L and H-gas 39
4 Themes 41 Theme 1 Market areas and gas hubs in the Gasunie zone 41 Theme 2 Investments in European gas transmission infrastructure 46
Appendix 1.1 48 Appendix 1.2 50 Appendix 2 51
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Foreword
As a gas transmission network operator with a cross-border network, it gives us great pleasure to present you with this third edition of Transport Insight.
Transport Insight 2010 summarises the developments that have taken place in our network, both the Dutch and German parts, over the past year. Starting with a review of 2009, we aim to bring you up-to-date with the existing situation before looking forward. The report includes coverage of our Open Seasons, the gas balance and our various network clusters.
We are also focusing on two special themes in more detail: market areas and gas hubs in the Gasunie zone and investments in European gas infrastructure.
We hope you will appreciate Transport Insight 2010’s accurate picture of the efforts we are making to provide the market with the best possible services. The annual publication of the report is, in itself, also a contribution to these efforts. If you have any comments you wish to make, we would be pleased to hear from you, so that we can include them in our continuous improvement process.
Geert Graaf Gasunie Transport Services
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1 Introduction
About Transport Insight
Transport Insight is designed to inform customers and other stakeholders about gas transmission in the Gasunie grid in Germany and the Netherlands. This annual report provides users of the gas network (shippers) with clear and coherent information, directly from the source. Section 1 describes the major developments and circumstances that affected gas transmission in 2009. Section 2 gives in-depth analyses of actual gas transmission at the border clusters of the Gasunie network. These are illustrated in graphs by means of key fi gures from 2009 and show details of availability, contracted capacity and utilisation. The sections are followed by themes. Within these themes, a specifi c topic is discussed in more detail. The fi rst theme focuses on developments in the German gas market followed by the development of gas hubs in the Gasunie zone. The second theme gives an analysis of investments in European gas infrastructure related to Gasunie investments in open season capacity.
Integrated TSO, network spanning two countries
In July 2008, gas infrastructure provider Gasunie acquired the north German infrastructure of BEB Transport GmbH and the ExxonMobil network (EMGTG). Since then, the Gasunie network has extended over both the Netherlands and North-Germany. This makes it Europe’s fi rst fully ownership unbundled gas infrastructure company with an integrated TSO organisation that crosses national borders. The operation of the Gasunie-network is carried out under different national regulations: GTS (Gas Transport Services B.V.) operates the high pressure gas transmission system in compliance with Dutch regulation and GUD (Gasunie Deutschland Transport Services GmbH) to the German regulation. Apart from these TSO activities, Gasunie also undertakes non-regulated gas infrastructure activities, aimed at enhancing supply security for Europe.
What we stand for
Gasunie ensures that gas is transported in the Netherlands and northern Germany in a safe, reliable and effi cient way, in line with the wishes of our individual customers. For that reason we manage, operate and develop a comprehensive network of more than 15,000 kilometres of pipeline and 17 compressor stations in the Netherlands and northern Germany. However, we not only transport gas for customers, but we also provide additional services to the market. We provide access to independent transmission facilities based on a transparent non-discriminatory pricing structure, thereby creating a level playing fi eld which allows all gas providers to compete throughout the Netherlands, Germany and Europe. This is our contribution to the ongoing development of a liquid gas market. Our vision is to help creating a northwest European gas roundabout, enabling us to take gas transport further.
Infrastructure in the Netherlands
The Dutch part of the high-pressure gas transmission network comprises 11,500 kilometres of pipeline, 6,000 kilometres of which are part of the medium pressure (<40 bar) system. Gas is supplied to the grid from 52 entry points: 35 feeding points from Dutch gas fi elds and 17 feeding points from networks in neighbouring countries. The gas is delivered to Dutch customers (industry
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and the public market via almost 1,100 delivery stations) and cross-border customers through 23 border stations. Compressor installations maintain the pressure in the network. There are nine compressor stations in the Netherlands. The different types of gas are mixed at blending stations to safeguard the required qualities.
Infrastructure in Germany
The German part of Gasunie’s high-pressure pipeline network comprises around 3,100 kilometres of pipeline in northern Germany. This network connects market parties in the Netherlands with parties in Denmark and Norway as well as with other high-pressure networks in Germany. Natural gas can be fed into the German part of the transport system at 30 entry points (5 cross-border stations). Delivery takes place at around 166 exit points. There are eight compressor stations in the German part of the transport system to ensure the transport of gas.
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2 Gas transmission in 2009
2.1 Infrastructure developments
In 2009 decisions were taken on investments in the Dutch part of the transport system, on the basis of the 2012 Open Season. The capacity bookings for gas fl ows to Germany, Belgium and France were made in 2008. The measures associated with the 2012 Open Season will take effect no later than the end of 2013 with fi rst additional capacity in 2011.
A combined Integrated Open Season (IOS) was carried out in 2009. This led to a large number of precedent agreements (25 shippers signed an agreement). Half of the participating shippers booked transport capacity in both the Netherlands and Germany, confi rming the cross-border nature of the Integrated Open Season (IOS).
Gasunie aims to take an investment decision for the IOS in the second half of 2010. For the German part of the network, the regulatory climate needs signifi cant improvement to enable a fi nal investment decision. The extra capacity is required to accommodate new gas storage facilities and to compensate for changing gas fl ows due to diminishing European domestic production as well as to facilitate cross border trading. The extra capacity will make a signifi cant contribution towards the future security of supply and gas-to-gas competition.
This need is refl ected in several investment projects and in open seasons (including the IOS). Specifi c examples of new projects relevant to the Gasunie grid are the natural gas storage facilities at Zuidwending and Bergermeer, and, at the Dutch-German border the storage facilities at Etzel, Jemgun and Epe.
Over the next few years, the emergence of high-calorifi c imported gas to replace local production will lead to a growing demand for quality conversion. In 2009, a decision was taken to expand capacity for quality conversion through the construction of a peak nitrogen storage facilility at Heiligerlee in Groningen. This is expected to be taken into operation during the second half of 2012.
2.2 Quality conversion
Quality conversion has been offered as a system service in the Netherlands since 1 July 2009. The Wobbe labels for trade on the Dutch TTF were withdrawn, which paved the way for trade on the TTF without the need to book quality conversion. Abolishing the difference in gas quality for energy trade has led to a 15% increase (approximately) in the number of players trading with the Dutch part of the system. This will be discussed in more detail in the theme on market areas and gas hubs.
2.3 Developments in EU policy concerning gas transmission
Lisbon Treaty The new EU Treaty was ratifi ed at the end of 2009. This brought to an end the lengthy process of defi ning new European rules. The new treaty also invests the EU institutions with greater overall authority, and more specifi cally in the sphere of energy.
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Third Energy Package In May 2009, the European Parliament, the Council of Ministers and the European Commission reached an agreement on the Third Energy Package. The Package was formally adopted on 3 September 2009, with the majority of measures due to take effect from 3 March 2011.
The Third Energy Package is designed to bring about the further cross border integration and liberalisation of the internal market and includes measures for ‘ownership unbundling’ and the establishment of a European Regulatory Agency(ACER). The Third Package also required the creation of ENTSOG (the European Network of Transmission System Operators for Gas) which was established in Brussels on 1 December 2009. All TSOs throughout the EU are obliged to take part. One of its statutory responsibilities is to draft European network codes and draw up a ten-year European network development plan (TYNDP). In 2009 it issued an initial publication; see the website www.entsog.eu. The TYNDP gives a European overview of supply, demand and capacity development from the perspective of the collaborating European TSOs.
The network codes proposed by ENTSOG can be made binding by the European Commission.
Regional cooperation The Gas Regional Initiative for Northwestern Europe is an initiative of the umbrella organisation of European regulatory bodies, ERGEG (European Regulators Group for Electricity and Gas). We are actively working with other network operators, regulatory authorities and stakeholders within this initiative to improve the performance of the regional gas market. Priorities for 2010 (which were also priorities in 2009) include transparency, primary and secondary capacity, investment climate and cooperation between the TSO’s and the regulators.
We are also taking part in the Pentalateral Gas Platform, which is dedicated to market development and security of supply. Participating parties include the ministries responsible for energy from Benelux, Germany and France, the TSOs and the regulatory authorities.
Regulation governing security of gas supply In July 2009, the European Commission published a proposal for a new regulation governing the security of the gas supply. This proposal introduces an infrastructure indicator and supply norm in the event of an exceptionally high demand for gas or an interruption in the gas supply. EU member states are now also obliged to draft national action and crisis plans to be tested at EU level. An agreement concerning the proposal between the EU institutions is expected in mid-2010.
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2.4 Gas balance in the Netherlands
Figure 2.1 shows the gas balance for the Dutch part of the Gasunie network for 2009 expressed as the average daily capacity allocated to each market segment. The fi gure shows a clear seasonal pattern. Seasonal fl exibility in the Netherlands is provided mostly from domestic production.
The fi gure also shows that the Netherlands provides fl exibility to its neighbours; Dutch exports refl ect a strong seasonal pattern. To perform this task, domestic production is supported by storage facilities that take gas in during the summer and send it out during the winter months. With the gradual decline in domestic production over the coming decades, the importance of storage is set to increase signifi cantly.
25
/h] 20 3
15
10 Capacity [mln m
5
0
-5
-10
-15
-20
-25
All hours of 2009 daily averages
Import Export Feeding Industry Storage send out Storage send in Distribution
Figure 2.1 Gas balance in the Netherlands in 2009 .1
At system level, for the Dutch part, the maximum hourly throughput in 2009 was 24.6 million m³/h. The maximum daily throughput was 512 million m³/day on 19 December 20092, which is higher than the peak day of 490 million m³/day in 2008. Throughput is the average of the amounts of gas that enter and exit the system. The maximum capacity in the Dutch part of the system will only be approached on extremely cold days with effective temperatures well below zero. The system is designed to meet demand for gas transmission services even in severe circumstances with effective temperatures of as low as -17°C, which occur no more than once or twice a century. We are responsible for guaranteeing the additional supply of gas to domestic consumers in the Netherlands on any given day where the average effective daily temperature in De Bilt (NL) is lower than -9°C. On December 19, the average effective daily temperature was -9.7°C. The suppliers of domestic
1 Capacity on the basis of daily averages. Figures on an hourly basis can be found on the GTS website 2 Reported maximum daily throughput is based on allocations.
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consumers continued to supply their customers up to a temperature of -9°C, after which we supplied the difference between -9°C and -9.7°C. This was the fi rst occurence since the introduction of the Gas Security of Supply Decree (Besluit leveringszekerheid gas).
During the second and third quarter of 2009, imports into the Netherlands increased incrementally. Although Gasunie has no direct information about trading activities, this is probably due to the fi nancial crunch, the reduction in demand for gas in the northwest European market, the resulting relative oversupply of gas and ‘take or pay’ obligations in long-term contracts. The stepwise change occurs at the beginning of a new quarter.
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3 Utilisation of the Gasunie grid in 2009
3.1 Network clusters
The Gasunie integrated TSO works with decoupled entry and exit systems in Germany and the Netherlands. Shippers are free to route gas fl ows. Entry and exit points are grouped together into a cluster when they share a constraint in their connection to the rest of the network. This means that clusters are often geographical in nature. Limitations are defi ned within the clusters, so that each cluster can be reached from any other cluster in the system. Figure 3.1 shows the physical location within the network of the clusters that will be discussed in this section. Starting with the Emden-Ouden Statenzijl clusters the clusters will be discussed in a clockwise order: Ellund, Drohne to Julianadorp.
Ellund EEllundllund
Groningen Emden/ OSZ H-Gas
N Berlin BBL OSZ L-Gas julianadorp
Hannover
N N Drohne
L N
Winterswijk/Zevenaar
Cluster area Hilvarenbeek Other borderpoint Zelzate Zuid-Limburg
Figure 3.1: Location of the clusters
For the fi rst time Transport Insight is providing a separate report about Hilvarenbeek, a connection between the Netherlands and Belgium. In previous years Hilvarenbeek was clustered with the border points Dinxperlo, Haanrade, Tegelen, Vlieghuis and Zandvliet for reasons of confi dentiality.
In Germany the Steinitz Blumberg cluster is no longer active due to market area cooperation. Graphs about this cluster have therefore been left out of Transport Insight 2010.
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3.2 General picture
In 2009, gas transmission was infl uenced by the general economic situation and the reduction in energy demand throughout Europe. Dutch domestic demand was far less affected than demand in neighbouring countries, with a reduction of less than 1% of the yearly gas demand. The high share of residential end users is one of the reasons for this. Although the German demand fell by approximately 5%, the effect of the fi nancial crunch on the booking of entry and exit capacity in the Gasunie system has been negligible so far.
The Gasunie network in Germany is characterized by a high level of contractual utilisation. This is especially obvious from clusters and points for cross-border and market area connection services. High demand for capacity in the Gasunie grid is supported by the current outcome of the Integrated Open Season. Average utilisation rates can be fairly low. This is partly a feature of a liberalised transmission market, where the commercial position of shippers and trading possibilities deriving from market liberalisation creates a value for the option to use capacity. But market parties need to book capacity in order to meet peak demand. This highest peak, however, does not occur each year, or even each decade. Maximum utilisation is determined by market demand, which in turn is strongly infl uenced by temperatures. Since the Netherlands is a net exporter of both volume and fl exibility, the cross-border gas fl ows contain both volume and fl exibility, which is generally called on when temperatures are low, this difference between average and maximum utilisation rates is most clearly visible in the exit border clusters.
There will be a fundamental change in the Dutch Zelzate cluster. Technical measures are being taken to turn it into a bi-directional point. It is expected to become operational in the last quarter of 2010. We expect the entry border cluster then to be used mainly as an exit cluster. Gas transmission at the Oude Statenzijl L-gas and Zuid-Limburg clusters did not differ greatly from that in 2008. The Winterswijk/Zevenaar cluster also showed little change in the exit direction; however, utilisation of the entry direction increased signifi cantly.
The Julianadorp cluster saw a stronger seasonal profi le than in 2008.
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3.3 Emden/Oude Statenzijl cluster
The Emden/Oude Statenzijl cluster comprises the Emden entry points and the Oude Statenzijl bi- directional points for high-calorifi c gas: Emden is connected to the EuroPipe Terminal (EPT) and NorPipe Terminal (NPT). Oude Statenzijl is connected to the networks of E.ON Gas Transport, Wingas Transport, Renato/ EGT and EWE, and is also the connection point between the Dutch and the German part of the Gasunie system. The Oude Statenzijl cluster transfers low-calorifi c gas from the Netherlands to Germany. The Gasunie network is connected to EWE. From the picture it is clear that the situation is not symmetrical with respect to the Dutch and German clusters in the Gasunie grid. For example only a part of the total exitfl ow of the Dutch cluster is entryfl ow for the German cluster. The rest of the exit fl ow is for the connection(s) to operators such as Wingas Transport, EGT, Renato or EWE.
The Netherlands Germany
Emden NPT EPT
WIN EGT Cluster Cluster Emden/OSZ Emden/OSZ GasPool H-gas Renato H-gas EWE
TTF
Cluster Cluster OSZ OSZ Aequamus L-gas EWE L-gas
Figure 3.2 Schematic representation of the4 Emden-Oude Statenzijl clusters
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3.4 Entry-Exit Emden-Oude Statenzijl Dutch H-gas Cluster
Most of the imported gas fl owing into the Netherlands passes this cluster. Also, most of the increases in future gas imports are expected to be realised via this cluster. This cluster also connects several German UGS facilities to the Dutch grid.
Entry-Exit Emden-Oude Statenzijl Dutch H-gas Cluster 2009
10 ] 3
Entry 8 /h; 35,17 MJ/m 3 6
4 Capacity [mln m
2
0
-2
-4 Exit
-6
Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
The graphs showing gas transmission in 2009 are explained in more detail in Appendix 1.1.
Contracted entry capacity Firm entry capacity at the Emden/Oude Statenzijl cluster was fully contracted during 2009. As in 2008, interruptible capacity was available during the whole year; bookings did not exceed the available capacity in the fi rst tranche. Both fi rm technical and interruptible capacity increased slightly in 2009.
Contracted exit capacity The amount of contracted fi rm exit capacity increased to 96%3 in 2009, leaving almost no fi rm exit capacity available during that year. Interruptible bookings also increased from 1% of available interruptible capacity over 2008 to 10% over 2009. The Oude Statenzijl border points are bi-directional; at these points, exit capacity is offered under both fi rm and interruptible conditions. In contrast, at the Emden entry points, exit capacity is backhaul. In the graph this is visible as the 90% tranche of available interruptible exit capacity.
3 This is an average fi gure. Individual exit points can have 100% contracted capacity.
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Utilisation of entry capacity In absolute numbers, utilisation of entry capacity at this cluster decreased slightly in 2009. Maximum utilisation was also lower than the previous year for entry, at 87% compared to 97% in 2008. Entry capacity was interrupted 3 times on the last nominations, lasting a total of 16 hours. All interruptions occurred in the fi rst week of January at the Emden entry points.
Average monthly H-gas entry Emden Dutch Cluster Oude Statenzijl
] 3.0 3
2.5 /h; 35,17 MJ/m 3
2.0
1.5
1.0 Avarage Monthly Gasflow [mln m
0.5
0.0 JFMAMJJASOND
2007
2008
2009
Utilisation of entry capacity was relatively fl at throughout 2009, with an average of over 67%. This was close to the average over 2008 (71%).
Utilisation of exit capacity Utilisation of the exit cluster went up from an average of 29% in 2008 to 44% in 2009. The maximum hourly allocation realised in 2009 amounted to 78% of the available capacity under fi rm conditions, which is higher than the 60% achieved in the previous year.
Development In the consecutive Open Seasons, market players have contracted a large volume of additional capacity, which is likely to triple the clusters’ entry capacity by 2013. This development is refl ected in the next graph which shows the contracted capacity to 2015 at the Emden/Oude Statenzijl cluster.
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Entry-Exit Emden-Oude Statenzijl Dutch H-gas Cluster 2009-2014 ]
3 10 Entry
8 /h; 35,17 MJ/m 3 6
4 Capacity [mln m 2
0
009-01 010-01 011-01 012-01 013-01 014-01 2 -2 2 2 2 2 2
-4
Exit -6
Contracted firm capacity
Contracted interruptible capacity
Available firm capacity
The graphs showing booked capacity are explained in more detail in Appendix 1.2.
Bi-directional cluster Emden/OSZ H-gas entry (averages over 2009 in million m3/h) Entry Exit Firm capacity [mln m3/h] 3,5 1,9 Interruptible capacity [mln m3/h] 2,1 3,4 Contracted fi rm 100% 96% Contracted interruptible 47% 10% Average hourly utilisation 67% 44% Maximum hourly utilisation 87% 78% Number of interruptions 3 None
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3.5 Entry-Exit Emden-Oude Statenzijl German H-gas Cluster
This cluster comprises the Emden entry points and the Oude Statenzijl bi-directional points: Emden is connected to the EuroPipe Terminal (EPT1) and NorPipe Terminal (NPT). Oude Statenzijl is the connectionpoint in our network.
Utilisation of entry capacity Utilisation of the cluster is high and shows a stable trend over the years. The average hourly allocation of fi rm capacity in 2009 was 91%. Entry capacity was not interrupted in 2009.
Utilisation of exit capacity Utilisation of the exit cluster was high. Exit capacity was not interrupted in 2009.
Entry-Exit Emden-Oude Statenzijl German H-gas Cluster 2009 ]
3 1,5 Entry /h; 41,8 MJ/m 3
1,0 Capacity [mln m
0,5
0,0
12 3 4 5 6 7 8 910 11 12
Exit -0,5
Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
Contracted entry capacity Firm entry capacity at the Emden/Oude Statenzijl cluster was fully contracted for 2009. Entry capacity under interruptible conditions was also contracted throughout the year in the A, B and C Tranches.
Contracted exit capacity Firm exit capacity and interruptible exit capacity was fully contracted for 2009. The booking of reverse fl ow exit capacity is offered at Emden EPT1/Emden NPT. Reverse fl ow exit capacity is offered at these points because exit capacity cannot technically be made available. For this reason, reverse fl ow capacity can only be contracted on an interruptible basis.
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Entry-Exit Emden-Oude Statenzijl German H-gas Cluster 2009-2012
] 1,5 3 Entry /h; 41,8 MJ/m 3
1 Capacity [mln m
0,5
0
7 0-07 2009-07 2010-01 201 2011-01 2011-0 2012-01 2012-07 2013-01
Exit -0,5 Contracted capacity
Contracted firm capacity
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3.6 Exit Emden-Oude Statenzijl Dutch L-gas Cluster
Together with the Winterswijk-Zevenaar cluster the Oude Statenzijl L-gas cluster is the main route for Dutch gas export to Germany for L-gas. Most of the L-gas fl owing to Germany is transmitted through this cluster. The Oude Statenzijl L-gas cluster connects the Gasunie network to the network of EWE.
Contracted capacity In 2009 more capacity was available compared to 2008. Although in absolute terms the utilisation has grown, with 80% of the fi rm capacity the relative utilisation was slightly lower compared to the previous year. Moreover, a substantial amount of backhaul capacity was contracted (76%).
Utilisation of capacity Utilisation in 2009 had a weaker seasonal profi le than in previous years. Temperature is an important factor infl uencing utilisation at this cluster, but in 2009 commercial factors also played a signifi cant role. Maximum utilisation reached 59% in 2009, while average utilisation of the cluster remained stable at 33%, which is slightly higher than in 2008 (31%). In 2009 there were no interruptions in this cluster.
Development In 2008, we began meeting shippers’ requests for more interruptible capacity at Oude Statenzijl. Subsequent studies showed that this capacity could be made available under fi rm conditions; we therefore increased the capacity offered under fi rm conditions from 1.4 million m3/h to 1.7 million m3/h. The outlook for the near future shows that fi rm exit capacity will be available for booking within the Oude Statenzijl L-gas cluster.
During the Integrated Open Season procedures, shippers expressed their interest in continuing their capacity bookings at Oude Statenzijl G well into the future.
Exit Emden-Oude Statenzijl Dutch L-gas Cluster 2009 ] 3 1.0 Entry
0.5 /h; 35,17 MJ/m 3
0.0 Capacity [mln m
-0.5
-1.0
-1.5
Exit -2.0
Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
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Exit Emden-Oude Statenzijl Dutch L-gas Cluster 2009-2014
] 1,0 3 Entry
0,5 /h; 35,17 MJ/m 3
0,0
1 -01 -0 2 14-01 2009-01 2010-01 2011 201 2013-01 20 Capacity [mln m -0,5
-1,0
-1,5
Exit -2,0
Contracted firm capacity
Contracted interruptible capacity
Available firm capacity
Cluster OSZ L-gas exit (averages over 2009 in million m3/h) Firm capacity [mln m3/h] 1,7 Interruptible capacity None Interruptible backhaul capacity [mln m3/h] 0,42 Contracted fi rm 80% Contracted interruptible None Contracted interruptible backhaul 82% Average hourly utilisation 33% Maximum hourly utilisation 59% Number of interruptions None
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3.7 Entry Emden-Oude Statenzijl German L-gas Cluster
L-gas is imported into Germany via the Oude Statenzijl L-Gas entry point. This cross-border point connects the gas transmission networks of Gasunie.
Contracted entry capacity Firm entry capacity and interruptible entry at Oude Statenzijl L-Gas were fully contracted for 2009.
Utilisation of entry capacity Utilisation of this entry cluster has a strong seasonal profi le, underscoring its deliveries to the household sector. In 2009, average utilisation was 69% of fi rm capacity. Entry capacity was interrupted 6 times.
Entry Emden-Oude Statenzijl German L-gas Cluster 2009
1,0 ] 3
Entry
0,8 /h; 34,9 MJ/m 3
0,6 Capacity [mln m
0,4
0,2
0,0 123456789101112
Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
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Entry Emden-Oude Statenzijl German L-gas Cluster 2009-2012
1 ] 3
0,8 /h; 34,9 MJ/m 3
Entry
0,6 Capacity [mln m
0,4
0,2
0
09-07 010-07 20 2 2011-07 2012-07
Contracted firm capacity
Contracted interruptible capacity
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3.8 Entry Ellund H-gas Cluster
The Ellund cluster connects our network to Denmark; Energinet.dk is the TSO on the Danish side of the border.
Contracted entry capacity Firm entry capacity at Ellund was fully contracted for 2009, further interruptible capacity was booked for 2009.
Utilisation of entry capacity Utilisation of this entry point is 31%. Entry capacity was not interrupted at any time in 2009.
Entry Ellund H-gas Cluster 2009
0,20 ] 3 /h; 43,6 MJ/m 3 0,15 Entry Capacity [mln m 0,10
0,05
0,00 123456789101112
Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
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Entry Ellund H-gas Cluster 2009-2012 ] 3 0.20
Entry /h; 43,6 MJ/m 3 0.15
0.1 Capacity [mln m
0.50
0,0
-07 07 -07 07 9 0- 1 2- 1 200 201 201 20
Exit -0.05
Interruptible capacity
Contracted firm capacity
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3.9 Exit Drohne L-gas Cluster
The Drohne cluster consists of the Drohne exit point. It connects our network to the network of E.ON Gas Transport, the operator of an adjacent system spanning the L-gas market.
Contracted exit capacity Firm exit capacity at the Drohne cluster was almost fully contracted for 2009 and interruptible capacity was not booked for 2009. Because entry capacity cannot technically be made available, we have started offering reverse fl ow capacity at Drohne.
Utilisation of exit capacity Utilisation of this exit point is high and grew higher still towards the end of the year. The average hourly allocation of fi rm capacity in 2009 was 52%. Exit capacity at the Drohne was not cluster interrupted at any time in 2009.
Exit Drohne L-gas Cluster 2009
] 0,0 3 123456789101112 /h; 35,3 MJ/m 3
-0,1 Capacity [mln m
-0,2
Exit
-0,3
Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
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Exit Drohne L-gas Cluster 2009-2012 ] 3
Entry
0 /h; 35,3 MJ/m 3 2009-07 2010-07 2011-07 2012-07
Capacity [mln m -0,1
-0,2
Exit -0,3
Contracted interruptible capacity
Contracted firm capacity
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3.10 Exit Winterswijk-Zevenaar L-gas Cluster
The Dutch Winterswijk/Zevenaar cluster consists of two exit stations to Germany. It is the main export route for Dutch low-calorifi c gas to Germany. Demand for low-calorifi c gas has long been characterised by a clear seasonal profi le and this is clearly refl ected in the utilisation of this cluster in 2009. During the summer months, the role of this cluster showed a new characteristic as signifi cant volumes of gas were brought in via backhaul.
Contracted capacity In 2009, 99% of available fi rm capacity was contracted, a slight increase from last year’s 87%, even taking into account the fact that the amount of fi rm capacity was lower than in 2008. Backhaul services are offered under interruptible conditions only. Both the utilisation and contracting of backhaul services increased signifi cantly at this cluster in 2009. Contracting interruptible backhaul over and above the tranches is possible only for parties with control of the forward fl ow, on condition they do not exceed their own forward fl ow.
Utilisation of capacity The maximum hourly utilisation was 92% of the available fi rm capacity. Due to the strong seasonal profi le, average utilisation was much lower, at 38%. This is slightly higher than the utilisation rates for 2008.
Development Throughout 2009, fi rm capacity at the Winterswijk/Zevenaar cluster was almost fully contracted. We anticipate a steady demand for capacity at the Winterswijk/Zevenaar cluster in the years ahead. Shippers have booked approximately 10% extra exit capacity at this cluster through the Integrated Open Season procedure. This is expected to become available in 2014.
Exit Winterswijk-Zevenaar L-gas Cluster 2009
] 4 3 Entry
2 /h; 35,17 MJ/m 3
0 Capacity [mln m
-2
-4
Exit -6 Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
- 27 - Gasunie Transport Services
Exit Winterswijk-Zevenaar L-gas Cluster 2009-2014 ]
3 4 Entry
2 /h; 35,17 MJ/m 3
0
Capacity [mln m 1 3-01 012-0 2009-01 2010-01 2011-01 2 201 2014-01
-2
-4
Exit -6
Contracted firm capacity
Contracted interruptible capacity
Available firm capacity
Cluster Winterswijk/Zevenaar L-gas exit (averages over 2009 in million m3/h) Firm capacity [mln m3/h] 4,3 Interruptible capacity None Interruptible backhaul capacity [mln m3/h] 1,4 Contracted fi rm 99% Contracted interruptible None Contracted interruptible backhaul 43% Average hourly utilisation 38% Maximum hourly utilisation 92% Number of interruptions None
- 28 - Transport Insight 2010
3.11 Exit Zuid-Limburg H-gas Cluster
The Zuid-Limburg cluster comprises exit border points at Bocholtz, ‘s-Gravenvoeren and Obbicht. ‘s-Gravenvoeren and Obbicht connect this cluster to Fluxys, while the Bocholtz stations connect our network to the TENP line of E.ON Gas Transport (EGT) and Italy’s ENI, and to the RTG network of Thyssengas.
Most of the high-calorifi c gas fl ows to Belgium and a substantial proportion of high-calorifi c gas fl ows to Germany go through the Zuid-Limburg cluster. Gas is then transported on to Switzerland and Italy through the TENP line.
Contracted capacity Firm exit capacity was fully contracted throughout the year. Interruptible capacity was available during each month of 2009. Booking of interruptible entry capacity increased towards the end of 2009. Compared to 2008, we have offered more capacity under interruptible conditions in the Zuid- Limburg cluster during shoulder and winter months; the amount of capacity offered under fi rm conditions decreased slightly.
Utilisation of capacity The throughput realised at the Zuid-Limburg cluster was well over 90% of technical capacity during winter months, reaching a record 103% in November 2009. Utilisation rates of more than 100% can be achieved as best effort in specifi c situations. During the summer, however, average utilisation dropped to lower levels. 2009 saw a decrease in utilisation of the Zuid-Limburg cluster; average utilisation fell from 65% in 2008 to 58% in 2009.
Development Firm capacity at the Zuid-Limburg cluster is set to rise steadily to over 4 million m3/h in 2016. These expansions are a direct result of exit bookings made during the subsequent Open Season procedures.
Exit Zuid-Limburg H-gas Cluster 2009 ]
3 4 Entry
2 /h; 35,17 MJ/m 3
0 Capacity [mln m
-2
-4
Exit -6
Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
- 29 - Gasunie Transport Services
Exit Zuid-Limburg H-gas Cluster 2009-2014 ] 3 4
Entry
/h; 35,17 MJ/m 2 3
0 Capacity [mln m
009-01 010-01 011-01 012-01 013-01 014-01 2 2 2 2 2 2
-2
-4
Exit -6
Contracted firm capacity
Contracted interruptible capacity
Cluster Zuid-Limburg H-gas exit (averages over 2009 in million m3/h) Firm capacity [mln m3/h] 2,9 Interruptible capacity [mln m3/h] 1,4 Interruptible backhaul capacity [mln m3/h] 1,8 Contracted fi rm 100% Contracted interruptible 30% Contracted interruptible backhaul 9% Average hourly utilisation 59% Maximum hourly utilisation 103% Number of interruptions None
- 30 - Transport Insight 2010
3.12 Exit Hilvarenbeek L-gas Cluster
The border point at Hilvarenbeek is the main route for Dutch gas export to Belgium and France for low-calorifi c gas. Most of the low-calorifi c gas fl ows to Belgium and all low-calorifi c gas fl ows to France are transmitted through this cluster. The Hilvarenbeek border point connects our network to the Fluxys network.
Contracted capacity This is the fi rst time that Transport Insight is reporting separately on the border point at Hilvarenbeek. In previous years, there were fewer than three shippers active at this station, and for reasons of confi dentiality Transport Insight included Hilvarenbeek in the aggregate of other border points. Throughout 2009, the number of active shippers has increased and we expect this trend to continue. In 2009, 95% of fi rm capacity at this cluster was contracted.
Utilisation of capacity Utilisation in 2009 had a strong seasonal profi le. Because market demand consisted primarily of households, temperature was an important factor infl uencing the utilisation at this cluster. Maximum utilisation was 94% in 2009, while average utilisation of the cluster remained at 45%.
Development After an absence in 2008, we again offered interruptible capacity at Hilvarenbeek in 2009. The outlook for the near future shows continued interest for exit capacity at Hilvarenbeek. During the Integrated Open Season procedures, shippers have expressed interest in additional fi rm capacity at Hilvarenbeek.
Exit Hilvarenbeek L-gas Cluster 2009 ] 3 3.0 Entry /h; 35,17 MJ/m 3 1.0 Capacity [mln m -1.0
-3.0
Exit -5.0
Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
- 31 - Gasunie Transport Services
Exit Hilvarenbeek L-gas Cluster 2009-2014
3 Entry
1 Capacity [mln m3/h; 35,17 MJ/m3] 009-01 010-01 011-01 012-01 013-01 014-01 2 -1 2 2 2 2 2
-3
Exit -5
Contracted firm capacity
Contracted interruptible capacity
Hilvarenbeek L-gas exit (averages over 2009 in million m3/h) Firm capacity [mln m3/h] 2,9 Interruptible capacity [mln m3/h] 1,0 Interruptible backhaul capacity [mln m3/h] 1,4 Contracted fi rm 95% Contracted Interruptible 0% Contracted Interruptible backhaul 7% Average hourly utilisation 45% Maximum hourly utilisation 94% Number of interruptions None
- 32 - Transport Insight 2010
3.13 Entry Zelzate H-gas Cluster
The Gasunie grid and the network of Belgian network operator Fluxys are connected through the Zelzate border cluster, amongst others. At the time of writing, the border cluster at Zelzate is an importing station only, but this is about to change. Through the consecutive Open Season procedures, shippers have booked more exit capacity than entry capacity at this border station. Extensive adjustments are therefore required at this station to accommodate these bookings. We have concluded an agreement with Fluxys to implement technical measures for the Zelzate cluster without having to close the border station entirely. As a result capacity offered under fi rm conditions has to be offered under interruptible conditions. The operational agreement with Fluxys, however, keeps the risk of an actual interruption to a minimum. In 2009 only one interruption occurred.
The situation in which a substantial proportion of entry capacity is sold under interruptible conditions is a temporary one and, together with its neighbouring network operator Fluxys, we will ensure a minimum of physical interruption.
Contracted capacity In 2009, capacity available under fi rm conditions was fully contracted. Capacity under interruptible conditions was available during most months in 2009. On average over 2009, 92% of the interruptible capacity was contracted. Backhaul exit capacity was available during all months of 2009.
Utilisation of capacity Utilisation of entry capacity at the Zelzate cluster was, at an average utilisation rate of 80%, signifi cantly higher in 2009 than in 2008. This is partly due to the reduction of fi rm technical capacity, as mentioned above. The operational agreement with Fluxys allows for utilisation rates of over 100% on a ‘best effort’ basis. Maximum utilisation in 2009 was 138%.
Development The bi-directional capacity of this cluster will be extended, enabling both the import and export fl ows of high-calorifi c gas between the Netherlands and Belgium. Market consultations and consecutive Open Seasons have produced a solid base for the expansion of both entry and exit capacity at Zelzate.
The proportion of fi rm entry capacity will remain at the 2009 level in the period up to Q4 2010, when technical fi rm entry capacity will start to increase. From Q4 2010, fi rm capacity at Zelzate will increase incrementally to reach more than 1 million m3/h in both entry and exit direction by Q3 2011.
- 33 - Gasunie Transport Services
Entry Zelzate H-gas Cluster 2009
] 1.5 3
Entry
1.0 /h; 35,17 MJ/m 3
0.5
0.0 Capacity [mln m
-0.5
-1.0 Exit
-1.5 Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
Entry Zelzate H-gas cluster 2009-2014
1,5 ] 3 Entry
1,0 /h; 35,17 MJ/m 3
0,5 Capacity [mln m 0,0
9-01 0-01 1-01 2-01 3-01 4-01 0 1 1 1 1 1 20 20 20 20 20 20 -0,5
-1,0
Exit -1,5 Contracted firm capacity
Contracted interruptible capacity
- 34 - Transport Insight 2010
Cluster Zelzate H-gas entry (averages over 2009 in million m3/h) Firm capacity [mln m3/h] 0,4 Interruptible capacity [mln m+/h] 0,46 Interruptible backhaul capacity [mln m3/h] 0,14 Contracted fi rm 100% Contracted interruptible 96% Contracted interruptible backhaul 29% Average hourly utilisation 80% Maximum hourly utilisation 138% Number of interruptions 1
- 35 - Gasunie Transport Services
- 36 - Transport Insight 2010
3.14 Exit Julianadorp H-gas Cluster
The Julianadorp cluster connects our network via the BBL pipeline, to the UK national grid. High- calorifi c gas leaves the Dutch network at Julianadorp for Bacton on the English coast. The BBL pipeline is operated by BBL Company, which is the neighbouring network operator.
Contracted exit capacity The exit capacity available under fi rm conditions was fully contracted in 2009. Capacity under interruptible conditions was not contracted this year, although it was available from May to October.
Utilisation of exit capacity The seasonal utilisation pattern is clearly visible in the bookings and allocations. Utilisation was high in the winter months of 2009, rising to 94%. Average utilisation over the year as a whole accounted for half of all fi rm capacity.
Development Shippers have shown interest in additional capacity at the Julianadorp cluster. During the Integrated Open Season procedure, precedent agreements have been signed for pipeline capacity in both directions.
Exit Julianadorp H-gas Cluster 2009
] 3 3
Entry
2 /h; 35,17 MJ/m 3
1 Capacity [mln m
0
-1
-2
Exit
-3
Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
- 37 - Gasunie Transport Services
Exit Julianadorp H-gas Cluster 2009-2014 ] 3 3 Entry
2 /h; 35,17 MJ/m 3
1 Capacity [mln m 0
9-01 0-01 1-01 2-01 3-01 4-01 0 1 1 1 1 1 20 20 20 20 20 20 -1
-2
Exit -3
Contracted firm capacity
Contracted interruptible capacity
Cluster Julianadorp H-gas exit (averages over 2009 in million m3/h) Firm capacity [mln m3/h] 1,5 Interruptible capacity [mln m3/h] 0,1 Interruptible backhaul capacity [mln m3/h] 1,2 Contracted fi rm 100% Contracted interruptible None Contracted interruptible backhaul None Average hourly utilisation 50% Maximum hourly utilisation 94% Number of interruptions None
- 38 - Transport Insight 2010
3.15 Exit Other Border Points L and H-gas
There are currently fewer than three parties active at seven border points which are not part of any other cluster. These are the exit points Dinxperlo, Haanrade, Tegelen, Vlieghuis, Zandvliet-G+ and the two Zandvliet-H border points. The fi rst four facilitate Dutch export to Germany, the latter three to Belgium. In this report, for reasons of confi dentiality, the aforementioned stations are discussed together as a ‘virtual’ cluster. In reality, the available capacity at one point is not infl uenced by another. These border points transmit different qualities of gas (G+-gas, L-gas and H-gas). The conclusions relate only to the aggregate of these points.
Contracted capacity Capacity available under fi rm conditions was fully contracted at all of these border points during Q1 2009, but during the rest of the year fi rm capacity was available at some of these points. Interruptible capacity was also available, contracted and used at one or more of the stations. Backhaul was available but only a limited volume was contracted.
Contracting interruptible backhaul over and above the tranches is possible only for parties with control of the forward fl ow, on condition that they do not exceed their own forward fl ow.
Utilisation of exit capacity Both high-calorifi c and low-calorifi c gas is transmitted through these border points with a seasonal profi le. This shows that the underlying market consists mainly of households. There were no interruptions in 2009.
Other border points 2009 G, G+, L and H-gas
(Dinxperlo, Haanrade, Tegelen, Vlieghuis and Zandvliet-G and H)
] 0.5 3 Entry /h; 35,17 MJ/m 3
0.0 123456789101112 Capacity [mln m
-0.5
Exit -1.0
Interruptible capacity with different tariff tranchers
Firm capacity technical
Allocated capacity
Capacity contracted including interruptible
Firm capacity contracted
- 39 - Gasunie Transport Services
Exit Other Border Points L and H-gas 2009-2014 (Dinxperlo, Haanrade, Tegelen, Vlieghuis and Zandvliet-G)
] 0,5 3 /h; 35,17 MJ/m 3 0,0
2-01 4-01 1 1 2009-01 2010-01 2011-01 20 2013-01 20 Capacity [mln m
-0,5
-1,0 Contracted firm capacity
d i ibl i
Aggregate of other border points exit (averages over 2009 in million m3/h) Firm capacity [mln m3/h] 0,6 Interruptible capacity [mln m3/h] 0,2 Interruptible backhaul capacity [mln m3/h] 0,1 Contracted fi rm 93% Contracted interruptible 69% Contracted interruptible backhaul 130% Average hourly utilisation 37% Maximum hourly utilisation 80% Number of interruptions None
- 40 - Transport Insight 2010
4 Themes
Theme 1 Market areas and gas hubs in the Gasunie zone
New German market areas give impetus to hub trading
On 1 June 2006, the market area structure was established in the German gas market. Market areas are a unique German cornerstone of the national gas grid access model, in that they exist to manage and operate balancing groups. A total of 19 market areas were initially launched by German TSOs: 14 for high-calorifi c natural gas and fi ve for low-calorifi c natural gas. GUD (at that time still BEB) was the fi rst German network operator spanning a market area to cooperate with partners to launch market areas based on comprehensive balancing group networks. On 1 October 2006, the H-Gas Norddeutschland market area was established with Dong Energy Pipelines, Statoil and NorskHydro, and the L-Gas Norddeutschland market area was established with ExxonMobil to offer the market balancing services. This idea of serving customers through ongoing cooperation and the merging of market areas was followed in 2009 by the establishment of two new comprehensive market areas in which GUD played an active role: GASPOOL and Aequamus.
- 41 - Gasunie Transport Services
GASPOOL GASPOOL became active on 1 October 2009, reducing the number of German H-gas market areas to three4. GASPOOL is a joint venture between GUD and the pipeline network operators DONG Energy Pipelines, Ontras-VNG Gastransport and Wingas Transport. The purpose of GASPOOL is to operate an extensive market area for H-gas in Germany. Its primary tasks are to manage balancing groups and control energy. By providing the virtual trading point GASPOOL Hub and covering over 300 gas grids in Germany, this market area creates a trading area for approximately half of the total H-gas consumed in Germany. GASPOOL allows its customers non-stop access to international interconnection points on the border with six neighbouring European countries: Poland, the Czech Republic, Norway, Denmark, the Netherlands and Belgium. GASPOOL Hub offers access to more than 50 percent of German storage capacity. Traded volumes have doubled in comparison with single market areas prior to 1 October 2009. GASPOOL Hub spot contracts (within day and day- ahead) can also be traded on the Leipzig-based European Energy Exchange (EEX).
A total of more than 180 balancing group managers from national and international natural gas traders and companies have registered to trade in the new market area via the online portal www.gaspool.de, generating over 200 balancing group contracts and 1,000 sub-balancing accounts. Approximately 40 customers who had not been active in any of the former market areas before registered for GASPOOL.
Aequamus Six months prior to the establishment of GASPOOL, Aequamus became the German balancing group network operator for the low-calorifi c market area 1, in which GUD has cooperated with its partners Erdgas Münster Transport and EWE Netz since 1 April 20095. Approximately 70% of all domestic German low-calorifi c volumes are balanced within L-gas market area 1, which comprises around 60 downstream supply networks and network areas plus three storage facilities with a working gas volume of 1.2 billion cubic metres. About 70 balancing group managers are active within the market area, leading to approximately 440 balancing group contracts and sub-balancing accounts.
4 The other two are NCG (bayernets GmbH, Eni Gas Transport Deutschland S.p.A., E.ON Gastransport GmbH, GRTgaz Deutschland GmbH and GVS Netz GmbH) and Thyssengas-H. 5 The other two low calorifi c-gas market areas are EGT-L and Thyssengas-L.
- 42 - Transport Insight 2010
The graph below shows the volumes traded on the GASPOOL Hub and the virtual trading point L-gas 1 compared with the other major hubs in northwestern Europe.
Traded volumes HUB NW-Europe (continental)
100
90
80
70
60
50 TWh/month
40
30
20
10
0 jul-08 jul-09 feb-08 feb-09 feb-10 jan-08 jan-09 jan-10 apr-08 apr-09 okt-08 okt-09 jun-08 jun-09 sep-08 sep-09 dec-08 dec-09 nov-08 nov-09 mrt-09 mrt-10 aug-08 aug-09 mei-08 mei-09 mrt-08 Start of Aequamus Start of GASPOOL
Zeebrugge TTF NCG-H EGT-L GUD-H /GASPOOL-hub GUD-L/L-Gas 1(Aequamus)
Outlook The political aim of the German federal government is to establish two remaining market areas in maximum, provided it is technically and economically viable. All mergers between markets involve a compromise of capacity and are cost-intensive, both in terms of the coordination of procedures and processes and in terms of IT infrastructure. Despite this, GUD is open to further cooperative partnerships if they are commercially and technically feasable. This includes the prospect of merging market areas with different gas qualities, an issue which has already been resolved in the Netherlands.
TTF Both traded and net volume on the TTF grew in 2009. The net volume reached a size of about 100 million m3 per day in the winter period, comparable with a yearly average gas demand in the Dutch domestic market. The volume shows a seasonal pattern similar to the situation on NBP, by which one can conclude that the TTF is becoming a mature market place. This is confi rmed by the growing liquidity in all the products that can be traded on the facility (source ICIS Heren). Besides the seasonal pattern a sharp fall in both traded and net volume is visible at the beginning of the second quarter. The fi nancial crisis and the resulting lower gas demand produced a situation of a relative oversupply of gas and low gas prices. Not only the TTF, but all hubs in northwest Europe were affected by this. Parties with long-term contracts faced a situation with take-or-pay obligations and oil-linked gas prices that were much higher than hub prices at that time. Furthermore, April was a very warm month, the second warmest since 1901, which led to a lower domestic gas demand. As of October, the beginning of the third quarter and a new gas year, both traded and net volumes started to increase again.
- 43 - Gasunie Transport Services
Daily volumes and active parties at the TTF
400 100 /day) 3
300 75 Number of parties Daily Volume (mln m
200 50
100 25
0 0 Jan-05 Jul-08 Jul-09 Jul-05 Jan-06 Jan-07 Jul-07 Jan-08 Jan-09 Jan-10 Jul-06
Traded volume
Net volume
Number of active parties
SQC 1st July 09
Registrated parties
Quality conversion as a system service In July 2009 quality conversion was abolished as a separate service in the Netherlands. Before July 2009 there were 4 TTF points, all with a different Wobbe-label. After quality conversion became a system service, with the costs socialized over all entry and exit bookings, only 1 TTF point remained where traders do not have to worry about Wobbe-labels anymore. As a direct result of this the number of active licensed shippers increased as of the 1 July. This number grew from 75 to over 90. The same effect is seen in the number of active parties on the TTF. The annual record was achieved on 27 November 2009; 71 parties sent in nominations for delivery on the TTF.
- 44 - Transport Insight 2010
Characterizing the TTF, July 2009
Pure trading
Title transfer Pure trading Title transfer Trading with physical position
Trading with physical position
The number of parties who are active on the TTF are divided into different categories: Pure traders. This group consist of parties who only trade on the TTF and have no physical positions. The number of pure traders is at a constant level of about 40% throughout the year. Title transfer. Parties who see the TTF only as a point of delivery for transferring the title of gas. For this group we assume that traded volume does not greatly exceed the net volume: traded volume is lower than 150% of the net volume. In July 2009 about 15% of the parties were in this group while during winter months this proportion doubles to about 30%. Parties who see the TTF both as a trading point and a point of delivery: 30% of all the parties during winter months and up to 45% in summer months. The above picture shows the proportions on a day in July 2009.
- 45 - Gasunie Transport Services
Theme 2 Investments in European gas transmission infrastructure
Declining European gas production and liberalisation of the European gas market are both leading to growing investments in European gas infrastructure. Declining gas production must be replaced with either LNG bought at European LNG terminals from Qatar, Algeria, Trinidad, etc., or by biogas or supplied through a long-distance pipeline from gas producers in Russia, Norway, Algeria, Iran, etc. Since long-distance gas does not generally have the in-built fl exibility of domestic gas production, this is leading to a growing demand for gas storage facilities within Europe. Moreover, market players in Europe are also trying to build capacity positions which will maximise their opportunities and options, thereby creating a need for transmission capacity, storage capacity and LNG terminal capacity which surpasses the traditional customised monopoly situation. This will ultimately lead to increased competition and enhanced security of supply.
The graph below shows our estimate of the possible European (EU-27) transmission investments based on 122 new projects6. All the information used is in the public domain7. A distinction has been made between projects for which a Final Investment Decision (FID) has been taken, and all other potential projects.
Transmission Investments in Europe (EU-27)
10
9
8
7
6
5
4
Investments [bln €] 3
2
1
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Projects (FID) Potential projects IEA
This graph shows that substantial investments are required. Based on the published projects, a total of € 53 billion may be invested in the construction of new gas infrastructure: € 16 billion of this already has an FID. Based on the decline of domestic production and growth of gas demand the IEA has made an assessment on the minimum investments needed in the more distant future8. Any security of supply considerations or investments to ensure market competition would need investments that are even higher.
6 This does not include any replacement investments 7 Where information is not available, e.g. regarding project costs, Gasunie has made reasonable estimates. Investments in gas distribution pipelines have been excluded from the analysis. Data was gathered during 2009. 8 International Energy Agency - World Energy Outlook 2009
- 46 - Transport Insight 2010
Ultimately, the decision by market players on whether or not to invest in both the regulated and the unregulated domain will depend to varying degrees on aspects such as (the likelihood of) obtaining a reasonable return, the ability to locate customers, market developments, fi nancing, timing and permits. In all cases, the investment climate defi ned by regulators, national governments and the European Commission will play a key role. It may be clear that the coming years a substantial effort is needed from all involved.
- 47 - Gasunie Transport Services
Appendix 1.1 Explanatory notes on graphs of Gasunie clusters in 2009 ]
3 8 Firm Capacity Technical Contracted capacity Firm capacity: 6 including interruptible Contracted Allocation
/h; ..... MJ/m including 3 interruptible 4 max hour per month
2 Allocation
Capacity [mln m Entry firm capacity max hour 0 per month 123451 678910121
Interruptible -2 capacity Class A
Exit -4 Interruptible capacity Class B -6
Interruptible capacity Class C
The fi gure is based on allocated gas transmission at a non-specifi ed cluster.
Calorifi c value is reported for each cluster. For the Dutch clusters all capacities are reported in [35.17 MJ/m3], for the German clusters this is different per cluster.
Available capacities are shown in grey and coloured areas in the graph: The grey area shows the amount of available capacity under fi rm conditions. Some clusters are bi-directional. This means that capacity is available under fi rm conditions for both entry and exit from the system. The coloured areas show the amount of capacity under interruptible conditions subdivided into classes A, B and C. These three tariff tranches have a different meaning in the Dutch and the German part of the network.
NL D Class A Tariff tranche 90% Tariff tranche 90% Only available as backhaul Only if fi rm is still available Class B Tariff tranche 85% Tariff tranche 75% Availability is published Available: 10% of fi rm capacity Class C Tariff tranche 70% Tariff tranche 60% Availability is published Above 110% of fi rm capacity
- 48 - Transport Insight 2010
Contracted capacity is indicated by lines on the graph: The unbroken line shows capacity contracted under fi rm conditions; The broken line shows the total of contracted capacity including interruptible capacity. In the example, entry capacity available under fi rm conditions is fully contracted. In addition, a large proportion of the entry capacity available under interruptible conditions is contracted. Approximately two-thirds of exit capacity under fi rm conditions is contracted.
Allocated capacity per month is indicated by the coloured blocks: The bottom of each block shows the maximum allocation under fi rm conditions; The top side of each block shows the maximum allocations including the capacity under interruptible conditions.
- 49 - Gasunie Transport Services
Appendix 1.2 Explanatory notes on graphs showing booked capacity
Appendix 1.2 Explanatory notes on graphs showing booked capacity ]
3 3,5 Entry
2,5 /h; ..... MJ/m 3
1,5 Capacity [mln m
0,5
1 1 01 -01 -0,5 2009- 2010-0 2011-0 2012 2013-01 2014-01
-1,5
-2,5
Exit -3,5
Contracted firm capacity Contracted interruptible capacity Available firm capacity
Appendix fi gure 1.2 Notes to graphs with booked capacity
These graphs show future bookings at the cluster. A distinction is made between bookings on fi rm and interruptible basis. If, due to reasons of confi dentiality Transport Insight cannot give the amounts of the requested capacities the orange area has a pale color.
- 50 - Transport Insight 2010
Appendix 2 Miscellaneous
In order to safeguard the interests of individual parties, the report relates only to points or clusters where transmission-capacity bookings have been made by at least three independent parties.
For the Dutch fi gures all gas volumes are in Groningen quality equivalents: With a gross calorifi c value of 35,17 MJ/m3 At 1 atmosphere At 0°C As a conversion, this produces: 1 m3 = 9,77 kWh 1 million m3/h = 9,77 GW
All German gas volumes are Tel Quel, or “as they are”, meaning that, after the volume is measured, no further calculations are undertaken to convert the volume into a standardised calorifi c value equivalent.
Utilisation: Utilisation is defi ned as the average of the maximum monthly allocations (fi rm + interruptible) divided by the maximum available capacity under fi rm conditions.
- 51 - Gasunie Transport Services
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