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Security of Gas Supply 2017 2 Security of Gas Supply Report 2017

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Security of Gas Supply 2017 2 Security of Gas Supply Report 2017 REPORT SECURITY OF GAS SUPPLY 2017 2 SECURITY OF GAS SUPPLY REPORT 2017 GLOSSARY Degree days: Degree days are a measure of how cold it has been. The degree days in a 24-hour period are the difference between the average daily temperature and 17°C. For example, if the average temperature over the 24 hours is 4°C, there are 13 degree days in the given day. 24-hour periods with an average temperature above 17°C do not count. The degree days for the year are found by adding up the degree days of the individual 24-hour period. Gas year: A gas year is defined as the period from 1 October to 30 September. Nm3: One Nm3 (normal cubic metre) is the amount of gas which at 0°C and an absolute pressure of 1.01325 bar takes up 1 cubic metre. Normal year: A normal year is defined as and calculated at 3,113 degree days. Biomethane: Biomethane is upgraded biogas sent into the gas grid. Cover: The picture shows a sluice at the compressor station in Egtved (the heart of the Danish gas transmission system). The sluice is used for cleaning and inspecting the transmission pipelines by sending a “pig” through the pipelines. SECURITY OF GAS SUPPLY REPORT 2017 3 CONTENTS 1. Security of gas supply ............................................................................................... 16 1.1 Security of gas supply in Denmark ................................................................................16 1.2 Security of gas supply in a European context .............................................................16 1.3 Gas Security of Supply Regulation .................................................................................16 1.4 Documentation of security of supply .............................................................................20 1.5 Contingency planning and exercises .............................................................................22 2. The past year ............................................................................................................... 24 2.1 Security of supply incidents .............................................................................................24 2.2 Gas consumption .................................................................................................................24 2.3 Gas supplies from the North Sea ....................................................................................24 2.4 Use of the transmission grid ............................................................................................25 2.5 Connection of biogas plants .............................................................................................25 2.6 Use of gas storage facilities .............................................................................................26 2.7 Gas quality .............................................................................................................................27 2.8 Gas market 2016-2017 ......................................................................................................27 2.9 Incidents and exercises .....................................................................................................28 3. The coming winter...................................................................................................... 29 3.1 Capacity bookings ................................................................................................................29 3.2 Cubic metre limit .................................................................................................................29 3.3 Gas quality during the coming winter ...........................................................................31 3.4 Distribution and dimensioning ........................................................................................32 4. The future development ............................................................................................ 34 4.1 Renovation of the Tyra complex 2019-2022 ................................................................34 4.2 Gas supplies to Denmark ..................................................................................................35 4.3 Consumption trend in Denmark and Sweden .............................................................36 4.4 Gas storage capacity ..........................................................................................................37 4.5 Infrastructure after 2017 ..................................................................................................38 4.6 Infrastructure in Europe ....................................................................................................40 4.7 Gas market development ..................................................................................................41 4.8 Transmission tariffs ............................................................................................................42 4.9 Information security ...........................................................................................................43 4 SECURITY OF GAS SUPPLY REPORT 2017 SUMMARY Security of gas supply is Historically, Denmark has been and still ”No security of supply high in Denmark. Continu- is a net exporter of gas seen over the entire year. Much of the gas produced in incidents in gas year ous expansion and improve- the North Sea can be supplied to either 2016-2017” ments of the infrastructure the Netherlands or Denmark. Only the and operations have min- players’ commercial considerations determine where the gas flows. imised the technical risks related to security of supply. Gas supplies from the North Sea to the As a result, there has never Danish and Swedish gas consumers can be supplemented with gas imports been an incident in the Dan- from Germany in the border point ish gas transmission sys- Ellund as well as with stored gas. Even tem that led to interruption though Denmark is a net exporter of gas, gas is imported from Germany of consumers. during some periods of the year, for example if the players can obtain a price gain. The total storage capacity is approx. 890 million Nm3, corresponding to about one third of the annual Danish gas consumption. GAS SECURITY OF The connection of biogas plants and upgraded biogas to the gas grid contin- SUPPLY REPORT ues to rise. Twenty-one biogas plants are connected, one of which is connected 2017 directly to the transmission grid. At the end of 2017, upgraded biogas accounted Security of supply in the Danish for approx. 5 per cent of total Danish gas gas system is assessed on the consumption. basis of the Danish Executive Order on maintaining security Assessment of security of of natural gas supply (Bek- gas supply in Denmark endtgørelse om varetagelse af Energinet finds that the Danish gas naturgasforsyningssikkerheden). transmission system is resistant to tech- The report is an annual report nical incidents – even at times of high from Energinet to the Danish gas demand. The sources of supply from Energy Agency and the players the North Sea and Germany and from in the gas sector. The report the gas storage facilities are also con- accounts for the development in sidered to be ample. Energinet upholds security of gas supply and future the security of gas supply by purchasing, security of gas supply initiatives. among other things, storage capacity for use in an emergency situation. SECURITY OF GAS SUPPLY REPORT 2017 5 However, Denmark is facing a period of a couple of years where gas supplies from the primary source, the North Sea, will be significantly reduced. The reason for this is that the Tyra platform will be reconstructed in the period 2019-2022. Danish and Swedish gas consumers will continue to be supplied with gas throughout the period, but the supply depends on optimum utilisation of the import and storage capacity. The system will therefore be more vulnerable and less flexible. This may be critical for the supply, for example in the event of exceptionally high demand or in case of technical incidents in the infrastructure. CUBIC METRE LIMIT To prevent a crisis situation, Energinet carries out analyses of the supply situation and the status of the gas storage facilities at regular intervals. The conclusion is that it is important for For gas year 2017-2018, the limit the market players to act expediently during the renovation for protected customers is 3.2 of Tyra so as to reduce the risk of interruption of the gas million Nm3/year. In practice, this consumers. means that industrial enterprises and gas-fired CHP plants will be The present analysis is based on a renovation period running protected if they have an annual from December 2019 to March 2022. In a communication to the gas consumption of less than 3.2 gas market (REMIT) of 24 November 2017, Maersk announced million Nm³/year. that the Tyra complex will be closed down as from 1 November 2019, and that the gas flow from Tyra will be resumed on 1 July 2022. The change is not expected to alter the general conclu- sions of the analysis, which will be updated at the beginning of the new year. New Gas Security of Supply Regulation Energinet will cooperate closely with the stakeholders to The European countries’ gas infra- ensure the best possible utilisation of the capacity available structure is interconnected, and most during the reconstruction period. countries are dependent on imported gas. Denmark is the only country in the Energinet assesses that security of gas supply will be very high EU which is still a net exporter of gas.
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