Changes in Capacity Allocation Regulations for Gas Infrastructures in Portugal
The new regulation in Portugal brings significant changes in capacity booking and trading to promote convergence with CAM NC and enable a secondary market. Major changes include ex-ante payment of capacity rights, capacity allocation via a booking platform, and enhancement of liquidity in the secondary market. The regulatory framework now includes relevant documents governing capacity allocation processes and management. The capacity management chain has also undergone a major shift, with commercial management now including capacity allocation before, on, and after the gas day.
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Allocation of Capacity in Portugal Allocation of Capacity in Portugal Under the New Regulation Under the New Regulation 20thSG Meeting, S-GRI, Madrid 15thNovember 2013
Index 1. 2. 3. 4. 5. Main changes New Regulatory Framework Capacity Management Some results Secondary Market 2 ERSE - Entidade Reguladora dos Servi os Energ ticos 17/09/2024
Main changes What has change with the new regulation on Access to Gas Infrastructures? Five Major changes The new Regulation sets a complete new standard for capacity booking and trading, promoting convergence with CAM NC and enabling the implementation of secondary market Assignment of capacity rights by the TSO for MT and ST products Capacity rights to use the transmission system are offered to Shippers Convergence towards CAM NC rules Capacity allocation calendar, standardization of products, allocation through auction, etc Ex-ante payment of capacity rights Shippers pay according to allocated capacity, instead of used capacity, at all entry/exit points (except LDC) Capacity allocation via booking platform (Primary Market) Improves interaction between primary and secondary market, while enabling daily auctions Promotion of the secondary market for capacity rights trading Enhances liquidity, avoiding contractual congestion 3 ERSE - Entidade Reguladora dos Servi os Energ ticos 17/09/2024
New Regulatory Framework Changes within the scope of Regulatory documents Relevant regulatory documents that govern the capacity allocation process: Main activities Programming / Nomination Daily Operation / System Management MAC, MEDC, MRC (per infrastructure) Cap. Calculation Cap. Programming Congestion Mgmt. MPGTG System Operation Commercial Margins Imbalances Penalties Before Assignment of Capacity Rights MPAI MPGTG Product definition Auction rules Cap. Allocation Invoicing Credit Risk Mgmt. Combines former contents with nomination rules Includes provisions on Secondary Market After NOTE: MPAI (Infrastructure s Access Procedures Manual) New regulatory document, encompasses former 8 documents governing cap. calculation (MEDC), cap. allocation (MAC), congestion management (MRC) and Strategic Reserves storages 4 ERSE - Entidade Reguladora dos Servi os Energ ticos 17/09/2024
Capacity Management A major change in the capacity management chain Until 30thSeptember, 2013 Commercial Mgmt. (TSO) Available capacity is published Programming/ Nominating Payment due for used capacity Utilization Allocation Global System Manager Before Gas Day Gas Day After Gas Day As from 1stOctober, 2013 Commercial Mgmt. (TSO) Capacity allocation (auctions) Payment due for contracted capacity Available Products Capacity contracting Shippers Forecasts/ Nomination Utilization Global System Manager 5 ERSE - Entidade Reguladora dos Servi os Energ ticos 17/09/2024
Capacity Management Standard Products offered Products \ Maturity Daily (week- ahead) Daily Yearly Quarterly Monthly (day-ahead) Storage of LNG x x x x x Underground storage x x x Physical IPs (*) x x x x x Regasification at LNG terminal x x x x x Backhaul at LNG terminal x UGS injection x x UGS withdrawal x x (*) only for unbundled capacity at Valen a do Minho and Campo Maior (outside the VIP) 6 ERSE - Entidade Reguladora dos Servi os Energ ticos 9/17/2024
Capacity Management Calendar for 2013 and beyond (VIP) M and D Cap. Allocation (FCFS) (VIP) Y and Q Capacity Auctions Yearly Capacity Products * Quarterly Capacity Products * Monthly Capacity Products * Rolling Day- Ahead Capacity Auctions Yearly Y and M Utilization Forecast Consumption Forecast 2013/ 2014 30.Sep 2013 - 30.Sep 2014 Jun/Jul As from Jul 31.Jul-06.Sep 3.Sep 06 13.Sep 13 - 20.Sep 23.Sep Daily Capacity (Re)- Nomination Governing Reg. MPAI MPGTG 2014/ 30.Sep 2014 - 30.Sep As from Sep 3.Sep 16 - 23.Sep Mar Jun Rolling Day-Ahead Capacity Auctions Yearly and Monthly Utilization Forecast Rolling Monthly Capacity Auctions Yearly Yearly Capacity Auctions Quarterly Capacity Auctions Consumption Forecast * This activity includes the publication of available capacity, the auction and the final allocation of capacity to shippers 7 ERSE - Entidade Reguladora dos Servi os Energ ticos 17/09/2024
Capacity Management Calendar for 2014 and beyond Daily Capacity (Re)- Nomination Governing Reg. MPAI MPGTG 2014/ 30.Sep 2014 - 30.Sep As from Sep 3.Sep 16 - 23.Sep Mar Jun Rolling Day-Ahead Capacity Auctions Yearly and Monthly Utilization Forecast Rolling Monthly Capacity Auctions Yearly Yearly Capacity Auctions Quarterly Capacity Auctions Consumption Forecast 8 ERSE - Entidade Reguladora dos Servi os Energ ticos 17/09/2024
Some Results On assignment of Capacity rights 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Physical IP Valen a do Minho (*) Physical IP Campo Maior (*) Regasification at LNG terminal Storage capacity LNG tanks capacity Yearly Allocated Capacity Yearly Available Capacity (not used) Monthly Allocated capacity(**) (*) Only for unbundled capacity at Valen a do Minho and Campo Maior (outside the VIP) (**) Monthly products for October and November Until now, no Quarterly and Daily capacity rights have been bought at LNG Terminal and Transmission network. 9 ERSE - Entidade Reguladora dos Servi os Energ ticos 17/09/2024
Some results On assignment of Capacity rights Nominations % of booked capacity Average Minimum Maximum IP Campo Maior (*) 94% 83% 100% IP Valen a do Minho (*) 91% 91% 91% Regaseification at LNG Terminal 66% 28% 100% (*) only for unbundled capacity at Valen a do Minho and Campo Maior (outside the VIP) 10 ERSE - Entidade Reguladora dos Servi os Energ ticos 9/17/2024
Secondary Market Main Rules Since October 2013 : Primary capacity holders can sell the total allocated capacity or part of it. The sell can be placed at OMIP platform: Allows transferring the capacity use or also the rights and obligations Optional financial settlement (OMIClear) Products Cascading Y > Q > M > D Y13 v v v v Q4-13 Q1-14 Q2-14 Q3-14 v v v v v v v v v v v v Oct.13 Nov.13 Dec.13 Jan.14 Feb.14 Mar.14 Apr.14 May.14 Jun.14 Jul.14 Aug.14 Sep.14 v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v .. .. .. .. .. .. .. .. .. .. .. .. TSO has the option of buyback 11 ERSE - Entidade Reguladora dos Servi os Energ ticos 17/09/2024
Secondary Market Operations Bilateral Model (OTC) and anonymous for third parties. For all products (annual, quarterly monthly and daily). All authorized shippers are allowed to buying/selling the capacity. The operations can be done on a efficient way (fax / e-mail / recorded phone call). Flexible Financial settlement (optional) IF Price = 0 => Settlement between the two shippers IF Price > 0 => Settlement by OMIClear Fungibility of positions (compensation effect: Sales cancel purchases)> full netting of positions and responsibilities Types of Collateral: cash and bank guarantees Maturity: (i) By cascading (long contracts); (ii) By notice to the System Operator Dissemination of information: All information on transactions, positions and deliveries on a centralized system Payment of Fees by shippers 12 ERSE - Entidade Reguladora dos Servi os Energ ticos 17/09/2024
Thank you ENTIDADE REGULADORA DOS SERVI OS ENERG TICOS Rua Dom Crist v o da Gama, 1, 3 1400-113 Lisboa Portugal Telefone: +(351) 21 303 32 00 e-mail: pverdelho@erse.pt url: http://www.erse.pt 17/09/2024 ERSE - Entidade Reguladora dos Servi os Energ ticos
