Gas Market Area Creation Initiative in France on November 1st, 2018

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The South Gas Regional Initiative held its 46th IG Meeting focusing on the creation of a single gas market area in France starting from November 1st, 2018. The internal constraints after the merger were discussed, along with mechanisms for removing congestion issues. Practical examples of locational spread processes were provided, emphasizing the importance of mutualized restrictions in case of failure of regular mechanisms to manage congestion efficiently.


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  1. SOUTH GAS REGIONAL INITIATIVE 11TH APRIL 2018 11TH APRIL 2018 v 46 46th thIG Meeting IG Meeting C Creation reation of a single gas market area of a single gas market area in France on 1st November 2018 in France on 1st November 2018

  2. REMAINING INTERNAL CONSTRAINTS AFTER THE MERGER 2

  3. INVERNAL CONGESTION REMOVAL MECHANISMS NS2 NS2 NS4 NS4 NS1 NS1 NS3 NS3 In the event of daily In the event of daily constraints constraints 1. 1. Implementation, if possible, of inter Implementation, if possible, of inter- - operator mechanisms, particularly operator mechanisms, particularly with Fluxys with Fluxys 1. 1. Interruption of interruptible capacities Interruption of interruptible capacities 2. 2. Non Non- -trading of available firm capacities trading of available firm capacities 3. 3. Locational spread Locational spread 2. 2. Interruption of interruptible Interruption of interruptible capacities capacities 3. 3. Non Non- -trading of available firm trading of available firm capacities capacities 4. 4. Locational spread Locational spread In the event of the In the event of the mechanisms failing mechanisms failing Mutualised restriction Mutualised restriction 3

  4. LOCATIONAL SPREAD: PRACTICAL EXAMPLE The TSOs issue a public tendering procedure (day-ahead or within-day). The selected shippers have to change their nominations within a limited time (H+3), to ensure the expected gas flow at the specified network point. The shippers will submit their bids on Powenext platform. The TSOs will select the most economically advantageous bids, with no knowledge of the bidders identity. Example Tendering process for a locational spread on each side (upstream and downstream) of the Nord-Sud 2 limit. A propose to reduce its entries at Taisni res and Dunkrik for 1 /MWh B propose to increase its injections in the storage facilities in the North- East for 0,5 /MWh D propose to increase its entries at Montoir for 4,5 /MWh NS2 Bids from 5 shippers (A, B, C, D, E, F and G). C propose to increase its exits at Oltingue for 1,5 /MWh Shippers B and E are selected for 70% of the required volume, A and G for the remaining 30%. They have to modify their nominations at the specified points. E propose to reduce its injections in the storage facilites for 0,5 /MWh G propose reduce its exits at Pirineos for 2 /MWh F propose to increase its entries at Fos for 5 /MWh 4

  5. IN THE EVENT OF THE IN THE EVENT OF THE FAILURE OF THE REGULAR FAILURE OF THE REGULAR MECHANISMS: MECHANISMS: MUTUALISED MUTUALISED RESTRICTION RESTRICTION This mechanism helps ensure that limits are not exceeded, either by restricting entries upstream of the limit, or exits downstream of it. This mechanism would only be applied if necessary as a last would introduce an overall mutualised pro rata nomination restriction of subscribed capacities on entry points upstream of the limit, or on exit points downstream. The shippers would therefore be free to use their capacities, within their own limits, and at each point in their overall limit at all the points. This mechanism would be used during the day, once the failure of other mechanisms to remove the congestion had been noted. The TSOs presented volumes (in GWh/day) to be interrupted when addressing congestion events. The aim of the TSOs is to limit the volume of capacities interrupted to remove congestion. as a last resort resort. The TSOs French French consumption consumption ( (GWh GWh/d) /d) NS1 NS2 and NS3 NS4 Below Below 1750 GWh GWh/d /d 1750 Between Between 1750 GWh GWh/d and 2800 /d and 2800 GWh GWh/d /d Upstream 1750 Above Above 2800 GWh GWh/d /d 2800 Downstream Upstream Downstream Upstream 5

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