Southern Gas Regional Initiative Meeting Agenda - April 2014
Agenda for the 28th Southern Gas Regional Initiative Meeting held in April 2014, covering topics such as early implementation of the CAM NC, Iberian Gas Hub update, balancing and interoperability, and more. The agenda includes details on capacity auctions, stakeholder information, and developments in gas market integration between Spain and Portugal.
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28th IG Meeting South Gas Regional Initiative 29thApril 2014 Teleconference 1
Agenda I. Opening I.1 Welcome I.2 Approval of the agenda and minutes of the last meeting (for approval) II. Early implementation of the CAM NC II.1 Supervision of the yearly capacity auction in March 2014 (for information by NRAs) Quarterly capacity auction on 3rd of June 2014. Preparation II.2 Process of information to stakeholders. Publication of capacity to be offered in the auction (for information by TSOs) II.3 Information about other capacity allocations calendar in the region and beyond. III. Iberian Gas Hub: update on the study on models for integration of the Spanish and Portuguese gas markets (for information by NRAs) IV. Balancing and interoperability Calendar and detailed tasks for the harmonisation: gas day, nomination and renomination procedures, data exchange and reference temperature priorities for 1st Nov 2015 (for discussion) V. Update of the development of GRIP / TYNDP (for information by TSOs) VI. AOB and next meetings 2
II. Early implementation of the CAM NC II.1. Supervision of the yearly capacity auction in March 2014 (for information by NRAs) 3
II. Early implementation of the CAM NC II.1. Supervision of the yearly capacity auction in March 2014 CAM NC establishes that NRAs should ensure that CAMs are implemented at the IPs in the most effective way SPAIN Following the Circular 1/2014 de la CNMC, the Spanish regulator is going to supervise the application of CAM in last 3rd March auction. For this purpose, CNMC has requested information to ENAG S. The deadline to receive the information on the process is 28 April. 4
II. Early implementation of the CAM NC II.2. Quarterly capacity auction on 3rd of June 2014. Preparation Process of information to stakeholders. Publication of capacity to be offered in the auction (for information by TSOs) 5
II. Early implementation of the CAM NC II.3. Information about other capacity allocations calendar in the region and beyond 6
III. Iberian Gas Hub III. Update. Study on models for integration of the Spanish and Portuguese gas markets (for information by NRAs) 7
MIBGAS Models for the integration of the Spanish and Portuguese gas markets in a common Iberian Natural Gas HUB Questions to Stakeholders May 2014 Responsible Starting Deadline Area of work Analysis of the possible models for the integration of the Spanish and Portuguese gas markets in a common Iberian Natural Gas HUB NRAs 2013 Q3 - 2014 8
General Objective . In order to assess the feasibility for the development of a gas hub, the study analyzes different aspects of the current gas market situation in Spain and Portugal, including prices in the gas market, as the most important factors. . The study covers three different models for Iberian gas market integration, comparing the advantages and disadvantages for each model. Market Area Model. Trading Region Model. Wholesale Market with Implicit Capacity Allocation. 9
1 The Market Area Model (full integration) Features . The adjacent transmission and distribution networks situated in the same geographical area (and well interconnected) are forged into a single entry/exit system. . The market area includes all gas transmission and distribution systems of participating countries (one single market area). . The market area enables a single wholesale market with a single virtual point. . The market region has a single balancing system (with a single balancing entity and balancing rules). . Country A Market Area A VP National market area Final customers (A) Country A Country B Market Area AB Cross- border market area VP Final customers (A) Final customers (B) 10
2 The Trading Region Model (full integration, except balancing) . . The adjacent transmission and distribution networks that are situated in the same geographical area and that are well interconnected are forged into a single entry/exit system with a single virtual point. . The Trading Region has two end-user balancing zones. The balancing in each end user zone is performed according to the respective national rules (unbalances are managed by the National balancing entities). Features: Country A Country B Trading Region AB VP End user zone A End user zone B Final customers (A) Final customers (B) 11
3. Wholesale market with implicit allocation of capacity . A certain amount of the interconnection capacity is reserved for implicit allocation. . In this model, gas trade and allocation capacity are assigned simultaneously via a gas exchange (or a gas trading platform). . The implicit allocation may promote market liquidity on the Iberian gas market and can represent a first step for market integration. The introduction of this model would give a new approach to the development of a wholesale gas market, providing price transparency as well as benefits to the retail market, being a preliminary step for further integration through the trading region model or the gas market area model . made until cross-border capacity is sold out or prices have converged Interconnection capacity is being reserved for implicit allocation Features: . Market participants make bids and offers for buying or selling of gas The implicit mechanism matches those bids and offer with the highest price differences Capacity is automatically assigned once a trade is 12
benefits to the retail market, being a preliminary step for further integration through the trading region model or the gas market area model[CNMC1] .[ERSE2] Furthermore, the gas hub is not an objective for itself. Furthermore, the gas hub is not an objective for itself. benefits to the retail market, being a preliminary step for further integration through the trading region model or the gas market area Because this is a consultation document it seems to us that we should not be so affirmative. And give more space to the comments of the agents. [ERSE ] Because this is a consultation document it seems to us that we should not be so affirmative. And give more space to the comments of the agents. model[CNMC1] .[ERSE2] [ERSE ] Preliminary evaluation of the models Wholesale market with implicit allocation of capacity Can be applied with limited interconnection capacity (the markets will decouple when the interconnection capacity is fully used). Does not require a high level on harmonization of national legislations (implementation can be faster). Will directly promote market liquidity on the common Iberian gas hub. Can be a first step for the Iberian gas market integration. Market Area Model Trading Region Model Requires substantial legal and regulatory alignment among Spain and Portugal. Requires very good interconnection capacity. Co-habitation of one single virtual point with two end-user balancing zones (possibly with different balancing rules) is really a challenge. Requires substantial legal and regulatory alignment among Spain and Portugal (implementation will take many years). Requires very good interconnection capacity. Can be considered as a long term objective for the Iberian Market. 13
IBERIAN GAS HUB Work in progress Document analyzing the advantages and drawbacks of the possible models, the regulatory harmonization requisites for its implementation by CNMC ERSE (2014 April) . 1. Public hearing (2014 May) 2. Analysis of stakeholders responses to the public hearing (2014-Q3) 3. Final document to be approved by CNMC- ERSE (2014- Q3) 4. 14
IV. Balancing and interoperability IV. Calendar and detailed tasks for the harmonisation: gas day, nomination and renomination procedures, data exchange and reference temperature priorities for 1st Nov 2015 (for discussion) 15
V. Update of the development of GRIP /TYNDP (for information by TSOs) 16
VI. AOB and next meetings - 2014 JANUARY J 1 8 15 22 29 29 30 FEBRUARY X J X MARCH J J APRIL J MAY J JUNE L M X V S D L M V S D D L L M M X X V S D L M X V S D L M V S V S D 2 9 3 4 5 1 8 10 17 24 31 2 9 1 8 2 9 1 8 2 9 3 4 5 6 1 8 2 9 3 4 1 8 6 7 10 17 24 31 11 18 25 12 19 26 3 4 5 6 7 3 2 9 4 3 5 6 7 7 10 17 24 11 18 25 12 19 26 13 20 27 5 6 7 11 18 4 5 6 7 13 20 27 14 21 28 16 23 30 10 17 24 11 18 25 12 19 26 13 20 27 14 21 28 30 15 22 16 23 25 10 17 24 31 30 11 18 25 24 12 19 26 25 13 20 27 26 14 21 28 15 22 29 16 23 30 14 21 28 15 22 16 23 12 19 26 13 20 27 14 21 28 15 22 29 16 23 10 17 11 18 12 19 13 20 27 14 21 28 15 22 29 16 23 JULY J AUGUST J SEPTEMBER X J 3 10 17 24 APRIL J 2 9 16 23 30 MAY J JUNE J L M X V S D L M X V S D L M V S D L M X 1 8 V 3 S 4 D L M X V S D L M X V S 6 13 20 27 D 7 5 6 1 8 2 9 3 1 8 2 9 4 5 1 8 2 9 3 4 5 6 1 8 14 21 28 2 9 15 22 29 3 4 1 8 7 10 17 24 31 11 18 25 12 19 26 13 20 27 4 5 6 7 10 17 24 11 18 25 12 19 26 14 21 28 7 10 17 24 11 18 25 12 19 26 13 20 27 5 6 7 13 20 27 10 17 24 31 11 18 25 31 2 9 3 4 5 6 7 14 21 28 15 22 29 11 18 25 12 19 26 16 23 30 15 22 29 16 23 30 14 21 28 15 22 29 16 23 30 12 19 26 13 20 27 14 21 28 15 22 29 16 23 30 10 17 24 11 18 25 12 19 26 13 20 27 14 21 28 15 22 29 16 23 30 SG Meeting IG Meeting RCC Meeting Auctions Spanish Bank Holiday French Bank Holiday Portuguese Bank Holiday Next meetings: SG meeting on 22 May is cancelled RCC meeting: date to be determined 17
