3rd IG Meeting – Region South-South East 9th October 2007, Maribor, Slovenia

3rd IG Meeting – Region South-South East

9th October 2007, Maribor, Slovenia

2

IG meeting agenda – 1

Agenda item Responsible

11.00 Opening Co-chairs

11:15

Presentation session I

- Best practice standardised bulletin board - Best practice: TAG

- Summary of planned investments in the region

TSOTAG

RCC

12:00

Presentation session II

- Implementation of EASEE gas CBPs in the region

- Removing remaining obstacles to implementation of IA/OBA - IPA/OBA in practice: Baumgarten

- Best practice provision of OSS service - OSS in practice: GATRAC

- Current status of planning: Transparency platform- Proposal of a Regional ISO Model as a way forward?

EASEE gas

TSOs and shippersCEGH

RWE TGN

TSOsEFET

3



14:00

Presentation session III

- Regional Cooperation in the Third Package

- Regional Entry Exit Tariff System: Update

- Hub development PSV and CEGH

EC

RCC

CEGH, PSV, EFET, Eurelectric

15:00 Coffee break

15:30 AOB

16:00 Closure Co-chairs

4

Action Points 1-3 of the last IG meeting

Implementation TF ActionsResponsible/Result until

Best-practice standardised bulletin board

- harmonized content for individual TSO platforms accordnig TAG and OMV best practice

TSOspresentation at next IG

Summary of planned investments in the region (incl. Storage)

- inclusion of information on expansion projects (Transmission&Storage) into the survey

RCCpresentation at next IG

Removing remaining obstacles to implementation of IPA/OBA

- further update on implementation :TSOs will focus on concluding IPAs where these are not yet in place; Implementation of an OBA regime is dependent on certain prerequisites and will always be conditional; Shippers must be equally involved in the implementation process by complying with the nomination rules set up by the TSOs

- Baumgarten: all involved stakeholders work on a solution within the next 3 months incl. a list of remaining ostacles

TSOs, Shippers

CEGHpresentation at next IG

5

Action Points 4-6 of the last IG meeting



- harmonized contentaccordnig TAG and OMV best practice

TSOspresentation at next IG meeting


- inclusion of information on investments into survey

RCCpresentation at next IG meeting


- further update on implementation and- Baumgarten: all involved stakeholders work on a solution within the next 3 months incl. a list of remaining ostacles

CEGHpresentation at next IG meeting

Best practice provision of OSS service

- Transparency platform (GTE pilot project)- TSOs offer OSS service to shippers who request it- best practice OSS (OMV, www.gatrac.com)

TSOs presentation at next IG

REETS

- presentation of benchmarking results- simulation of introduction of REETS

RCCpresentation at next IG

Hub development as regional balancing market

- update on implementation of next steps according schedule

CEGH/EFETPSV/EFETpresentation at next IG

6




11:15




TSOTAG

RCC

12:00






EASEE gas


RWE TGN

TSOsEFET

7


What was expected: Implementation of an online, user-friendly, and secure trading

platform.

implementation of an online platform using a harmonised standard (best practice TAG) for transmission capacity on all major transit systems of the region SEE

8

Example to be used for all Austrian transit capacities

TAG Bulletin Board

Harmonised Bulletin Board (3)

*

* Optional information may be in the form of an attachment or as directly published text

10

Action POINT 1 - Best-practice standardised bulletin board

Suggested next steps

Coordinator: TAG Action Point from last IG meeting:

Implementation of the standard content until next IG meeting

Next steps: Preparation of guideline for the standard bulletin board by TSOs RCC to comment on guideline before implementation Role of RCC to monitor implementation

11




11:15




TSOTAG

RCC

12:00






EASEE gas


RWE TGN

TSOsEFET

12

Summary of planned investments in the region

First analysis Natural gas demand growth: Where data have been submitted, there is an indication

of growing natural gas consumption up to 2015

This is the case in eg: Austria, Czech Republic, Italy, Slovenia, Poland

Infrastructure investment At the TSO level:

Building activity in the region mainly as reinforcement, only little or few true new projects

Examples: TAG compressor stations, reinforcement in Italy New infrastructure in Czech Republic and Italy

At the SSO level Both expansion and new projects Examples: Expansion: 2 projects (A), Virtual storage (CZ),

expansion (I, P), new capacity: A, CZ, H, I, P, Rom, Sl (preliminary analysis)

13


Implications of findings Natural gas demand growth seems unquestioned

in line with: rising energy demand, economic growth etc.

Expansion/new infrastructure mainly in storage areaFewer infrastructure projects in terms of volume

However: Infrastructure projects might not ‘come online’ until 2010-2015

From a regulatory viewpoint:Issue of capacity shortages unsolved

Clear acknowledgement:SSE region affected by capacity shortages in a heterogeneous manner: North of the region (Poland, Czech Republic) different from Southern part

(Austria, Italy) Impact of LNG both in the North (Poland) and South (Croatia-Italy-Austria)

[potentially]

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Further analysis:

Pipeline capacity: Is there enough (cf. rout assessment)? Congestion scenarios 2010, 2015, 2020 Expansion projects till 2020

Storage capacity: A flourishing market-but how much capacity will be available to the market? Congestion scenarios 2010, 2015, 2020 Expansion projects till 2020 Market needs till 2020

Impact of LNG: What will it be? Projects that have an influence on the region


15

Further data needs and next steps

NRAs to complete natural gas demand forecast (national level) RCC to ask shippers and traders (EFET and EURELECTRIC) to submit

their estimates regarding natural gas demand per country in the region RCC to ask TSOs and SSOs to cross check the information provided and

update it if required


16




11:15




TSOTAG

RCC

12:00






EASEE gas


RWE TGN

TSOsEFET

17




11:15




TSOTAG

RCC

12:00






EASEE gas


RWE TGN

TSOsEFET

18


Interconnection point (GTE map)

affected TSOs reported status actual implementation?

Lanzot (54) RTNSPP

under negotiation

Hora Svate Kateriny (22b) RTNWINGAS

in place OK

Waidhaus(24) RTNEON GT, GDF DT

under negotiation

Oberkappel (25) BOGEON GT, GDF DT

under negotiation

Velke Kapusany (55) NAFTOGAZSPP

in place OK

Tarvisio (49) TAGSRG

under negotiation

Murfeld (51) OMVGEOPLIN

under negotiation mid 2007?

Gorizia (48) GEOPLINSRG


Baumgarten (55) SPPOMV, TAG, BOG


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Action Point 3: Removing remaining obstacles to implementation of IPA/OBA

Suggested next steps

Affected TSOs

Action Point of last IG meeting: CEGH will coordinate a solution for Baumgarten within the next 3

months and present the results at the next meeting

Next steps: CEGH to outline barriers for conclusion of IPA/OBA at Baumgarten

Timing: CEGH and involved TSOs to conclude IPA/OBA until the end of 2007

20




11:15




TSOTAG

RCC

12:00






EASEE gas


RWE TGN

TSOsEFET

21

Best practice provision of OSS service

What was expected: Practical implementation of a voluntary one-stop-shop (OSS)

service based on the recommendations of the OSS study Information requirements

Capacity information Cumulative transportation tariff for the requested route Contract information to be signed with different parties Service fee for the OSS service

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Action Point 4: Best practice provision of OSS service

Suggested next steps Coordinator: RWE TGN / OMV Gas Next steps:

TSOs of the region are invited to participate in the GATRAC platform

TSOs offer OSS service to shippers who request the service according to best practice OSS (www.gatrac.com, OMV Gas)

Timing: update next meeting Role of RCC to monitor implementation

23




11:15




TSOTAG

RCC

12:00






EASEE gas


RWE TGN

TSOsEFET

24




11:15




TSOTAG

RCC

12:00






EASEE gas


RWE TGN

TSOsEFET

25



14:00





EC

RCC


15:00 Coffee break

15:30 AOB


26



14:00





EC

RCC


15:00 Coffee break

15:30 AOB


27



14:00





EC

RCC


15:00 Coffee break

15:30 AOB


28

Action Point 6: Hub development as regional balancing market (I)

Suggested next steps Lead: PSV/EFET and CEGH/EFET Next steps:

Separate workstreams and update on implementation of next steps according schedule

Timing:

16 February 2007Gas Committee – CEGH Working Group

Timeline

Feb 07 Oct 2008Oct 07

? For Bulletin Board the decision on Market Maker (volume? spread? period? rights and responsibilities?)

? Back-up/-down services? Customer focus

? OBAs? physical nomination < 1 day

lead time (now 5 days)? Web based nomination

? Workshop CEGH with EFET on products

Mar 07 May 2007

? systematic offering of structured products (week ahead, month ahead) anonymous

? standardised agreements (EFETs)

? (Super-) firm market place

? CEGH takes counterpart risk and makes clearing

? International balancing via CEGH

? online intraday balancing market

? derivative trading with physical hedge/forwards

? gas exchange

? Meeting CEGH with EFET CEGH Working Group (Ressl)

Jan 2009

? Derivative trading? Regional

balancing market

Mar/Apr 07 Jan 2008

? Meeting CEGH with EFET CEGH Working Group (after 20.03)

? day ahead products? intraday products? physical nomination

< 1 day possible? web based

nomination possible

Jul 07

? Operational Market Maker

? Back up/down service

? completion of contractual specifications

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Action Points 1-3



TAG GmbH to circulate document outlining the features of the standardised bulletin board and the timetable for implementation by all TSOs of the region to stakeholders for comments

15 December 2007


NRAs to complete natural gas demand forecast (national level)RCC to ask shippers and traders (EFET and EURELECTRIC) to submit their estimates regarding natural gas demand and storage need per country in the regionRCC to ask TSOs and SSOs to cross check the information provided and update it if required

31 December 2007


Murfeld and Gorizia: conclusion of IPA/OBA

Baumgarten: CEGH to coordinate with TSOs to conclude IPA/OBA

31 December 2007

31 December 2007

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Action Points 4-6


Best practice provision of OSS serviceRegional ISO

TSOs of the region are invited to join the GATRAC platformEFET to circulate their paper on a Regional ISO for comments

TSOs of the region/200815 November 2007

REETSAEEG to circulate REETS simulation study to stakeholders for comments

AEEG/31 December 2007

Hub development as regional balancing market

PSV: implementation of independent Market Operator for the balancing point, RCC to monitor implementation according to action plan

CEGH: implementation of back-up/back-down services, RCC to monitor implementation according to action plan

IBF TF/March 2008

CEGH and EFET/March 2008

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14:00





EC

RCC


15:00 Coffee break

15:30 AOB


32

Any other business-AOB

Proposed date of next meeting

Suggestion: Next meeting (SG meeting) end of January 2008

Key: Progress report and participation of stakeholders

Regulators only to facilitate the process

Context of regional activities

Next Madrid Forum on 16th/17th October 2007

ERGEG to report on progress

Update on issues regarding transparency (Outcome of recent

survey)

3rd IG Meeting – Region South-South East 9th October 2007, Maribor, Slovenia

Documents

ig meeting agenda

new capacity

storage capacity

expansion projects

ig meetingnext steps

transmission capacity

pipeline capacity

tag bulletin board