GAS EXCHANGES IN SPAIN 5th IG Meeting of South Gas Regional Initiative 30th November, 2007.

GAS EXCHANGES IN SPAIN

5th IG Meeting of South 5th IG Meeting of South Gas Regional InitiativeGas Regional Initiative

30th November, 2007

2

The context

3

GEOGRAPHY & GEOLOGY

• Peninsula SW Europe

• No domestic Production / UGS

• Capacity interconnection

• LNG

4

INFRASTRUCTURE & DEMAND GROWTH

SANTA CRUZ DE

TENERIFE LAS PALMAS

1º

FERROL

LA CORUÑA

PONTEVEDRA

LUGO

ORENSE

OVIEDO

BILBAOSANTANDER

PAMPLONA

LOGROÑO

BURGOSPALENCIA

VALLADOLID

LEÓN

ZAMORA

AVILA

MADRID

CUENCA

ALBACETECIUDAD REAL

TOLEDO

CÁCERES

BADAJOZ

HUESCA

TERUEL

GERONA

BARCELONA

LERIDA

TARRAGONA

CASTELLÓN

VALENCIA

ALICANTE

MURCIA

ALMERÍAGRANADA

JAÉN

MÁLAGA

CÓRDOBA

CÁDIZ

HUELVASEVILLA

VITORIA

PALMA DE MALLORCA

SINES

(4)

(2)(2)

S. SEBASTIAN

CARTAGENA

3º

3º

(2)

1º

5º

4º 5º

6º

(2)

3º

3º

5º

2º1º

SORIA

(2)

SEGOVIA

ZARAGOZA

3º 4º

7º 8º

4º

3º 4º

SALAMANCA

GUADALAJARA

1º

2º1º

Group C

Group A, B

Regasification Plant

Compression

Station

National Gas Field

Current infrastructure

Extension

Urgent infrastructure

Underground Gas Storage

Infrastructure

Basic Gas Infrastructure

• Territorial expansion

• CCGT & Renewables

• New basic gas infrastructure (Pipelines, LNG Plants, UGS)

• 2001 – 2006: x 1,8

5

REGULATORY FRAMEWORK

• Integrated system management

• TPA to all infrastructure

• Flexibility

6

LIBERALISATION PROCESSDemand

TWh

0

50

100

150

200

250

300

350

400

2000 2001 2002 2003 2004 2005 2006

450

TPA marketTariff based market

10%38%

55%71%

80%

85%

87%

Demand

TWh

0

50

100

150

200

250

300

350

400

2000 2001 2002 2003 2004 2005 2006

450

0

50

100

150

200

250

300

350

400

2000 2001 2002 2003 2004 2005 2006

450

0

50

100

150

200

250

300

350

400

2000 2001 2002 2003 2004 2005 2006

450

TPA marketTariff based market

10%38%

55%71%

80%

85%

87%

New entrantsIncumbent

2007 (e)0

50

1999 2000 2001 2002 2003 2004 2005 2006

100

150

200

250

300

TWh

33%

66 %

28%

72%

LNG supplies to TPA market

New entrantsIncumbent

2007 (e)0

50

1999 2000 2001 2002 2003 2004 2005 2006

100

150

200

250

300

TWh

33%

66 %

28%

72%

New entrantsNew entrantsIncumbentIncumbent

2007 (e)0

50

1999 2000 2001 2002 2003 2004 2005 2006

100

150

200

250

300

TWh

33%

66 %

28%

72%

LNG supplies to TPA market

•Full eligibility as form 01.01.2003•New TPA market entrants:

> 50% total > 70% LNG supplies

7

THE RESULT: GAS EXCHANGES

8

EVOLUTION VS. MONTHLY DEMAND

0

10.000

20.000

30.000

40.000

50.000

60.000

GWh

Gas Exchanges Difference monthly demand - Gas exchanges

9

GAS EXCHANGES PER INFRAESTRUCTURE

Number of transactions

Underground Storages

2%Transmission network

43%

LNG Terminals 55%

Gas exchanges per infrastructure

Transmission network (GWh)

7%

Underground Storages (GWh)

2%

LNG Terminals (GWh)91%

10

GAS EXCHANGES PER SHIPPER

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Volume of gas exchanges Number of exchanges

11

MAIN MILESTONES

0

100

200

300

400

500

600

700

800

ago-02

nov-02

feb-03

may-03

ago-03

nov-03

feb-04

may-04

ago-04

nov-04

feb-05

may-05

ago-05

nov-05

feb-06

may-06

ago-06

nov-06

feb-07

may-07

ago-07

Nº

0

10.000

20.000

30.000

40.000

50.000

60.000

GWh

Gas Exchanges Volume of Exchanges

Royal Decree 1434/2002

M.O.ECO 32/2003

M.O.ECO 32/2004

Royal Decree 1716/2004

M.O.ITC103/2005

M.O.ITC103/2005(NGTS)

M.O.ITC 3283/2005

M.O.ITC 4100/2005

M.O.ITC 3996/2006

Resolución3.6.3.

Royal Decree 949/2001

MS- ATR

12

THE IT SYSTEM: MS-ATR

13

MS-ATR

14

MS-ATR: > 25 USERS

15

MS-ATR: TRADING

16

MS-ATR: IMBALANCES MANAGEMENT

17

MS-ATR: BILATERAL EXCHANGES

18

NEXT STEPS

Time – Market Maturity

Com

ple

xit

y

BulletinBoards

Capacity Transfer Title

Facility

OTC

Gas Transfer Title Facility

Financial trade

OCM

MultilateraltradeBilateral

trade

Market Clearing Price

Individual bilateral prices