Shippers’ - GRTgaz · Less overruns for within-year shippers April 1st, 2018 GRTgaz │ Shippers’ Meeting –February 13, 2018 │ Accessibility Levels: Public: x 0 5 10 15 20

Shippers’

Meeting

2018

2

9.30am Commercial news Introduction by Catherine Brun

GRTgaz at the heart of the European gas

network European context: work in progress and

perspectives

Innovation : appygas plateform

Upstream capacities: evolutions and new offers

Regulated third parties access to gas storage

GRTgaz, committed actor of the energy

transition French Market Outlook

Study ADEME-GRTgaz-GRDF: a 100 %

renewable gas in 2050?

Thierry Trouvé speech

12.00pm : Lunch

Agenda

1.45pm Network newsIntroduction by Claude Meylan

An efficient network market oriented Single marketplace: project’s progress and next

steps

Current winter & Locational Spread

Inspection and reparation annual programme

2017 maintenance Overview,

2018 maintenance schedule

Conclusion by Catherine Brun

4.00pm Afternoon snack & networking

GRTgaz │ Shippers’ Meeting – February 13, 2018 │ Accessibility Levels: Public: x

European

regulation process

Shippers’ Meeting - February 13, 2018

GRTgaz │ Shippers’ Meeting – February 13, 2018 │ Accessibility Levels: Public: x 4

ENTSOG works

2018/2019 auction calendar

GTCs template development

GIE works : new areas

Market

Innovation & Communication

System

New SoS European regulation in force since 1st November 2017

Towards Gas Package 2020: numerous studies launched by EC

to be achieved in 2018

European regulation : works in progress

key for the future of gas

GRTgaz

strongly

involved:

pro-activity &

new office in

Brussels

a

5

Entsog Works: GTC Template

Development Timescales

Decision on

what to be

included in

Template

and its

structure


18 Jan.

BOA

GTC Template

development

15 Mar.

BOA

Agree the

scope of the

public

consultation

Template public consultation,

approval and publication

9 May

Public

consultation

Mid

April6 July

BOA & GA

Template

publication

on ENTSOG

website

ACER OpinionFinal template development

and publication

ACER

opinion on

Template

6 Oct.

Final

Template

publication

6 Jan

BOA & GA

2018 2019

Update template


In force since 1st November 2017

Guiding principle = reinforcement of regional compensation & cooperation

Risk groups identified for 4 gas supply corridors

- Eastern

- North sea

- North Africa

- South-East

ENTSOG involved in Union-wide simulations (Nov 2017)

Requirements for Member State Authorities:

- 2 Feb 2018: Notification of protected customers

- National risk assessment

- 1st Oct 2018 : 1st common risk assessment (then every 4 years)

- 1st Dec 2018: Solidarity mechanism measures (financial compensation)

- 1st March 2019: Notification of preventive action plans & emergency plans

SoS European Regulation 2017/1938

Gas Market Design

(Studies)Clean Energy Package

(“Mirroring“)

• ACER Regulation

• Electricity Regulation

• Electricity Directive

Role of Gas Infrastructure in the

Energy Transition

• FRoG – CEER study

• Gas Infrastructure 2050 – EC study

• Sector Coupling – EC study

• Mid-Century – EC study

• Sustainable Finance – EP/EC report

Towards a Gas Package 2020


• Quo Vadis – EC Study

• FRoG – CEER study

• Sector Coupling – EC study

• Gas Target Model rediscussed

Gas

Package

2020

8

2nd Preliminary Report published in December 2017–

awaiting final report

No conclusion or recommendation included

Modelling results do not show need for legislative

reform : no fundamental legislative changes needed

Where markets are not “working”, specific measures

should be used to address the issue, not EU wide

measures

Incremental changes are preferred to address issues as

they arise

EC - Quo Vadis- which may be basis for a Gas Market Design debate


9

What?

Review of existing 2050-storylines

Study specific storylines aiming at 95% decarb of energy sector

2050!

Consequences for EU gas infrastructures => SoS seen as a strong

element

Are regulatory regimes still fit? => NRAs to be involved.

Who?

European Commission DG-ENERGY

When?

Launch: March 2018

Results: August 2018

EC - Role of Trans-European gas infrastructure

in light of 2050 decarbonisation targets


10

Currently awaiting Gas Infrastructure 2050 Scenario

completion, as input to tender for Sector Coupling study

however Q1/Q2 2018 initiation to be expected

EC - Sector Coupling


Gas &

Electricity

Gas &

Heating

Gas &

Transport

11

“Gas infrastructures should become the batteries of

the future European energy system”. K.D. Borchardt

EC fully aware that green gases development is

key to secure the future of gas

Flexibility is the key value provided by gas

To conclude: 2020 Gas Package will

be the result of 2018 lobbying!



An

a new service by GRTgaz Deutschland


Wouldn’t you say that

working in the gas

industry sometimes

feels like you’re

banging against the

wall?


An

Flows map

Near-realtime Gas flows

Route Calculator

Spreads & Transport

Prices

Availability

Maintenance works

We have good news for office walls and heads!

The appygas solution :


An

Trade on the go !


Our solution can make the gas market easy and help you

make more informed trading decisions !

Visit us here in the hall !

We look forward to showing you more about appygas

Upstream capacity

commercialization


PITTM

PIR Dunkerque

PIR Oltingue

PIR CAM (Virtualys, Obergailbach, North-South Link)

Content

19GRTgaz │ Shippers’ Meeting – February 13, 2018 │ Accessibility Levels: Public: x

20

PITTM


21

More flexibility:

- Secondary market

- Intermediary capacity (10+x days)

- Decrease of complementary capacity tariff (overrun)

Reminder : latest evolutionsIn 2016-2017

- 10%price

Entry capacity on

GRTgaz network


22

More flexibility:

- Cut 1 year into 10 days multiples

Secondary market


1 year 120 d 40 d …

Transfer of use Assignment

Subscription typesAll Yearly

Intermediate

When ? Until D-1 (6pm) Until D-7

Where ? PRISMA

23

PITTM allocation impose to define the capacity period

Possibility to ajust the subscription

- Conservation of the initial volume

- Until D-7 before planned beginning of unloading

- Into 10 days multiples

Less overruns for within-year shippersApril 1st, 2018


0

5

10

15

20

25

30

35

40

45

50

j f m a m j j a s o n d

Initial allocation GWh/j Final allocation GWh/j

24

This winter:

- PITTM in Locational Spread

- Renominations until afternoon

- Design of Flow Comitment & terminaling offer

TRF: adaptation of these tools to the single marketplace area

Role of GNL in congestion proceduresWork in progress


25

PIR Dunkerque IR0006


26

CRE deliberation of July 27th, 2017Yearly long-term commercialization


Yearlycapacity

sale in june

October to October

Year Y+2 to Y+15

independantly

No lenghtpriority

Conservation of releasable

27

CRE deliberation of July 27th, 2017Short-term commercialization


2 options

Rolling yearly

Quarterly

Option A

Option B

28



Option A

Conservation of

short-term rolling yearly

capacity

29



Option B

Quarterly capacity without

releasable ; with multiplier

30

PIR Oltingue IR0011


31

Capacity amounts and tariffs


Entry Oltingue : same tariff as other entry PIRs:

(*) linked to Virtualys & Obergailbach

Total marketable capacities <= 1 260 GWH/d

Products Capacity

(GWh/d)

Tariff 1st april

2018

(€/MWh/d/year)

Firm FR>SW 223 400,61

Interruptible FR>SW 30 300,458

Backhaul SW>FR n/a n/a

Firm SW>FR 100 (*) 103,32

Interruptible SW>FR 100 51,66

32

Marketable vs technical capacities

- No core network development

No competition Oltingue is marketed on PRISMA :

- In slot 2 (Yearly/Quarterly/Monthly/Daily)

- In slot 1 (Within-day)

Advantages:

- Really firm capacity

- Priority to Virtualys & Obergailbach

Firm capacity marketed after

Virtualys & ObergailbachCRE deliberation of July 27th, 2017


1 260GWh/d

V

Ob

Ol

V

Ob

Marketable

capacities

Technical

capacities

33

Yearly capacities : only 1st year

Interruptible capacity is marketed only if all firm capacity is booked

Oltingue Entry marketing calendar


Firm Interruptible

Yearly (year Y)

Slot 2

-

QuarterlySlot 3

Monthly

Daily -

Within-day Slot 1 -

34

PIR CAM


35

New ENTSOG Calendar


Interruptible marketed if:

- All firm capacity is sold

- Firm capacity sold with premium

- No firm capacity is marketed

Publication Starting date Publication Starting date

1/10/Y - 1/10/Y+1

…

1/10/Y+14 - 1/10/Y+15

Q1: 1/10/Y - 1/01/Y+11st Monday of

August

1st Monday of

September

Q2: 1/01/Y+1 - 1/04/Y+11st Monday of

November

1st Monday of

December

Q3: 1/04/Y+1 - 1/07/Y+11st Monday of

February

1st Monday of

March

Q4: 1/07/Y+1 - 1/10/Y+11st Monday of

May

1st Monday of

June

MONTHLY Month M1 week before the

auction start

3rd Monday of

month M-1

1 week before the

auction start

4th Monday month

M-1

DAILY Day Ahead D

WITHIN DAYH+4 for the day until the

end of the gas day

Capacities marketed on

QUATERLY2 weeks before

the auction start

1 week before the

auction start

Product Validity periodFirm Interruptible / Backhaul

YEARLY1 month before

the auction start

1st Monday of

July Y

1 week before the

auction start

1st Monday of

August Y

4:30pm D-1 5:30pm D-1

* only on forward direction and marketed on

As from 7 pm until 2:30am then each

hourUBI*

Regulated third parties

access to gas storage

Ways & means of compensation

collection


Reform of third parties access to natural gas storage

Agenda

Basis of compensation collection

Practical aspects

Contents



“Natural gas infrastructures contribute to transmission network balancing, continuity of

delivery on the transmission network, gas system optimization and to country’s security of

supply”

“The tariffs for use of the transmission network […] are established […] to cover all the

costs borne by […] the operators of the storage facilities”

“Transmission network operators shall return to the underground storage of natural gas

operators […] part of the amount recovered in accordance with the procedures established

by the Energy Regulatory Commission”

“When incomes of a storage operator are greater than its costs, the income surplus is

transferred to transmission network operators by this storage operator”

“Use tariffs of natural gas transmission networks may contain a fix part, a part proportional

to subscribed capacity and a part proportional to the difference between firm capacity

subscribed in winter and average yearly use of this capacity”

Reform of third parties access to natural

gas storage

Adopted on 19th December 2017 / implementation on 1st April 2018

« Loi mettant fin à la recherche ainsi qu’à l’exploitation des hydrocarbures et

portant diverses dispositions relatives à l’énergie et à l’environnement »


Agenda


Practical aspects

Contents



Agenda

December January February March April May …

CRE’s Public

Consultation

CRE’s Deliberation

on collection and

transfer of storage

compensaton

CRE’s Deliberation

on collection term

tariff

Storage Auctions Basis Billing Transfer

Basis Billing Transfer

Basis Billing

Basis

Design exchanges

&

data transmission

from DSOs for

forecasted basis

calculation

Data transmission

from DSOs for

monthly basis

calculation

Transitory phase on first year


Agenda


Practical aspects

Contents



The basis of compensation collection :

Must be as transparent as possible, that is every

stakeholders (supplier and consumer) can

recalculate. So it needs to be based on data

known by all these stakeholders

Must translate the consumer’s modulation need

The distribution between suppliers must follow

the evolution of every supplier portfolio

Needs to pursue a relative continuity with current

system

Must be feasable given the short notice : rules

mustn’t be too complex (especially with DSOs

interface)

Basis of compensation collectionPoints supported by GRTgaz

With these principles in

mind, GRTgaz suggests

that the compensation

collection is based on

the difference between :

Daily delivery capacity

Average of daily

consumption

(CAR/365)


The methods studied by the CRE in its Public Consultation are :

Must be as transparent as possible, that is every stakeholders (supplier and consummer) can recalculate. So it

needs to be based on data known by all these stakeholders

• Method 2 better accounts for customers with subscription and seasonal consumers.

• Still, counter-modulated customers need to be excluded prior to computation

• « Declared loadable » consumers would be excluded for this transitory phase.

« Interruptibility » to be accounted for eventually when effective

• In any case, billing of this collection term depends on reliable data transmission from DSOs

A back-up method needs to be determined in case data is missing or late

GRTgaz suggests to use subscribed firm capacity alone

Basis of compensation collectionMethods of collection

Formula for each customer Profiled With subscription

Method 1

« Peak P2 »𝐴. 𝑧𝑖. 𝐶𝐴𝑅 − 110%.

𝐶𝐴𝑅

365𝐴. 𝑧𝑖. 𝐶𝐴𝑅 − 110%.

𝐶𝐴𝑅

365

Method 2

« Subscribed capacity –

annual average of daily

capacity »

𝐴. 𝑧𝑖. 𝐶𝐴𝑅 −𝐶𝐴𝑅

365𝑚𝑎𝑥 𝐶𝐽𝐴 −

𝐶𝐴𝑅

365; 0

TSO

proposal


Agenda


Practical aspects

Contents



The computation of the DSO rich data is a hurdle to a smooth

and reliable calculation process in the Transitory phase.

In order to make this process operable, GRTgaz suggests that

the basis of compensation be calculated upon suppliers

portfolios on 1st day of each month, with 2 results :

The supplier of each consumer at this date

The value of daily delivery capacities and average of daily consumptions

(CAR/365)

Practical aspectsComputation of downstream data


Compensation collection process and principles will be

included in the Transmission Contract version dated April 1st :

Billing of this compensation will be made separetly :

- some days after the monthly transmission invoice (around 20 M+1 in the

transitory phase)

- with the same rules regarding payment deadline (D+10)

The amount of the contract Payment Guarantee is usually equal to sum of

the 2 greatest invoices in the past 12 months. As of 2018 the recalculation

will take into account the monthly compensation amount :

- Partially in the May recalculation (Only the compensation for the month of

April 2018 will be accounted for)

- Wholly for the second yearly recalculation in October

Practical aspectsAmendment of GRTgaz transmission Contract

2017 French gas market

overview

Shippers’ Meeting - February 13th, 2018

50

A very little increase in gas demand

A larger position for the renewable gases

The immediate potential of gas as an emergency solution to

fight against the climate change

Gas infrastructures maturity to play an efficient part in the

energy market and the ecological energy transition

Main topics 2017


51

Gas demand increases driven by industry

and gas fired power plants

2017 : 465 TWh2016 : 463 TWhIndustrial

customers

190 TWh

+5.5%

Public

distributions

275 TWh*

-2.9%

Gas consumption observed in 2017 GRTgaz’s perimeter

+0.4%2017/2016

Gas consumption in France

= ~ electricity consumption

= ~ oil consumption(Transportation sector)

2017 was a little bit colder

than a normal year, with a

cold fortnight in January

(*) Public distribution climate adjusted 276 TWh, -0.4%

- 200 400

Pétrole

Electricité

Gaz 491 TWh

(1) Open Data Réseaux Energies, périmètre RTE et GRTgaz + TIGF, 2016

(2) Bilan énergétique de la France 2016

Electricity1

All sectors

Gas1

All sectors

Oil2

Transportation sector

483 TWh

451 TWh

Main energy consumptions in France in 2016


52

Strong contribution of gas fired

power plants again in 2017

Existing power plants, January 1st 2018

Power plants projects

Number of groups per plants

1

+19%2017/2016

20172016

8 TWh

21 TWh

46 TWh

55 TWh

Gas fired power plants gas consumption

2015 2014


53

Gas consumption on GRTgaz network

in administrative regions

Industrial

customers

190 TWh

+5.5%

Public

distributions

275 TWh

-2.9%

465 TWh+0.4%2017/2016

GRTgaz’s perimeter

75,6 TWh

- 6,7%78,0 TWh

+ 4,6%

73,1 TWh

+ 5,1%

44,6 TWh

+ 0,5%

15,9 TWh

+ 0,0%

15,0 TWh

+ 1,2%

20,8 TWh

- 2,5%

16,1 TWh

- 1,8%

24,5 TWh

+ 0,2%

51,8 TWh

- 0,8%

5,7 TWh

+ 1,0%44,0 TWh

+ 2,2%

Hauts-de-France

Ile-de-France

Grand Est

Bourgogne

Franche-Comté

Auvergne

Rhône-Alpes

Provence-Alpes

Côte d’azur

Corse

Occitanie

Nouvelle-Aquitaine

Bretagne

Normandie

Centre

Val-de-Loire

Pays de la Loire

2017


54

408 GWh injected in 2017 (+100%)

- Corresponding consumption of:

~ 1 800 bus au bioGNV

~ 34 000 foyers

significant environmental advantages

- 76 700 tonnes of CO2 avoided in 2017

Major progresses

- help to cover costs of injection

- since June 2017, biomethane can be

stored in UGS

Biomethane injections doubled in 2017

Biomethane injection spots connected to the

French gas networks

44 existing injection facilities

including 60% in agriculture

Agricole

Autre

361 projects expected

including 75% in agriculture


0

20

40

60

80

100

55

Some 90 TWh of renewable gas could injected in the French networks in 2030,

i.e. 30 % of the gas consumption

A gas-mix with more and more renewables

20 TWh/an

other

renewable gases

70 TWh/an

methanisation

Programmation

Pluriannuelle de l’Energie

8 TWh in 2023

Renewable gases injection in networks: perspectives by 2030

Source : bilan prévisionnel pluriannuel gaz 2017 – GRDF, GRTgaz, SPEGNN, TIGF

TWh/an


56

Strong dynamic on heavy duty vehicles

and more refuelling stations

- 16 200 NGV vehicles (+10%)

including 1 300 lorries (+100%)

- 88 000 tonnes of CO2 avoided

by substitution to diesel

Good points for NGV and bioNGV

- NGV access to zones with limited

circulation, stamp Crit’Air #1

- pluriannual favourable step on taxes: TICPE frozen,

prolongation on reinforced amortisation

- larger NGV offer in France : heavy vehicles, light truck

and cars

NGV accelerates in France

https://gnv-grtgaz.opendatasoft.com

75 refuelling points for NGV open at the end of 2017

(+25%)78 new points announced for 2018

En Projet

En service


57

More and more large cities are choosing NGV for

their public transportation

- Grenoble, Nantes, Lille, Bordeaux, Paris, …

More and more entrepreneurs are choosing bioNGV

vehicles for their logistic activities

- MacDonald, La Poste, Carrefour, Ikea,…

NGV development in France

NGV vehicles are fuelled by

compressed gas (CNG)

or by liquefied gas (LNG).

More and more ships are to be

fuelled with LNG.

58

~ 4,3 TWh of gas consumption due to new conversions of industrial

customers from fuel-oil to gas achieved in 2017

- significant reduction of CO2 emissions

- Significant reduction of NOx (-70%) and SO2 (-80%)

and practically no dust

The effect of all these conversions achieved since 2012 leads to 1,8 Mt

of CO2 avoided in 2017, i.e. an equivalent contribution ~ 10 000 windmills of

2 MW in the French electric mix

Even more of CO2 avoided by fuel-oil to

gas conversions

0

0,5

1

1,5

2

2012 2013 2014 2015 2016 2017

1,8 Mt CO2

avoided in 2017Mt of CO2

avoided

Avoided CO2 emissions: effect of achieved conversions since 2012


59

Development of gas uses and renewable gases permits to fight

efficiently against the climate change

(1) Source CGDD-SDES Chiffres clés du climat 2018

(4) 188 kg CO2/MWh de gain de CO2 avec le biométhane comparé au gaz naturel.

(2) Bilan prévisionnel gaz 2017 : Demande hors production d’électricité : 413 TWh (2015) ; 364 TWh (2030)

(3) Bilan énergétique de la France 2016

Gas, with more and more renewable gases, is a very efficient mean to reach

the target of CO2 emissions reduction for France

2 Mt/an : Fuel-oil to gas conversions in industry

5.6 Mt/an : Conversion to gas in the transportation sector

11,9 Mt/an : Energy efficiency efforts

17 Mt/an : Injection of 90 TWh of renewable gasese4

= Total of 36,5 Mt of CO2 that could be avoided

i.e. 37.6 % of the remaining effort for France

97 Mt/an

0

100

200

300

400

500

1990 2015 2030

1990

400 Mt/an 2015

337 Mt/an 2030

240 Mt/an

63 Mt/an 97 Mt/an

- 40%2030/1990

CO2 emissions – Remaining efforts to be recorded for France1

Loi relative à la

transition énergétique

pour la croissance verte

60

GRTgaz has developed its network to help opening the European gas market

… and to act efficiently in the ecological energy transition

- facilitating the development of renewable gases (biomethane and power-to-gas)

- moving on in the convergence of gas et electric systems

- without important investments for further gas network adaptation does not require

- deploying efficient solutions very quickly available in the different territories in France

France can accelerate the achievement of necessary expected progress in the

fight against the climate change thanks to a new gas mix with more renewable

gases and thanks to adapted infrastructures

Gas is crucial in the energy mix today

and tomorrow


2017 French gas market

overview

More information

Smartphone application

Datas on GRTgaz’s activity

Datas multienergy France

Operated by GRTgaz, RTE, TIGF,

Dunkerque-LNG, Elengy, Storengy,

AFGNV, Weathernews

A 100% renewable gas mix

in 2050 in France ?

A study performed by Ademe, GRDF

and GRTgaz

Shippers’ Meeting - February 13th, 2018

64

Context :

- Strengthening of the climate objectives

- A need to accelerate the energy transition

- ADEME, the French environment and energy

management agency, published in 2015 a feasibility

study of a 100% renewable electricity mix in 2050

Objectives : testing the technical and economic

limits of a 100% renewable gas mix in France in

2050

- With what types of renewable gas ?

- With which impact on the gas networks ?

- At which cost ?

- In order to contribute to the energy debate and policy

making

This study was issued on January 30th 2018 :

- performed by Solagro* and AEC** ; 18 month work

- focused on France (no export/import considered) and on

network gas

- does not consist of an global multi-energy optimization,

and does not provide a trajectory to 2050

Context and objectives

http://www.grtgaz.com/medias/communiques

-de-presse/detail-actus/article/un-mix-de-

gaz-100-renouvelable-en-2050.html

* associative company expert in energy,

agroecology and food transitions

** cooperative society focused on

management of local energy utilities


65

Study of the various renewable gas potentials :

- Methanisation

- Gasification

- Power-to-gas (with and without methanation :

Power-to-H2 and¨Power-to-CH4)

Essential principle : sustainability

- No competition with food (even though dedicated main crops are authorized in

France up to 15% of yearly tonnage)

- No competition with wood as a raw material (current and prospective uses)

- Increase in carbon stock in the ecosystems ; increase in soil’s biologic life (a

share of biomass has to remain in the field)

Four scenarios with one starting point : ADEME

prospective scenarios for 2050

- “100% renewable”

- “100% renewable with more gasification”

- “100% renewable with limits on biomass”

- “75% renewable”

The study’s different stages


66

30% (140 TWh) from methanisation, 40% (180 TWh) from gasification,

30% (140 TWh) from Power-to-Gas

A potential for 460 TWh renewable gas

* Potential associated with a main liquid fuel production.

With a dedicated algae to biogas production, potentiel

could be up to 60 TWh.

*


67

Methanisation is the basic vector, with available technology

Gasification is a sector to foster, with the biggest potential, in competition with

wood-fired thermal plants and cogenerations

Beyond the power-to-gas needed for adjusting green-mainly electricity mixes,

extra power-to-gas is more expensive, yet the adjustment variable.

All 2050 French’s gas demand could be

fed by renewable gas


68

116-127 €/MWh for the “high” demand scenario of 360 TWh

- 116 €/MWh if electricity supply cost for power-to-gas reflects the gains that power-to-gas

provides to the electricity network (reduction in storage capacities etc.)

+20% in cost if biomass were to be less available for gas (-20%)

- In favour of direct heat or cogeneration

- But notwithstanding limited resort to dedicated crops if needed, possible extra potentials

stemming from algae etc.

Around 108 €/MWh with 25% natural gas.

Global cost around 120 €/MWh (incl. networks)


69

Competitive in a neutral carbon economy

Current global

price (with

networks) ~

50 €/MWh

200 €/t

CO2 tax

But somewhat more expensive than today’s prices…

A challenge : that renewable gas sector develops and finds economies

of scale


70

The study shows that the bulk of the country-spread resources could be

tapped with existing and new collecting networks

- Whose cost would account for only 2-3% of global cost

- With only limited over-the-road biomethane transportation

The key to a cost effective network adaptation is a proper multi-year

programming

- The study estimates that a proper planning of backaul stations and new collecting

pipes would bring 40% savings.

The transmission and storage assets will remain essential in order to

address cold spells and support the electricity network with seasonal

storage.

The adaptation of the networks seem

reasonable


71

Biomethane is – at least – a part of our

future !


Towards the creation of

the single marketplace

on 1st November 2018


Reminder: the main considerations and principles of the single

marketplace

The CRE Deliberation: the principles have been officially decided

on 5 themes

Schedule - next steps

Contents


75

The main considerations

and principles of the

single marketplace


76

Creation of the TRF and a new PEG

Today :

PEG NORD

TRS

In November 1st, 2018 :

1 Entry/Exit

zone2 marketplaces

(PEG Nord and TRS)


77

The expected benefits: a more attractive

gas market

For the benefit of a competitive market over the long term

A security of supply of France strengthen

by improving access to different gas

sources and allowing a wider choice of

sourcing patterns

A French market more fluid, less volatile,

more competitive that is better integrated

into the European market

A single gas price at all times in France (disappearance of

“North-South spreads”), for the benefit of all consumers


78

A “mixed” solution agreed with the market

The new structures increase the availability of the

capacities and therefore allow more flows to transit

from the North to the South

Val de Saône: €671m in total

Gascogne/Midi: €152m in total

Estimate:

+ 220GWh/d per day

i.e. increase of 42%

of possible flows on

average


79

Focus on Val de Saône’s

infrastructures


80

Val de Saône’s Infrastructures


3 interconnections + 1 compressor stations

(Etrez - Palleau - Voisines)

A new 188 km gas pipeline involving Etrez (01),

Palleau (71) et Voisines (52)

3 Regions, 4 Countries/Departements and 65

municipalities crossed

Gas pipeline : diameter 1,20 m, burried at 1 m

depth

For the gas pipeline construction, 5 main lots allocated

to 3 consortium of undertaking

+ the exit of Etrez station, built through a specific lot

VOISINES

interconnection

station

PALLEAU

interconnection

station

ETREZ

compression

ETREZ

interconnection

station

Work progress / 4 industrial sites

Work progress / gaz pipeline

ON TIME for november 2018

81

Val de Saône – KPI (january 2018)

Programme

industrial

commissioning

Nov 2018

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ETUDES CHANTIER

21%

ETUDES

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

9%

CHANTIER

88%

93%


82

Operation of the TRF and

the PEG


83

Operation of the single marketplace :

what will change?

Disappearance of the North South link

Capacities not invoiced as of this date

End of JTS sales and coupling

Trading of capacities until the merger (annual, quarterly, monthly, daily)

Operation of the TRS extended to the TRF in terms of balancing

Daily imbalance calculated at the level of the TRF

Allocation of imbalances over the GRTgaz and TIGF areas, according

to the shipper’s portfolio

Creation of the PEG on November 1st, 2018

Creation of PITS Atlantique on April 1st, 2019


84

Principle of reaching the network limit.

Principle of reaching the network limit :

Goal: ensure the use of all of firm capacities subscribed by the

shippers

→ There is excess gas upstream

→ And a lack of gas downstream


85

Continuous information and alert system

on the risk of reaching a limit

Publication of the maintenance works program by GRTgaz 1 yearbefore

Seasonal publication of the Season OutlookSeason forecast

From D-1: monitoring at each nomination cycleShort

term

Forecast 5 days update every dayD-5 –D-2

Green: no imminent risk

Orange: risk of occurrence near (approximately 50 GWh/d)

Red: proven limit

Violet: mutualised restriction (only for D)


Network

conditions

Side of the limit

management

Small works Sales

interruption

Interruptible

cut

Locational

Spread

Mutualised

Restriction

NS1 Upstream

NS2 Downstream

NS3 Downstream x x x

NS4 Downstream

86

Mechanisms selected for management of

the residual limits

1. Agreements with adjacent operators

2. Interruption of interruptible capacities and UIOLI on D-1

and D-Day

3. Non-trading of unsubscribed capacities on D-1 and D-Day

4. Locational spread: call to the market

5. Mutualised restriction of nominations: last resort


87

Locational spread principles

→ Purchase by GRTgaz downstream of the limit

→ And simultaneous sale of the same quantity

by GRTgaz upstream of the limit

> This amounts for the TSOs to buying a “spread”

Extension to CCGTs being studied

Market product, relying on the gas stock exchange with a twofold within-day

locational product:

Main mechanism for management of all residual limits. Similar to the current

locational spread product.

Optimised cost : activated only when a proven limit is reached and only for

the quantity necessary to resolve the limit


88

Locational spread: a flexible mechanism

open to all shippers

Neutral impact of the locational spread on the balancing of

the selected shipper (the PEG nomination balances the physical nomination)

+

Flexible for shippers: response via a call for tenders, for the

purchase, sale, or both, for the quantities that they choose +

Prerequisite: accreditation with the Powernext platform+

Locational spread is totally non-discriminatory and

transparent+


89

Mutualised restriction principles

As a last resort, within the day, should the call to the market via the

locational spread not be effective+

No financial compensation in the event of use of this mechanism

Partial interruption of firm capacities :

pro rata to the subscribed capacities

mutualised on a group of points called superpoint, in order to

give flexibility to the shippers


90

Mutualised restriction is applied either

upstream or downstream

+

The shipper is then imbalanced and must re-balance in the next cycle on the other

side of the limit

Choice to interrupt the capacities downstream of the limit as soon as

possible to minimise the potential impact on the PEG price

Either the entry flow is

reduced by restricting

the entries upstream of

the limit

Or the exit flow is

reduced by restricting

exits downstream of

the limit


91

Management of maintenance in TRF zoneMaintenance in the North impacts GRTgaz superpoints (upstream; likenow, with Optiflow)

S1

N1

N2

N3

Maintenance in the South impacts TIGF superpoint(downstream, like now)

Maitenance impactingtoday the North>South link will be passed on the superpointsdownstream of the maintenance area

-> in the North->South marked situation : new superpoints are created to manage

maintenance cases


92

Each month : regular informations on the web site of GRTgaz http://www.grtgaz.com/en/acces-direct/customer/single-marketplace-2018.html

Operational workshop : June 2018

Procedure operational detailed : June to October 2018

Next steps in the change management


http://www.grtgaz.com/en/acces-direct/customer/single-marketplace-2018.html

93

Key messages

Goal: greater gas competitiveness in France.

Created on 1 Nov. 2018

It is called the TRF (Trading Region France) and includes a gas exchange point: the PEG

Everyday balancing is done at the level of the TRF, with an allocation of the imbalances

between TIGF and GRTgaz (ditto TRS)

Choice of a mixed solution with reasonable investments and

additional mechanisms for the residual limits of the network.

Much greater gas transit thanks to the new structures

(average + 42% in transit in the North>South direction)

General operation and contractual mechanisms

co-constructed and co-operated

with the market

Relies on the superpoints for to both manage the limits and maintenance: leaves maximum flexibility to

shippers

The mechanisms chosen to manage limits are the best cost-benefit balance for shippers

• Agreement with adjacent operators

• Interruption of D-1 interruptible capacities

• Non-trading of unsubscribed capacities on D-1 and D-Day

• Locational spread: market mechanism

•Mutualised restriction: as a last resort

Restrictions (in the event of limit or maintenance) are implemented as much as possible downstream, in order to limit as far as possible the impacts on the

price of the PEG in France


Winter 2017-2018

Localized Spread

feedbackShippers’ Meeting - February 13, 2018

96

Winter Outlook 2017-2018Reminder

Vigilance mechanism started from 6th of November 2017

Localized Spread is the main mechanism anticipated to

handle bottleneck situations identified for this winter in a 2

zones layout:

- for the North Bottleneck

- for the South-East bottleneck

Proof of concept:

- with 3 windows

- manual trade on the market

Bottleneck Variant Downstream

(= purchase for GRTgaz)

Upstream

(= sale for GRTgaz and TIGF)

North Bottleneck

North 1

2DK + Montoir (+ North-East*) +

North-West + North-Atlantic (+

North-South)

PIV + Obergailbach + Oltingue

North 2

Montoir + North-East + North-

West + North-Atlantic (+ North-

South)

2DK + PIV + Obergailbach +

Oltingue

South-East

Bottleneck

South-East 1 Fos (+ South-East)*

Jura + South-Atlantic + Lussagnet

+ Pirineos

(+ North-South)

South-East 2 Fos + South-East + Jura

South-Atlantic + Lussagnet +

Pirineos

(+ North-South)


97

Localized Spread general feedback

17 players who have signed for the mechanism

used 9 times in 2017

Not used so far in January and February 2018

Only used for South-East bottleneck

First window mainly used

All the quantities needed have been covered

For the 9 call for tenders: 8 different shippers selected and

minimum 2 per call for tenders

No problem encountered


98

South-East Bottleneck

Main conditions:

- weak output from LNG

terminals below

100GWh/j

- strong demand on CGGTcombined cycle gas turbine

power plant

up to 20% of the south-East

gas demand

- not necessarily low

temperatures

November: 14, 15, 16, 17, 29

December: 5, 6, 7, 9


99

Localized Spread detailed feedback

Quantities called: from 11 to 75 GWh per day

Total of 377 GWh for 9 days

Average daily prices: from 2,3 to 6,360 €/MWh

Global average price: 5,6€/MWh

Downstream: PITS Sud-Est

Upstream: PITS Lussagnet, PIR Pirineos, PITS Sud-Atlantique


Pipelines Integrity

Management by

GRTgaz


102

1. Why does GRTgaz inspect its network

2. How does GRTgaz inspect its pipelines

3. How does GRTgaz repair its pipelines after an

inspection

Agenda


103

GRTgaz as a prudent and reasonable pipeline operator

committed itself to high safety standards.

French legislation "Arrêté du 5 mars 2014" imposes on

operators to inspect the entire network during a decade.

Why does GRTgaz inspect its pipelines ?


104

In-line Inspections (ILI)

15 to 20 inspections/y corresponding to 1000 km.

4 frame contracts with major in-line inspections

service providers.

How does GRTgaz inspect its

pipelines ?


Above ground electrical measurements

Detection of coating defect on corrosion risk areas.

External Corrosion Direct Assessment (ECDA).

Around 2000 km/y inspected.

GRTgaz implements 2 main worldwide

recognized technologies to inspect its network

105

During In-Line inspections, correct data

acquisition requires constant, low speed of the

inspections tools

As a consequence flow rates might be substantially

reduced when operating in-line inspection tools.

Our solutions

On main transport network, utilization of combined

tools and, if possible, utilization of speed control

units.

Possible impacts and implemented

solutions


106

25 integrity engineers in charge of

Analysis of inspection reports

Selection of relevant features

Supervision of the multiannual reparation program

At GRTgaz, about 2000 excavations performed, 1200 defaults

analysed yearly

45 metallurgist engineers and technicians in charge of

In ditch characterization of defaults :

Identification & NDT,

sizing,

grinding external metal loss.

After the inspection, the analysis

and rehabilitation program


107

Safety during in ditch operation has highest priority

In case of detection of a presumed severe default,

pressure has to be reduce to enable:

- Excavation,

- Characterization,

Our solutions

Utilisation of large panel of non destructive testing to

properly asses the defaults :

radiography, ultrasonic testing, eddy current, …

Reduction of analysis time using new technologies

such as 3D laser mapping.

Characterization


108

Different types of defaults can be found

on a pipeline network

Main defaults overview


Metal loss/corrosion

Geometrical defaults such as dent

Damage due to third party excavation

109

To ensure safe long term operation of the pipelines,

severe defaults have to be removed.

Pipeline may has to be cut and replaced.

Our solutions

Use specific hot tapping (double isolation & bypass)

to repair with miminum impacts on transit

Implementation of metal repair / rebuilding compounds.

If required, the reparation phase


Conclusion

GRTgaz is committed to ensure high safety standards while

maximizing capacities availability by continuously improving its

technical knowledge and solutions


2017 maintenance

Overview


Major maintenance in 2017

Firm capacities impact

About maintenance publication

Contents


114



115



• Oltingue reverse flow

• Cruzy reverse flow

• Val de Saône

TRF project

• Nord 1/ Nord Est / Plateau du Vexin

• Vendomois / Centre / Guyenne

• Rhône

Piggingsand

repairs

• Taisnières H regulation valves

• Insulating connection at Auvers

• GOA Morelmaison

• Insulating connection at Laprade

station

upgrades

Montoir

Dunkirk

Virtualys

Obergailbach

Oltingue

Fos

Dunkirk

LNG

116

Major maintenance in 2017- release


What?

When?

Why?

Where?

GRTgaz sometimes release capacity

As soon as GRTgaz has the information

Repair cancellation

Oltingue release in June

(4 weeks)

Repairs end in advance

DK, DKLNG, TH, Fos, NS, INA

(1 week)

Flow configuration

(Terminal flow schedule)

North-to-South link

117

Firm capacities impact

Summer 2017


118

Firm capacities impactInterconnexion points*


0

20

40

60

80

100

120

140

TW

h

Available capacity Restrictions

3%(+0,7%)

10%(-4,8%)

18%(-5,4%)

9%(+0,8%)

(%) Restrictions 2017 / 2016

3%(-4%)

* The impact on Superpoints are applied to the points in proportion to the subscribed capacities

7,8% of firm subscribed capacities were interrupted (-0,5% vs

2016)

119

Firm capacities impactLNG terminals*


* The impact on Superpoints are applied to the points in proportion to the subscribed capacities

0

10

20

30

40

50

60

70

80

90

FOS MONTOIR Dunkirk LNG

TW

h


11% (-1,5%)

5,2% (+1,4%)

1,8%



2016)

120

Firm capacities impactNorth to South link


0

10

20

30

40

50

60

North to South link

TW

h


1,2%(-2,6%)



2016)

0

5

10

15

20

25

30

35

40

North-West North-Atlantique South-Atlantique North-East South-East North B

TW

h


121

Firm capacities impactStorages injection


0,01%(-1,5%)


2,2%(-5,5%)

0%(-4,7%)

0%(-0,2%)

2,7%(2,2%)

0%(-5,9%)


2016)

122

About maintenance

publication


123

About maintenance publication


Consultation of adjacent operators

August

Y-1

November

Y-1

Feb.

Y

End of

Feb. YD-60 WD-5 D-1

(3pm)

E-mail

publication of

Provisional

program

Updates send

by E-mail

Consolidated

program presented at

Shipper’s

meeting

First

Publicationon

Trans@ctions

Restrictions

Updates

Consideration of works

Public

ation

Constr

uction

2018 maintenance

schedule


Infrastructure development in 2018

Major maintenances in 2018

Overview of available firm capacities in 2018

Agenda


127

Infrastructure development in 2018



Commissioning of the new infrastructure developed in 2017

Morelmaison grid tests : April - CW 14 & CW 15

Full reverse flow tests : April – CW 16 & CW 17

Joint coordination with SNAM, Fluxswiss, Transitgas & OGE

Development of OLTINGUE REC“Reverse flow” projet

10 daysin April

reduced capacities :

Oltingue DEL

128

129

New interconnection points between “L-gas” & “H-gas”

networks

“Brouckerque” interconnection point works : June – CW 21 & Sept. CW 37

L > H Conversion ProjectBeginning of the “Pilot Test”

4 daysin June (2) &

Sept (2)reduced capacities :

Dunkerque REC


L-gas network

H-gas network

Brouckerque

130

Val de Saone programDeveloping North>South capacities on the eastern corridor

EtrezJuly - August


FOS REC

Jura DEL


VoisinesMay – June - July

reduced capacities:

Obergailbach REC

Virtualys REC

North-South DEL

North-Atlantic DEL

PalleauApril


North-South DEL

North-Atlantic DEL

W→E

corridorApril - May


FOS REC

Existing infrastructure adaptation

New pipeline

131

Major maintenances in 2018


132

Regulatory line inspections

1 major pipelines

5 secondary pipelines

Major « Pigging » operations

5 daysJune

Reduced capacities :

South-Atlantic DEL (4)

North-South DEL (1)

North-Atlantic DEL (1)


133

Following pigging operations in previous year

Major line repairs

4 weeksApril


North-South DEL

North-Atlantic DEL


4 weeksJune


South-Atlantic DEL

Pireneos DEL

Lussagnet DEL

4 weeksMay


Obergailbach REC

5 weeksJune - July


Oltingue DEL

8 weeksAugust -

SeptemberReduced capacities :

FOS REC

As far as possible, coordinated impacts with adjacent operator

Other annual maintenances


4 daysJuly


Montoir REC

2 daysMay-June


DKLNG REC

6 daysJune-Sep


Dunkerque REC

5 daysApril


Virtualys REC

135

Overview of available firm capacities

in 2018


136

Projected availability of North-South DEL firm capacities

North-South DEL 01/04/18 → 31/10/18


North-South DEL

Planned - 2018 56

Planned - 2017 56

Planned - 2016 55

54,0

54,5

55,0

55,5

56,0

56,5

(TW

h)

Availability of N-S DEL firm capacities

Based on firm capacity profile available on SMART GRTgaz

2018

97,3 %

=

Final figures to be made available on March 1st 2018 at the latest

137

Projected availability of interconnection points firm capacities

Interconnection points 01/04/18 → 31/10/18


DunkerqueREC

ObergailbachREC

Virtualys REC Oltingue DELTaisnières B

RECJura DEL

Planned - 2018 119 126 133 39 47 8

Planned - 2017 116 106 112 35 48 8

Planned - 2016 119 101 117 37 47 8

0

20

40

60

80

100

120

140

(TW

h)

Availability of interconnection capacities

2018

98,0 %

↑

2018

90,8 %

↑↑

2018

95,9%

↑↑

2018

81,3 %

↑

2018

95,9 %

↓

2018

96,3 %

↓



138

Projected availability of injection capacities

Storage injection capacities 01/04/18 → 31/10/18


North-Atlantique

South-Atlantique

North-West South-East North-East North B

Planned - 2018 35 24 30 28 30 25

Planned - 2017 35 24 29 27 30 25

Planned - 2016 35 22 31 29 30 23

0

5

10

15

20

25

30

35

40

(TW

h)

Availability of transport capacities to Storage Groups

2018

96,4 %

=

2018

96,7 %

=

2018

96,2 %

↑

2018

100 %

=

2018

97,1 %

↑

Based on firm capacity profile available on SMART GRTgaz & Storengy’s 2018/2019 nominal offer


2018

100 %

=

139

Projected availability of emission capacities

LNG Terminals emission capacities01/04/18 → 31/10/18


Dunkerque GNL REC Fos REC Montoir REC

Planned - 2018 75 74 79

Planned - 2017 73 74 73

Planned - 2016 72 76

68

70

72

74

76

78

80

(TW

h)

Availability of emission capacities

2018

99,5 %

↑

2018

85 %

=

2018

99,6 %

↑↑



140

Aggregated volume of firm capacity interruptions

Overall firm capacity interruptions 01/04/18 → 31/10/18


Planned - 2016 Planned - 2017 Planned - 2018

Total volume 111 96 59

0

20

40

60

80

100

120

Tota

l V

olu

me (

TW

h/y

)

Total volume of projected interrupted firm capacities

Including equivalent GRTgaz → TIGF capacity reductions

2016 → 2018

- 47 %


141

GRTgaz committed to offer additional firm capacities

whenever possible on a short-term basis :

Through the “Optiflow” mechanisms (ex Virtualys REC)

In case of favorable climatic conditions (ex. Northern

entry points)

In case of favorable LNG emissions (ex. North-South

DEL – North-Atlantique DEL)

In case of lesser than anticipated impacts of pipeline

rehabilitation

Significant effort made by all stakeholders to reduce the

impacts of works & maintenances on firm capacities

availability

Overall firm capacity interruptions 01/04/18 → 31/10/18


Shippers’ - GRTgaz · Less overruns for within-year shippers April 1st, 2018 GRTgaz │ Shippers’ Meeting –February 13, 2018 │ Accessibility Levels: Public: x 0 5 10 15 20

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