Transcript Transit
Gas Transit Workshop
Brussels, 24th January 2007
Gas transit regulation
(Slovakia as a country with standard TPA for transit )
Milan Sedlacek,
SPP - preprava, Slovak Republic
The presentation focuses on the treatment of gas transit
in Slovakia. Slovakia has standard TPA for gas transit. Only gas
transmission is recognised by law. Equal treatment is an underlying
principle.
1. Introduction, network description
2. Regulation of gas transmission in Slovakia
3. Practical experience with
gas transit regulation
4. Summary
Infrastructure data
EUROPIPE I
NORPIPE
ZEEPIPE
INTERCONNECTOR
SEGEO
NETRA
JAMAL
RTR
WEDAL
MIDAL
SEGEO
TENP
STEGAL
MEGAL
BRATSTVO
TRANSGAS
TRANSITGAS
TENP
SOJUZ
SLOVTRANSGAZ
WAG
TRANSITGAS
HAG
TAG
0
TRANSMED
75
150
225
300
375 km
2007 year:
- capacity of the
transmission system
was nearly 94 bcm/y
Slovak transmission system
Transit flows are predominant
The transit flows have varying degree of importance via-a-vis overall
gas flows in the transit country.
In some countries, transit volumes are quite substantial relative to
domestic supply.
93 %
+
7%
=
100 %
1. Introduction, network description
2. Regulation of gas transmission in Slovakia
3. Practical experience with
gas transit regulation
4. Summary
Situation in transit regulation
Till 2003:
Fully negotiated conditions
Unregulated
Conditions agreed by parties
After 2003:
Fully regulated
Transit no longer recognised by law
Standard TPA for transmission
Source: Shell
Access to the network
Access to the network – ctd.
Current Entry – exit tariff model
1. Introduction, network description
2. Regulation of gas transmission in Slovakia
3. Practical experience with
gas transit regulation
4. Summary
Is transit always the monopoly pipeline?
Impact of competition
Impact of Yamal construction
(minus 18 bcm/a, 5 years)
90,00
80,00
70,00
60,00
50,00
40,00
bil
.[Nm3]
30,00
20,00
10,00
0,00
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
Transit Capacity – competition effect
Questions:
- how does this competition fit into the image of
monopolies sitting on transit lines?
- who pays for the investment? Cost based
regulation=decreasing volumes means increasing
tariffs.
- Where is the incentive to invest into new
infrastructure?
- Is this a risk free business for which only low rate of
return is justified?
Competition effect – cost based pricing
Impact of volatility in volumes on a regulated price
100
90
bcm/a
80
70
60
50
40
180%
30
160%
20
10
140%
0
17
20
15
20
13
20
11
20
09
20
07
20
05
20
03
20
01
20
99
19
19
97
120%
100%
Year
80%
60%
40%
20%
For the sake of simplicity, some generalisation in modelling was done.
General tendency was correctly reflected.
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
0%
Entry – Exit system in practice
Although simple and user-friendly, entry-exit system is an
approximation model.
BENTRY
BEXIT
DENTRY
DEXIT
X
CENTRY
CEXIT
AENTRY
AEXIT
If AENTRY is big to have A-D and A-C cost-reflective, than A-B is deformed
If AENTRY is small to have A-B cost-reflective, than C-D and D-C are
deformed
m * n formulas, (m+n) variables
min Q = S [Yi - fi(l)]2
Difference in services
A final customer will often only be able to use one system,
whereas there are competing transit-systems
The service rendered in a transit contract may be different from a
domestic transportation contract : for instance, lower balancing
tolerances and higher load factor for transits ;
Balancing provisions in old transit contracts:
- Perfectly balanced
- What physically goes in = physically goes out
- Differences in magnitude of percents are not available on the
spot market or storage
Brave new world x old world certainty.
Beware - Supplier side looks to love old world more.
Operational issues on EU borders
Geographical
Ownership of transmission
system
Contractual relationship
with adjacent TSO
Exporting
country
TSO #1
Transit
country
IP
OBA
TSO#1/TSO#2
Allocation
Quality, Units, Business
rules etc.
TSO #2
IP
TSO #3
OBA
TSO#2/TSO#3
Contract
Contractual relationship
with Shipper
Scheduling of processes
Consuming
country
Nomination, matching, re-nomination, rescheduling
and confirmation analogical at each IP
Based on OBA (EU rules = allocated quantity is
matched/confirmed quantity)
EASEE Gas
EASEE Gas
Operational issues on EU borders
-OBAs
-kWh
-6-6 business day
-daily contracts
-standardised
balancing and
allocation rules
- m3
- 20 degrees C
- 8-8 business day
- long-term contracts
- customised
balancing and
allocation rules
- pressure drops
1. Introduction, network description
2. Regulation of gas transmission in Slovakia
3. Practical experience with
gas transit regulation
4. Summary
Conclusions
- Growing import dependence of Europe
- Gas transit is a security of supply issue
- Competitive routes do exist
- Stable regulatory framework is
necessary plus the need of
positive investment climate
- Standard TPA for transit works,
but sometimes there are grand
complications