Скачать презентацию 2 nd IG Meeting Region South-South East Скачать презентацию 2 nd IG Meeting Region South-South East

56e23c046718e7ee103cfc5758a4b3ef.ppt

  • Количество слайдов: 109

2 nd IG Meeting – Region South-South East 5 th July 2007, Krakow, Poland 2 nd IG Meeting – Region South-South East 5 th July 2007, Krakow, Poland

Agenda 2 Agenda 2

Implementation Task Forces Implementation TF Responsible - RCC: TOR Best-practice standardised bulletin board - Implementation Task Forces Implementation TF Responsible - RCC: TOR Best-practice standardised bulletin board - TSOs - Next steps Result until End June/ beginning of July Summary of planned investments in the region (incl. Storage) - RCC: TOR - ECG: Survey results - TSOs & SSOs - Next steps End June/ beginning of July Removing remaining obstacles to implementation of IPA/OBA - RCC: TOR - TSOs - Next steps End June/ beginning of July Best practice provision of OSS service REETS Hub development as regional balancing market - RCC : TOR - TSOs - Next steps - RCC : TOR - AEEG - Next steps - RCC TOR - CEGH, PSV - EFET, Eurelectric - Next steps End June/ beginning of July 3

Gas Regional Initiative South-South East Contribution by TSOs Milano Tasks 5 July 2007, Krakow, Gas Regional Initiative South-South East Contribution by TSOs Milano Tasks 5 July 2007, Krakow, Poland

Contribution by TSOs Contribution by TSOs

Participating TSOs l l l Geoplin Plinovodi OMV Gas Gmb. H RWE Transgas Net Participating TSOs l l l Geoplin Plinovodi OMV Gas Gmb. H RWE Transgas Net Snam Rete Gas SPP-preprava Trans Austria Gasleitung Gmb. H

Milano Tasks - Contribution by TSOs l Best practice: Standardised bulletin board l Summary Milano Tasks - Contribution by TSOs l Best practice: Standardised bulletin board l Summary of planned investments in the region (excl. storage) l Planned investments regarding storage should be presented by SSOs as TSOs may not be aware of them l Removing remaining obstacles to implementation of IPA/OBA l Best practice: Provision of one-stop-shop (OSS) service

TSOs Met on 18 May in Prague l TSOs discussed all topics identified as TSOs Met on 18 May in Prague l TSOs discussed all topics identified as areas for further work TSOs’ understanding of the Milano tasks was very different from the contents given in the Terms of Reference sent on 23 May by Mr. Rieser /on 24 May by REM SSE Co-Chairs The given Terms of Reference seem to go well beyond what was said in Milano

Agenda 9 Agenda 9

Best-practice standardised bulletin board § Why necessary ¨ ¨ ¨ Regulation 1775/2005/EC Art. 8: Best-practice standardised bulletin board § Why necessary ¨ ¨ ¨ Regulation 1775/2005/EC Art. 8: “Each transmission system operator shall take reasonable steps to allow capacity rights to be freely tradable and to facilitate such trade. ” Quote from Explanatory Notes (Reg. 1775/2005/EC) “TSOs should be obliged to publish the offer of secondary capacity when requested by the seller. The TSOs should be urged to organise a bulletin board where this is not organised in another market place. “ RCC’s background paper: TSOs should cooperate in setting up a central bulletin board as a trading platform for secondary market capacities for transmission pipelines in the region SEE 10

Best-practice standardised bulletin board § What is expected: ¨ Implementation of an online, user-friendly, Best-practice standardised bulletin board § What is expected: ¨ Implementation of an online, user-friendly, and secure trading platform. + Step 1: a best practice online-based trading platform for secondary market capacities in the SSE regional energy market shall be identified + Step 2: implementation of an online platform using a harmonised standard for transmission capacity on all major transit systems of the region SEE 11

Example to be used for all Austrian transit capacities 12 Example to be used for all Austrian transit capacities 12

Harmonised Bulletin Board (1) l l TSOs’ understanding: creation of a harmonised user-friendly bulletin Harmonised Bulletin Board (1) l l TSOs’ understanding: creation of a harmonised user-friendly bulletin board by EACH TSO (no joint platform) Bulletin Board is no true trading platform only an information board made available by the TSOs to make it easier for interested parties to find each other; the TSOs are not involved in the transaction until the parties that have traded/want to trade capacity send them notice thereof

Harmonised Bulletin Board (2) l l l Approach taken: operational rules for running the Harmonised Bulletin Board (2) l l l Approach taken: operational rules for running the bulletin boards were checked and pros and cons of their functioning were discussed TSOs agreed to use standard contents for presenting the information on the capacity bid/offer received in whatever form from the shippers The contents (format) used by TAG has been chosen as the best practice The TSOs would like to note that shippers have made very little use of the bulletin boards so far

Harmonised Bulletin Board (3) l TAG Bulletin Board * * Optional information may be Harmonised Bulletin Board (3) l TAG Bulletin Board * * Optional information may be in the form of an attachment or as directly published text

Action POINT 1 - Best-practice standardised bulletin board § Suggested next steps § § Action POINT 1 - Best-practice standardised bulletin board § Suggested next steps § § Coordinator: TSOs Next steps: § § § TSOs agreed to use standard contents for presenting the information on the capacity bid/offer received in whatever form from the shippers The contents (format) used by TAG has been chosen as the best practice Timing: § Implementation of the standard content till September 16

Agenda 17 Agenda 17

Route Assessment in SSE Gas Regional Initiative – Region: South-South East, Assessment on selected Route Assessment in SSE Gas Regional Initiative – Region: South-South East, Assessment on selected Transportation Routes 18

Available firm capacity SPP RTN BOG TAG OMV SK CZ A A A yes Available firm capacity SPP RTN BOG TAG OMV SK CZ A A A yes no no Preprava route 1 Geoplinovodi SI SRG GAZ System I PL UK-SK-CZ-GER route 2 no UK-SK-A-SI-I route 3 UK-SK-A-I route 4 no no UK-SK-A-GER route 5 no BE-PL-GER route 6 no yes AL-I-A-SK 19

Short term congestion management SPP RTN BOG TAG OMV SK CZ A A A Short term congestion management SPP RTN BOG TAG OMV SK CZ A A A none interr. UIOLI, bulletin board Preprava route 1 UK-SK-CZ-GER route 2 none interr. UIOLI, bulletin board none UK-SK-A-I route 4 UK-SK-A-GER plinovodi SI SRG GAZ System I PL interr. UIOLI, bulletin board UK-SK-A-SI-I route 3 Geoplin none interr. UIOLI, bulletin board route 5 interr. UIOLI BE-PL-GER route 6 AL-I-A-SK interr. UIOLI, bulletin board 20

Capacity expansion SPP Preprava SK RTN BOG TAG OMV CZ A A A Geoplinovodi Capacity expansion SPP Preprava SK RTN BOG TAG OMV CZ A A A Geoplinovodi SI SRG GAZ System I PL route 1 no plans UK-SK-CZ-GER planned not no plans planned enough planned not enough route 2 no plans UK-SK-A-SI-I route 3 no plans UK-SK-A-I route 4 no plans UK-SK-A-GER open season route 5 no plans BE-PL-GER route 6 backhaul planned AL-I-A-SK 21

Congestion Management – Obligation of TSOs § Why necessary ¨ Regulation 1775/2005/EC Art. 5: Congestion Management – Obligation of TSOs § Why necessary ¨ Regulation 1775/2005/EC Art. 5: “In the event that physical congestion exists, non discriminatory, transparent capacity allocation mechanisms shall be applied by the transmission system operator or, as appropriate, the regulatory authorities. “ ¨ Quote from Explanatory Notes (Reg. 1775/2005/EC) In the case of new investments in transportation capacity (which includes significant expansion of existing capacity), the TSOs' responsibility to ensure the long term ability of the system by meeting reasonable demands would make it appropriate to organise an open season or open subscription period before allocating capacity, in order to determine more precisely the required capacity expansion. ¨ RCC’s route assessment: Congestion management measures are missing 22

Summary of planned investments in gas infrastructure § What is expected: § Deliverable 1: Summary of planned investments in gas infrastructure § What is expected: § Deliverable 1: Survey of the future gas demand capacity need by country (10 years ahead) § Deliverable 2: Survey of planned and actual investments in transmission pipelines and storage facilities, by country and TSO/SSO Deliverable 3: Analysis of concrete obstacles to investment, be it regulatory, legal, political or other reasons § 23

Summary of planned expansions in SEE (incl. Storage) § Presentation/report § § § Report Summary of planned expansions in SEE (incl. Storage) § Presentation/report § § § Report by RCC Early findings from questionnaire Review by country § Austria § Bulgaria § Czech Republic § Greece § Hungary § Italy § Poland § Romania § Slovakia § Slovenia 24

Summary of Investment Forecasts l In the light of the obligation imposed by Regulation Summary of Investment Forecasts l In the light of the obligation imposed by Regulation (EC) 1775/2003 to publish regular long-term forecasts of available capacities for up to 10 years for all relevant points, in case the TSOs have the obligation under the national law to publish an investment forecast, they mostly interpret planned investments as investments that will be realised (i. e. no investment plans in pre-feasibility and feasibility stage) The TSOs would like to underline that it is not the investments as such but the associated increase in transmission capacity that is of interest to shippers

SPP - preprava l Decisions on investments currently under preparation according to the demand SPP - preprava l Decisions on investments currently under preparation according to the demand of the network users.

RWE Transgas Net (1) Developments Length [km] Notes Olbernhau-Waidhaus (link to the Nordstream/OPAL) 3 RWE Transgas Net (1) Developments Length [km] Notes Olbernhau-Waidhaus (link to the Nordstream/OPAL) 3 alternatives Market Survey Ongoing The new capacity should come on stream gradually between 2011 -2015

RWE Transgas Net (2) RWE Transgas Net (2)

Trans Austria Gas Leitung (1) Investments Volume Increase Planned entry into operation Notes Compressor Trans Austria Gas Leitung (1) Investments Volume Increase Planned entry into operation Notes Compressor Station Eggendorf (Region Lower Austria) 3. 2 bcm/y 1 October 2008 Capacity allocated through long-term allocation procedure on a pro-rata basis Compressor Station Weitendorf (Region Styria) 3. 3 bcm/y l l Capacity to be allocated in the near future Total capacity to be made available through the new investments amounts to 6. 5 bcm/y. Further information will be published on TAG’s web site in due time.

Trans Austria Gas Leitung (2) Trans Austria Gas Leitung (2)

OMV Gas (1) Planned investments into the transit system Volume Increase Planned entry into OMV Gas (1) Planned investments into the transit system Volume Increase Planned entry into operation Notes Compressor Station at Oberkappel (Penta West) including extension of PW transfer metering station at Überackern 1. 75 bcm/y 1 November 2011 Under construction, capacity nearly sold l Planned investments into the Austrian domestic system should be looked up under the Long-term Planning Process of AGGM (www. aggm. at)

OMV Gas (2) OMV Gas (2)

Geoplin Plinovodi (1) Developments Length [km] Diameter [mm] Pressure [bar] Notes M 2/1 Rogatec Geoplin Plinovodi (1) Developments Length [km] Diameter [mm] Pressure [bar] Notes M 2/1 Rogatec – Rogaška Slatina 8. 1 800 70 Under construction R 25 D Šentrupert – Šoštanj 17 400 70 Under construction Planned developments -- different stages: l l l l M 1/1 Kidričevo – Rogatec M 1/1 Ceršak – Kidričevo M 2/1 Rog. Slatina – Trojane M 2/1 Trojane – Vodice M 3/1 Vodice – Šempeter M 3 B/1 Šempeter – Miren M 5 Vodice – Jarše l l l l M 5 Jarše – Novo mesto M 6 Ajdovščina – Lucija M 8/1 Jelšane – Kalce M 8/2 Brod na Kolpi – Ljubljana (alternative) M 8/3 Vinica – Ljubljana (alternative) R 25 A Trojane – Hrastnik R 45 N. mesto – B. krajina R 38 Kalce – Godovič

Geoplin Plinovodi (2) Geoplin Plinovodi (2)

Snam Rete Gas (1) Developments Length [km] Diameter [mm] Compressor Station [MW] Notes Reinforcement Snam Rete Gas (1) Developments Length [km] Diameter [mm] Compressor Station [MW] Notes Reinforcement of infrastructure in Sicily 160 1200 25 Under construction Reinforcement of infrastructure in North. West of Italy 45 750 - Under construction Reinforcement of infrastructure in North. East of Italy - - 100 Planned 1300 800/1200 88 Planned 150 900 - Planned Reinforcement of infrastructure in South Italy Adriatica Tirrenica Development of Entry point of Panigaglia Information on respective increases in transmission capacity is available on Snam Rete Gas’ web site

Snam Rete Gas (2) Entry Point Passo Gries Entry Point North-Est Italy Entry Point Snam Rete Gas (2) Entry Point Passo Gries Entry Point North-Est Italy Entry Point Panigaglia Entry Point Mazara del Vallo Entry Point South Italy

Presentation of the GSE website with all actual expansion projects in storage 37 Presentation of the GSE website with all actual expansion projects in storage 37

38 38

Details for Austria and Poland 39 Details for Austria and Poland 39

Gas Demand forecast in Austria 40 Gas Demand forecast in Austria 40

Congestion in the Domestic Transmission system 41 Congestion in the Domestic Transmission system 41

Plant power stations (4. 000 MW till 2015? ) KW Geplant bis 2010 KW Plant power stations (4. 000 MW till 2015? ) KW Geplant bis 2010 KW KW Geplant bis 2015 KW KW KW Geplant bis 2020 400 Ennshofen KW KW angedacht 400 Theiß II 1000 Dürnrohr KW 150 400 KW 650 KW Timelkam 400 Riedersbach KW 800 Peisching KW 800 Mellach KW 800 Zeltweg KW 400 42

Feasibility Study to increase domestic capacity 43 Feasibility Study to increase domestic capacity 43

Capacity expansions in gas transit Existing pipelines planned expansions Rainbach (2011) 1. 4 bcm/y Capacity expansions in gas transit Existing pipelines planned expansions Rainbach (2011) 1. 4 bcm/y new compressor stations D CZ WAG SK Baumgarten Oberkappel Burghausen PENTA West TGL (2010) Eggendorff (2008) 3. 3 bcm/y HAG TAG I + II Weitendorf (2008) 3. 2 bcm/y H Nabucco (2012) 17 -20 bcm/y Murfeld I SOL Arnoldstein SLO HR 44

Storage projects in Austria Storage site Thann wgv 250 mcm Withdrawal rate 130. 000 Storage projects in Austria Storage site Thann wgv 250 mcm Withdrawal rate 130. 000 cm/h Expansion project „Haidach“ First expension phase wgv 1. 2 bcm Completion wgv 2. 4 bcm Commissioning 2007 Storage site Tallesbrunn wgv 300 mcm Withdrawal rate 160. 000 cm/h Storage site Haidach 5 WGV 13. 5 mcm Withdrawal rate 20. 000 cm/h Tallesbrunn OMV Gas RAG Haag OMV Gas Storage site Puchkirchen wgv 850 mcm Withdrawal rate 400. 000 cm/h Expansion project „Puchkirchen/Haag“ wgv 400 mcm Withdrawal rate 160. 000 cm/h Completed 2010 Existing storage facilities Storage projects Storage site Schönkirchen wgv 1. 570 bcm Withdrawal rate 770. 000 cm/h Expansion project „Schönkirchen Tief“ Wgv minimum 1 bcm, High withdrawal rate Completion expected 2011 45

Piotr Seklecki Chief Expert Department of European Integration and Comparative Studies Energy Regulatory Office Piotr Seklecki Chief Expert Department of European Integration and Comparative Studies Energy Regulatory Office Investments and Planning 2 nd Implementation Group Meeting of the Gas Regional Initiative for the South-South East Region Address: : Chłodna 64, 00– 872 Warsaw e–mail: piotr. [email protected] gov. pl tel. (+48 22) 6616 318, fax (+48 22) 6616 321

The structure of gas supplies in 2006 (in mcm) The structure of gas supplies in 2006 (in mcm)

The structure of gas supplies in near future POGC is now importing gas within The structure of gas supplies in near future POGC is now importing gas within the frames: • a long – term contract for the supplies of the Russian gas of 25 th September 1996, with Gazexport, valid until 2022, • the contract between PGNi. G and VNG AG on 17 August 2006 and valid until 2016 (for annual gas supply volume ranging from 400 to 500 million m³) and • the contract of 17 November 2006 concluded with Ros. Ukr. Energo AG until 2009 (for purchase of 2. 5 billion m³ of gas per annum) with an extension option for further 2 years. )

LNG Terminal in Świnoujście The first deliveries of LNG to the terminal are planned LNG Terminal in Świnoujście The first deliveries of LNG to the terminal are planned for the year 2011. The regasification capacity of the terminal will be developed by stages to reach the target capability of receiving up to 7. 5 bcm of natural gas per year from the terminal by the year 2020. PGNi. G set up a company - Polskie LNG (PLNG)- to build the terminal and, subsequently, to provide the regasification service. The company is based in Świnoujście and controlled by PGNi. G.

The domestic production (1996 – 2006) The domestic production (1996 – 2006)

Expansion of storage capacity Expansion of storage capacity

Investments planned by the TSO Investments planned by the TSO

Action POINT 2 – Overview capacity expansions in SEE Suggested next steps ¨ Coordinator: Action POINT 2 – Overview capacity expansions in SEE Suggested next steps ¨ Coordinator: RCC/E-Control ¨ Next steps: + inclusion of received information (TSOs and GSE) on expansion projects (Transmission&Storage) into the survey ¨ Timing: + present the results at the next IG meeting 53

Agenda 54 Agenda 54

Further improvment since March 07 ? SPP RTN BOG TAG OMV CZ A A Further improvment since March 07 ? SPP RTN BOG TAG OMV CZ A A A in testing phase Geoplin in testing phase Preprava SK plinovodi SI SRG GAZ System I PL route 1 under negotiation UK-SK-CZ-GER route 2 UK-SK-A-SI-I route 3 UK-SK-A-I route 4 UK-SK-A-GER in testing phase route 5 no BE-PL-GER route 6 AL-I-A-SK under negotiation 55

Removing remaining obstacles to implementation of IPA/OBA Region Number of IPs number of in Removing remaining obstacles to implementation of IPA/OBA Region Number of IPs number of in % (GTE map) OBAs at IPs NNW 55 33 60% S 17 12 70% SSE 29 8 28% 56

Removing remaining obstacles to implementation of IPA/OBA Interconnection point (GTE map) affected TSOs reported Removing remaining obstacles to implementation of IPA/OBA Interconnection point (GTE map) affected TSOs reported status actual implementation? Lanzot (54) RTN SPP under negotiation Hora Svate Kateriny (22 b) RTN WINGAS in place Waidhaus(24) RTN under negotiation EON GT, GDF DT Oberkappel (25) BOG under negotiation EON GT, GDF DT Velke Kapusany (55) NAFTOGAZ SPP in place OK Tarvisio (49) TAG SRG in place OK Murfeld (51) OMV GEOPLIN under negotiation mid 2007? Gorizia (48) GEOPLIN SRG under negotiation mid 2007? Baumgarten (55) SPP OMV, TAG, BOG under negotiation mid 2007? OK 57

HUB central matching station in between Transportation Systems one step towards harmonization SPP c HUB central matching station in between Transportation Systems one step towards harmonization SPP c c c Storage MAB c HAG TAG WAG Regulatory Zone Austria

Graphical illustration of hub trade in Baumgarten March 2007 Graphical illustration of hub trade in Baumgarten March 2007

OBA: Contractual structure CEGH System Business ICP SPP System OMV Gas System Common agreement OBA: Contractual structure CEGH System Business ICP SPP System OMV Gas System Common agreement BOG System Technical ICP Agreements Bilaterally conclusion TAG System SPP System BOG System SPP System OMV Gas System

Integration of CEGH in OBA Carrier OMV Carrier TAG Carrier BOG Operator Shipper SPP Integration of CEGH in OBA Carrier OMV Carrier TAG Carrier BOG Operator Shipper SPP Carrier SPP upstream CEGH Trader Operator Shipper OMV downstream

Systems of Slovakian Side SPP System Shipper SPP Shipper CEGH Trading Shipper CEGH Shipper Systems of Slovakian Side SPP System Shipper SPP Shipper CEGH Trading Shipper CEGH Shipper TAG Shipper WAG Shipper OMV GAS BOG System OMV Gas Systems of Austrian Side TAG System

Detailed illustration of matching operation TAG System Shipper xy Shipp per xy Shipp SPP Detailed illustration of matching operation TAG System Shipper xy Shipp per xy Shipp SPP System Shipper 1 Shipper 2 Shipper 3 BOG System Shipper xy Shipper xy CEGH System Ship per Ship xy per OMV Gas System xy Shipper xy

Action Point 3: Removing remaining obstacles to implementation of IPA/OBA Suggested next steps ¨ Action Point 3: Removing remaining obstacles to implementation of IPA/OBA Suggested next steps ¨ Affected TSOs: ¨ Next steps: 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 obstacles Timing: ¨ CEGH will coordinate a solution for Baumgarten within the next 3 months and present the results at the next IG meeting ¨ ¨ 64

Agenda 65 Agenda 65

Best practice provision of OSS service § What is expected: § Practical implementation of Best practice provision of OSS service § What is 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 66

Regional one-stop-shop service provider Step 1 – no new legal basis: è requirements on Regional one-stop-shop service provider Step 1 – no new legal basis: è requirements on a regional OSS provider è è è capacity information tariff information contract information service fee Standardized secondary market trading platform (Step 2 – enhanced inter-TSO-cooperation) è establishment of a regional entity set up by TSOs (RGM) è main tasks of a RGM è Grid access and Capacity Management è Gas Flow Control & Optimizing è Investment (regional long-term planning) 67

Step 1: Coordination function of OSS provider CASE 1: transport through network of one Step 1: Coordination function of OSS provider CASE 1: transport through network of one TSO transportation request one stop shipper TSO CASE 2: transport through networks of more than one TSO transportation request one stop shop coordination function of TSO 1 shipper TSO 1 TSO 2 TSO 3 individual contracts with TSO 1, 2. . . 68

Step 1: Responsibilities of OSS provider è OSS service is offered on a voluntary Step 1: Responsibilities of OSS provider è OSS service is offered on a voluntary basis if shippers request for such a service (shippers are not obliged to use it) è In case a shipper requests the service, the regional OSS provider shall be responsible for è è è replying within a certain number of working days presenting the available capacity or for alternative routes calculating the network tariff publishing unused committed capacity on the internet Arrange necessary contracts 69

Best practice provision of OSS service – examples · · OMV Gas for all Best practice provision of OSS service – examples · · OMV Gas for all Austrian transit systems Ontras and RWE Transgas Net 70

One-Stop Shop Provider One-Stop Shop Provider

One-Stop Shop Provider TSOs see the first stage of a process that may in One-Stop Shop Provider TSOs see the first stage of a process that may in the end lead to a one-stop shop provider in creating one common webpage where all relevant information concerning capacity would be available l Action has been taken by TSOs at the European level within the framework of GTE, independent action at the regional TSOs will maketherefore be superfluous and the level would every effort to contribute to possibly distortive. In case Transparency creation of a European-wideof delay in the process, appropriate actions at regional Platform level could be taken l

Obstacles to Implementation of IPAs/OBA Obstacles to Implementation of IPAs/OBA

Obstacles to Implementation of IPAs Process-related obstacles l l l Determination of norms and Obstacles to Implementation of IPAs Process-related obstacles l l l Determination of norms and units to be used for communication between the relevant TSOs* in connection with the operation of the respective delivery/redelivery station(s) and metering Determination of the counter-party (e. g. at interface btw Slovakia-Austria) * The units agreed are then to be used by Shippers entering and exiting the system at the respective points

Obstacles to Implementation of OBA l l Process-related obstacles To be able to ensure Obstacles to Implementation of OBA l l Process-related obstacles To be able to ensure allocation equalling nomination, TSOs need to be able to steer the flows at IPs accordingly. This is only possible if 1) matching of nominations may be executed with the neighbouring TSO, 2) nominations are given sufficiently in advance of the relevant Gas Day, 3) these nominations do not significantly differ from any renominations later on, esp. during the relevant Gas Day (“yo-yo flows” would lead to a very inefficient operation of the system) Risk-related obstacles Some TSOs may not have access to any other flexibility but linepack. Additional flexibilities exceeding linepack might generate additional costs. In any way TSOs may not take on unlimited risks and therefore the OBA will remain limited. In case of extraordinary events, in particular unplanned breakdowns on the (upstream) system or unexpected cuts in supply by the producers, the TSOs will need to revert to pro-rata allocation regime.

Obstacles to Implementation of IPAs/OBA TSOs would like to note that primarily it is Obstacles to Implementation of IPAs/OBA TSOs would like to note that primarily it is necessary to conclude IPAs as such. Their existence is already a significant contribution to ensuring non-discriminatory, transparent and objective third-party access conditions to gas grids. 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.

Action Point 4: Best practice provision of OSS service Suggested next steps ¨ Coordinator: Action Point 4: Best practice provision of OSS service Suggested next steps ¨ Coordinator: TSOs ¨ Next steps: ¨ Transparency platform (GTE pilot project) ¨ TSOs offer OSS service to shippers who request the service Best practice OSS (OMV Gas, www. gatrac. com) ¨ ¨ Timing: update next meeting 77

Agenda 78 Agenda 78

Regional Entry Exit Tariff System (REETS) § Expected Deliverables: § Theoretical considerations on the Regional Entry Exit Tariff System (REETS) § Expected Deliverables: § Theoretical considerations on the stepwise introduction of a REETS in the regional energy market SSE 79

Work plan of REETS study Will deal with main transportation routes Following and completing Work plan of REETS study Will deal with main transportation routes Following and completing analysis of the routes undertaken in Vienna Workshop and Milan Stakeholder Group meeting Benchmarking of current tariffs Simulation of alternative approach (REETS) Simulation and comparison with today will show feasibility, benefits, and costs of REETS 80

Scope of the study: existing routes Routes already considered in the GRI for SSE: Scope of the study: existing routes Routes already considered in the GRI for SSE: 1. UKR-SK-CZ-GER (Vel'ké Kapušany - Waidhaus or Hora S. Kateriny) 2. UKR-SK-A-SI-I (Vel'ké Kapušany – Baumgarten – Murfeld Šempeter/Gorizia) 3. UKR-SK-A-I (Vel'ké Kapušany - Baumgarten - Tarvisio) 4. UKR-SK-A-GER (Vel'ké Kapušany – Baumgarten - Oberkappel) 5. BELARUS-PL-GER-CZ (Kondratki – Mallnow - HSK) 6. ALGERIA-I-(SI)-A-SK (- CZ, -H) (Mazara-Tarvisio (Gorizia–SI) Baumgarten – Slovakia/Czech Rep. /Hungary) 81

Scope of the study: other routes Routes to be added 7. UKR–H-Austria (Beregdaroć-Mosonmagyarovar-Baumgarten) 8. Scope of the study: other routes Routes to be added 7. UKR–H-Austria (Beregdaroć-Mosonmagyarovar-Baumgarten) 8. CH-I-A/SI (Griespass-Minerbio-Route 6) 9. Italian LNG terminal connection (Panigaglia-Minerbio-Route 6) 10. UKR-RO-BG-GR (Isaccea–Negru Voda-Kula-Revithoussa) 11. UKR–H-Serbia (Beregdaroć-Szeged) 12. UKR-PL (Drozdowice-Mallnow) Future Routes ● - TR-BG-RO-H-A (Nabucco) ● - TR-GR-I (IGI) ● - New LNG terminals in Italy, Croatia and related pipelines 82

Scope of the study: entry and exit points Entry points ➢ ➢ SSE import-export Scope of the study: entry and exit points Entry points ➢ ➢ SSE import-export points (Kondratki, Vel'ké Kapušany, Beregdaroć, Griespass, Panigaglia, Mazara, Gela, Isaccea, Negru Voda, Kula, Revithoussa, Oberkappel, Szeged) Main domestic production and storage areas (Baumgarten area, N. Adriatic, Po Valley, Central - S. Romania, S. Hungary, Silesia. . . ) Exit points ➢ ➢ SSE import-export points Representative consumption points close to the routes (Warsaw, Krakow, Poznan, Bratislava, Košice, Brno, Prague, Vienna, Linz, Klagenfurt, Milan, Bologna, Rome, Messina, Ljubljana, Budapest, Szeged, Bucharest, Constanta, Sofia, Thessaloniki, Athens) 83

Main transportation profiles Standard profiles to be defined for current tariff benchmarking and REETS Main transportation profiles Standard profiles to be defined for current tariff benchmarking and REETS simulation ● Current tariffs to be calculated for all entry-exit pairs, for standard transportation profiles ● Based on ongoing CEER benchmarking study ● ➢ performed for B, F, DK, H, NL, forthcoming ➢ Balancing regimes and charges included in the study ➢ Volumes: 5 Gm 3, 500 Mm 3, 50 Mm 3 ➢ Load factors 0. 88, 0. 71, 0. 57, 0. 34 (on hourly basis) 84

Current average tariffs for main routes/TSO 85 Current average tariffs for main routes/TSO 85

REETS simulation: allowed revenues Calculation of revenue requirements for each route and TSO ➢ REETS simulation: allowed revenues Calculation of revenue requirements for each route and TSO ➢ Based on allowed revenue approved by National Regulator for each TSO ➢ Based on current balance sheets ➢ After benchmarking and harmonisation of revenue calculation criteria 86

REETS simulation: tariff structure Simulation of common entry-exit system with interlinks between balancing zones REETS simulation: tariff structure Simulation of common entry-exit system with interlinks between balancing zones ● ● ➢ ● Identification of bottlenecks & balancing zones where present red lights at TSO border Simulation of entry and exit tariffs within each balancing zone average cost vs. long run marginal cost Regulated interlinks between zones Single zone may be simulated assuming current bottlenecks are removed ● 87

REETS simulation: new investment ● Based on investment plans delivered by TSOs ● Including REETS simulation: new investment ● Based on investment plans delivered by TSOs ● Including investment required for bottleneck removal Simulation of the new major infrastructure impact (Nabucco, Greece-Italy, Algeria-Sardinia-Italy, new LNG terminals), possibly subject to partial TPA exemption ● TPA exemption enhances sponsor/TSO responsibility, reduces impact on EE tariffs ● 88

Action Point 5: Regional Entry Exit Tariff System (REETS) Suggested next steps ¨ Coordination: Action Point 5: Regional Entry Exit Tariff System (REETS) Suggested next steps ¨ Coordination: RCC/AEEG ¨ Next steps: + + presentation of benchmarking results simulation of implementation REETS ¨ Timing: update next meeting 89

Agenda 90 Agenda 90

Hub development as regional balancing market (I) § What is expected § Step 1: Hub development as regional balancing market (I) § What is expected § Step 1: Plan for development the Hubs in the region as a regional balancing point § Step 2: Suggestions for practical implementation of the concepts developed under step 1 91

Hub development as regional balancing market (II) 92 Hub development as regional balancing market (II) 92

Systems of Slovakian Side SPP System Shipper SPP Shipper CEGH Trading Shipper CEGH Shipper Systems of Slovakian Side SPP System Shipper SPP Shipper CEGH Trading Shipper CEGH Shipper TAG Shipper WAG Shipper OMV GAS BOG System OMV Gas Systems of Austrian Side TAG System

Detailed illustration of matching operation TAG System Shipper xy Shipp per xy Shipp SPP Detailed illustration of matching operation TAG System Shipper xy Shipp per xy Shipp SPP System Shipper 1 Shipper 2 Shipper 3 BOG System Shipper xy Shipper xy CEGH System Ship per Ship xy per OMV Gas System xy Shipper xy

Heart pace maker for liquidity availability flexibility liquidity of gas back up /down services Heart pace maker for liquidity availability flexibility liquidity of gas back up /down services market maker functionalities storage optimized utilization of transport capacities harmonized business environment Transparency Online price quotations price index interface with local balancing mechanism GRP physical balancing of network Bulletin Board buy and sell to the market

Balancing Back UP/Down Energy Market Provider 4 25€ 18€ Merit Order 20€ 15€ CEGH Balancing Back UP/Down Energy Market Provider 4 25€ 18€ Merit Order 20€ 15€ CEGH list Combined Merit Order list AGCS 27€ Provider 1 Order 23€ Provider 2 list 18€ Provider 3 13€ Provider 4 Merit 20€ 23€ 25€ 27€ 30€ MAB rr 123 peeerr 4 pppppeerr 5678 1 hi i i e r r SShhippppppeer eerr 234 SShhi ipp p ppp eerr 5 SShhi ipppp e SShhi ippp SShhi S TAG Shipper 9 Shipper 10 Shipper 11 Shipper 12 Shipper 13 Shipper 14 Control area H U B 1 err 2 pe 3 ipp e r 4 Sh iip p err 5 Sh ppp e Sh ip p 5 6 Sh ierr 117 Sh e r 1 p p hipp e SShip p i Sh storage SShipp r 1 hippe Shipper 1 0 Shippeer 19 Shipper 1 2 r 1 Shipper 1 3 4 SPP S h Shiipp ppe r HAG Sh Shiipp ppe r Provider 3 30€ SShipp r 1 hippe Shipper 1 0 Shippeer 19 Shipper 1 2 r 1 Shipper 1 3 4 Provider 2 15€ Market r peer hip p SShip Provider 1 13€ WAG

ERGEG - Issues Hub as Balancing Point EFET – PLAN next steps back up ERGEG - Issues Hub as Balancing Point EFET – PLAN next steps back up back down services OBA

Back up/down Service provision Request for tender Contract with providers Prepared for discussion with Back up/down Service provision Request for tender Contract with providers Prepared for discussion with EFET Contract with OTC - customers

Action Point 6: Hub development as regional balancing market (I) Suggested next steps ¨ 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: 100

Gas Regional Initiative Regional Energy Market South-South East Hub development as a regional balancing Gas Regional Initiative Regional Energy Market South-South East Hub development as a regional balancing market PSV implementation TF

Hub development as regional balancing points: TF considerations The TF shares the ERGEG objective Hub development as regional balancing points: TF considerations The TF shares the ERGEG objective of developing the hubs as balancing points Ø Market based balancing more effective and positive for liberalisation than fixed penalties Ø Helps to increase the liquidity at the hubs in SSE Ø Reduces the risk of exposure for traders §

Hub development as regional balancing points: TF considerations § § In practice the SSE Hub development as regional balancing points: TF considerations § § In practice the SSE regional market lacks: harmonized business environment (contractual conditions, operational procedures, balancing mechanism and procedures etc…) well meshed gas grid. For instance there is no interconnection between Poland the southern SSE countries available capacities: gas flows throughout the whole region limited by physical/contractual congestion on the interconnection routes

Hub development as regional balancing points: Balancing points in the SSE Region As a Hub development as regional balancing points: Balancing points in the SSE Region As a first immediate step the TF suggests the development of two/three hubs in the region acting as balancing points for their reference area. In the longer term the local balancing points could evolve to a regional dimension.

PSV Implementation Task Force The way forward Ø Ø Ø Set users priorities for PSV Implementation Task Force The way forward Ø Ø Ø Set users priorities for the development of PSV as a balancing point Meet with other stakeholders (hub operator, regulators, other interested parties) Plan for the development of PSV as balancing point

Agenda 106 Agenda 106

Action Points 1 -3 Responsible/ Result until Implementation TF Actions Best-practice standardised bulletin board Action Points 1 -3 Responsible/ Result until Implementation TF Actions Best-practice standardised bulletin board - harmonized content for individual TSOs platforms accordnig TAG and OMV best presentation at practice next IG meeting Summary of planned investments in the region (incl. Storage) - inclusion of information on expansion projects (Transmission&Storage) into the survey Removing remaining obstacles to implementation of IPA/OBA RCC presentation at next IG meeting TSOs, Shippers - 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 CEGH work on a solution within the next 3 presentation at months incl. a list of remaining ostacles next IG meeting 107

Action Points 4 -6 Implementation TF Best-practice standardised bulletin board Best practice provision of Action Points 4 -6 Implementation TF Best-practice standardised bulletin board Best practice provision of OSS service Summary of planned investments in the region (incl. Storage) REETS Removing remaining obstacles to implementation of IPA/OBA Hub development as regional balancing market Actions Responsible/ Result until -- Transparency platform harmonized content TSOs (GTE pilot project) OMV accordnig TAG and presentation at next IG meeting -best practice. OSS service TSOs offer TSOs presentation at next IG to shippers who request it meeting inclusion of OSS -- best practiceinformation RCC on investments into (OMV, www. gatrac. com) presentation at next IG meeting survey -- presentation of on further update benchmarking results implementation and -- simulation of all Baumgarten: introduction of REETS involved stakeholders RCC presentation at next IG meeting CEGH work on a solution within presentation at next IG meeting -the next onmonths incl. a CEGH/EFET update 3 implementation of next PSV/EFET list of remaining ostacles steps according schedule presentation at next IG meeting 108

Any other business-AOB Proposed date of next meeting ¨ Suggestion: Next meeting (Stakeholder Group Any other business-AOB Proposed date of next meeting ¨ Suggestion: Next meeting (Stakeholder Group Meeting) end of September in Maribor proposal ¨ Key: Progress report by implementation group members ¨ Regulators only to facilitate the process Context of regional activities ¨ Next Madrid Forum on 16 th/17 th October 2007 + ERGEG to report on progress + Update on issues regarding transparency (Outcome of recent survey) 109