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Working towards a standardised European gas network EASEE-gas

Working towards a standardised European gas network EASEE-gas Presentation to IEA´s 5 th Annual Conference 16-17 October 2006. EASEE-gas. How can standard procedures be initiated and implemented? Investing in technical solutions to simplify and streamline business processes

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Working towards a standardised European gas network EASEE-gas

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  1. Working towards a standardised European gas network EASEE-gas Presentation to IEA´s 5th Annual Conference16-17 October 2006 EASEE-gas

  2. How can standard procedures be initiated and implemented? • Investing in technical solutions to simplify and streamline business processes • Working towards an optimal use of network capacity • Minimising congestion at interconnection points

  3. What is EASEE-gas? European Associationfor the Streamliningof Energy Exchange- gas • State mission: “To develop and promote common practices to simplify and streamline business processes between the stakeholders that will lead to an efficient and effective European Gas Market” • Created in March 2002 by 6 founding members • Office at Paris, France

  4. Membership of segments • 77 full members and 22 Associate members of EASEE-gas. • Six segments are currently Active End User Segments need at least 5 members to be "Active" Retail Supplier LTSOSP Supplier Trader & Shipper DNO Transporter Producer 0 5 10 15 20 25 30 Number of memberships

  5. EASEE-gas Organisation Basic principles • Open, Independent organisation • Full members: vote and fee • Associate members: no vote, no fee • Driven by Volunteers • Financed through membership fees

  6. Why the need? Before liberalisation Few participants, stable and long lasting relationships After liberalisation Many players, short lived and fast changing relationships Hence need to streamline transactional processes

  7. Why the need? THE US EXAMPLE GISB (later on transformed to NAESB to include power industry) created in 1994 with a mission to: “ develop and promote standards to simplify and expand electronic communications and to simplify and streamline business practices that will lead to a seamless market place for natural gas “

  8. Why the need? EASEE-gas • Provides a platform for discussion • Voluntarism is better than regulation • The US example shows it works • Europe may prove a bit harder

  9. EASEE-gas segments in the Gas Chain Ownership of gas Physical flow of gas Producers Producers Producers Producers Associate Associate Associate Associate Members Members Members Members Traders & Traders & Traders & Traders & LNG Terminal LNG Terminal Shippers Shippers LNG Terminal LNG Terminal Shippers Shippers Transporters Transporters and Storage and Storage and Storage and Storage Operator and Operator and Operator and Operator and Suppliers Suppliers Service Service Suppliers Suppliers Service Service Provider Provider Provider Provider Distribution Distribution Distribution Distribution (LTSOSP) (LTSOSP) (LTSOSP) (LTSOSP) Network Network Network Network Retail Retail Retail Retail Operators Operators Operators Operators Suppliers Suppliers Suppliers Suppliers End Users End Users End Users End Users

  10. EASEE-gas Structure

  11. Common Business Practices CBPs approved to date: 1.- Harmonisation of Units (August 2003) 2.- Harmonisation of Nomination and Matching Process (2003) 3.- Edig@s Protocol (February 2004) 4.- Harmonisation of Gas Quality (February 2005) 5.- Interconnection Agreement (September 2005) 6.- Constraints Handling (September 2005)

  12. Effect of the CBP implementation should NOT be … Country A Country B Country C = EASEE-Gas values = Gas trading • Will decrease gas flows area Country C Country A Country B Interoperability at EU Level Effect of the CBP implementation should be … Country C Bilateral agreements Bilateral agreements Gas trading area Gas trading area EASEE-Gas values EASEE-Gas values • OK with EASEE-gas objectives • Will increase gas flows area Increasing interoperability Country A Country B

  13. Progress Monitoring • EASEE-gas has been monitoring the implementation of the six issued CBPs • A survey of EASEE-gas Members took place in 2004 and 2005 indicating the progress of implementation or existence of barriers of any kind. The results were presented and reports published on the EASEE-gas web site.

  14. Lessons learnt / New developments • 4 years of Experience. • New Gas Regional Initiative (GRI) launched by EU regulators. • EASEE-gas is considering how best to contribute to demands for interoperability within/inter these GRI. • Incorporate experiences from NAESB.

  15. www.EASEE-gas.org EASEE-gas

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