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Comprehensive report on gas customer forum findings, including firm load shedding, site isolation, contact information quality, special status sites, and more.
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Exercise Opus Findings Gas Customer Forum 10th March 2008
Exercise Opus • NEC emergency exercise completed by the DNs in late September / early October 2007 • Opus tested firm load shedding within the DNs and isolation capability only • DNs physically visited a proportion of sites to simulate load shedding and isolation • DNs were asked to define Special Status Sites (sites who can be load shed quickly) and report on load shedding performance for these sites • HSE will be publishing the Opus report shortly
Firm load shedding > 25,000 tpa sites • There was an increase in sites who could turn off gas (43% - 47%) compared to the previous year • More than a third of sites cannot be contacted due to incorrect contact information • 19% of site could be contacted but were unable to turn off their gas • The quality of contact information varied considerably by shipper
Special Status Sites • DNs demonstrated that they were able to load shed 80% of the load consumed by special status sites within four hours. • DNs are to review how they defined Special Status Sites in light of the Opus results.
Isolation • DNs were able to demonstrate that they could deliver timely isolation • Site visits highlighted practical constraints at some sites (valves in busy roads etc). DNs will review isolation plans to ensure locations are suitable.
Conclusion • There has been a small improvement in >25,000tpa sites which can be successfully shed • A third of sites still cannot be contacted due to incorrect contact information • Contact information varied considerably by shipper and improvements are still needed in this area. • As expected Special Status Sites could be reliably contacted and load shed • Isolation plans were shown to be effective
TBE Process Timeline Gas Customer Forum 10th March 2008
TBE Process • Dec: • Publish Ten Year • Statement • Feb/Mar: • Consultation • Oct/Nov: • Review Investment • Plan • Apr/May/Jun • Demand & Supply • Forecasts • Outline investment • proposals • September?: • Long Term Auctions • July 10th: • Industry seminar
TBE 2008 Update • Meetings with most industry players completed • Good dialogue, open discussions • Broad range of views expressed • Shipper’s open session completed 6th March 2008 • To date a limited number of industry questionnaires have been returned • Collective UKCS data again to be provided through Oil & Gas UK • TBE Summer Event 2008 is again at One Great George Street, Westminster on 10th July 2008 • Contact – Peter Parsons -
OM Consultation Gas Customer Forum 10th March 2008
Operating Margins (OM) Consultation • National Grid Gas is consulting on future competitive OM provision • Special Licence Condition C25 requires us to ‘...promote competition in the provision of OM services to the licensee by 1 April 2009.’ • What does the consultation feature? • Background on current OM arrangements • Discussion regarding existing and potential new providers of OM (both supply and demand side) • Discussion regarding possible procurement mechanisms
Consultation Details • Timescales: • Consultation issued: w/c 10th March 2008 • Workshop planned for late April to discuss issues • Consultation ends: 2nd May 2008 • The consultation documentation can be found at: http://www.nationalgrid.com/uk/Gas/OperationalInfo/GasOperatingMargins We value responses from all areas of the industry to assist us in the development of a robust enduring OM regime. Questions? Contact ian.pashley@uk.ngrid.com
Gas Operations Winter Reporting Monthly Web Update - February
Monthly Web Update • http://www.nationalgrid.com/uk/Gas/OperationalInfo/monthlyupdates/ • The following charts are available online: • Gas Supply Build Up • Gas Demands (breakdown) • UKCS Monitor • Import Assessment • Gas Price vs Interconnector & Storage Activity • Current supply assumptions table
Gas Supply Build Up • Recent Supply Characteristics: • February weather has seen “mild” periods interspersed by “warm” periods, hence the clear peaks and troughs. • Norwegian flows high with an average of 79mcm/d and a peak of 99mcm/d, the highest this winter. • BBL continuing to flow steadily at around 36mcm/d. • IUK imports have been intermittent, with some periods seeing flows ~20mcm and other periods seeing no import. • There has been virtually no LNG import flows during February. • Some Short Range Storage (LNG Storage) has flowed particularly during the high demands mid month.
Gas Demands • February demand has been mainly above seasonal normal. • The most notable trend is average Daily Metered demand (large industrial & power) which has increased again to a 139mcm/d average from a 127mcm/d average in January. • Storage injection has been very low, with an average of 1.2mcm/d.
UKCS Supply Monitor • Recent drop in UKCS supply due to loss of Bacton Shell due to a fire. • Proven UKCS supply now 251mcm/d. • Actual UKCS supply outturn has been good, with flows broadly in line with pre winter forecasts.
Gas Price vs IUK & Storage Activity • The UK gas price (SAP) has averaged 51p during February, well above this time last year. A price spike up to 57p was witnessed around 28 Feb which coincided with the Bacton Shell supply loss. • The period saw net storage withdrawal into the NTS (+ve green bars). • There was little IUK activity, although the mainly small flows were more import than export. • Peak net IUK imports were 1st Feb at 22mcm/d, which is close to this winter’s maximum of 23mcm/d.
Transmission Planning Code Transmission Workstream 6th March 2008
Introduction • National Grid Gas (NGG) has a new licence obligation to introduce a Transmission Planning Code by 1 October 2008 that will “cover all material technical aspects relating to the planning and development of the pipe-line system…which may have a material impact upon persons connected to or using (or intending to connect or to use) the pipe-line system” • Aim is to improve transparency of NTS planning process • NGG will publish open letter on 7 March 2008 inviting views on the scope of Transmission Planning Code document
Transmission Planning Code – What is it? • Framework document relating to the planning and development of the NTS • Methodology to determine the physical capability of NTS considering • Entry and exit capacity release obligations • How much capacity can be transferred/traded between entry points • How incremental flows at entry and exit affect system capability • Statutory network security obligations • Detailed assumptions on • How supply and demand patterns will develop over time • How the system will be operated under different supply and demand scenarios
Transmission Planning Code – Governance • Transmission Planning Code must be in force by 1 October 2008 after consultation with interested parties and approval by the Authority • NGG must comply with and maintain the code • Review and consultation process undertaken by NGG at least every 2 years • Modifications must be approved by the Authority
Timeline (2008) Implementation Development 7 March Open letter inviting views on scope by 21 March 2008 April/May Industry discussions on draft document June/July Formal consultation (28 days) Aug/Sept Authority considers consultation report 1 October 2008 target date for implementation
Draft Scope • Legislative guidance documents • e.g. IGE recommended practice documents • Planning legislation and consents process • e.g. Implications for investment lead times • National Grid policies relevant to planning and development of NTS • e.g. assessment of new loads, design of NTS pipelines and installations • Network Analysis techniques • e.g. considerations for investment planning, how physical capability is determined • Supply and Demand Outlook • e.g. how TBE forecasts are used in investment planning
Next Steps • NGG publish open letter 7 March 2008 inviting views on draft scope • Responses requested by 21 March 2008 • NGG to develop draft Transmission Planning Code document for discussion • Consideration given to licence requirements and industry views on scope • Industry workshops to discuss draft document during April and May – suggested dates are: • 3 April 2008 and 1 May 2008 (after Transmission Workstream) • Further workshops June and July to support consultation if required