The Nigerian Gas Master-plan. - Establishment of a Strategic Gas Aggregator

Transcription

1 The Nigerian Gas Master-plan - Establishment of a Strategic Gas Aggregator January, 2009

2 The Gas Master-plan 4-Step Agenda Despite an aggressive timeline for the implementation of the master-plan, significant progress is being made in the critical building blocks

3 CASE FOR STRATEGIC AGGREGATOR Evolving Gas Sector Diverse buyers with varying capacity to pay for gas FGN intervention necessary by way of domestic obligations Demand growth, particularly in the domestic market is characterized by a more numerous and diverse group of buyers, neccessitating supply from a much wider group of suppliers than is currently the case. The evolving sector is inevitably more complex than the existing one

4 CASE FOR STRATEGIC AGGREGATOR Old vs Evolving Gas Sector Compared with the current system, the evolving gas sector will be complex, necessitating the introduction of intermediary institutions to manage the complexity over time. The Strategic Aggregator aims to play this role

5 The Strategic Aggregator The concept of a Strategic Aggregator was introduced and approved by the Federal Government as part of the Gas Pricing Policy in February, Further work has since been done to detail the organization

6 THE STRATEGIC AGGREGATOR 4 Roles of the Aggregator Strategic Aggregator Gas Demand Management Aggregate Price/ Securitization / Escrow Management Network/System Administration Trading Platform There are 4 distinct roles for the SA 1. Demand Management 2. Aggregate Price / Securitization / Escrow Management 3. Network / System Administration 4. Trading Platform Each of the roles has a different life span in essence the SA s focus will shift over time Span of Roles 1. Demand management will continue until the end of FGN intervention through the DSO 2. Aggregate Price / Securitization / Escrow Management will continue until the expiry of the foundation GSPAs 3. Network/system administration will be a core and life-long activity 4. Trading platform will commence in the future when the market is fully mature commercially

7 ROLES OF THE AGGREGATOR

8 ROLES OF THE AGGREGATOR

9 KEY INTERFACES 3 Key Interfaces Managed by the Strategic Aggregator Regulatory Operational Governance The SA is not a Regulator, but a regulated entity Will interface with the Gas Regulator in PPRA on 1. Cost of SA s operations and margins charged 2. Due diligence, demand rationing criteria etc. 3. Aggregate gas price calculation projected and actual 4. Domestic supply obligations management Will interface with PIC on 1. Metering related issues 2. Reconciliations of readings, energy content issues etc Interface with potential buyers, suppliers and transporter on GSPA and GTA Interface with buyers and suppliers on volume and $ reconciliation issues Interface with buyer, supplier and transporter on daily gas nomination and swing deployment issues Interface with the CPF for periodic reconciliation of volume supplied for billing purposes Interface with Regulator on broad regulatory controls Governance interface with shareholders through a duly constituted board

10 Current Operational Arrangements Strategic Aggregator Regulator DSO data Seller Balances Meter reads Meters Sellers Gas Sale & Purchase Buyers Interconnection s Gas Transportation Information Flow Contracts

11 Next Stage Operational Arrangements Strategic Aggregator Regulator CPFs DSO data Meter reads Seller Balances Allocation Process Meter reads Meters Processing Sellers Gas Sale & Purchase Buyers Gas Transportation Interconnection s Gas Transportation Information Flow Contracts

12 Future Operational Arrangements Sellers Buy/sell bids Strategic Aggregator Buyers Trading Market s Imbalance charges Seller Balances DSO data Regulator CPFs System Operator Meter reads Meters Storage System Operations Information Flow Financial Flow Nominations Nominations

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