TARIFF FOR THE TRANSMISSION OF HIGH-METHANE NATURAL GAS

Transcription

1 Tariff for the transmission of high-methane natural gas p. 1 Notice: The English version of the Tariff for the transmission of highmethane natural gas of the Transit Gas Pipeline System EuRoPol GAZ s.a. is available for information purposes only. In the event of any discrepancies arising between the Tariff in the Polish language and the Tariff in the English language, the provisions of the Polish language version shall be legally binding. Annexe No. 4 TARIFF FOR THE TRANSMISSION OF HIGH-METHANE NATURAL GAS Transit Gas Pipeline System EuRoPol GAZ S.A. KRS Al. Stanów Zjednoczonych Warsaw NIP No.: REGON Warsaw, July 2011

2 Tariff for the transmission of high-methane natural gas p. 2 Contents 1. General Provisions Definitions Rules of settlements of the gas transmission service Standard parameters of the transmitted gas. Rules of settlements for failure to maintain standard parameters Fees for gas transmission services Fees for transmission services under short-term contracts Conditions for providing interruptible transmission services Method of fee calculation for interruptible gas transmission services Method of fee calculation for provisions of virtual gas transmission services Method of fee calculation for connection to the TGPS Fees for failure to meet Customer service quality standards... 27

3 Tariff for the transmission of high-methane natural gas p General Provisions 1.1. The Tariff specifies the type, amount and conditions of applying fee rates for the provision of transmission services of high-methane natural gas via high pressure gas pipelines, located within the territory of the Republic of Poland and constituting the property of EuRoPol GAZ S.A.: a) for provision of firm or interrupted transmission services under long-term contracts, b) for provision of firm or interrupted transmission services under short-term contracts, c) for provision of virtual gas transmission services, and d) the method of fee calculation for exceeding the contracted capacity, e) the method of fee calculation for any additional services ordered by the Customer, f) the method of fee calculation for connection to the TGPS, 1.2. The Tariff takes the following resolutions into consideration: a) The Act of 10 April 1997 on the Energy Law (Journal of Laws of 2006, No., 89, item 625 as amended) b) Regulation (EC) No. 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No. 1775/2005 (OJ UE.L ).

4 Tariff for the transmission of high-methane natural gas p The Tariff shall be applicable in settlements with Customers pursuant to the scope of services provided and detailed conditions specified in contracts The fee rates fixed in the tariff are VAT exclusive. VAT in relation thereto shall be charged pursuant to the binding provisions of the tax law The volume of natural gas to be transmitted and the amount of ordered contracted capacity is determined with accuracy of 1 m 3, unless provided otherwise by contracts. 2. Definitions 2.1. Gas day the period from 8:00 a.m. of the current day to 8:00 a.m. of the following day Gas high-methane natural gas TGPS Code Transmission Network Code, in the meaning of Article 9g item 1 of The Energy Law Act, binding for the TGPS Cubic metre (m 3 ) the amount of gas in one cubic metre at a temperature of 20 o C and under pressure of kpa Contracted capacity (Mu) the maximum daily capacity of gas specified in the agreement that can be transmitted for dispatch at the entry point to the TGPS or off-taken from the exit point with the TGPS Interrupted contracted capacity the maximum daily capacity of gas specified in the contract at the entry point to the TGPS or off-taken from the exit point with the TGPS, which may be reduced by the TGPS Operator under conditions of the contract, Tariff or TGPS Code.

5 Tariff for the transmission of high-methane natural gas p Ordered capacity (Mz) the annual capacity of gas that can be transmitted for dispatch at the entry point to the TGPS or off-taken from the exit point with the TGPS, as specified in the contract with the TGPS Owner Settlement period the period for which the Customer shall be issued an invoice for the gas transmission service rendered by the TGPS. The settlement period shall be 1 month, unless the provisions of the contract shall provide otherwise. 2.9 TGPS Operator The Gas Transmission Operator GAZ- SYSTEM S.A. with its seat in Warsaw, ul. Mszczonowska 4 an energy company with which the TGPS Owner has concluded a contract entrusting the obligations of TGPS operator thereto, within which the said Enterprise - in the situations specified in the TNC of the TGPS - may perform TGPS gas transmission services Entry point (Initial collection point) the location where the gas is supplied to the TGPS, where measurement and collection of gas for transport takes place, including virtual transport Exit point (End collection point) the location where the gas is off-taken from the TGPS, where measurement and transfer of the transported gas takes place, including the exit point for the virtual transport of gas Gas year the period from 8:00 a.m. on 1 January of the current year until 8:00 a.m. on 1 January of the following year TGPS the Polish section of the Jamal - Europe transit gas pipeline, on which the following entry/exit points are located: for the provision of physical gas transmission services: entry point: Kondratki, exit points: Włocławek, Lwówek, and Mallnow

6 Tariff for the transmission of high-methane natural gas p. 6 for provision of virtual gas transmission services: entry/exit points: Kondratki, Włocławek, Lwówek, and Mallnow Measurement system the gas meters and other metering or metering and billing systems and connection systems between them used to measure quantities taken or delivered to the TGPS Contract the gas transmission contract concluded between the Service Provider and the Customer Long-term contract contract concluded for a period of one year of longer Short-term contract contract concluded for a period shorter than one year Gas transmission services physical or virtual TGPS gas transmission services, performed pursuant to a gas transmission contract Customer each entity to whom the TGPS gas transmission service is rendered The Service Provider the TGPS Owner or TGPS Operator TGPS Owner Transit Gas Pipeline System EuRoPol GAZ S.A. with its seat in Warsaw, Al. Stanów Zjednoczonych 61 an energy company performing gas transmission services via TGPS.

7 Tariff for the transmission of high-methane natural gas p Rules of settlements of the gas transmission service 3.1. The Service Provider shall provide gas transmission services to the Customer pursuant to the binding documents regulating the work of the gas pipeline system, pursuant to the provisions of the transmission contract and the provisions of the said Tariff Gas transmission fees For the gas transmission service performed in the settlement period the Customer shall be charged for entry to the TGPS (Op we ), exit from the TGPS (Op wy ) and a subscription fee (Op a ) The fee for entry to the TGPS is calculated using the following formula: Op we = Mu we * S we * T where: Op we S we fee for entry to the TGPS [in PLN]; fee rate (S) for entry (we) to the TGPS for each day (d) of the settlement period [in PLN/(ths m 3 /d)/d]; Muwe contracted capacity (Mu) at the entry point to the TGPS [in ths m 3 /d]; T number of days (d) in the settlement period;

8 Tariff for the transmission of high-methane natural gas p The fee for exit from the TGPS is calculated using the following formula: Op wy = Mu wy * S wy * T where: Op wy fee for exit from the TGPS [in PLN]; Muwy contracted capacity (Mu) at the exit point from the TGPS [in ths m 3 /d]; S wy fee rate (S) for exit (wy) from the TGPS for each day of the settlement period [in PLN/(ths /d)/d]; m 3 T number of days (d) in the settlement period; Subscription fee (Op a ) is charged for each settlement period, separately for each transmission contract regardless of the number of entry or exit points which the said contract concerns The method of fee calculation for exceeding the contracted capacity under long-term contracts is as follows: The Customer that exceeded the contracted capacity for the entry of exit point as agreed in the said contract, without the consent of the Service Provider, shall be charged with the annual fee calculated according to the formulas specified in point and

9 Tariff for the transmission of high-methane natural gas p The fee for exceeding the contracted capacity under a long-term contract at the entry point shall be calculated according to the following formula: Opm Dwe = (Mr we Mz we ) * 3 * S we where: Opm Dwe S we Mr fee for exceeding the contracted capacity under the long-term contract at the entry point [in PLN]; fee rate for entry to the TGPS for each day (d) of the settlement period [in PLN/(ths m 3 /d)/d]; we the capacity actually used at the entry point, resulting from the actual volume of gas introduced during the year into the TGPS at the entry point, meeting the condition of Mr we > Mz we [in ths m 3 /year]; Muwe contracted capacity ordered (Mz) at the entry point to the TGPS [in ths m 3 /year]; The fee for exceeding the contracted capacity under the long-term contract at the exit point shall be calculated according to the following formula: Opm Dwy = (Mr wy Mz wy ) * 3 * S wy where:

10 Tariff for the transmission of high-methane natural gas p. 10 Opm Dwy S wy Mr fee for exceeding the contracted capacity under the long-term contract at the exit point [in PLN]; fee rate for exit from the TGPS for each day (d) of the settlement period [in PLN/(ths m 3 /d)/d]; wy the capacity actually used at the exit point, resulting from the actual volume of gas off-taken during the year from the TGPS at the exit point, meeting the condition of Mr wy > Mz wy [in ths m 3 /year]; Muwy contracted capacity ordered (Mz) at the exit point from the TGPS [in ths m 3 /year]; 3.4. The method of fee calculation for exceeding the contracted capacity for transmission services under short-term contracts shall be specified in point6.4 of the Tariff The method of fee calculation for additional services performed at the additional request of the Customer The method of fee calculation for additional services performed at the request of the Customer shall be specified in the gas transmission contract The method of discount calculation for a reduction in contracted capacity resulting from the fault of the Service Provider for services performed under the long-term contracts shall be specified in point and

11 Tariff for the transmission of high-methane natural gas p The discount for a reduction in contracted capacity under long-term contracts at the entry point In the event of introducing reductions in contracted capacity at the entry point resulting from the fault of the Service Provider, apart from any cases agreed and resulting from the contract, the Customer shall be entitled to an annual discount, calculated according to the following formula: B Dwe = (Mz we Md we ) * S we where: B Dwe S we discount for making available a lower capacity than that ordered in the long-term transmission contract at the entry point [in PLN]; fee rate for entry to the TGPS for each day (d) of the settlement period [in PLN/(ths m 3 /d)/d]; Muwe ordered contracted capacity (Mz) at the entry point to the TGPS [in ths m 3 /year]; Md we annual contracted capacity available, left to the disposal of the Customer at the entry point to the TGPS [in ths m 3 /year];

12 Tariff for the transmission of high-methane natural gas p The discount for the reduction in contracted capacity under long-term contracts at the exit point In the event of introducing reductions in contracted capacity at the exit point resulting from the fault of the Service Provider, apart from the cases agreed and resulting from the contract, the Customer shall be entitled to an annual discount, calculated according to the following formula: B Dwy = (Mz wy Md wy ) * S wy where: B Dwy S wy discount for making available a lower capacity than that ordered in the long-term transmission contract at the exit point [in PLN]; fee rate for exit from the TGPS for each day (d) of the settlement period [in PLN/(ths m 3 /d)/d]; Muwy ordered contracted capacity (Mz) at the exit point from the TGPS [in ths m 3 /year]; Mdwy annual contracted transmission capacity available, left to the disposal of the Customer at the exit point from the TGPS [in ths m 3 /year]; 3.7. The method of discount calculation for the reduction in contracted capacity for transmission services resulting from the fault of the Service Provider under short-term contracts shall be specified in point6.5 of the Tariff.

13 Tariff for the transmission of high-methane natural gas p Standard parameters of the transmitted gas. Rules of settlements for failure to maintain standard parameters The fee rates for the transmission service established in the Tariff shall be applicable to gas transmitted by the Customer for transport at the initial collection point (entry point to the TGPS), with the following parameters: a) pressure no smaller than 6.1 MPa, b) concentration in mole fractions: methane (C - 1) no less than 92.0 % ethane (C - 2) no less than 4.0 % propane (C 3 ), butane (C 4 ) and heavier hydrocarbons - no less than 2.0 % nitrogen (N 2 ) - no less than 2 % carbon dioxide CO - 2 no less than 1.0 % oxygen O - 2 trace amounts mercaptan sulphur - no more than 5.6 mg/m 3 hydrogen sulphide H 2S - no more than 2.0 mg/m 3 total sulphur - no more than 20.0 mg/m 3 c) calorific value at a temperature of t = 20 o C and absolute pressure of bar (±100) kcal/m 3 or MJ/m 3,

14 Tariff for the transmission of high-methane natural gas p. 14 d) dew point of hydrocarbons no greater than 0 o C, at head pressure, e) dew point of hydrocarbons no greater than -8 C, at head pressure of 3.92 MPa, f) no mechanical inclusions, resin-forming compounds and tar. o 4.2. In the event of any Party failing to meet the following: the TGPS Owner or Customer that concluded a contract with the TGPS Owner, the gas quality parameters specified in point 4.1, the said Party shall compensate the other Party any costs resulting from the improper performance of its obligations in the amount agreed by the Parties in the contract, and should such agreements be absent, in the amount of documented costs incurred on account of the above In the event of any Party failing to meet the following: the TGPS Operator or the Customer, the gas quality parameters specified in point 4.1, the method of discount or fee calculation for failure to meet the parameters shall be specified in the TGPS Code (Part II).

15 Tariff for the transmission of high-methane natural gas p Fees for gas transmission services No. Fee rates Entry/exit points: Unit of measure Rates For entry to the TGPS pursuant to a long-term contract For entry to the TGPS pursuant to a virtual gas transmission contract Kondratki, PLN/ (ths m 3 /d)/d pursuant to point 9.1 PLN/ (ths m 3 /d)/d For exit from the TGPS pursuant to a long-term or virtual gas transmission contract 4. Lwówek 5. Mallnow 6. Subscription fee rate (Op a ) Włocławek PLN/ (ths m 3 /d)/d 6.40 PLN/ (ths m /d)/d PLN/ (ths m /d)/d PLN/settlement period 5,900

16 Tariff for the transmission of high-methane natural gas p Fees for transmission services under short-term contracts 6.1. If the technical and economic conditions of providing transmission services under short-term contracts exist, the Service Provider and the Customer may enter into a shortterm contract for a period of: a) one day, b) one calendar month, c) one calendar quarter, d) half a year The fee for the transmission service under short-term contracts shall be calculated in accordance with the provisions of point 3.2 applying the rates specified in point The fee rates for entry and exit from the TGPS under shortterm contracts shall be calculated by multiplying the proper fee rates specified in point 5 by the relevant ratio (w) provided in the table below:

17 Tariff for the transmission of high-methane natural gas p. 17 Ratios (w) which correct the fee rates for entry to and exit October from the TGPS for short-term contracts one day contract Monthly contract 2.3 November 3.1 December January February March April May June July The fee for each gas day shall constitute 1/20 of the transmission service fee for a given calendar month August 1.5 September 1.8 Quarterly contract Semiannual contract 6.3. No short-term contracts shall be concluded for periods other than those specified in point The method of fee calculation for exceeding the contracted capacity under short-term contracts is as follows: The Customer that exceeded the contracted capacity agreed in the short-term contract without the consent of the Service Provider shall be charged as a product of the

18 Tariff for the transmission of high-methane natural gas p. 18 maximum capacity registered by the measurement system at the given entry or exit point in excess of the contracted capacity, the number of days in the settlement period on which the Customer exceeded the contracted capacity and the triple fee rate for entry to or exit from the TGPS proper to the given point in which the excess took place (entry or exit) and the correcting ratio specified in point The method of discount calculation for a reduction in contracted capacity resulting from the fault of the Service Provider for services performed under short-term contracts shall be as follows: In the event of introducing reductions in contracted capacity resulting from the fault of the Service Provider, apart from the cases agreed and resulting from the contract or from the TGPS Code, the Customer shall be entitled to a discount as the product of the difference between the contracted capacity and the available capacity, the number of gas days during the settlement period in which the reduction in contracted capacity took place, the fee rate for entry to or exit from the TGPS proper for the point in which the reduction of contracted capacity took place (entry of exit) and the correcting ratio specified in point In the scope not regulated in point 6, for settlements with the Customer for the services performed under short-term contracts the remaining provisions of the Tariff shall be applicable.

19 Tariff for the transmission of high-methane natural gas p Conditions for providing interruptible transmission services 7.1. In the event of it not being possible to perform firm transmission services, the Service Provider may offer interruptible transmission services. The said service shall be settled pursuant to the principles specified in point If it is only possible to provide interruptible transmission services at the entry or exit point specified in the application, the Service Provider shall offer interruptible transmission services for all the entry points and exit points stipulated in the application Interruptible gas transmission services shall be offered only if there are reductions at the given entry or exit point which make it impossible to provide firm transmission services At a given entry or exit point, the Customer may enter into both firm and interruptible gas transmission contracts at the same time. For firm gas transmission services, the contracted capacity is not subject to reductions For a given exit point, the contract with the Customer may provide for interrupted transmission services solely and exclusively with regard to one level of certainty of gas delivery referred to in point The conditions of the provision of interrupted gas transmission services depend on the level of certainty of gas delivery For long-term contracts or short-term semi-annual contracts, the levels of certainty of gas delivery shall be specified as follows:

20 Tariff for the transmission of high-methane natural gas p. 20 Degree of certainty of gas delivery Level 1 Maximum length of a single reduction in interrupted contracted capacity (in gas days) Limit of gas days during the gas year / duration of the short-term semiannual contracts on which the contracted capacity may be reduced (d n ) Level Level Level 4 Number of contracted gas days The interruptible gas transmission services under shortterm contracts concluded for periods shorter than half a year shall be fulfilled solely and exclusively at level 4 delivery certainty For each entry and exit point and each level of certainty of gas delivery, the possible level of interrupted contracted capacity that can be offered shall be defined by the Service Provider in a manner ensuring the equal treatment of the Customers At each entry and exit point, the Service Provider offers interrupted gas transmission services at the highest available level of certainty of gas deliveries, where Level 1 interrupted contracted capacities are understood as capacities with the highest level of certainty of gas deliveries, and Level 4 interrupted contracted capacities are understood as capacities with the lowest level of

21 Tariff for the transmission of high-methane natural gas p. 21 certainty of gas deliveries, subject o the provisions of point Under interruptible transmission services pursuant to the conditions specified for given levels of certainty of gas deliveries in the contract, the Service Provider may to reduce the interruptible contracted capacity at a given point, pursuant to the provisions of Part II of the TGPS Code The Customer shall observe the reductions in interrupted contracted capacity implemented by the Service Provider pursuant to the provisions of point At the given entry or exit point, the reductions mentioned in point 7.9 are introduced by the Service Provider starting from the interrupted contracted capacity of the lowest certainty of gas deliveries, subject to the provisions of point If in a given entry or exit point the interruptible gas transmission services are performed on the same level of certainty of gas deliveries for two or more Customers, the interruptible contracted capacity are reduced according to the priority of fulfilment of long-term contracts in relation to short-term contracts, and in the case of contracts concerning the same periods, proportionally to the amounts stated in the nominations, pursuant to the provisions of Part II of the TGPS Code In order to determine the duration of the introduced reduction in the interrupted contracted capacity, each reduction in interrupted contracted capacity on a given gas day shall be treated as a reduction introduced for the whole gas day.

22 Tariff for the transmission of high-methane natural gas p If the Customer does not observe the reductions implemented by the Service Provider in a given gas day mentioned in point 7.9, the reduction implemented for a given gas day shall not be treated as the use of the limit of gas days specified in the contract on which the contracted capacity may be subject to reductions (d n ) with regard to interruptible gas transmission services If the Customer does not observe the reductions introduced by the Service Provider mentioned in point 7.9, despite receiving a written notice from the Service Provider to the Customer sent by facsimile to the number stated in the contract, informing of the intention to terminate the contract and providing an additional 24-hour period to observe the reduction, the Service Provider may terminate the contract with immediate effect in its part covering the interruptible gas transmission services Provision of the interruptible gas transmission services shall not exclude the possibility of the Service Provider implementing reductions caused by: a) conducted repair and maintenance works or connection works, b) reasons beyond the Service Provider's control: failure, explosion, fire, threat of such events or the requirement to eliminate effects of such events, 8. Method of fee calculation for interruptible gas transmission services 8.1. The fee for the interruptible gas transmission services shall be determined according to the formula provided in point

23 Tariff for the transmission of high-methane natural gas p but the fee rates for entry and exit from the TGPS shall be corrected by multiplying by ratio D calculated as outlined below: where: D = (T T o )/T D ratio for reduction in contracted capacity; T number of days in the settlement period [days]; T o number of days with reduction in interruptible contracted capacity during the settlement period [day]. In the case when D < 0.05, to establish the rate for entry or exit from a given system in an interruptible service the following value shall be taken D = 0.05.

24 Tariff for the transmission of high-methane natural gas p If the Customer receiving the interruptible service fails to observe the reductions introduced by the Service Provider mentioned in point 7.9, an additional fee shall be charged constituting the product of the maximum capacity registered in a given entry or exit point by the measurement systems in excess of the capacity not subject to reductions, the number of gas days when the Customer failed to observe the reductions and the triple fixed fee rate for entry or exit from the TGPS, as specified in point The fee mentioned in 8.2 shall be collected for each gas day in which the Customer failed to observe the reductions introduced by the Service Provider If the reductions mentioned in point 7.9 have been introduced by the Service Provider, the Customer shall not be entitled to discounts mentioned in point 3.6 or in point 6.5 respectively If the reductions in interruptible contracted capacity were introduced by the Service Provider for reasons mentioned in point 7.16, the Customer shall be entitled to the discounts determined according to point Within the scope not regulated in 7 and 8, the remaining Tariff provisions shall apply to settlements with the Customer under implementation of interruptible transmission service contracts.

25 Tariff for the transmission of high-methane natural gas p Method of fee calculation for provisions of virtual gas transmission services 9.1. Virtual gas transmission services consist of performing the service independently from the physical gas stream flow. The service shall be performed from the entry points to exit points indicated on the website of the TGPS Operator ( once the economic and technical capacity for its performance has been warranted Virtual gas transmission services are performed under interruptible conditions, on level 4 certainty of gas deliveries. In the scope not regulated otherwise in point 9, the provisions of point 7 and 8 of the Tariff shall be applicable in relation to virtual gas transmission services All fees for entry or exit from the TGPS for the virtual gas transmission services shall be established pursuant to point 8.1, and the rates shall be additionally multiplied by the ratio, amounting to 0.5.

26 Tariff for the transmission of high-methane natural gas p Method of fee calculation for connection to the TGPS The fee for connection to the TGPS shall be agreed in the TGPS connection contract mentioned in the TGPS Code (Part I) The fee for connection to the TGPS shall amount to 100% of the actual costs incurred for performing the connection The costs constituting the grounds for calculation of the fee for connection to the TGPS shall include the costs of elements of the network and all actions connected with performance of the connection specified in the conditions for connection to the TGPS, particularly the following costs: design works and geodesic survey works, preparing and agreeing the documentation, obtaining location decisions or building permits, construction and investor's supervision, purchase and construction of elements of facilities necessary to perform the connection, building and construction works, trials and start-up of the connection, fees for purchase of land or land take, including public and legal costs and compensation paid out to real estate owners The connection fee to the TGPS is a one-time fee. The TGPS Owner can divide the fee into instalments pursuant

27 Tariff for the transmission of high-methane natural gas p. 27 to the conditions specified in the TGPS connection contract The said principles of establishing the fees for connection to the TGPS shall be applicable solely and exclusively to entities applying for connection, provided that the conditions for connection to the TGPS specified in the TGPS Code (Part I) have been met. 11. Fees for failure to meet Customer service quality standards For the TGPS Operator's failure to meet the service quality standards, the Customer shall be eligible for fees fixed pursuant to 42 of the Regulation of the Minister of Economy of 6 February 2008 on the matter of the detailed rules for shaping and calculating the tariffs and settlements in gaseous fuel (Journal of Laws No. 28, item 165) The fees mentioned in point 11.1 shall be payable by the TGPS Operator at the written request of the Customer, by deduction (discount) of an appropriate amount from the amount due for the performed gas transmission service The TGPS Operator shall consider the request of the Customer no later than within 14 days from the day it was submitted.