Shippers Meeting 2018

Transcription

1 Shippers Meeting 2018

2 Agenda 9.30am Commercial news Introduction by Catherine Brun GRTgaz at the heart of the European gas network European context: work in progress and perspectives Innovation : appygas plateform Upstream capacities: evolutions and new offers Regulated third parties access to gas storage GRTgaz, committed actor of the energy transition French Market Outlook Study ADEME-GRTgaz-GRDF: a 100 % renewable gas in 2050? 1.45pm Network news Introduction by Claude Meylan An efficient network market oriented Single marketplace: project s progress and next steps Current winter & Locational Spread Inspection and reparation annual programme 2017 maintenance Overview, 2018 maintenance schedule Conclusion by Catherine Brun 4.00pm Afternoon snack & networking Thierry Trouvé speech 12.00pm : Lunch 2

3 European regulation process Shippers Meeting - February 13, 2018

4 European regulation : works in progress key for the future of gas ENTSOG works 2018/2019 auction calendar GTCs template development GIE works : new areas Market Innovation & Communication System GRTgaz strongly involved: pro-activity & new office in Brussels New SoS European regulation in force since 1 st November 2017 Towards Gas Package 2020: numerous studies launched by EC to be achieved in

5 Entsog Works: GTC Template Development Timescales GTC Template development Template public consultation, approval and publication ACER Opinion Final template development and publication 18 Jan. BOA 15 Mar. BOA Mid April 9 May 6 July BOA & GA 6 Oct. 6 Jan BOA & GA Public consultation Update template a Decision on what to be included in Template and its structure Agree the scope of the public consultation Template publication on ENTSOG website ACER opinion on Template Final Template publication 5

6 SoS European Regulation 2017/1938 In force since 1 st November 2017 Guiding principle = reinforcement of regional compensation & cooperation Risk groups identified for 4 gas supply corridors - Eastern - North sea - North Africa - South-East ENTSOG involved in Union-wide simulations (Nov 2017) Requirements for Member State Authorities: - 2 Feb 2018: Notification of protected customers - National risk assessment - 1 st Oct 2018 : 1 st common risk assessment (then every 4 years) - 1 st Dec 2018: Solidarity mechanism measures (financial compensation) - 1 st March 2019: Notification of preventive action plans & emergency plans 6

7 Towards a Gas Package 2020 Role of Gas Infrastructure in the Energy Transition FRoG CEER study Gas Infrastructure 2050 EC study Sector Coupling EC study Mid-Century EC study Sustainable Finance EP/EC report Clean Energy Package ( Mirroring ) ACER Regulation Electricity Regulation Electricity Directive Gas Package 2020 Gas Market Design (Studies) Quo Vadis EC Study FRoG CEER study Sector Coupling EC study Gas Target Model rediscussed 7

8 EC - Quo Vadis - which may be basis for a Gas Market Design debate 2 nd Preliminary Report published in December 2017 awaiting final report No conclusion or recommendation included Modelling results do not show need for legislative reform : no fundamental legislative changes needed Where markets are not working, specific measures should be used to address the issue, not EU wide measures Incremental changes are preferred to address issues as they arise 8

9 EC - Role of Trans-European gas infrastructure in light of 2050 decarbonisation targets What? Review of existing 2050-storylines Study specific storylines aiming at 95% decarb of energy sector 2050! Consequences for EU gas infrastructures => SoS seen as a strong element Are regulatory regimes still fit? => NRAs to be involved. Who? When? European Commission DG-ENERGY Launch: March 2018 Results: August

10 EC - Sector Coupling Currently awaiting Gas Infrastructure 2050 Scenario completion, as input to tender for Sector Coupling study however Q1/Q initiation to be expected Gas & Electricity Gas & Heating Gas & Transport 10

11 To conclude: 2020 Gas Package will be the result of 2018 lobbying! Gas infrastructures should become the batteries of the future European energy system. K.D. Borchardt EC fully aware that green gases development is key to secure the future of gas Flexibility is the key value provided by gas 11

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13 An a new service by GRTgaz Deutschland 13

14 Wouldn t you say that working in the gas industry sometimes feels like you re banging against the wall? 14

15 We have good news for office walls and heads! The appygas solution : An Flows map Near-realtime Gas flows Route Calculator Spreads & Transport Prices Availability Maintenance works 15

16 Trade on the go! An 16

17 Our solution can make the gas market easy and help you make more informed trading decisions! Visit us here in the hall! We look forward to showing you more about appygas 17

18 Upstream capacity commercialization Shippers Meeting - February 13, 2018

19 Content PITTM PIR Dunkerque PIR Oltingue PIR CAM (Virtualys, Obergailbach, North-South Link) 19

20 PITTM 20

21 Reminder : latest evolutions In % price Entry capacity on GRTgaz network More flexibility: - Secondary market - Intermediary capacity (10+x days) - Decrease of complementary capacity tariff (overrun) 21

22 Secondary market Subscription types Transfer of use All Assignment Yearly Intermediate When? Until D-1 (6pm) Until D-7 Where? PRISMA More flexibility: - Cut 1 year into 10 days multiples 1 year 120 d 40 d 22

23 Less overruns for within-year shippers April 1 st, 2018 PITTM allocation impose to define the capacity period Possibility to ajust the subscription - Conservation of the initial volume - Until D-7 before planned beginning of unloading - Into 10 days multiples j f m a m j j a s o n d Initial allocation GWh/j Final allocation GWh/j 23

24 Role of GNL in congestion procedures Work in progress This winter: - PITTM in Locational Spread - Renominations until afternoon - Design of Flow Comitment & terminaling offer TRF: adaptation of these tools to the single marketplace area 24

25 PIR Dunkerque IR

26 CRE deliberation of July 27 th, 2017 Yearly long-term commercialization October to October Year Y+2 to Y+15 independantly No lenght priority Yearly capacity sale in june Conservation of releasable 26

27 CRE deliberation of July 27 th, 2017 Short-term commercialization Option A Rolling yearly 2 options Option B Quarterly 27

28 CRE deliberation of July 27 th, 2017 Short-term commercialization Option A Conservation of short-term rolling yearly capacity 28

29 Option B CRE deliberation of July 27 th, 2017 Short-term commercialization Quarterly capacity without releasable ; with multiplier 29

30 PIR Oltingue IR

31 Capacity amounts and tariffs Entry Oltingue : same tariff as other entry PIRs: Products (*) linked to Virtualys & Obergailbach Total marketable capacities <= GWH/d Capacity (GWh/d) Tariff 1 st april 2018 ( /MWh/d/year) Firm FR>SW ,61 Interruptible FR>SW ,458 Backhaul SW>FR n/a n/a Firm SW>FR 100 (*) 103,32 Interruptible SW>FR ,66 31

32 Firm capacity marketed after Virtualys & Obergailbach CRE deliberation of July 27 th, 2017 Ol Ob Ob GWh/d Marketable vs technical capacities - No core network development No competition Oltingue is marketed on PRISMA : - In slot 2 (Yearly/Quarterly/Monthly/Daily) - In slot 1 (Within-day) V Marketable capacities V Technical capacities Advantages: - Really firm capacity - Priority to Virtualys & Obergailbach 32

33 Oltingue Entry marketing calendar Firm Interruptible Yearly (year Y) Quarterly Monthly Daily Slot 2 - Slot 3 - Within-day Slot 1 - Yearly capacities : only 1 st year Interruptible capacity is marketed only if all firm capacity is booked 33

34 PIR CAM 34

35 New ENTSOG Calendar Product YEARLY QUATERLY MONTHLY DAILY WITHIN DAY 1/10/Y - 1/10/Y+1 Validity period 1/10/Y+14-1/10/Y+15 Q1: 1/10/Y - 1/01/Y+1 Q2: 1/01/Y+1-1/04/Y+1 Q3: 1/04/Y+1-1/07/Y+1 Q4: 1/07/Y+1-1/10/Y+1 Month M Day Ahead D H+4 for the day until the end of the gas day Publication Starting date Publication Starting date 1 month before the auction start 2 weeks before the auction start Firm 1 st Monday of July Y 1 st Monday of August 1 st Monday of November 1 st Monday of February 1 st Monday of May Interruptible / Backhaul 1 week before the auction start 1 st Monday of September 1 st Monday of December 1 st Monday of March 1 st Monday of June 1 week before the 3 rd Monday of 1 week before the 4 th Monday month auction start month M-1 auction start M-1 4:30pm D-1 5:30pm D-1 As from 7 pm until 2:30am then each hour 1 week before the auction start UBI* 1 st Monday of August Y Capacities marketed on * only on forward direction and marketed on Interruptible marketed if: - All firm capacity is sold - Firm capacity sold with premium - No firm capacity is marketed 35

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37 Regulated third parties access to gas storage Ways & means of compensation collection Shippers Meeting - February 13, 2018

38 Contents Reform of third parties access to natural gas storage Agenda Basis of compensation collection Practical aspects 38

39 Reform of third parties access to natural gas storage Adopted on 19 th December 2017 / implementation on 1 st April 2018 «Loi mettant fin à la recherche ainsi qu à l exploitation des hydrocarbures et portant diverses dispositions relatives à l énergie et à l environnement» Natural gas infrastructures contribute to transmission network balancing, continuity of delivery on the transmission network, gas system optimization and to country s security of supply The tariffs for use of the transmission network [ ] are established [ ] to cover all the costs borne by [ ] the operators of the storage facilities Transmission network operators shall return to the underground storage of natural gas operators [ ] part of the amount recovered in accordance with the procedures established by the Energy Regulatory Commission When incomes of a storage operator are greater than its costs, the income surplus is transferred to transmission network operators by this storage operator Use tariffs of natural gas transmission networks may contain a fix part, a part proportional to subscribed capacity and a part proportional to the difference between firm capacity subscribed in winter and average yearly use of this capacity 39

40 Contents Reform of third parties access to natural gas storage Agenda Basis of compensation collection Practical aspects 40

41 Agenda CRE s Public Consultation CRE s Deliberation on collection and transfer of storage compensaton CRE s Deliberation on collection term tariff December January February March April May Storage Auctions Basis Billing Transfer Design exchanges & data transmission from DSOs for forecasted basis calculation Data transmission from DSOs for monthly basis calculation Basis Billing Transfe Basis Billing Basis Transitory phase on first year 41

42 Contents Reform of third parties access to natural gas storage Agenda Basis of compensation collection Practical aspects 42

43 Basis of compensation collection Points supported by GRTgaz The basis of compensation collection : Must be as transparent as possible, that is every stakeholders (supplier and consumer) can recalculate. So it needs to be based on data known by all these stakeholders Must translate the consumer s modulation need The distribution between suppliers must follow the evolution of every supplier portfolio Needs to pursue a relative continuity with current system With these principles in mind, GRTgaz suggests that the compensation collection is based on the difference between : Daily delivery capacity Average of daily consumption (CAR/365) Must be feasable given the short notice : rules mustn t be too complex (especially with DSOs interface) 43

44 Basis of compensation collection Methods of collection The methods studied by the CRE in its Public Consultation are : Formula for each customer Profiled With subscription Method 1 «Peak P2» A. zi. CAR 110%. CAR 365 A. zi. CAR 110%. CAR 365 TSO proposal Method 2 «Subscribed capacity annual average of daily capacity» Must be as transparent as possible, that is every stakeholders (supplier and consummer) can recalculate. So it needs to be based on data known by all these stakeholders max A. zi. CAR CAR 365 CJA CAR 365 ; 0 Method 2 better accounts for customers with subscription and seasonal consumers. Still, counter-modulated customers need to be excluded prior to computation «Declared loadable» consumers would be excluded for this transitory phase. «Interruptibility» to be accounted for eventually when effective In any case, billing of this collection term depends on reliable data transmission from DSOs A back-up method needs to be determined in case data is missing or late GRTgaz suggests to use subscribed firm capacity alone 44

45 Contents Reform of third parties access to natural gas storage Agenda Basis of compensation collection Practical aspects 45

46 Practical aspects Computation of downstream data The computation of the DSO rich data is a hurdle to a smooth and reliable calculation process in the Transitory phase. In order to make this process operable, GRTgaz suggests that the basis of compensation be calculated upon suppliers portfolios on 1 st day of each month, with 2 results : The supplier of each consumer at this date The value of daily delivery capacities and average of daily consumptions (CAR/365) 46

47 Practical aspects Amendment of GRTgaz transmission Contract Compensation collection process and principles will be included in the Transmission Contract version dated April 1st : Billing of this compensation will be made separetly : - some days after the monthly transmission invoice (around 20 M+1 in the transitory phase) - with the same rules regarding payment deadline (D+10) The amount of the contract Payment Guarantee is usually equal to sum of the 2 greatest invoices in the past 12 months. As of 2018 the recalculation will take into account the monthly compensation amount : - Partially in the May recalculation (Only the compensation for the month of April 2018 will be accounted for) - Wholly for the second yearly recalculation in October 47

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49 2017 French gas market overview Shippers Meeting - February 13 th, 2018

50 Main topics 2017 A very little increase in gas demand A larger position for the renewable gases The immediate potential of gas as an emergency solution to fight against the climate change Gas infrastructures maturity to play an efficient part in the energy market and the ecological energy transition 50

51 Gas demand increases driven by industry and gas fired power plants Public distributions 275 TWh* -2.9% Industrial customers 190 TWh +5.5% 2017 : 465 TWh 2016 : 463 TWh +0.4% 2017/ was a little bit colder than a normal year, with a cold fortnight in January (*) Public distribution climate adjusted 276 TWh, -0.4% Gas consumption observed in 2017 GRTgaz s perimeter Gas consumption in France = ~ electricity consumption = ~ oil consumption (Transportation sector) Gas 1 Gaz All sectors Electricity 1 Electricité All sectors Oil 2 Pétrole Transportation sector 491 TWh 483 TWh 451 TWh Main energy consumptions in France in 2016 (1) Open Data Réseaux Energies, périmètre RTE et GRTgaz + TIGF, 2016 (2) Bilan énergétique de la France

52 Strong contribution of gas fired power plants again in TWh 46 TWh +19% 2017/ TWh 8 TWh Gas fired power plants gas consumption Existing power plants, January 1 st 2018 Power plants projects Number of groups per plants 52

53 Gas consumption on GRTgaz network in administrative regions Bretagne Pays de la Loire 15,9 TWh + 0,0% 24,5 TWh + 0,2% Centre Val-de-Loire Normandie 44,6 TWh + 0,5% 73,1 TWh + 5,1% 75,6 TWh - 6,7% 16,1 TWh - 1,8% Hauts-de-France Ile-de-France 78,0 TWh + 4,6% 20,8 TWh - 2,5% Grand Est Bourgogne Franche-Comté Public distributions 275 TWh -2.9% 2017 Industrial customers 190 TWh +5.5% Nouvelle-Aquitaine 15,0 TWh + 1,2% 5,7 TWh + 1,0% 51,8 TWh - 0,8% 44,0 TWh + 2,2% Auvergne Rhône-Alpes 465 TWh +0.4% 2017/2016 GRTgaz s perimeter Occitanie Provence-Alpes Côte d azur Corse 53

54 Biomethane injections doubled in GWh injected in 2017 (+100%) - Corresponding consumption of: ~ bus au biognv ~ foyers significant environmental advantages tonnes of CO 2 avoided in 2017 Major progresses - help to cover costs of injection - since June 2017, biomethane can be stored in UGS Agricole Autre 44 existing injection facilities including 60% in agriculture 361 projects expected including 75% in agriculture Biomethane injection spots connected to the French gas networks 54

55 A gas-mix with more and more renewables Some 90 TWh of renewable gas could injected in the French networks in 2030, i.e. 30 % of the gas consumption TWh/an Programmation Pluriannuelle de l Energie 8 TWh in TWh/an other renewable gases 70 TWh/an methanisation Renewable gases injection in networks: perspectives by 2030 Source : bilan prévisionnel pluriannuel gaz 2017 GRDF, GRTgaz, SPEGNN, TIGF 55

56 NGV accelerates in France Strong dynamic on heavy duty vehicles and more refuelling stations NGV vehicles (+10%) including lorries (+100%) tonnes of CO 2 avoided by substitution to diesel Good points for NGV and biongv - NGV access to zones with limited circulation, stamp Crit Air #1 - pluriannual favourable step on taxes: TICPE frozen, prolongation on reinforced amortisation - larger NGV offer in France : heavy vehicles, light truck and cars En service En Projet 75 refuelling points for NGV open at the end of 2017 (+25%) 78 new points announced for

57 NGV development in France More and more large cities are choosing NGV for their public transportation - Grenoble, Nantes, Lille, Bordeaux, Paris, NGV vehicles are fuelled by compressed gas (CNG) or by liquefied gas (LNG). More and more ships are to be fuelled with LNG. More and more entrepreneurs are choosing biongv vehicles for their logistic activities - MacDonald, La Poste, Carrefour, Ikea, 57

58 Even more of CO 2 avoided by fuel-oil to gas conversions ~ 4,3 TWh of gas consumption due to new conversions of industrial customers from fuel-oil to gas achieved in significant reduction of CO 2 emissions - Significant reduction of NO x (-70%) and SO 2 (-80%) and practically no dust The effect of all these conversions achieved since 2012 leads to 1,8 Mt of CO 2 avoided in 2017, i.e. an equivalent contribution ~ windmills of 2 MW in the French electric mix Mt of CO 2 avoided 2 1,5 1 1,8 Mt CO 2 avoided in , Avoided CO 2 emissions: effect of achieved conversions since

59 Development of gas uses and renewable gases permits to fight efficiently against the climate change Mt/an Mt/an Mt/an 63 Mt/an 97 Mt/an - 40% 2030/ Loi relative à la transition énergétique pour la croissance verte CO 2 emissions Remaining efforts to be recorded for France 1 2 Mt/an : Fuel-oil to gas conversions in industry 5.6 Mt/an : Conversion to gas in the transportation sector 97 Mt/an 11,9 Mt/an : Energy efficiency efforts 17 Mt/an : Injection of 90 TWh of renewable gasese 4 = Total of 36,5 Mt of CO 2 that could be avoided i.e % of the remaining effort for France Gas, with more and more renewable gases, is a very efficient mean to reach the target of CO 2 emissions reduction for France (1) Source CGDD-SDES Chiffres clés du climat 2018 (2) Bilan prévisionnel gaz 2017 : Demande hors production d électricité : 413 TWh (2015) ; 364 TWh (2030) (3) Bilan énergétique de la France 2016 (4) 188 kg CO 2 /MWh de gain de CO 2 avec le biométhane comparé au gaz naturel. 59

60 Gas is crucial in the energy mix today and tomorrow GRTgaz has developed its network to help opening the European gas market and to act efficiently in the ecological energy transition - facilitating the development of renewable gases (biomethane and power-to-gas) - moving on in the convergence of gas et electric systems - without important investments for further gas network adaptation does not require - deploying efficient solutions very quickly available in the different territories in France France can accelerate the achievement of necessary expected progress in the fight against the climate change thanks to a new gas mix with more renewable gases and thanks to adapted infrastructures 60

61 More information Smartphone application Datas on GRTgaz s activity 2017 French gas market overview Datas multienergy France Operated by GRTgaz, RTE, TIGF, Dunkerque-LNG, Elengy, Storengy, AFGNV, Weathernews

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63 A 100% renewable gas mix in 2050 in France? A study performed by Ademe, GRDF and GRTgaz Shippers Meeting - February 13 th, 2018

64 Context and objectives Context : - Strengthening of the climate objectives - A need to accelerate the energy transition - ADEME, the French environment and energy management agency, published in 2015 a feasibility study of a 100% renewable electricity mix in 2050 Objectives : testing the technical and economic limits of a 100% renewable gas mix in France in With what types of renewable gas? - With which impact on the gas networks? - At which cost? - In order to contribute to the energy debate and policy making -de-presse/detail-actus/article/un-mix-degaz-100-renouvelable-en-2050.html This study was issued on January 30 th 2018 : - performed by Solagro* and AEC** ; 18 month work - focused on France (no export/import considered) and on network gas - does not consist of an global multi-energy optimization, and does not provide a trajectory to 2050 * associative company expert in energy, agroecology and food transitions ** cooperative society focused on management of local energy utilities 64

65 The study s different stages Study of the various renewable gas potentials : - Methanisation - Gasification - Power-to-gas (with and without methanation : Power-to-H2 and Power-to-CH4) Essential principle : sustainability - No competition with food (even though dedicated main crops are authorized in France up to 15% of yearly tonnage) - No competition with wood as a raw material (current and prospective uses) - Increase in carbon stock in the ecosystems ; increase in soil s biologic life (a share of biomass has to remain in the field) Four scenarios with one starting point : ADEME prospective scenarios for % renewable - 100% renewable with more gasification - 100% renewable with limits on biomass - 75% renewable 65

66 A potential for 460 TWh renewable gas * * Potential associated with a main liquid fuel production. With a dedicated algae to biogas production, potentiel could be up to 60 TWh. 30% (140 TWh) from methanisation, 40% (180 TWh) from gasification, 30% (140 TWh) from Power-to-Gas 66

67 All 2050 French s gas demand could be fed by renewable gas Methanisation is the basic vector, with available technology Gasification is a sector to foster, with the biggest potential, in competition with wood-fired thermal plants and cogenerations Beyond the power-to-gas needed for adjusting green-mainly electricity mixes, extra power-to-gas is more expensive, yet the adjustment variable. 67

68 Global cost around 120 /MWh (incl. networks) /MWh for the high demand scenario of 360 TWh /MWh if electricity supply cost for power-to-gas reflects the gains that power-to-gas provides to the electricity network (reduction in storage capacities etc.) +20% in cost if biomass were to be less available for gas (-20%) - In favour of direct heat or cogeneration - But notwithstanding limited resort to dedicated crops if needed, possible extra potentials stemming from algae etc. Around 108 /MWh with 25% natural gas. 68

69 Competitive in a neutral carbon economy Current global price (with networks) ~ 50 /MWh 200 /t CO2 tax But somewhat more expensive than today s prices A challenge : that renewable gas sector develops and finds economies of scale 69

70 The adaptation of the networks seem reasonable The study shows that the bulk of the country-spread resources could be tapped with existing and new collecting networks - Whose cost would account for only 2-3% of global cost - With only limited over-the-road biomethane transportation The key to a cost effective network adaptation is a proper multi-year programming - The study estimates that a proper planning of backaul stations and new collecting pipes would bring 40% savings. The transmission and storage assets will remain essential in order to address cold spells and support the electricity network with seasonal storage. 70

71 Biomethane is at least a part of our future! 71

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73 Towards the creation of the single marketplace on 1 st November 2018 Shippers Meeting - February 13, 2018

74 Contents Reminder: the main considerations and principles of the single marketplace The CRE Deliberation: the principles have been officially decided on 5 themes Schedule - next steps 74

75 The main considerations and principles of the single marketplace 75

76 Creation of the TRF and a new PEG Today : In November 1st, 2018 : PEG NORD TRS 2 marketplaces (PEG Nord and TRS) 1 Entry/Exit zone 76

77 The expected benefits: a more attractive gas market A single gas price at all times in France (disappearance of North-South spreads ), for the benefit of all consumers A French market more fluid, less volatile, more competitive that is better integrated into the European market A security of supply of France strengthen by improving access to different gas sources and allowing a wider choice of sourcing patterns For the benefit of a competitive market over the long term 77

78 A mixed solution agreed with the market The new structures increase the availability of the capacities and therefore allow more flows to transit from the North to the South Val de Saône: 671m in total Gascogne/Midi: 152m in total Estimate: + 220GWh/d per day i.e. increase of 42% of possible flows on average 78

79 Focus on Val de Saône s infrastructures 79

80 Val de Saône s Infrastructures VOISINES interconnection station 3 interconnections + 1 compressor stations (Etrez - Palleau - Voisines) A new 188 km gas pipeline involving Etrez (01), Palleau (71) et Voisines (52) PALLEAU interconnection station 3 Regions, 4 Countries/Departements and 65 municipalities crossed Gas pipeline : diameter 1,20 m, burried at 1 m depth For the gas pipeline construction, 5 main lots allocated to 3 consortium of undertaking ETREZ compression ETREZ interconnection station + the exit of Etrez station, built through a specific lot 80

81 Val de Saône KPI (january 2018) Work progress / 4 industrial sites 21% ETUDES 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Work progress / gaz pipeline CHANTIER 88% Programme industrial commissioning Nov % ETUDES CHANTIER 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 93% ON TIME for november

82 Operation of the TRF and the PEG 82

83 Operation of the single marketplace : what will change? Disappearance of the North South link Capacities not invoiced as of this date End of JTS sales and coupling Trading of capacities until the merger (annual, quarterly, monthly, daily) Operation of the TRS extended to the TRF in terms of balancing Daily imbalance calculated at the level of the TRF Allocation of imbalances over the GRTgaz and TIGF areas, according to the shipper s portfolio Creation of the PEG on November 1 st, 2018 Creation of PITS Atlantique on April 1 st,

84 Principle of reaching the network limit. Principle of reaching the network limit : There is excess gas upstream And a lack of gas downstream Goal: ensure the use of all of firm capacities subscribed by the shippers 84

85 Continuous information and alert system on the risk of reaching a limit 1 year before Season forecast Publication of the maintenance works program by GRTgaz Seasonal publication of the Season Outlook D-5 D-2 Short term Forecast 5 days update every day From D-1: monitoring at each nomination cycle Green: no imminent risk Orange: risk of occurrence near (approximately 50 GWh/d) Red: proven limit Violet: mutualised restriction (only for D) Network conditions Side of the limit management Small works Sales interruption Interruptible cut Locational Spread Mutualised Restriction NS1 NS2 Upstream Downstream NS3 Downstream x x x NS4 Downstream 85

86 Mechanisms selected for management of the residual limits 1. Agreements with adjacent operators 2. Interruption of interruptible capacities and UIOLI on D-1 and D-Day 3. Non-trading of unsubscribed capacities on D-1 and D-Day 4. Locational spread: call to the market 5. Mutualised restriction of nominations: last resort 86

87 Locational spread principles Main mechanism for management of all residual limits. Similar to the current locational spread product. Optimised cost : activated only when a proven limit is reached and only for the quantity necessary to resolve the limit Market product, relying on the gas stock exchange with a twofold within-day locational product: Purchase by GRTgaz downstream of the limit And simultaneous sale of the same quantity by GRTgaz upstream of the limit > This amounts for the TSOs to buying a spread Extension to CCGTs being studied 87

88 Locational spread: a flexible mechanism open to all shippers + Flexible for shippers: response via a call for tenders, for the purchase, sale, or both, for the quantities that they choose + + Neutral impact of the locational spread on the balancing of the selected shipper (the PEG nomination balances the physical nomination) Prerequisite: accreditation with the Powernext platform + Locational spread is totally non-discriminatory and transparent 88

89 Mutualised restriction principles + As a last resort, within the day, should the call to the market via the locational spread not be effective Partial interruption of firm capacities : pro rata to the subscribed capacities mutualised on a group of points called superpoint, in order to give flexibility to the shippers No financial compensation in the event of use of this mechanism 89

90 Mutualised restriction is applied either upstream or downstream Either the entry flow is reduced by restricting the entries upstream of the limit + Or the exit flow is reduced by restricting exits downstream of the limit The shipper is then imbalanced and must re-balance in the next cycle on the other side of the limit Choice to interrupt the capacities downstream of the limit as soon as possible to minimise the potential impact on the PEG price 90

91 Management of maintenance in TRF zone Maintenance in the North impacts GRTgaz superpoints (upstream; like now, with Optiflow) N1 N2 N3 Maintenance in the South impacts TIGF superpoint (downstream, like now) S1 Maitenance impacting today the North>South link will be passed on the superpoints downstream of the maintenance area -> in the North->South marked situation : new superpoints are created to manage maintenance cases 91

92 Next steps in the change management Each month : regular informations on the web site of GRTgaz html Operational workshop : June 2018 Procedure operational detailed : June to October

93 Key messages Goal: greater gas competitiveness in France. Created on 1 Nov It is called the TRF (Trading Region France) and includes a gas exchange point: the PEG Everyday balancing is done at the level of the TRF, with an allocation of the imbalances between TIGF and GRTgaz (ditto TRS) Choice of a mixed solution with reasonable investments and additional mechanisms for the residual limits of the network. Much greater gas transit thanks to the new structures (average + 42% in transit in the North>South direction) General operation and contractual mechanisms co-constructed and cooperated with the market The mechanisms chosen to manage limits are the best cost-benefit balance for shippers Agreement with adjacent operators Interruption of D-1 interruptible capacities Non-trading of unsubscribed capacities on D-1 and D-Day Locational spread: market mechanism Mutualised restriction: as a last resort Relies on the superpoints for to both manage the limits and maintenance: leaves maximum flexibility to shippers Restrictions (in the event of limit or maintenance) are implemented as much as possible downstream, in order to limit as far as possible the impacts on the price of the PEG in France 93

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95 Winter Localized Spread feedback Shippers Meeting - February 13, 2018

96 Winter Outlook Reminder Vigilance mechanism started from 6 th of November 2017 Localized Spread is the main mechanism anticipated to handle bottleneck situations identified for this winter in a 2 Downstream zones layout: Bottleneck Variant - for the North Bottleneck - for the South-East bottleneck North Bottleneck North 1 North 2 (= purchase for GRTgaz) 2DK + Montoir (+ North-East*) + North-West + North-Atlantic (+ North-South) Montoir + North-East + North- West + North-Atlantic (+ North- South) Upstream (= sale for GRTgaz and TIGF) PIV + Obergailbach + Oltingue 2DK + PIV + Obergailbach + Oltingue Proof of concept: - with 3 windows - manual trade on the market South-East Bottleneck South-East 1 South-East 2 Fos (+ South-East)* Fos + South-East + Jura Jura + South-Atlantic + Lussagnet + Pirineos (+ North-South) South-Atlantic + Lussagnet + Pirineos (+ North-South) 96

97 Localized Spread general feedback 17 players who have signed for the mechanism used 9 times in 2017 Not used so far in January and February 2018 Only used for South-East bottleneck First window mainly used All the quantities needed have been covered For the 9 call for tenders: 8 different shippers selected and minimum 2 per call for tenders No problem encountered 97

98 South-East Bottleneck Main conditions: - weak output from LNG terminals below 100GWh/j - strong demand on CGGT combined cycle gas turbine power plant up to 20% of the south-east gas demand - not necessarily low temperatures November: 14, 15, 16, 17, 29 December: 5, 6, 7, 9 98

99 Localized Spread detailed feedback Quantities called: from 11 to 75 GWh per day Total of 377 GWh for 9 days Average daily prices: from 2,3 to 6,360 /MWh Global average price: 5,6 /MWh Downstream: PITS Sud-Est Upstream: PITS Lussagnet, PIR Pirineos, PITS Sud-Atlantique 99

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101 Pipelines Integrity Management by GRTgaz Shippers Meeting - February 13, 2018

102 Agenda 1. Why does GRTgaz inspect its network 2. How does GRTgaz inspect its pipelines 3. How does GRTgaz repair its pipelines after an inspection 102

103 Why does GRTgaz inspect its pipelines? GRTgaz as a prudent and reasonable pipeline operator committed itself to high safety standards. French legislation "Arrêté du 5 mars 2014" imposes on operators to inspect the entire network during a decade. 103

104 How does GRTgaz inspect its pipelines? GRTgaz implements 2 main worldwide recognized technologies to inspect its network In-line Inspections (ILI) 15 to 20 inspections/y corresponding to 1000 km. 4 frame contracts with major in-line inspections service providers. Above ground electrical measurements Detection of coating defect on corrosion risk areas. External Corrosion Direct Assessment (ECDA). Around 2000 km/y inspected. 104

105 Possible impacts and implemented solutions During In-Line inspections, correct data acquisition requires constant, low speed of the inspections tools As a consequence flow rates might be substantially reduced when operating in-line inspection tools. Our solutions On main transport network, utilization of combined tools and, if possible, utilization of speed control units. 105

106 After the inspection, the analysis and rehabilitation program 25 integrity engineers in charge of Analysis of inspection reports Selection of relevant features Supervision of the multiannual reparation program At GRTgaz, about 2000 excavations performed, 1200 defaults analysed yearly 45 metallurgist engineers and technicians in charge of In ditch characterization of defaults : Identification & NDT, sizing, grinding external metal loss. 106

107 Characterization Safety during in ditch operation has highest priority In case of detection of a presumed severe default, pressure has to be reduce to enable: - Excavation, - Characterization, Our solutions Utilisation of large panel of non destructive testing to properly asses the defaults : radiography, ultrasonic testing, eddy current, Reduction of analysis time using new technologies such as 3D laser mapping. 107

108 Main defaults overview Different types of defaults can be found on a pipeline network Metal loss/corrosion Geometrical defaults such as dent Damage due to third party excavation 108

109 If required, the reparation phase To ensure safe long term operation of the pipelines, severe defaults have to be removed. Pipeline may has to be cut and replaced. Our solutions Use specific hot tapping (double isolation & bypass) to repair with miminum impacts on transit Implementation of metal repair / rebuilding compounds. 109

110 Conclusion GRTgaz is committed to ensure high safety standards while maximizing capacities availability by continuously improving its technical knowledge and solutions

111

112 2017 maintenance Overview Shippers Meeting - February 13, 2018

113 Contents Major maintenance in 2017 Firm capacities impact About maintenance publication 113

114 Major maintenance in

115 Major maintenance in 2017 Dunkirk LNG Dunkirk Virtualys Obergailbach TRF project Oltingue reverse flow Cruzy reverse flow Val de Saône Oltingue Montoir Piggings and repairs Nord 1/ Nord Est / Plateau du Vexin Vendomois / Centre / Guyenne Rhône Fos station upgrades Taisnières H regulation valves Insulating connection at Auvers GOA Morelmaison Insulating connection at Laprade 115

116 Major maintenance in release What? GRTgaz sometimes release capacity When? As soon as GRTgaz has the information Why? Repair cancellation Repairs end in advance Flow configuration (Terminal flow schedule) Oltingue release in June DK, DKLNG, TH, Fos, NS, INA North-to-South link (4 weeks) (1 week) Where? 116

117 Firm capacities impact Summer

118 TWh Firm capacities impact Interconnexion points* 7,8% of firm subscribed capacities were interrupted (-0,5% vs 2016) %(+0,7%) 10%(-4,8%) 9%(+0,8%) %(-5,4%) 3%(-4%) Available capacity Restrictions (%) Restrictions 2017 / 2016 * The impact on Superpoints are applied to the points in proportion to the subscribed capacities 118

119 TWh Firm capacities impact LNG terminals* 6,6% of firm subscribed capacities were interrupted (-1,8% vs 2016) % (-1,5%) 5,2% (+1,4%) 1,8% FOS MONTOIR Dunkirk LNG Available capacity Restrictions (%) Restrictions 2017 / 2016 * The impact on Superpoints are applied to the points in proportion to the subscribed capacities 119

120 TWh Firm capacities impact North to South link 1,2% of firm subscribed capacities were interrupted (-2,6% vs 2016) 1,2%(-2,6%) North to South link Available capacity Restrictions (%) Restrictions 2017 /

121 TWh Firm capacities impact Storages injection 1,1% of firm subscribed capacities were interrupted (-2,8% vs 2016) 40 2,2%(-5,5%) %(-0,2%) ,01%(-1,5%) 0%(-4,7%) 2,7%(2,2%) 0%(-5,9%) North-West North-Atlantique South-Atlantique North-East South-East North B Available capacity Restrictions (%) Restrictions 2017 /

122 About maintenance publication 122

123 Publication Construction About maintenance publication Consideration of works Consultation of adjacent operators August Y-1 November Y-1 Feb. Y End of Feb. Y D-60 WD-5 D-1 (3pm) publication of Provisional program Updates send by Consolidated program presented at Shipper s meeting First Publication on Trans@ctions Restrictions Updates 123

124

125 2018 maintenance schedule Shippers Meeting - February 13, 2018

126 Agenda Infrastructure development in 2018 Major maintenances in 2018 Overview of available firm capacities in

127 Infrastructure development in

128 Development of OLTINGUE REC Reverse flow projet Commissioning of the new infrastructure developed in 2017 Morelmaison grid tests : April - CW 14 & CW 15 Full reverse flow tests : April CW 16 & CW 17 Joint coordination with SNAM, Fluxswiss, Transitgas & OGE 10 days in April reduced capacities : Oltingue DEL 128

129 L > H Conversion Project Beginning of the Pilot Test New interconnection points between L-gas & H-gas networks Brouckerque interconnection point works : June CW 21 & Sept. CW 37 Brouckerque L-gas network H-gas network 4 days in June (2) & Sept (2) reduced capacities : Dunkerque REC 129

130 Val de Saone program Developing North>South capacities on the eastern corridor Existing infrastructure adaptation New pipeline Voisines May June - July reduced capacities: Obergailbach REC Virtualys REC North-South DEL North-Atlantic DEL W E corridor April - May reduced capacities : FOS REC Palleau April reduced capacities : North-South DEL North-Atlantic DEL Etrez July - August reduced capacities : FOS REC Jura DEL 130

131 Major maintenances in

132 Major «Pigging» operations Regulatory line inspections 1 major pipelines 5 secondary pipelines 5 days June Reduced capacities : South-Atlantic DEL (4) North-South DEL (1) North-Atlantic DEL (1) 132

133 Major line repairs Following pigging operations in previous year 4 weeks April Reduced capacities : North-South DEL North-Atlantic DEL 4 weeks May Reduced capacities : Obergailbach REC 4 weeks June Reduced capacities : South-Atlantic DEL Pireneos DEL Lussagnet DEL 5 weeks June - July Reduced capacities : Oltingue DEL 8 weeks August - September Reduced capacities : FOS REC 133

134 Other annual maintenances As far as possible, coordinated impacts with adjacent operator 2 days May-June Reduced capacities : DKLNG REC 6 days June-Sep Reduced capacities : Dunkerque REC 5 days April Reduced capacities : Virtualys REC 4 days July Reduced capacities : Montoir REC

135 Overview of available firm capacities in

136 (TWh) North-South DEL 01/04/18 31/10/18 Projected availability of North-South DEL firm capacities Final figures to be made available on March 1 st 2018 at the latest 56,5 Availability of N-S DEL firm capacities 56,0 55,5 55,0 54, ,3 % = 54,0 North-South DEL Planned Planned Planned Based on firm capacity profile available on SMART GRTgaz 136

137 (TWh) Interconnection points 01/04/18 31/10/18 Projected availability of interconnection points firm capacities Final figures to be made available on March 1 st 2018 at the latest Availability of interconnection capacities ,0 % ,8 % ,9% ,3 % ,9 % ,3 % Dunkerque REC Obergailbach REC Virtualys REC Oltingue DEL Taisnières B REC Jura DEL Planned Planned Planned Based on firm capacity profile available on SMART GRTgaz 137

138 (TWh) Storage injection capacities 01/04/18 31/10/18 Projected availability of injection capacities Final figures to be made available on March 1 st 2018 at the latest ,4 % = Availability of transport capacities to Storage Groups ,7 % = ,1 % ,2 % % = % = North- South- Atlantique Atlantique North-West South-East North-East North B Planned Planned Planned Based on firm capacity profile available on SMART GRTgaz & Storengy s 2018/2019 nominal offer 138

139 (TWh) LNG Terminals emission capacities 01/04/18 31/10/18 Projected availability of emission capacities Final figures to be made available on March 1 st 2018 at the latest 80 Availability of emission capacities ,5 % % = ,6 % 68 Dunkerque GNL REC Fos REC Montoir REC Planned Planned Planned Based on firm capacity profile available on SMART GRTgaz 139

140 Total Volume (TWh/y) Overall firm capacity interruptions 01/04/18 31/10/18 Aggregated volume of firm capacity interruptions Final figures to be made available on March 1 st 2018 at the latest 120 Total volume of projected interrupted firm capacities % Planned Planned Planned Total volume Including equivalent GRTgaz TIGF capacity reductions 140

141 Overall firm capacity interruptions 01/04/18 31/10/18 GRTgaz committed to offer additional firm capacities whenever possible on a short-term basis : Through the Optiflow mechanisms (ex Virtualys REC) In case of favorable climatic conditions (ex. Northern entry points) In case of favorable LNG emissions (ex. North-South DEL North-Atlantique DEL) In case of lesser than anticipated impacts of pipeline rehabilitation Significant effort made by all stakeholders to reduce the impacts of works & maintenances on firm capacities availability 141

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