The Revithoussa LNG Terminal:

Transcription

1 The Revithoussa LNG Terminal: An Entry Point to Greece and SEE Michael Thomadakis Katerina Sardi Gerasimos Avlonitis

2 Setting the scene Entry Capacities Entry bcma Capacities North East LNG Total (Daily LF = 90%) IP IP LNG

3 Gas Demand in Greece

4 next 18 months Setting the scene : Available vs Reserved Capacity (forward flow) terminal upgrade (2015) new compression station (est. 2012) CAPACITY AVAILABLE NOW

5 Setting Reversing the the scene scene?? IP IP LNG

6 Tools for reversing the scene! Establish a friendly and efficient regulatory environment for TPA Establish rules for backhaul flows Some enchanting tariff design!

7 The Revithousa LNG terminal Unloading (m3 LNG/h) Storage (m3 LNG) Send out (m3 LNG/h) Max carrier (m3 LNG) (5,1 bcma) (7,1 bcma) Upgrade approved in the current Development Plan of the TSO

8 Gas Out

9 The standard LNG User Agreement is available and published on line (EL & EN). The LNG User Agreement determines : The regasification Capacity reserved by the LNG User The terms of provision of a firm standard bundled LNG service referred to as the Basic Service (a Slot) The LNG User Agreement is concluded (and can be extended) for periods of multiples of one Day. The minimum duration of the agreement is determined by the time the cargo is to remain in the tanks (temporary storage period)

10 The Basic Service includes entitlements to : a) Connect an LNG ship to the terminal unloading arms, unload the cargo and disconnect b) Store the ship cargo at the LNG terminal storage tanks for a period of time that does not exceed 18 days (Max. Temporary Storage Period) c) Regasify the LNG and inject it in the National Gas Transmission System The Basic Service is offered on a FCFS basis Gas LNG (a) (b) (c) Gas to NGTS

11 Gas to NGTS basic service storage rights [m3 or MWh] cargo F [m 3 ] Max limit defined on the basis of the cargo Storage allocated for the remaining time period Storage 18 allocated during unloading max period of temporary storage for the Basic Service (in days)

12 USER max period of temporary storage User 1 complies with the terms & conditions of the Basic service User 2 is non compliant in several occasions. User 2 may request additional storage capacity. TSO reserves the right to vapourise the excess LNG stored in the tanks in the case that there is no available storage space.

13 total storage capacity available storage that can be allocated to users as additional storage Cumulative Basic Service storage rights capacity reserved for SoS & balancing time

14 Interested shippers may submit an Annual Berthing Schedule. The Annual Berthing Schedule is tentative Shippers with requests accepted by the LSO through this procedure, have a priority in slot reservation during the monthly procedure. LNG Users (i.e. shippers that have signed an LNG User Agreement) submit a Three Month Rolling Berthing Schedule for months M, M+1 and M+2. The Monthly Berthing Schedule, as accepted by the LSO, is binding for month M.

15 Interested shippers may also submit a request for a non-scheduled unloading. Requests for non-scheduled unloadings (spot cargoes) may be submitted at any time. Requests for non-scheduled unloadings are prioritised over requests for additional storage space. Standard LNG User Agreements in the case of a non-scheduled unloading are completed through a fast track procedure.

16 Vaporised LNG By signing a contract, the LNG User reserves (1) A number of basic services to occur at specific times over the duration of the contract (2) A maximum vapourisation capacity Flange to transmission system

17 2009, 1 User User , 3 Users User 1 (DEPA) User , 6 Users User 2 User 1

18 15% 10% 14% 61% 2012, 4 Users Actual and planned deliveries (according to yearly plan)

19 Total vapourised LNG quantities [MWh] Data until 10/5/ Approximately a 45% increase in terminal utilisation since the TPA rules entered into force (Apr. 2010)

20 A 15% loss of market share for the incumbent A drop in the average gas price, as demonstrated by the offers in the electricity pool A 45% increase in the utilization rate of the LNG terminal Diversification of LNG sources First (bilateral) trading arrangements between eligible customers, through resale of gas Emergence of new players with a long-term view

21 Reverse flows : Actual & Virtual (swaps) IP IP LNG Anyone who wishes to transport gas through the Greek NGTS has to sign a Standard Transportation Agreement with DESFA and become a Shipper.

22 Provisions for backhaul flows in the Greek Network Code Currently only virtual backhaul flows ( swaps ) possible An Entry Point can also be a Virtual Exit Point An Exit Point can also be a Virtual Entry Point (resale of gas) Nominated quantities to be delivered at a Virtual Entry Point cannot exceed nominated quantities received at this point (Exit Point). A methodology for allocation is included IP LNG IP

23 Consumer B is also a Shipper who nominates 70 units of gas to be delivered to Consumer C Provisions for swaps within the Greek system (resale) LNG IP 120 Shipper A nominates 100 units to be delivered to Consumer B and 50 to Consumer C Physical Flow Physical Flow 30 C Exit point/ Virtual Entry point B Virtual Flow of 70 Consumer C receives 130 units

24 A conceptual view of swaps : Greece-Bulgaria Greek side GR-BU Shipper A nominates 150 units of gas to be delivered to Consumer C in Greece LNG Virtual Flows Shipper B nominates 70 units of gas to be delivered to Consumer D in Bulgaria DESFA will face a physical flow of 80 from Entry Point GR-BU and a physical flow of 70 from Entry Point LNG to consumptions in Greece. A methodology for allocating actual gas quantities in virtual paths is included in the Code

25 A conceptual view of swaps : Greece-Bulgaria Bulgarian side GR-BU Shipper A nominates 150 units of gas to be delivered to Consumer C in Greece Shipper A actually delivers 80 units to Consumer C in Greece and 70 units to Consumers in Bulgaria

26 Questions to be addressed Swaps in both countries are completed Is there a framework in Bulgaria? Is there some room for imposition of similar rules from the Bulgarian side of the border? (ie similar allocation rules) What would be the steps to be taken in order for such transactions to take place? Should legal and regulatory issues be settled, are there such needs in Bulgaria regarding quantities and with what timeframe and seasonality? Conceptual picture should be tested on a real test case

27 New infrastructure: status of play from a regulators point of view (1) FSRU Underground Storage

28 New infrastructure Project ITGI-Poseidon TAP IGB FSRU (Gastrade) Underground Storage application Status/outstanding tasks for RAE Exemption decision for Poseidon in 2007, on shore included in DESFAs development plan, no outstanding tasks for RAE Evaluation of exemption application in cooperation with AEEG and ERE, design of Market Test guidelines, to approve market test notice No official information Licensed as an independent natural gas system Aug (regas. Capacity 2.6 bcma) Open, pending decision of the Greek State assigning usage rights

29 Summary & Way Forward TPA rules for Revythousa have been in force for two years Although this is a comparatively short period of time, the market has responded positively and most actively. Terminal utilisation has increased by over 40% Significant capacity is still available at the terminal to be used in the domestic and the regional markets.

30 Dr. Katerina Sardi Head, Energy Planning and International Affairs Regulatory Authority for Energy 132 Pireos str., Athens Tel.: Fax.: RAE 132 Pireos Str Athens, Greece Tel: Fax: info@rae.gr