With this letter we like to inform you about the procedure that is in place regarding the upcoming release for Nomflex Service for Q

Transcription

1 TSC TSC met RNB TTF Adm Gasunie Transport Services B.V. P.O. Box AD Groningen The Netherlands T F E info@gastransport.nl Trade register Groningen Date Telephone 7 February 2013 (050) Our reference LTF Your reference Subject Nomflex Service Q Dear Madam or Sir, With this letter we like to inform you about the procedure that is in place regarding the upcoming release for Nomflex Service for Q Nomflex Service One unit of Nomflex consists of: a. 1 m 3 (n,35,17)/h production capacity, b. 1 m 3 (n,35,17)/h injection capacity, c. 168 m 3 (n,35,17) buffervolume. The size of the buffer volume reflects 7*24 hours of production or injection. The working volume of the buffer is set at half of the buffer volume Pricing The tariffs will be based on the offers made by the suppliers with whom GTS has signed a master agreement for There are two components of the tariffs that will be established by the NMa: the transport capacity component for the storage entry and exit and the GTS surcharge. The GTS tariff reflects the underlying costs of purchase and handling by GTS. The surcharge for 2013 has been established by the NMa at 2,29 /m3 (n;35,17)/hr/quarter. The Nomflex Service offers include a Contractual Exceeding Penalty (Excess Usage Penalty plus a Mark to Market Compensation) that is applicable in case the actual Nomflex buffer volume exceeds the contractual limits (see enclosure 3). Procedure release Nomflex Service Q The releasing procedure is as follows; in the first phase shippers can request Nomflex Service for Q If suppliers have offered enough to cover the requests from the shippers, the requests will be fully awarded and the release will be finished. Only when there are not sufficient offers in phase 1, phase 2 will start. Both phases will take place within a two week timeframe. Page 1 of 7

2 If Nomflex Service for Q is offered to GTS the sales procedure is as follows: 1. Amounts and prices will be published on the GTS website before Monday 18 February 2013, 10:00 LET. Shipper can submit a booking request by sending the attached booking form (Enclosure 2), completed in all particulars, by fax ( ) to GTS by Wednesday 20 February 2013, 13:00 LET at the latest. Requests received by GTS any later than the aforementioned deadline will not be considered. GTS will notify shippers before Wednesday 20 February 2013, 17:00 LET, which part of their request has been awarded. 2. In case the sum of the requests of all shippers exceeds the offered capacity by the suppliers, GTS will contact the suppliers and ask for an additional bid in order to meet the requirements of the shippers. In case of a positive reply GTS will inform the shippers before Wednesday 27 February 2013 about the outcome of this request. In case the price of the additional bid is equal or lower than the highest price for the Service in phase 1, the remaining requests will automatically be awarded to the requesting shippers. In case the price of the additional bid is higher, the individual shipper will have the right to partly or entirely reject the additional offer at the latest until Thursday 28 February 2013, 16:00 LET. Only requests submitted by means of the attached form (Enclosure 2), completed in all particulars, will be processed. Only one booking form per shipper per Service will be accepted by GTS. In case more than one form per Service is received by GTS, only the last complete booking form received by GTS before the deadline will be considered in the awarding process. Please note that the availability of the Services is limited. The Nomflex Service for Q2 will be awarded on the basis of a pro rata method. In Enclosure 1 the pro rata method is explained in more detail. If you have any questions regarding Nomflex Service or the booking process please contact our Customer Desk. Yours sincerely, GASUNIE TRANSPORT SERVICES B.V. René Schutte Manager Front Office Shipping & Grid Connections Enclosures: 1. Pro Rata Method 2. Booking Form Nomflex Q Nomflex penalty component Page 2 of 7

3 Enclosure 1 to Letter LTF PRO RATA METHOD In case more capacity is requested than available, a pro rata method of awarding capacity will be applied as follows: Each participating shipper makes a request for the desired maximum amount (M) of Nomflex. This maximum is limited to the total maximum available amount of Nomflex capacity in all tranches (at all prices). Furthermore, each shipper submits a request for the maximum desired quantity at each separate price level. If there is no scarcity each shipper will be awarded the desired maximum quantity at the lowest price level. In case of scarcity the available capacity at the lowest price level will be awarded pro rata. In subsequent tranches (price levels) each shipper participates for the maximum of - the difference between the requested maximum (M) and the awarded quantity at the lowest price (remaining request) - the requested quantity in this tranche This awarding process will be repeated until all available capacity has been awarded. Example: Nomflex is available at prices P1, P2 and P3 (where P1<P2<P3) in quantities of 600, 800 and 700, in total 2100 units. There are three participating shippers with the following requests: Shipper A Shipper B Shipper C Maximum (M) P P P P1 tranche: Shipper A receives 600/3600*600 = 100 (remaining request 500) Shipper B receives 900/3600*600 = 150 (remaining request 750) Shipper C receives 2100/3600*600 = 350 (remaining request 1750) P2 tranche: Shippers now take part for the maximum of their remaining request and the maximum request in this tranche. Shipper A takes part for a maximum of 500, shipper B for 600 (maximum tranche P2), shipper C for 1750, in total 2850 units. Page 3 of 7

4 Shipper A receives 500/2850*800 = 140 (in total 240, remaining request 260) Shipper B receives 600/2850*800 = 168 (in total 318, remaining request 582) Shipper C receives 1750/2850*800 = 491 (in total 841, remaining request 1259) P3 tranche: Shippers now take part for the maximum of their remaining request and the maximum request in this tranche. Shipper A takes part for a maximum of 200 (maximum tranche P3), shipper B for 400 (maximum tranche P3), shipper C for 1259, in total 1859 units. Shipper A receives 200/1859*700 = 75 (in total 315) Shipper B receives 400/1859*700 = 151 (in total 469) Shipper C receives 1259/1859*700 = 474 (in total 1315) Page 4 of 7

5 Enclosure 2 to Letter LTF BOOKING FORM NOMFLEX (Q2 2013) Period: up to and including By returning this form, completed in all particulars, by fax to GTS before the deadline the undersigned undertakes to book the specified amount of Nomflex under the standard conditions stated in Letter LTF 13.xxxx and Appendix 8 of the TSC or its successors. NAME SHIPPER :... PORTFOLIO CODE : GS... Maximum requested amount Nomflex.m 3 (n;35.17)/h Nomflex Price 1.m 3 (n;35.17)/h Nomflex Price 2 Nomflex Price 3 Nomflex Price 4 Nomflex Price 5 PLACE :... DATE :... SIGNATURE :... Please fax this form by Wednesday 20 February 2013 (13.00 LET) at the latest to GASUNIE TRANSPORT SERVICES B.V.: for the attention of Peter Schultz. Page 5 of 7

6 Enclosure 3 to Letter LTF Nomflex penalty component Contractual Exceeding Penalty = Excess Usage Penalty+ Mark to Market Compensation The two components of the Contractual Exceeding Penalty are defined as follows: I. Excess Usage Penalty = Volume Exposure x Price Penalty - The Volume_Exposure: the absolute gas volume in KWh determined for a Gas Day that is equal to the cumulative Hourly storage volume overshoot (when V stock, act > V stock, con equal to V stock, act - V stock, con for an Hour) plus the cumulative Hourly storage volume undershoot (when V stock, act < zero, equal to V stock, act for an Hour) for all Hours that the overshoot or undershoot occurs in that Gas Day; - The Price_Penalty: 20% of the Gas Price of the Gas Day in which the Volume Exposure occurs. This Excess Usage Penalty is chargeable for a maximum of 24 consecutive Hours; therefore this period may be spread over two Gas Days. If the cumulative Hourly storage volume overshoot plus the cumulative Hourly storage volume undershoot occurs for more than 24 consecutive Hours, the Excess Usage Penalty shall be reduced accordingly. II. Mark to Market Compensation = Volume_Exposure x Price_Exposure x Percentage_MtMC - The Mark to Market Compensation is only chargeable for the Hours that an overshoot or undershoot of the Total Contracted Storage Volume occurs and the Bid Price Ladder is called. When these conditions are not met, the Mark to Market Compensation is zero. - The Volume_Exposure: as defined above. - The Price_Exposure: a gas price in /kwh that equals the absolute difference between the highest absolute Bid Price Ladder price called for on that Gas Day and the Gas Price for that Gas Day. Page 6 of 7

7 Percentage_MtMC: 100% when an undershoot or overshoot occurs for one single Hour; 50% when an overshoot or undershoot occurs for the following two to four consecutive Hours; and 20% when an overshoot or undershoot occurs for the following five or more consecutive Hours. This period may be spread over more than one Gas Day. Gas Day(s): means a period commencing at hours LET on any calendar day and ending at hours LET on the following calendar day, and the date of any Gas Day shall be the date of its beginning as herein defined. Gas Price: refers to neutrale gasprijs Contracted Injection Capacity (send-in capacity) or C in, con : means the maximum quantity of Gas expressed in kwh, which can be injected as stated in the contract data sheet. Contracted Production Capacity (send-out capacity) or C out, con : means the maximum quantity of Gas expressed in kwh, which can be produced as stated in the contract data sheet. Contracted Starting Volume or V start, con : means the contracted volume in stock at a Start Date expressed in kwh, as stated in the contract data sheet. Contracted Storage Volume or V stock, con : means the maximum volume expressed in kwh, which can be stored at any given time as stated in the contract data sheet. Page 7 of 7