Sales Prospectus 2011 Gasunie Zuidwending Gas Storage

Transcription

1 Sales Prospectus 2011 Gasunie Zuidwending Gas Storage - Storage bundles available - Expansion possible

2 Flexible gas storage at the heart of the orthwest European Gas Roundabout Introduction This document provides a general introduction to the Gasunie Zuidwending gas storage facility and is intended to inform the market of flexibility services available from 2014 based on the facilities currently installed. Furthermore, the document informs the market of expansion possibilities for additional flexibility services based on facilities to be installed in the future. Gasunie Zuidwending wishes to establish the level of interest for expansion of injection, withdrawal and working gas volume capacity from If market interest is proven, additional services may be offered within an Open Season in the course of storage became operational on 1 January, 2011 after completion of the first phase: the four caverns and the gas facilities. Realisation of a fifth cavern, along with installation of additional injection and production capacity started in 2010; the additional capacity and volume will become available early in The majority of the capacity has been contracted by launching customers; remaining capacity is available on a first-come, first-served basis. If required by the market, Gasunie Zuidwending gas storage can be expanded further. Investments can be made for additional injection and production, available as of For additional volume, a sixth cavern can be ready in Capacity Expansion possibilities Available: First come, first served Launching customers Time Figure 1: Schematic illustration of current and indicative Gasunie Zuidwending gas storage services atural gas will continue to make up an important component of the energy mix of the future. However, in combination with a projected growth in demand for natural gas, longer transport distances, increased need for intermittency capacity, and with declining pressure in existing gas fields, it has become increasingly difficult to respond quickly to temporary peaks in demand and uncertainties in supply. It is therefore essential for companies engaged in trade, transport and distribution of natural gas to have ready access to flexible capacity so that market parties can remain assured of a safe and constant natural gas supply. In this respect, gas storage is an important instrument. Gasunie Zuidwending B.V. offers firm flexibility services in combined units of injection capacity, withdrawal capacity and working gas volume to national and international parties on a non-discriminatory basis. The Standard Bundle Unit marketed is 0.75:1:175. However, bundle ratios may be subject to adjustments according to client needs; for example, a 1000-hour bundle is also possible. As such, Gasunie Zuidwending holds the flexible gas stocks needed by the market. The tariffs and capacity-allocation mechanisms applied are non-discriminatory, objective and transparent. Gasunie Zuidwending B.V. was established by.v. ederlandse Gasunie in 2006 and acts as an independent storage system operator in The etherlands as the owner and operator of the Gasunie Zuidwending gas storage. The gas 2

3 Gasunie Zuidwending The Gasunie Zuidwending gas storage is located centrally in the largest Euro-continental hub and is directly connected to the TTF market area. The quality of the gas stored in the caverns is of low calorific value. Quality conversion is socialised by the grid operator Gas Transport Services within the adjacent national gas transport network to which Gasunie Zuidwending is connected. In essence, this means that the storage facility stores energy decoupled from physical quality specifications. Services Gasunie Zuidwending B.V. offers its customers flexible gas storage at the heart of the orthwest European Gas Roundabout. The flexibility services are offered to market players on a first-come, first-served basis and are subject to Third Party Access. With this document Gasunie Zuidwending B.V. intends to inform Gasunie the Zuidwending market of flexibility B.V. has services the available following from flexibility 2014: 0.7 services GWh/hour available send-in from 2014: capacity, 1.5 GWh/hour send-out capacity and 660 GWh working gas volume 1. From 0.7 GWh/hour 2016 the available send-in capacity amounts to 1.3 GWh/hour send-in 1.5 GWh/hour capacity send-out 6.3 GWh/hour capacitysend-out capacity and 1200 GWhme. 660 working gas volume 1 Furthermore, this document intends to inform the market of expansion possibilities for additional short-term flexibility services. Gasunie Zuidwending wishes to establish the level of interest for expansion of injection, withdrawal and working gas volume capacity from Potential capacity that could be offered to the market amounts to 3.9 GWh/ hour send-in capacity, 3.9 GWh/hour send-out capacity, and 700 GWh working gas volume. Kindly note that capacity adjustments to the facility to meet clients specific needs require at least two and a half years; adjustments to realise additional volume (a new cavern) require at least four years. Gasunie Zuidwending offers firm flexibility services in combined units of injection capacity, withdrawal capacity and working gas volume ( Standard Bundle Units ). The standard bundle ratio offered is 0.75:1:175. The following flexibility services are available from 2016: 1.3 GWh/hour send-in capacity 6.3 GWh/hour send-out capacity 1200 GWh working gas volume. SBU's SBU's 0,75:1:175 KWh/h (x 1000) Contracted Available Potential Figure 2: Contracted, available and potential Standard Bundle Units with bundle ratio 0.75:1: GWh = 102,359 m 3 [n; 35.17] 3

4 Flexible gas storage at the heart of the orthwest European Gas Roundabout SBU's 2500 SBU's 0,5:1:1000 KWh/h (x 1000) Contracted Available Potential Figure 3: Available Bundle Units with bundle ratio 0.5: 1:1000 Gasunie Zuidwending can adjust the bundle ratio according to client needs. Send-in capacity, send-out capacity and working gas volume is available outside the Standard Bundle Unit as well as available and potential capacity. For example, a 0.5:1:1000 bundle can be realised if requested by the market. and Gasunie Zuidwending in particular, is an important instrument. The need of short-term flexibility services in the course of one year is shown in the graph below in relation to seasonal flexibility. pricing formula Gasunie Zuidwending B.V. has a set price for its services consisting of three separate elements: a pricing formula applied to the Standard Bundle Unit, a pricing formula applied to deviating bundles resulting from bundle ratio adjustments, a discount mechanism in relation to contract duration. For further information on the pricing formulas applied, please contact the Gasunie Zuidwending B.V. commercial team. The advantages of Gasunie Zuidwending gas storage in the portfolio Short-term flexibility Seasonal flexibility atural gas will continue to make up an important component of the future energy mix. However, in combination with a projected growth in demand for natural gas, longer transport distances, increased need for intermittency capacity and with declining pressure in existing gas fields, it has become increasingly difficult to respond quickly to temporary peaks in demand. It is therefore essential for companies engaged in trade, transport and distribution of natural gas to have ready access to flexible capacity so that market parties can remain assured of a safe and constant natural gas supply. In this respect, gas storage in general Short-term flexibility < 1 day 1 year Figure 4: Theoretical need for peak and short-term flexibility in the course of one year 4

5 Gasunie Zuidwending Figure 5: Withdrawal and injection rates for February 2011 with the gas day 22 February highlighted: theory matches reality! It is clear that both seasonal and short-term flexibility services are needed. Gasunie Zuidwending is a multi-cycle facility offering the within-day, day-ahead and week-ahead flexibility sought after by the market. Gasunie Zuidwending holds the flexible gas stocks needed to cater supply and demand imbalances; the flexibility service which it offers makes the facility unique in orthwest Europe. Below, the larger graph displays the withdrawal and injection rates for the month of February The smaller, highlighted graph, details the gas day of 22 February Together they show substantial activity at Gasunie Zuidwending and also confirm short-term flexibility needs; since the start date, market parties have made full use of the facility, giving Gasunie Zuidwending a good operational send-off. unit SO in Kwh/h/y Zuidwending The Gasunie Zuidwending gas storage is located centrally in the largest Euro-continental hub and is directly connected to the Title Transfer Facility (TTF) market area. The high injection and withdrawal rates enable quick adjustment of within-day supply and demand imbalances. The facility can therefore also play to market players advantage as a rapidly deployable instrument on the bidding ladder of the new Dutch balancing regime introduced on 1 April It also offers a complementary tool to upcoming intra-day gas exchange services, whereby it establishes itself not only as a day- and week-ahead service but also as a supplement to intensified market developments in within-day trading. Furthermore, when looking closer at the annual processing ability of the facility per Standard Bundle Unit (the theoretical maximum amount of KWh one can send out of the storage on a yearly basis per unit of send out and send in) it is the highest in the market and at a relatively low price. The result is the lowest average cost per processed KWh and the lowest spread for break even operation when comparing Gasunie Zuidwending with other gas storages. Gasunie Zuidwending proving itself a worthy competitor in the orthwest European Gas Roundabout! Processing capacity in Kwh per SBU per year Figure 6: When comparing processing capacity per Standard Bundle Unit, Gasunie Zuidwending stands out among other storages! 5

6 Flexible gas storage at the heart of the orthwest European Gas Roundabout Ellund ord Stream Groningen EL S BBL Berlijn Zuidwending Hannover L T Geplande uitbreidingen voedingsstation(s) [entry-punten] leiding Groningen-gas leiding Groningen-gas compressor- en mengstation leiding hoogcalorisch gas leiding hoogcalorisch gas compressorstation leiding laagcalorisch gas luchtscheidingsinstallatie mengstation leiding ontzwaveld gas compressorstation exportstation leiding stikstof T LG terminal installatie ondergrondse opslag S stikstofbuffer L installatie voor vloeibaar aardgas stikstofinjectie Figure 7: The Gas Transport Services grid; the location of Zuidwending is highlighted with a circle. Gasunie Zuidwending access to GTS grid The Zuidwending gas storage is located centrally in the Gas Transport Services grid near Veendam in the north of The etherlands. An availability check for transport capacity on the Gas Transport Services (GTS) grid, performed on 3 March, 2011 by Gasunie Zuidwending B.V. confirms available entry and exit transport capacity for the storage capacity offered in this brochure. For further information on grid access, please refer to the GTS website ( and the Transmission Service Conditions published for Please note that entry and exit capacity in the GTS system is not included. In order to transfer services from customers to their portfolios in the GTS system, customers require transport capacity. Transport capacity can be booked at the Gasunie Zuidwending storage flange in two ways: directly via GTS or through Gasunie Zuidwending B.V. through transfer. Customers can also make use of storage services offered by Gasunie Zuidwending B.V. on the Title Transfer Facility (TTF). Gasunie Zuidwending facilities Gasunie Zuidwending B.V. is the owner and operator of the Zuidwending gas storage, consisting of: 4 caverns (2014: +1; 2016 (indicative): +1) 2 tubings per cavern Low calorific gas value Maximum injection capacity amounting to 8 GWh/h ( GWh/h, extension possible up to 14 GWh/h) Maximum withdrawal capacity amounting to 16 GWh/h ( GWh/h, extension possible up to 21.5 GWh/h) Working gas volume amounting to 2,200 GWh (2014: GWh; 2016 (indicative): +700 GWh) Regulation The Gasunie Zuidwending gas storage facility has been developed, operated and maintained in compliance with all applicable laws and regulations. It offers reliable and efficient storage to secure an open market, with due regard to the environment. Furthermore, it offers independent storage services on a non-discriminatory basis to all infrastructure users that accommodate market demand. The tariffs and capacity-allocation mechanisms applied are non-discriminatory, objective and transparent. 6

7 Gasunie Zuidwending Marketing procedure and timeline This document sets out the storage capacity available from The capacity is readily offered to the market on a firstcome, first-served basis. Furthermore, this document sets out expansion possibilities for additional short-term flexibility services. Gasunie Zuidwending wishes to establish the level of interest for expansion of injection, withdrawal and working gas volume capacity from If market interest is proven, the services described may be offered within an Open Season. In the coming months, Gasunie Zuidwending B.V. will evaluate the feedback of interested parties and develop appropriate products. This includes adapting as far as possible the storage product and any further boundary conditions to the requested demand. Please be aware that it is at the sole discretion of Gasunie Zuidwending B.V. to decide to proceed with an Open Season. Further information and contacts Parties interested in using the flexibility services offered by Gasunie Zuidwending need to be acknowledged as a Zuidwending Customer. To obtain the status of a Zuidwending Customer an applicant must meet the following conditions: The applicant accepts the terms and conditions of the Gas Storage Cavern Agreement (GSCA) by signing the GSCA and therefore accepts all of terms and conditions stated therein; The applicant has proved to the satisfaction of Gasunie Zuidwending to be sufficiently creditworthy or has provided sufficient surety to the satisfaction of Gasunie Zuidwending; With respect to the nomination process, the message interaction between the applicant and Gasunie Zuidwending needs to be tested and stated correctly by Gasunie Zuidwending. Specific technical information concerning Edig@s messages and means of communication can be exchanged on request. About Gasunie Zuidwending Gasunie Zuidwending B.V. was established by.v. ederlandse Gasunie in 2006 in order to offer independent gas storage services to national and international parties so that they can fulfill short-term peaks in demand..v. ederlandse Gasunie is responsible for the maintenance of the installation. About.V.ederlandse Gasunie Gasunie is a European gas infrastructure company. The Gasunie network is among the largest high pressure gas pipeline grids in Europe, consisting of over 15,000 kilometers of pipeline in the etherlands and northern Germany, dozens of installations and approximately 1,300 gas receiving stations. The annual gas throughput totals approximately 125 billion cubic meters. The company serves the public interest in the markets in which it is active and works to create optimum value for its stakeholders. Gasunie is the first independent gas transport provider with a cross-border network in Europe. It offers transport services via its subsidiaries Gas Transport Services B.V. (GTS) in the etherlands and Gasunie Deutschland Transport Services GmbH in Germany. Gasunie also offers other services in the gas infrastructure field, including gas storage and LG facilities. In regard to underground gas storage, Gasunie has both the ambition and the capacity to expand its position in the orthwest European market as an independent supplier of gas storage services. Gasunie considers the wishes of its customers to be of prime importance and aims for the highest standards in safety, reliability, efficiency and sustainability. Due to the reliability and strategic location of the Gasunie network in relation to expanding international gas flows, the Gasunie network forms the core of what is called the orthwest European gas roundabout. For further information and documentation, please refer to or contact us: Mr. Robert Zwakenberg at +31 (0) or Mr. Reinalt ijboer at +31 (0) or Mr. Marcel Kerkhof at +31 (0) Gasunie Zuidwending B.V. P.O. Box AJ Groningen The etherlands T: +31 (0) F: +31 (0) E: info@gasuniezuidwending.nl View of the Gasunie Zuidwending facilities. From left to right: the glycol drying towers; preheating and pressure reduction trains; and compressor buildings and air coolers 7

8 Disclaimer Please read this statement carefully. The information provided in this sales prospect is governed by the terms and conditions set forth below. Gasunie Zuidwending B.V. has taken all reasonable steps to ensure that all of the information in the sales prospect was correct at the time of publication. Gasunie Zuidwending B.V. accepts no liability whatsoever for losses of any kind arising out of possible errors or omissions in this publication. All readers making use of the information in this document do so entirely at their own risk. All trademarks, logos and brands appearing in the proposition are the property of and are registered in the name of Gasunie Zuidwending B.V. o rights or licenses whatsoever are granted or may be derived from their reproduction of this document. Gasunie Zuidwending B.V. reserves the right to alter, amend, remove and update the contents of the sales prospect at any time. These terms and conditions are governed by Dutch law and are subject to Dutch jurisdiction.