The Baltic Pipe Project Open Season Process Julie Frost Szpilman Klassificering: 1
Agenda Presentation of the Baltic Pipe Project Presentation of the planned Open Season Process Latest news of Tyra 2
The Baltic Pipe Project GAZ-SYSTEM and Energinet.dk will investigate the possibilities for construction of the Baltic Pipe Project in order to export gas from Norway to Poland via Denmark The project consist of the following main parts: A. Connection to the Norwegian gas system B. Onshore enhancement of the Danish gas infrastructure C. Compressor station located on Danish shore D. Offshore pipeline between Denmark and Poland including receiving terminal and connection to existing Polish gas infrastructure 3
Purpose The project aims at creating a new supply corridor for gas to the EU gas market and thereby achieving three main goals: Integrating the Danish-Swedish and Polish gas markets by means of supply competition and bidirectional trading with the aim of ensuring increased price convergence. Strengthening regional security of supply by providing access to Norwegian gas for the Danish-Swedish and Polish gas markets and additionally for the markets in the wider Central and Eastern Europe. Further increase the load-factor of existing infrastructure in order to reduce tariffs to the benefit of users of the infrastructure. 4
Feasibility Study supported by EU CEF Energinet.dk and GAZ-SYSTEM S.A. are currently conducting a study on the feasibility of the envisaged project. The feasibility study is to test the feasibility of the project from a commercial and technical point of view and provide guidance for the potential future implementation of the project. Conclusions of the study are expected by the end of 2016 5
Time Schedule for the Baltic Pipe Project Baltic Pipe 2016 2017 2018 2019 2020 2021 2022 Feasibility study OS information Concept study BC approval Inv. decision ( 4) FEED study Tender process Construction Ready for first gas 10-01-2017 6
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Disclamer All preparation of the rules and materials for the Open Season 2017 are taking place in close dialogue with GAZ-SYSTEM In the same manner, process, rules and other relevant materials for the Open Season 2017 are taking place in close dialogue with the Danish NRA, DERA The process is based on relevant EU legislation including soft laws. Moreover, DERA has accepted that Energinet.dk does not need to apply the method as long as we follow existing laws The process shall be transparent and may not discriminate any The final open season procedure may therefore differ from the procedure described in these slides 8
Main parameters Relevant points: Point: ENTRY Denmark (Gassled/Energinet.dk) IP: EXIT Baltic Pipe/ENTRY PL DK-PL (Energinet.dk/GAZ-SYSTEM) IP: ENTRY Baltic Pipe/EXIT PL PL-DK (Energinet.dk/GAZ-SYSTEM) Contract length in line with current CAM NC: 15 gas years Capacity: 90 per cent of available capacity 10 per cent for short term Start of the service: 1 Oct 2022 gas year (to be confirmed in the OtPprocess) Type of Capacity: Firm, unbundled (NO-DK) Firm, bundled (DK-PL) Firm, bundled (PL-DK) Capacity to be offered during the OS: Up to 12,780,900 kwh/h (NO-DK) Up to 12,069,900 kwh/h (DK-PL) Up to 3 bcm/a (PL-DK) Way of allocation: Phase 1: OTP / Submission of the binding bids Phase 2: Final binding bids. If overdemand an allocation mechanism will be used to allocate the capacity 9
Time schedule for the Open Season Process Open Season Okt. 2016 Nov. 2016 Dec. 2016 Jan. 2016 Feb. 2017 Mar. 2017 Apr. 2017 Maj 2017 Jun. 2017 Preparatory work with GS Publication of model paper Market consultation of OS Rules Finalised feasibility study OS Rules Order to Proceed Update of OS Rules First concept study results Binding auction/allocation phase 10
Invitation Dear Shipper Energinet.dk and Gas Transmission Operator GAZ-SYSTEM S.A. would like to provide information to the interested Shippers about the planned Open Season process for Baltic Pipe Project (NO-DK-PL). The meeting will take place 8 th of December from 9 am to 12 am at the location of Energinet.dk in Denmark (Copenhagen, Ballerup). An agenda will be distributed later. Please be aware that Energinet.dk will still hold its already announced Shippers Forum in the afternoon after the lunch 1 pm. A specific invitation to the Shippers Forum will be sent in a separate email for all shippers registered at Energinet.dk. To register to the Information meeting, please send an email to: openseason2017@energinet.dk and to openseason@gaz-system.pl no later than the 4th of December. Please state the information (name, company and e-mail) of all the participants. Please submit your confirmation in English. Kind regards Pederstrupvej 76 2750 Ballerup +4570102244 www.energinet.dk 11
What are the elements in the OS process? Open Season Mechanism for collecting long-term investment signals for new capacity from the market. In a Open Season, a shipper signs a long-term contract that totally or partially secures the economy of the project. Order to Proceed An instrument that makes it possible to collect a binding commitment from one or more shippers early in the Open Season process that shows that the shippers are willing to buy long-term capacity in the coming expansion of the transmission system. 12
Why an OtP for this project? The OtP is necessary in order to meet the market demand for the capacity as of 1 October 2022. If an OtP is not received, the necessary analysis and planning earlier in the project cannot be initiated in time to reach the above deadline To secure that the costs for starting up the analysis early are covered, if no binding bid is provided from the OtP bidder in the binding phase of the Open Season The project will require that the total amount requested from the market in the OtP must be above a certain threshold to start up the next phase of the technical analysis To start optimising the projects economy and technic 13
News regarding the future of Tyra Energinet.dk expects news about the future for Tyra Q1 2017 Energinet.dk doesn t know more than what is published in the news http://politiken.dk/indland/ec E3481941/maersksultimatum-til-staten-mindreskat-eller-vi-lukker-forgassen/ 14