Natural gas transport contract Appendix B1: Rules for subscription and allocation on the Main Grid Version of 1st January 2016
Contents 1. DESCRIPTION OF THE CAPACITY OFFER ON THE MAIN GRID... 3 2. GENERAL RULES REGARDING SUBSCRIPTION REQUESTS... 3 3. SUBSCRIPTION OF CAPACITIES ON THE MAIN GRID... 4 3.1 Transport Transport Interconnection Points (PIR and PE)... 4 3.1.1 GRTgaz South/TIGF interconnection... 4 3.1.2 Pirineos VIP... 4 3.1.3 Procedure for returning capacities of one or more months... 5 3.2 At the storage interconnection points (PITS)... 5 3.3 At the exit points (PS)... 5 4. SECONDARY CAPACITIES MARKET... 7 4.1 Transfer arrangements... 7 4.1.1 Complete transfer... 7 4.1.2 Sale of the usage right... 8 4.2 Common arrangements... 8 4.3 Time frame for carrying out a capacity exchange on the TIGF grid... 8 5. LONG-TERM USE-IT-OR-LOSE-IT (LT-UIOLI) PRINCIPLE... 9 6. USE IT AND BUY IT (UBI) PRINCIPLE... 10 Natural gas transport contract Appendix B.1: Rules for subscription and allocation on the Main Grid 2
1. DESCRIPTION OF THE CAPACITY OFFER ON THE MAIN GRID The daily capacities marketed on the main grid relate to the entries into the transmission network (PE), the exits to the regional grid (PS), the exits to the adjacent grids (PIR) and the interconnections with storage (PITS). They can be subscribed for a day, a month (or several months at the PIR and PE), one or more seasons, or one or more years. From 1 st March 2014, capacities sold by TIGF at the Pirineos virtual interconnection point are subject to the CAM (Capacity Allocation Mechanisms) network rules: the maturities of products sold are henceforth annual, quarterly, monthly and daily. Existing (thus already subscribed) capacities remain valid until they expire, in accordance with the CRE deliberation of 29 January 2014 deciding on changes in prices for the use of natural gas transmission systems from 1 st April 2014 (paragraph VI.B.4). TIGF sells capacities in the following order of priority: - Firm technical capacities made available by TIGF, - Capacities offered by shippers under article 3.1.4, - Capacities retroceded by shippers under article 5, - Additional capacities, - Interruptible capacities. 2. GENERAL RULES REGARDING SUBSCRIPTION REQUESTS Rule 1 All subscription requests must be made through the TETRA subscription site at the disposal of Shippers, apart from capacities auctioned on the PRISMA platform, capacities returned to the PITTs, daily capacities at the PITSs and PITDs, and hourly capacities at the PICs that are different from the reference hourly capacities. Rule 2 Requests made via TETRA are binding on the Shippers. To be taken into account by TIGF, the subscription request must include: a) The grid in question (Main or Regional) b) The daily capacity value, c) The transport grid point in question (point type, point code and point description) d) The period of validity (start and end dates) e) The nature of the capacity (Firm or Interruptible), f) The frequency (annual, multi-annual, quarterly, multi-quarter, monthly, multi-month, daily). Rule 3 For subscription requests with an annual, multi-year, quarterly or multi-quarter, monthly or multi-month frequency on the main or regional grid, TIGF undertakes to respond within 5 business days. Rule 4 For a subscription request with a daily frequency, TIGF undertakes to respond: - Within five (5) business days if a subscription request is submitted between the 21st Day of Month M-1 and D-6, Natural gas transport contract Appendix B.1: Rules for subscription and allocation on the Main Grid 3
Rule 5 - At the latest by 6:30 PM on D-1 if a subscription request is submitted between D-6 and 2.30 PM on D-1. TIGF accepts capacity reservations without a Transport contract, provided that such a contract is in effect on the earliest of the following dates: Rule 6-15 business days before the beginning of the validity period for the capacities. - 20 business days after the reservation, whether it is made within the general framework of the First Come, First Served rule or after an allocation at the end of an Open Subscription Period (OSP). If the Transport contract does not take effect within the time frames specified in the previous rule, the reservation is cancelled and the corresponding capacities are again made available to Shippers. 3. SUBSCRIPTION OF CAPACITIES ON THE MAIN GRID 3.1 Transport Transport Interconnection Points (PIR and PE) On its web site (www.tigf.fr), TIGF publishes: the marketable, subscribed and available firm and interruptible capacities at the PE and PIR, over a period of 18 sliding months marketable capacities returned, capacities returned and reallocated, available returned capacities, for illustrative purposes, the firm marketable capacities at the PE and PIR over 10 years This publication is updated as the need arises. 3.1.1 GRTgaz South/TIGF interconnection The GRTgaz South/TIGF PITT disappeared on 1 st April 2015 with the creation of the Trading Region South. Existing capacities already allocated in previous OSPs and valid at this point thus lapse as of this date. 3.1.2 Pirineos VIP On 1 st October 2014, the PITT Larrau and Biriatou PITTs were merged in commercial terms to form a single virtual interconnection point called "Pirineos". All capacities at the Larrau PITT and the Biriatou PITT were automatically transferred to the Pirineos PITT on 1 st October 2014, in accordance with CRE deliberation of 13 February 2014 deciding on the staggered implementation of the European gas networks code regarding allocation of gas transmission capacities at interconnection points between entry-exit zones. Natural gas transport contract Appendix B.1: Rules for subscription and allocation on the Main Grid 4
ENAGAS and TIGF sell capacities in a coordinated manner to the Pirineos PITT in accordance with the rules set out in Appendix E.1 " Procedure for marketing capacities at the Pirineos virtual interconnection point". 3.1.3 Procedure for returning capacities of one or more months TIGF accepts any request for returning Firm Capacity of one or more months held by the shipper. The request must be e-mailed to backoffice-atr@tigf.fr ten (10) calendar days before the beginning of the monthly capacity subscriptions marketing period. The request for returning Firm Capacity specifies the interconnection point in question, the quantity and the start and end dates, and must be made by a person duly empowered for the purpose. Requests for return of capacity will be handled in the order in which they are received. A capacity return request does not discharge the Shipper of its rights and obligations under this Contract. The portion of the capacity covered by the return request that has been allocated to shippers marketing Firm Monthly Capacities is deemed a Returned Capacity. The Shipper assigns all its rights and obligations regarding the Returned Capacity, apart from the obligation to pay the price differential, if positive, between the amount owing by the Shipper for this Returned Capacity if it had not been returned and the amount owing by shippers in respect of this Returned Capacity. Where applicable, TIGF informs the Shipper three (3) Business Days after the end of the sales period for Returned Capacities. The Shipper retains its rights and obligations under the Contract until the capacity has been allocated. 3.2 At the storage interconnection points (PITS) Rule 1 A Shipper can benefit from Firm capacities that are: annual, multi-year and daily; according to the provisions shown below. Rule 2 TIGF automatically allocates the annual capacity at the PITS-E (respectively at the PITS-L) that matches the maximum withdrawal (or injection) capacity of the Storage Contract held by the Shipper. These capacities are modified with each modification of the Storage Contract. Rule 3 For capacities whose frequency is daily that start on day D, subscription requests must be made between the twenty-first (21) day of Month M-1 and noon (12.00) on Day D-1. Rule 4 Pursuant to arrangements made during CRE deliberations on 29 January 2014, quarterly and monthly capacities can be sold on the initiative of the storage facility operator. 3.3 At the exit points (PS) Natural gas transport contract Appendix B.1: Rules for subscription and allocation on the Main Grid 5
The rate rules for the usage of the TIGF grid indicate that: Each exit zone from the main TIGF grid is defined by all of the delivery points attached to it. For each Shipper and in each exit zone, the firm annual subscription for exit capacity from the main grid must be greater than or equal to the sum of the firm annual subscriptions for delivery capacity in this exit zone. Consequently: Rule 1 At the Exit Point, TIGF automatically allocates, to each Shipper, a quantity equal to the sum of the firm subscriptions made by the Shipper or sold to the Shipper for an annual or longer period at the Delivery Points attached to this Exit Point. Rule 2 For a PITD (Transmission/Distribution Interconnection Point): If the firm annual subscription is modified at a Transmission/Distribution Interconnection Point, the firm subscription at the PS to which this Transmission/Distribution Interconnection Point is attached will be automatically adjusted by TIGF, in compliance with the new firm subscription at this Transmission/Distribution Interconnection Point. For a firm monthly subscription at the Transmission/Distribution Interconnection Point, the firm monthly subscription at the PS to which this Transmission/Distribution Interconnection Point is attached will be automatically adjusted by TIGF, in compliance with the new firm monthly subscription at this Transmission/Distribution Interconnection Point. For a PIC: (Consumer Interconnection Point) If the firm annual subscription is modified at a PIC, the firm subscription at the PS to which this PIC is attached will be automatically adjusted by TIGF, in compliance with the new firm subscription at this PIC. Rule 3 In case of a firm monthly or daily subscription at the PLs, the firm subscription at the PSs must be made by the Shipper on TETRA in compliance with the new firm subscription at the PL, in keeping with the time frames indicated in the present paragraph s rule 6. Rule 4 If it wishes to obtain capacities in addition to the ones anticipated in rule 1, a Shipper can request a subscription of capacities at the PS according to the time frames indicated in rule 6 in this paragraph. Rule 5 Firm: annual, multi-year, monthly and daily; Interruptible: daily No interruptible annual or monthly capacity can be marketed at the main grid exit point. Rule 6 For capacities for which the frequency is: Annual or multi-year starting on the 1st day of a month M of year N, subscription requests must be made no later than the 20 th of month M-1. Quarterly starting on the 1 st day of a month M, subscription requests must be made no later than the 20 th of month M-1. Natural gas transport contract Appendix B.1: Rules for subscription and allocation on the Main Grid 6
Monthly starting on the first day of month M, subscription requests must be made between the 1 st and the 20 th day of month M-1 inclusive. Daily starting on day D, subscription requests must be made between the twenty-first (21) day of Month M-1 and 2.30 PM on Day D-1. 4. SECONDARY CAPACITIES MARKET TIGF offers Shippers that have signed a Transport Contract with TIGF the option of buying or selling multi-year, annual, multi-season, seasonal, quarterly, monthly and daily capacities, on the secondary market at the PITTEs and PITTLs (excluding the Transport/Storage Interconnection Point). The Shipper can sell subscribed capacities to another Shipper having a valid Transport Contract, subject to the following provisions: A. Usage right, B. Complete sale For Complete Sales, transactions are signed on a bilateral basis (private contract), before the deadline. For Sales of Usage Rights, transactions are made unilaterally, but while so informing the counterparty. Capacities available for sale include Entry or Exit capacities, Firm or interruptible at the Network Interconnection Points (Pirineos PITT). The practical arrangements for selling capacities at the Pirineos PITT are describe in Appendix E.1 "Procedure for marketing capacities at the Pirineos virtual interconnection point". 4.1 Transfer arrangements 4.1.1 Complete transfer When the same concerns complete or partial annual seasonal, quarterly or monthly subscriptions, via a complete number of calendar months, the sale is termed "complete": the TNO transfers the rights and obligations for the Subscribed Capacities to the acquiring Shipper, including the payment of the Price. As such, the acquiring Shipper will have to validate the sale request prepared by the transferor. For a complete sale, the transferring Shipper provides the TNO with a capacity sale request entered in TETRA, specifying: The Network Interconnection Point in question, The identity of the counterparty acquiring the capacity, The Daily Entry or Exit Capacity (MWh/d at 0 C) transferred, The starting and ending dates of the transfer, The Nature (Firm or interruptible) of the transferred capacity, The frequency of the transferred capacity (annual, seasonal, quarterly, monthly). Transactions are initiated by the transferring Shipper who enters its request in TETRA; the Shipper (assignee) and the Transmission Network Operator are so informed, the Shipper (assignee) must then either approve or refuse the transfer. Natural gas transport contract Appendix B.1: Rules for subscription and allocation on the Main Grid 7
Daily subscribed capacities cannot be the subject of a complete capacity sale. 4.1.2 Sale of the usage right A sale is said to relate to a usage right when the transfer of the assignor Shipper s capacity to the assignee Shipper does not result in the transfer of the Price s payment. Sales of usage right concern all frequencies and periods, except for complete annual transfers (annual capacity transferred for exactly one year). Usage right sales can therefore relate to the following capacities: 1. annual, one or more complete months or consecutive days, for a period of less than one year, 2. seasonal, for periods of one or more complete months or consecutive days, 3. quarterly, for exact periods of one or more quarters, or one or more complete months or consecutive days, 4. monthly, for a duration of one or several complete months or consecutive days, 5. daily, for a duration of one day or several consecutive days. For a usage right sale, the assignor Shipper uses TETRA to enter a capacity sale request, while stipulating: The Network Interconnection Point in question, The counterparty benefiting from the capacity, The Daily Entry or Exit Capacity (MWh/d at 0 C) transferred, The starting and ending dates, The Nature (Firm or interruptible) of the transferred capacity. The sale request submitted by the assignor Shipper will simply be declared to the assignee Shipper by the TNO, though it requires no validation by the latter. 4.2 Common arrangements The TNO undertakes to respond to a capacity sale request within three (3) business days of receipt thereof. Capacity sale requests, confirmation of the sales by the acquiring Shipper as well as responses from the TNO are made via the TNO s TETRA Internet site, and should the latter be unavailable, by e-mail or fax. Subject to a confirmation from the counterparty in the event of a complete sale, and within the established time frames, the TNO accepts capacity sale requests. At the Pirineos interconnection, a procedure common to TIGF and ENAGAS handles grouped transfers of capacities (see Appendix E.1 "Procedure for marketing capacities at the Pirineos virtual interconnection point"). 4.3 Time frame for carrying out a capacity exchange on the TIGF grid Natural gas transport contract Appendix B.1: Rules for subscription and allocation on the Main Grid 8
Until 1 PM on D-1 for an exchange relating to a single day D. Until 1 PM on D-5 for an exchange relating to any other period that begins on a day D of a month M. Here is a recap diagram of the types of sales per product: 5. LONG-TERM USE-IT-OR-LOSE-IT (LT-UIOLI) PRINCIPLE TIGF can implement a LT-UIOLI procedure, the purpose of which is to provide shippers with subscribed capacities unused by one or more shippers at the interconnection points. The LT-UIOLI procedure can be implemented if the following conditions are met: 1. For two successive periods of six (6) consecutive Months, starting on the first (1 st ) of October or the first (1 st ) of April, the Daily Scheduled Quantities of withdrawal (or delivery) for the Shipper at an Interconnection point are on average less than eighty percent (80%) of the Daily Entry (Exit) Capacity subscribed by the Shipper according to Interconnection point for a period greater than or equal to one Natural gas transport contract Appendix B.1: Rules for subscription and allocation on the Main Grid 9
year that has not been sold to another shipper under the Contract or returned pursuant to article 3.1.4 above; 2. TIGF has not been able to satisfy at least one duly justified request from another shipper for an annual subscription for a Daily Entry (Exit) Capacity according to Network Interconnection Point. Further to a request from a shipper under the conditions set out in paragraph 2 above, and as provided for by paragraph 1 above, TIGF checks whether one or more shippers are likely to retrocede Daily Entry (Exit) Capacity according to Interconnection point. TIGF informs the Energy Regulatory Commission of the situation. If the Shipper is affected by the LT-UIOLI procedure, TIGF notifies to the Shipper concerned a maximum retrocession request for all or part of the Daily Entry (Exit) Capacity at the Interconnection point subscribed by the Shipper. The Shipper, if affected by the LT-UIOLI procedure, undertakes where applicable to justify under-use of its subscribed capacities within ten (10) Business Days of TIGF's notification of the maximum retrocession request. TIGF then forwards this justification to the Energy Regulatory Commission. Should the Energy Regulatory Commission decide to implement the LT-UIOLI procedure for the Shipper, TIGF then notifies to the Shipper a final retrocession request on the basis of the Energy Regulatory Commission's decision. The portion of the capacity covered by the final retrocession request that has been allocated to shippers marketing Firm Capacities at the Network Interconnection Point is deemed a Returned Capacity. The Shipper assigns all its rights and obligations regarding the Returned Capacity, apart from the obligation to pay the price differential, if positive, between the amount owing by the Shipper for this Returned Capacity if it had not been returned and the amount owing by shippers in respect of this Returned Capacity. Where applicable, TIGF informs the Shipper of the quantities of Returned Capacities three (3) Business Days after the end of the corresponding sales period. The Shipper retains its rights and obligations under the Contract until the capacity has been allocated. 6. USE IT AND BUY IT (UBI) PRINCIPLE As soon as the UBI system is in place, the following rules apply: Rule 1 The Use-It-and-Buy-It (UBI) offer allows a Shipper to request additional capacities over and above its subscriptions (firm and interruptible). These capacities can be allocated to it (in whole or in part) if another Shipper does not use all of its capacities on a given day. The UBI offer is available when at least 98% of the total firm capacity has been subscribed. The Shipper asks for this UBI capacity by means of notifications, by notifying over and above its rights: the difference between the notification and the subscribed capacity is considered to be a UBI request. Rule 2 The following points are concerned by the UBI offer: Entry points: Pirineos. Natural gas transport contract Appendix B.1: Rules for subscription and allocation on the Main Grid 10
Exit points: Pirineos. The UBI offer is only offered in the physical (or forward) direction of the flow. The UBI service does not exist for the opposite direction. The physical direction is determined by the algebraic sum of the notifications carried out at these points (the incoming notifications having a positive sign, and the outgoing nominations having a negative sign). Rule 3 Should no further firm daily capacity be available (including capacity reduction period), the capacities reserved by a Shipper for annual, seasonal and monthly subscriptions not notified the previous day can be allocated by TIGF to other Shippers present at this point and that have made a request for UBI capacities. This request is considered equal to the difference between the Shipper s actual notification and the rights that it holds. Rule 4 The Shipper originally holding the capacity retains the right to carry out re-notifications that have priority relative to the newly allocated capacity. Consequently, the UBI allocated capacities are interruptible. Rule 5 Only notifications in excess of rights that are made between 2 PM the day before day D and 3 AM on day D are deemed UBI capacity requests for day D. Should it not be possible to completely deliver the UBI requested capacities, the capacities are allocated in proportion to the requests received. Rule 6 When UBI requests are handled on D-1 for D, the capacities are attributed in proportion to the requests. With each re-notification/rescheduling cycle, each Shipper can recoup its subscribed capacity. Consequently, on D-1 a Shipper cannot be guaranteed a UBI capacity it has requested for day D. Rule 7 When UBI requests are handled intra-d, the following principle applies: a Shipper can recoup its reserved capacity, within the limits of the intra-d UBI capacities already allocated. The UBI capacities already allocated on a proportional basis are taken into account. Once day D begins, A Shipper that has made a notification greater than its subscribed capacity (and has therefore become a UBI requester ) may not make an intra-day re-notification of less than its subscribed capacity (which would then make it a UBI assignor ) Symmetrically, a Shipper that is a UBI assignor cannot become a UBI requester : it cannot carry out an intra-day re-notification greater than its subscribed capacity. Rule 8 The available UBI capacities are published on the site every day. Quantified example 1: The Shipper has not subscribed any capacity at the point in question. Natural gas transport contract Appendix B.1: Rules for subscription and allocation on the Main Grid 11
A Shipper requests 240 MWh/d of UBI capacity at 6 AM in intra-d. In the 1st hour it is assigned 1/24 x 240 MWh/d = 10 MWh/d. If it maintains its request for 240 MWh/d for 8 hours, at 2 pm it will already have used 80 MWh/d of UBI capacity:. If at 2 pm it requests MWh/d, it will already have used 80 MWh/d of UBI capacity: its allocated UBI capacity cannot drop below the UBI capacity that has been used, prorated to past hours. Quantified example 2: The Shipper has subscribed for 100 MWh/d of capacity at the point in question. For the first 8 hours of the day, the Shipper notifies 124 MWh/d. It thus requests 24 MWh/d of UBI capacity. It is therefore allocated 24/24 = 1 MWh/d of UBI capacity for each hour that has passed. At 2 PM, it will therefore already have used 8 MWh/D of UBI capacity. At 2 PM, it notifies 80 MWh/d, which is therefore below its subscribed capacity. It is then potentially an UBI assignor. However, its used UBI capacity is still 8 MWh/d and accordingly its assigned UBI capacity is 8 MWh/d. This is the value recorded on its capacity form. Natural gas transport contract Appendix B.1: Rules for subscription and allocation on the Main Grid 12