Transcript AOB Spanish Hub Development

SPANISH HUB DEVELOPMENT
17th IG meeting
2nd November 2011
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BACKGROUND
Background
●
OTC natural gas trade in Spain has taken place since the beginning of the liberalisation process
triggered by the new regulatory framework (1998 Hydrocarbons Law transposing Directive
98/30/EC).
●
Gas exchanges take place in the transmission network, LNG plants and underground storages.
●
In 2005 Enagás implemented the exchange platform MS-ATR, connected to Enagás’ logistic system
SL-ATR. All transactions in the system are tracked by this platform.
●
While the volume already reached in late 2010 a monthly churn rate value of 2.8, such exchanges
are made without a public price.
GWh/month
UGS
100,000
0.5%
LNG
Transmission
Transmission
44,3%
44.3%
55,3%
55.3%
80,000
2010
Number of
exchanges
UGS
0.5%
60,000
Transmission
40,000
6.9%
LNG
92,6%
92.6%
20,000
Volume
exchanged
0
2
2010
Demanda de gas
Gas demand
Volumen intercambiado
Volume exchanged
CONTEXT
Context
The project is being developed consistently with:
●
The future vision of the European market operation integrated in the "Gas Target Model“, which
requires as a basis for the appropriate functioning of energy markets the interaction between virtual
exchange points “hubs", linked to balancing zones.
CEER Vision
“a set of entry/exit market zones with their own
virtual hubs connected through a limited number of
bundled capacity products identical all over the EU
and allocated via auctions”
LIQUID HUB
HUB-HUB EXCHANGE
E/E ZONE
“CEER vision for a European GTM”, 5th CEER GTM workshop, Viena - 14 September 2011
●
The FG on Balancing adopted by ACER on 18 October.
●
Changes foreseen to the Hydrocarbons Law in Spain to complete the transposition of Directive
2009/73/EC.
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BASIS FOR THE DEVELOPMENT
Basis
The following concepts are considered keys for the appropriate development and consolidation of
the Spanish hub:
•
Legal and technical requirements aligned and compatible with European trends through the
development of a hub which facilitates transactions between trading centers, taking into
account the three basic infrastructures: transmission system, LNG plants and underground
storages.
•
Services with a real added value for network users, so their input and implication is needed.
•
A single project and integrated which, in addition to the promotion group, will be open to
the participation of network users, consumers and other stakeholders, an aspect that will
facilitate its acceptance by the market.
•
Users will finance the design, organization and operation.
•
Requires the development and progressive adaptation of the national regulatory framework
in order to implement the European regulation.
•
Open, even from the beginning, to the integration of REN to advance the creation of the
Iberian gas market.
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CORPORATE STRUCTURE
Structure
INITIAL CORPORATE STRUCTURE
33% CAPITAL SHARE
 Network users
CAPITAL
INCREASE
33% CAPITAL SHARE
PROMOTION
GROUP
 Market operators
 Others
33% CAPITAL SHARE
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OBJECTIVE
Objective
This project constitutes a step forward in the creation of a Iberian Hub, considering as a priority the
promotion of liquidity in short-term transactions as a as well as its flexibility and transparency, seeking
a similar model to other European hubs.
The initial services offered and the value provided would include:
•
•
Services:

Standardized contracts.

Daily market for imbalance management.

Storage services, gas loaning and nominations.

Daily monitoring of guarantees and deposits.
Added value:

To attend a new flexible gas demand in order to facilitate the management of daily
imbalances.

To provide flexibility to the management of the system, taking into account the role of the
natural gas system in supporting intermittent power sources.

To put in value assets such as storages or IPs.

To provide a transparent reference price in the short term market.
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Thank you for your attention!
2nd November 2011
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