Transcript H Cattoor

GTE
Interoperability, EASEE-gas
and LNG
Brussels, 15.11.2001
Henri Cattoor, Edigas Chairman
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GTE Interoperability
Working group reports
• pipeline
• LNG
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Pipeline Interoperability Issues
 Gas quality
 Communication Protocol
 Harmonisation
 Interconnections
 European Gas Industry Standard Board
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Gas Quality
 A delicate issue due to structural & historical
reasons
 Complete solution of quality differences would
involve significant investment & time
 It does not take “100 % free physical
movement
of gas” to achieve free commercial movement
of gas
 A large percentage of European gas trade
already
4
involves cross border flow : still valid for
GTE151101.ppt
Gas Quality
Communication protocol
GTE suggests a standardisation of
communication
via the adoption of the Edig@s standard.
Harmonisation
GTE favours the harmonisation of key
definitions
(e.g. gas day, gas year) and measurement units
Interconnections
GTE recommends a widespread use of
operational
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GTE151101.ppt
LNG section - Time Schedule
 Kick-off meeting : June 5th, 2001
 Report structure internal organisation :
June 5th, 2001
 Abstracts definitive index : June 30th,
2001
 Report : October, 2001
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EASEE-gas
Streamlining gas
business processes
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STREAMLINING GAS
BUSINESS PROCESSES
• Why the need ?
• The US example
• The European project
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WHY THE NEED ?
Before liberalisation
Few participants, stable and long lasting
relationships
After liberalisation
Many players, short lived and fast changing
relationships
Need to standardise transactional processes
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BUNDLED BUSINESS MODEL
Producer
Gas Merchant
LDC
End user
physical
contractual
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GENERIC CORE BUSINESS MODEL
commodity
Producer
Trader
Title transfer
hand over
capacity
Transporter
Shipper
hand over
title transfer
End user
physical
Supplier
contractual
notional
supply base
management
commodity
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THE US EXAMPLE
Gas Industry Standards Board
GISB
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THE US EXAMPLE
Gas Industry Standards Board
created in 1994 with a mission to :
“ develop and promote standards to simplify
and expand electronic communications and to
simplify and streamline business practices
that will lead to a seamless market place for
natural gas “
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THE US EXAMPLE
GISB structure
segments
members
• producers
12
• pipelines
44
• distributors
28
• end users
17
• services (incl. marketers)
49
Total
government (observer)
150
1
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AMERICAN (GISB) BUSINESS MODEL
Producer
Pipelines
Marketers &
other services
LDC
End user
physical
contractual
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THE US EXAMPLE
GISB structure
• Board of Directors
• Advisory Committee
• Executive Committee
- Working groups
• 3 staff
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THE US EXAMPLE
GISB General Policies
• balanced voting rules that :
- protect minorities
- promote consensus
• open to all
• partnership with government
• driven by volunteers
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THE US EXAMPLE
GISB achievements
7 years of existence :
• 400 business practices established
• 40 transactions standardised
• 5 model agreements
Transforming to include power
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THE EUROPEAN PROJECT
• Promoted by GTE and Edig@s
• Task Force
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THE EUROPEAN PROJECT
Promoted by GTE and Edig@s (1) :
• joint visit to GISB
• recommendation in GTE interoperability report
• proposed to Madrid Forum by GTE
• well accepted by the participants to the Forum
• supported by EU & CEER
• OGP, EFET and Eurogas invited to Task Force
(1)
Centrica, Distrigas, Gasunie, Gaz de France, Gazprom, Ruhrgas, SNAM, Statoil
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THE EUROPEAN PROJECT
Task Force participants
EFET
OGP
Eurogas
GTE
Edig@s
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THE EUROPEAN PROJECT
Task Force remit
• Defining the principles
• Setting up the organisation
• Adapt US example to liberalised European gas
scene
• Defining relationship with other organisations
• Started : October 2001
• Target : April 2002
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THE EUROPEAN PROJECT
Proposed name :
European
Association for
Streamlining of
Energy
Exchange
- gas
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THE EUROPEAN PROJECT
EASEE-gas
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THE EUROPEAN PROJECT
EASEE-gas mission statement
“To develop and promote common practices to
simplify and streamline business processes
that will lead to an efficient and effective
European Gas Market”
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THE EUROPEAN PROJECT
EASEE-gas basic principles
• Open, independent organisation
• Company based membership by segment
• Driven by volunteers
• Financed through membership fees
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GENERIC CORE BUSINESS MODEL
commodity
Producer
Trader
Title transfer
hand over
capacity
Transporter
Shipper
hand over
title transfer
End user
physical
Supplier
contractual
notional
supply base
management
commodity
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GENERIC COMPLETE BUSINESS MODEL
Non gas services
Gas services
Storage
Terminaling
Hub
etc.
physical
Core
Business
Partners
contractual
Legal
Finance
Software
etc.
notional
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INDICATIVE VOLUME CHAIN
0-300
0-300
Producers
100
Traders
100
Ship/Trans
50
50
End Users
Large accounts
50
Suppliers
Storage
10-20
End Users
Res. & Dom.
50
Suppliers
50
Ship/Trans
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