GTS P12000631\012rpt 1
Memorandum for Gas Transport Services
Date: 2nd May 2012
Transmission entry and exit tariffs at storage facilities in NW Europe
Scope of this report
GTS has asked ADL to review the levels of tariffs to exit from and re-enter to selected gas transmission systems in NW Europe, with the aim to discover whether tariffs at storage points are different from tariffs charged on the rest of the network. The countries and TSOs in question are:
Belgium – Fluxys.
Germany – Open Grid Europe, Gascade (formerly Wingas Transport), Thyssengas.
France – GRTgaz.
Great Britain – National Grid.
Note that we have excluded Ontras as its network is located on the eastern side of Germany and therefore a longer distance away from the Netherlands.
Our approach has been to identify the storage facilities in each network, gather brief data on the type of facility, its location and the tariff data for connection to the transmission network, and then to analyse the level of the tariffs for exit/re-entry at the storage facilities relative to those at other entry and exit points, especially those nearby. A comparison has been made between the exit tariffs to storage facilities (for injection to storage) and other exit points from the network, in the vicinity of the storage facility initially and across the whole network in addition if possible. For re-entry to the network from storage (for withdrawing gas from the facility), comparisons have been drawn with domestic production points where appropriate (e.g.
in some regions of Germany) and with other types of entry points.
The analysis is focused on the main, headline tariffs; if there are other tariff elements that are not charged uniformly across all other points, we have made this clear, and if any elements are specific to storage facilities alone we have itemised them. For National Grid, where entry tariffs are based on auction results, we have taken the published reserve prices for the monthly auction. For all the TSOs, tariffs for firm access are considered for the analysis in the first instance, interruptible tariffs and discounts are mentioned if relevant. The tariffs recorded are those valid in March 2012.
Where a difference in tariff levels is apparent, we have sought to identify from the analysis whether it is, e.g.
a flat discount, a rate applicable to a certain part of the network or a certain type of storage facility or entry/exit point, and also used information published by the TSO or regulator to see if there is a stated reason for the differential. We have not found any explicit statements of discounts for storage entry/exit and therefore “discounts” shown are those that we have calculated. We have not conducted interviews with industry players; the results shown in this note are an overview of the tariff levels, based purely on analysis of published tariff and commercial or methodological information available on the internet.
Results
In the following tables, we provide the results of our analysis, beginning with an overview of the TSOs’ tariff systems to provide context. Unlike GTS, the tariffs of some other TSOs do not vary by entry/exit point.
Table 1: Summary of tariff systems
TSO Summary
Gascade Uniform entry fee, uniform exit fee.
SÜDAL pipeline has separate fees, but is not connected to the rest of the Gascade network.
Gasunie Deutschland Aside from cross border points at entry, uniform entry and exit fees.
H-gas and L-gas have different fees.
Thyssengas Uniform entry, uniform exit, according to storage or non-storage.
H-gas and L-gas have different fees.
Open Grid Europe Entry tariff by point.
Exit tariffs according to zone (H-gas 3 zones, L-gas 1).
National Grid Entry and exit tariffs by point.
Commodity charge in addition which is only applied to new gas entering and gas finally leaving the system.
GRTgaz Entry tariff by point, uniform exit tariff except for cross border and cross network.
Uniform entry tariff and uniform exit tariff for storage.
Delivery charges levied for non-storage exit points.
Fluxys Entry exit (tariffs analysed are from new system to be implemented during 2012).
Uniform entry tariffs, uniform domestic supply exit tariff.
Border point exit tariff varies by point.
Commodity charge levied on entry and exit.
GTS P12000631\012rpt 3 Table 2: Comparison of entry fees at storage facilities with entry fees to the rest of the network
TSO Are storage entry tariffs different to other entry tariffs?
Storage entry tariff levels compared to other specified points
Gascade No.
Gasunie Deutschland Yes/No – entry tariffs are the same as other non-cross border entry tariffs (i.e.
cross network and production), but cross border tariffs are lower.
Tariffs vary by gas quality but the pattern between types of point is the same (cross border tariffs are lower).
Cross border points comparison (uniform tariff): - H-gas: +32%
- L-gas: +47%
All other points have the same tariff
Thyssengas No for H-gas.
Yes for L-gas – they are lower. L-gas points: -8% (uniform tariff) Open Grid Europe Yes – they are generally lower, varies
by entry point.
H-gas
- All storage compared to nearby entry points (all types of entry point): -17% to -33%
- All storage to all production (only two
production points): 0% to -51%
Storage near production (two production points to nearest two storage points): -0% to -2 % L-gas
- Nearby entry point (one comparison): -3%
- All storage to production: 0% to -18%
(not nearby, two production points) National Grid Yes/No – tariffs (auction reserve prices)
are set according to LRMC and location and vary by point, so there should be no difference.
Commodity fee is not levied on entry to network from storage however and this is set high in 2012.
Nearest entry point (may be >100km away) - Capacity fee only: +9% to -59%
- Commodity fee included: -78% to -99%
(for non-storage entry points)
GRTgaz Yes – they are lower. All entry points: -63% to -86%
Fluxys No.
Note: negative results indicate that storage entry tariffs are lower than other entry tariffs, positive results that storage entry tariffs are higher than other entry tariffs. The result including commodity fee for National Grid is based on 8,000 hour load factor case; the commodity fee is included for the non-storage entry points only.
Table 3: Comparison of exit fees at storage facilities with exit fees from the rest of the network
TSO Are storage exit tariffs different to other exit tariffs?
Storage exit tariff levels compared to other specified points
Gascade No.
Gasunie Deutschland No.
Thyssengas Yes – they are lower. H-gas: -59%
L-gas: -65%
Open Grid Europe Yes – they are lower. All points, zonal system: -50%
National Grid Yes/No – currently no charge for exit as storage as treated as interruptible.
Firm tariffs are also published which we have reviewed.
Commodity fee is not levied on exit from network to storage and this is set high in 2012.
Nearby exit point (power plants)
- Capacity fee only: 0% to -16%
- Commodity fee included: -57% to -99%
(for non-storage exit points)
GRTgaz Yes – they are lower. All general supply points: -96%
Other exit points: -86% to -99%
Fluxys Yes – they are lower. All general supply points: -51%
All named exit points (border): -58% to -82%
Nearest exit point (Zelzate): -73%
Note: negative results indicate that storage entry tariffs are lower than other entry tariffs, positive results that storage entry tariffs are higher than other entry tariffs. The result including commodity fee for National Grid is based on 8,000 hour load factor case; the commodity fee is included for the non-storage entry points only.
Our findings for each TSO are described and summarised below.
Gascade
All entry and exit tariffs are the same, regardless of the type of point (e.g. cross border, production, storage).
Gasunie Deutschland
Entry tariffs from storage facilities are the same as other entry tariffs, with the exception of cross border tariffs, which are lower than the entry tariffs from storage (Table 2). Tariffs also vary according to gas quality, but the pattern is the same, in that cross border tariffs are lower.
All exit tariffs are uniform, again according to gas quality.
Thyssengas
Entry tariffs for H-gas are the same at all points; for L-gas entry from storage, tariffs are 8% lower than other entry point tariffs. There is currently only one L-gas connected storage point, at the Dormagen-Nievenheim liquefied natural gas plant, which provides peak shavings.
GTS P12000631\012rpt 5
Open Grid Europe
Entry tariffs differ by point, and if we were to compare all entry points and all storage entry points, we see that in some cases storage entry points have higher fees. Comparing entry points from storage only to entry points located nearby, tariffs for connection to storage are lower (-17% to -33% on the H-Gas network).
Comparing entry points from storage only to entry from production facilities, storage tariffs are also lower by up to 51%. For storage located near to production facilities, entry tariffs are similar (note there are only two points listed as entry from production on the H-Gas network and two on the L-Gas network, so the
comparison is somewhat limited). We also noted that tariffs for entry from aquifer storage facilities are lower than from depleted fields and salt cavities (around 40% lower). This is the case even when aquifer storage is located in the same exit tariff zone, and therefore similar region, as the other types of storage.
Exit tariffs are set on a zonal system, according to location and whether exit is to storage or not. Tariffs at storage facilities are always lower than at other points.
National Grid
Entry tariffs vary by network point, set explicitly according to location and Long Run Marginal Cost
methodology. Commodity charges are not applied to entry at storage facilities, but are applied to other entry points, so shippers pay less to enter the network from storage. Note that the commodity charges can fluctuate widely each year as they are designed to recover shortfalls in revenue in order to meet the level of allowed revenue; therefore they are dependent on actual revenue from auctions of entry capacity and other forms of revenue against forecast. For example, commodity charges set in October 2011, which feature in our analysis, are 54% higher than those of February 2011.
National Grid treats exit at storage as interruptible and does not charge for interruptible capacity bookings;
we have reviewed the published tariffs and compared them to other tariffs for points located close by on the network, which shows storage connected tariffs to be lower. The commodity charge is also not levied on exit to storage, but is applied to other exit points, so shippers also pay less to exit the network to storage. In summary, to access storage from the transmission network, shippers pay only the entry capacity charge.
GRTgaz
Tariffs for entry points at storage always lower than those at other points. As entry tariffs vary by point, we show a range of -63% to -86%.
Exit points to storage also have lower tariffs than other exit points. Exit at storage is lower than at general supply points by 96%, and at other points (cross border and cross network) it is 86% to 99% lower.
Fluxys
Entry point tariffs are uniform on the Fluxys network.
Exit point tariffs at storage facilities are lower than at other points: compared to general supply from the high pressure network, exit at storage is 51% lower. For named exit points (cross border) storage exit point tariffs are 58% to 82% lower, while compared to the nearest named exit point, Zelzate, storage tariffs are 73%
lower.
Storage entry and exit tariffs summary
Note: €/m3/h/y are converted at 35.17 MJ/m3.Gascade
Storage name Type WGV Peak
send out
Days Tariff exit to storage (firm)
Tariff re-enter from storage (firm) mcm mcm/d €/kWh/h/y €/m3/h/y €/kWh/h/y €/m3/h/y
Rehden Depleted field 4200 57.6 73 2.36 23.06 2.5 24.42
Nuettermoor Salt cavity 311 10.32 30 2.36 23.06 2.5 24.42
Jemgum (plan) Salt cavity 1200 28.8 42 2.36 23.06 2.5 24.42
Neuhofen/
Haidach (Sudal)
Depleted field 2640 26.4 100 0.03 0.29 0.03 0.29
Gasunie Deutschland
Storage name Type WGV Peak
send out
Days Tariff exit to storage (firm)
Tariff re-enter from storage (firm) mcm mcm/d €c/kWh/h/d €/m3/h/y €c/kWh/h/d €/m3/h/y
Etzel Salt cavity 1,335.7 31.2 43 0.7825 27.90 0.7825 27.90
Harsefeld Salt cavity 119.0 7.2 17 0.7825 27.90 0.7825 27.90
Nuettermoor H Salt cavity 311.0 10.3 30 0.7825 27.90 0.7825 27.90
Uelsen Depleted field 750.0 10.8 69 0.7825 27.90 0.7825 27.90
Lesum L Salt cavity 204.0 8.6 24 0.8041 28.67 0.8041 28.67
Nuettermoor L Salt cavity 757.0 25.2 30 0.8041 28.67 0.8041 28.67
Thyssengas
Storage name Type WGV Peak
send out
Days Tariff exit to storage (firm)
Tariff re-enter from storage (firm) mcm mcm/d €/kWh/h/y €/m3/h/y €/kWh/h/y €/m3/h/y
Kalle Aquifer 215 10.8 20 2.29 22.37 2.19 21.40
Epe Salt cavity 466 20.88 22 2.29 22.37 2.19 21.40
Xanten Salt cavity 186 6.72 28 2.29 22.37 2.19 21.40
Epe L to be connected to network 2012 1.97 19.25 1.77 17.29
GTS P12000631\012rpt 7
Open Grid Europe
Storage name Type WGV Peak
send out
Days Tariff exit to storage (firm)
Tariff re-enter from storage (firm) mcm mcm/d €/kWh/h/d €/m3/h/y €/kWh/h/d €/m3/h/y
Bierwang Depleted field 1450 28.8 50 0.00364 12.98 0.0054 19.26
Breitbrunn Depleted field 992 12.48 79 0.00364 12.98 0.0055 19.61
Epe H Salt cavity 1613 41.5 39 0.00278 9.91 0.00425 15.15
Eschenfelden Aquifer 48 2.1 23 0.00364 12.98 0.00377 13.44
Etzel Salt cavity 1052 31.2 34 0.00278 9.91 0.00584 20.82
Haehnlein Aquifer 80 2.4 33 0.00364 12.98 0.00291 10.38
Haiming 2/Haidach
Depleted field 2640 26.4 100 0.00364 12.98 0.00578 20.61
Inzenham-West Depleted field 500 8.4 60 0.00364 12.98 0.00571 20.36
Krummhorn Salt cavity 111 4.8 23 0.00278 9.91 0.00583 20.79
Nuettermoor Salt cavity 311 10.32 30 0.00278 9.91 0.00563 20.08
Stockstadt Salt
cavity/aquifer
135 3.2 42 0.00364 12.98 0.00294 10.48
Epe L Salt cavity 481 28.7 17 0.00264 9.41 0.00472 16.83
National Grid
Storage name Type WGV Peak
send out
Days Tariff exit to storage (firm)
Tariff re-enter from storage (firm)
mcm mcm/d p/kWh/d €/m3/h/y p/kWh/d €/m3/h/y
Rough Offshore
depleted field
3300 42 79 0.0001 0.10 0.0123 12.64
Barton Stacey (Humbly Grove)
Depleted oil field 279 0.0225 23.12 0.0001 0.10
Hole House Salt cavity 55 5.4 10 0.0220 22.61 0.0001 0.10
Hatfield Moor Depleted field 117 0.0021 2.16 0.0050 5.14
Hornsea Salt cavity 325 0.0001 0.10 0.0109 11.20
Aldbrough (Garton)
Salt cavity 115 0.0001 0.10 0.0134 13.77
Holford (Cheshire)
Salt cavity 165 22 8 0.0212 21.78 0.0001 0.10
Caythorpe Depleted field 140 0.0001 0.10 0.0115 11.82
Fleetwood Salt cavity 1200 - 0.0036 3.70
GRTgaz
Storage name Type WGV Peak
send out
Days Tariff exit to storage (firm)
Tariff re-enter from storage (firm) mcm mcm/d €/y/MWh/d €/m3/h/y €/y/MWh/d €/m3/h/y
SERENE Nord 2140 27 79 2.7 0.63 13.95 3.27
Germiny-s- Coulombs
Aquifer
Network point: North East Saint-Clair-sur-
Epte
Aquifer
Cerville Aquifer Trois Fontaines Depleted Field SEDIANE
Littoral, SERENE Sud
4500 71 63 2.7 0.63 13.95 3.27
Chémery Aquifer
Network point: North Atlantic and South Atlantic Céré-la-Ronde Aquifer
Soings-en- Sologne
Aquifer
SEDIANE NORD
1187 31 38 2.7 0.63 13.95 3.27
Beynes Profond Aquifer
Network point: North West Beynes
Supérieur
Aquifer
Saint-Illiers Aquifer
SEDIANE B 1280 30 43 2.7 0.63 13.95 3.27
Gournay-sur- Aronde
Aquifer
Network point: North B
SALINE, SALINE Multi
752 63 12 2.7 0.63 13.95 3.27
Etrez Salt Cavity
Network point: South East Tersanne Salt Cavity
Fluxys
Assuming 39.5 MJ/m3 for Fluxys gas for conversion.
Storage name Type WGV Peak
send out
Days Tariff exit to storage (firm)
Tariff re-enter from storage (firm) mcm mcm/d €/m3/h/y €/m3/h/y €/kWh/h/y €/m3/h/y
Loenhout Aquifer 675 14.4 47 6.8 6.05 8.79 7.83
GTS P12000631\012rpt 9
Sources
Storage information
http://www.gie.eu/index.php/maps-data/gse-storage-map
Gascade
http://www.gascade.de/fileadmin/downloads/netzzugang/ab_1203/GASCADE_Entgeltinformation_2012.pdf
Gasunie Deutschland
http://www.gasunie.de/uploads/fckconnector/35f916a3-7279-48da-9daa-946df77db95b
Thyssengas
http://www.thyssengas.com/web/cms/mediablob/de/1121964/data/242716/2/thyssengas/netzzugang/entgelte /netzentgelte/Download-Thyssengas-Entgeltstruktur.pdf?null
http://www.thyssengas.com/web/cms/de/647376/thyssengas/netzauskunft/transparenzinformation/infoassiste nt/
Open Grid Europe
http://www.open-grid-europe.com/cps/rde/xbcr/SID-18C79B6C-8F86317D/open-grid-europe- internet/Preisblatt_OGE_TK_detailliert_ab_2012_01_01.pdf
https://entrixplus.open-grid-europe.com/mts.web/egt/Leitungskarte/index
National Grid
http://www.nationalgrid.com/NR/rdonlyres/B28FA229-1A68-41ED-8028-
F0083C70B7DC/47968/OVERVIEWOFGASTRANSMISSIONCHARGINGExternalv1.pdf http://www.nationalgrid.com/NR/rdonlyres/64C6D27B-C7D3-4899-9CAB-
15C03EB99AE2/51526/TransmissionTransportationChargesOct2011R2.pdf http://www.psg.deloitte.com/resources/PS_EUR_Map_Electricity.pdf http://www.bgs.ac.uk/research/energy/undergroundGasStorage.html
http://www.nationalgrid.com/uk/Gas/Charges/consultations/archive_discussion_papers/
GRTgaz
http://www.grtgaz.com/en/home/transmission/tariffs/rates/
Fluxys
http://www.fluxys.com/en/services/transmission_1/tariffs_1/~/media/files/services/transmission/tariffs/overvie w_tariff_entryexit_transmission_model_en_120305%20pdf.ashx