1 / 12

Unbundling & Liberalisation

Unbundling & Liberalisation. Creating new challenges and opportunities The ‘Belgian case’. Rudy Van Beurden. GAS TRANSPORT Existing company with a new name: Fluxys. GAS SALES & SUPPLY New company with an existing name: Distrigas. FLUXYS: PROACTIVE UNBUNDLING 11-2001. Former Distrigas.

bob
Download Presentation

Unbundling & Liberalisation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Unbundling & Liberalisation Creating new challenges and opportunities The ‘Belgian case’ Rudy Van Beurden

  2. GAS TRANSPORT Existing company with a new name:Fluxys GAS SALES & SUPPLY New company with an existing name:Distrigas FLUXYS: PROACTIVE UNBUNDLING 11-2001 Former Distrigas Why proactive unbundling : • Draft proposal 2nd EU directive included legal unbundling • Market perception: legal unbundling most effective to ensure level playing field • Strategic move: organise rather than undergo changes

  3. SHAREHOLDERS SUEZ 100% SUEZ-TRACTEBEL PUBLIGAS • Board and Executive Committee:two federal government representatives in an advisory capacity • Right to oppose to decisions about and transfers of strategic assets if considered prejudicial to federal energy policy 57.25% 31.25% FLUXYS 11.50% (+ 5.21% shares owned by Suez-Tractebel) 1 share FIRST MARKET OFEURONEXT BRUSSELS BELGIAN STATE GOLDEN SHARE

  4. Unbundling: the challenges • Strategical: establish new objectives • Contractual: need for formal agreements between an increasing number of players • Commercial: setting up new relationships and obtain information from the market • Changing/unstable regulatory environment • Operational: Gas flow management & grid balancing • Investment planning: obtaining market information and commitments in due time

  5. FLUXYS’ CHALLENGES IN THE LIBERALISED GAS MARKET interconnection connection End-consumers Fluxys Adjacent operator • Put into practice framework to install level playing field for suppliers: Code of conduct • Arrive at regulated tariffs providing sufficient return to justify investment • Cope with highly complex interfaces in a multi-shipper environment Open access to system Supplier Supplier Supplier Free choice of supplier

  6. ConnectionAgreement Exploring the Current Legal Environment Transportation agreements: new relationships Gas supply licence Shipper/ Trader Transport ServicesAgreement + (with connection procedure) AllocationAgreement (at Supply Point) End-consumer Transporter Transport licence Eligible

  7. Regulatory environment • The ‘Belgian case’ • 1 federal regulator • 3 regional regulators • Different levels of market opening in each region • Public distribution zones sometimes covering more than 1 region • Continuous changes asked by different authorities  challenge of coping with system changes • Low profitability on transport and storage activities  reduces entrepreneurship • Annual  multi-year tariffs as from 2007

  8. A strong acceleration 100% 100 92% 90 83% 07.07 80 07.04 70 65% 58% 60 07.03 01.03 47% 50 08.00 07.01 40 30 20 1998 EU Gas 10 Directive 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Belgium: proactive acceleration of market opening 100% opening in Flemish region

  9. Gas Flow Management & Grid Balancing • Exponential growth of data to be interchanged in a multi-shipper environment • Hourly flow nominations by shippers enabling Fluxys to set grid configuration • Hourly matching information with adjacent operators to facilitate cross-border transactions • Hourly flow allocations + metering data services by Fluxys enabling shippers to stay within balance and thus avoid balancing charges • Residual balancing by Fluxys far more complicated: • Gas price is main flow driver for shippers • Shippers can arbitrage between balancing charges in different systems • System integrity factors (stable inflow and gas quality) considered pure TSO concern

  10. Investment planning: a complex issue in an unbundled and regulated environment • Shippers uncertain as to their market share in the future  fear for ‘open positions’: • larger part of supply portfolios is short-term • hence: more shorter term transportation contracts • Fluxys uncertain about regulatory environment and profitability  financing more complex • Belgian gas demand 2000-2014 to rise by 46% ➔huge investments needed • Shippers’ behaviour increasingly unpredictable + unpredictable regulatory environment ➔lack of adequate investment signals➔increasing risk of stranded investments

  11. BUT ALSO…..

  12. New opportunities • Zeebrugge Hub: created proactively in 1999 • Hub services  Huberator • Cleared spotmarket  APX Gas Zeebrugge B.V. • Shipper & ICT services  GMSL • Becomes a catalyst for further infrastructure investments • LNG terminal expansion by Fluxys LNG • BBL pipeline  BBL Company B.V. • Futher investments in transit capacity (open season launched)

More Related