ergeg gas regional initiatives p rogress and future work
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ERGEG Gas Regional Initiatives P rogress and future work. XVII Madrid Forum 14-15 January 2010. Peter Plug NMa, Director. Outline. Progress in the gas regions by topic Investment Capacity allocation and congestion management Transparency Interoperability and hub development

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ergeg gas regional initiatives p rogress and future work

ERGEG Gas Regional InitiativesProgress and future work

XVII Madrid Forum

14-15 January 2010

Peter Plug

NMa, Director



  • Progress in the gas regions by topic
    • Investment
    • Capacity allocation and congestion management
    • Transparency
    • Interoperability and hub development
    • Security of supply
  • Case studies
  • Work for 2010

Progress in the regions


  • Open Season for developing new capacity in the Spain-France interconnections. First phase completed (development of Western Axis from 2013) and second phase started (Eastern Axis from 2015) [South]
  • Preliminary results of an investment Virtual Test Case. Manual of the 9 cross border investment regulatory frameworks has been developed to contribute to investment proceedings coordination [NW]
  • RCC common position on cost allocation for investment in reverse flows and drafting of a GRI SSE position[SSE]

Significant progress is being made to develop new infrastructure through anticipating and coordinating investment for the cross-border transport of gas


Progress in the regions


  • Ongoing work on the potential harmonization of nomination and re-nomination lead times, contractual features, capacity allocation rules and monitoring of the implementation of OBAs [SSE]
  • Second annual Open Subscription Period launched in November 2009, for allocating France-Spain capacity [South]
  • Analyse possible incentives for TSOs to release additional firm short-term capacity; discuss improved secondary capacity platforms [NW]

Several regional projects illustrate the various approaches that can be taken to improve capacity allocation and congestion management across Europe


Progress in the regions


  • Successful completion of a project on transmission transparency (daily capacities and flows). In parallel a project was launched to release daily storage levels in 2009 [NW]
  • Guidelines for importing and supplying natural gas in the region [SSE]
  • Periodical publication of status building records for new interconnection infrastructure [South]

Good progress is being made to improve transparency in a number of aspects, including the availability and use of transmission capacity


Case study

Storage Transparency

Storage transparency in the NW region

  • Daily information on storage volume, inflows and outflow
  • Go-live 1 October, Completion 1 December 2009 (with some companies remaining)
  • A clear example of easy win and best practice

Progress in the regions

Interoperability and hubs

  • Harmonisation in legislation and rules (CBPs), and also in trading licenses between Portugal and Spain in the frame of MIBGAS [South]
  • Launching of the new CEGHgas exchange (Baumgarten). Finalisation of Operational Balancing Agreements (Baumgarten)[SSE]
  • NW action plan for further improvement liquidity GTF hub has been produced, planned improvements on GTF hub have been achieved

Efforts are being made to establish a regional hub at Baumgarten (Austria) and paving the way for an Iberian gas market (MIBGAS)


Progress in the regions

Security of supply

  • Security of Supply has been the main priority after the January crisis in the SSE region. Cooperation with the Commission to ensure a full understanding of the market response to the crisis [SSE region]
  • SoS has been a main driver for the development of new cross-border capacity in the South region
  • SoS has been identified in the NW regionas one of the five key drivers for past and current development of new cross border capacity. Other drivers are regional market integration, need for some overcapacity, greater liquidity on hubs and increasing number of participating shippers

A culture of dialogue built in the regions can help implement collective responses to gas crises. Investment and market integration remain crucial for Security of Supply


Case study

Security of Supply

Security of supply: a future role for regional initiatives?

  • RIG is currently analysing the role Regional Initiatives could play in gas security of supply:
    • Internal study
    • Question asked to the market in the progress report
  • Regional initiatives have a role to play in reinforcing gas SoS
    • Build upon the GRI experience on dialogue and cooperation between regulators, operators, market players and Member states
    • Key role in facilitating cross border investment
    • New regulatory context
      • 3rd Package: monitoring of SoS, promotion of regional solidarity and cooperation, elaboration of regional investment plans
      • Future new SoS Regulation: preventive action plans and emergency plans; supply and infrastructure standards
  • Final views will be part of the strategic review of the regional initiatives

Work in 2010

  • Public consultations
    • Progress report (closed on 31 December 2009): questions on priorities and expected improvements
    • Strategy paper on the future role of RIs (ongoing until 31 January 2010)
  • Next steps and coming actions for 2010
    • Completing the assessment on the role of Regional Initiatives in SoS
    • Review of intra and inter-regional coordination of open seasons
    • Continue to foster progress of regional projects by:
      • coordinating efforts across regions
      • tackling common obstacles
      • spreading lessons and best practices
      • ensuring transparency through reports