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Comments and responses from Madrid Forum participants to the EASEE-gas Gas Quality CPB Presentation to 11 th Madrid Forum, 18 May 2006. Wim Groenendijk Chairman EASEE-gas Executive Committee. Conclusions Madrid X:

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Comments and responses from Madrid Forum participants to the EASEE-gas Gas Quality CPB


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    1. Comments and responses from Madrid Forum participants to the EASEE-gas Gas Quality CPB Presentation to 11th Madrid Forum, 18 May 2006 Wim Groenendijk Chairman EASEE-gas Executive Committee

    2. Conclusions Madrid X: The Forum “invited participants including Member States and relevant national authorities to analyse the consequences of the implementation of the CBP on gas qualities with a view to enabling EASEE-gas to present to the next Forum the challenges involved in reaching implementation”.

    3. Timeline: 16/9/2005 Invitation Madrid Forum 15/11/2005 Reminder letter by EASEE-gas 13/12/2005 Marcogaz workshop on gas quality 06/03/2006 Reminder letter by EASEE-gas 18/05/2006 Presentation by EASEE-gas 01/10/2006 CBP Milestone non-combustion prop. 01/10/2010 CBP Milestone Wobbe Index et al.

    4. The Gas Quality Harmonisation Common Business Practice CBP 2005-01 Harmonisation of Gas Qualities • The CBP recommends natural gas quality specifications at cross border points in Europe and describes recommended gas quality parameters, parameter ranges and an implementation plan. • Natural gas arriving at cross border points in line with these proposed quality specifications can not be refused for quality reasons. • The CBP does not in any way restrict parties at a cross border point in agreeing other specifications.

    5. The Gas Quality Harmonisation Common Business Practice Approved parameters, values and ranges

    6. The Gas Quality Harmonisation Common Business Practice

    7. OVERVIEW (1)

    8. OVERVIEW (2)

    9. OVERVIEW (3)

    10. Observations For 2006 milestone few concerns: • Dew point range may require additional investment in some instances • Total sulphur limit of 30 mg/m3 lower than in most contracts (up to 150 mg/m3) but still quoted as a concern • For 2010 milestone concern on Wobbe Index: • Too wide/too narrow • Safety implications for households • Performance (industrial consumers)

    11. Use of the CBP and its values • At cross-border points where more relaxed specifications are currently used, these can be maintained • At cross-border points where more stringent specifications are currently used, these should be relaxed

    12. Effect of the CBP implementation should NOT be … Country A Country B Country C = EASEE-Gas values = Gas trading • Will decrease gas flows area Country C Country A Country B Interoperability at EU Level Effect of the CBP implementation should be … Country C Bilateral agreements Bilateral agreements Gas trading area Gas trading area EASEE-Gas values EASEE-Gas values • OK with EASEE-gas objectives • Will increase gas flows area Increasing interoperability Country A Country B

    13. Timing Implementation Implementation requires member states toadopt the values for each parameter on the same date. 1/10/2006 is the proposed implementation date for the parameters: • Total Sulphur • H2S and COS • RSH • CO2 • H2O dewpoint • Hydrocarbondewpoint

    14. Way Forward • EASEE-gas is not in a position to recommend an appropriate solution for each Member State to accept gas conforming to EASEE-gas specifications at the border. • It is up to the Member States to determine the optimum solution to deal with the acceptance of the EASEE-gas specifications at the cross border based on: • Costs involved • Security of Supply • Supply sources • Safety implications • Etc. • The implementation dates should be adhered to.

    15. www.EASEE-gas.org Wim Groenendijk Chairman EASEE-gas Executive Committee Wim.W.P.Groenendijk@shell.com