4 Content of the Info Memo MAIN POINTS INCLUDED IN THE INFO MEMOBackground.Capacities (market structure/capacities offered) / infrastructures.Allocation Process.Schedule.Tariff Visibility.Economic Test.Requirements to participate in the OS.Joint Allocation Office.Contact.NRAs4
6 MidCat and Biriatou capacities Biriatou capacities to be included in the 2nd Phase.Possible development scenarios for MidCat have been studied, maintaining in any case the same technical capacity from South to North (230 GWh/d).All capacity will be jointly offered, and, if the OS is totally successful, all capacity will be developed. However, only MidCat or Biriatou might be developed if the OS is partially successful, according to the result of the Economic Test. This might have implications for coordinated requests, which will be described in the Information Memorandum, since MidCat and Biriatou imply different probabilities of development of the North-South link in France.The possibility to decrease by 10% the amount of capacity reserved for short-term needs at the border has been discussed, in order to increase the probability of passing the Economic Test.Capacity split (80/20 or 90/10) to be clarified by NRAs6
7 Capacity reserved for short-term needs in Spain According to Royal Decree 949/2001:“Las empresas transportistas destinarán a contratos de duración inferior a dos años al menos el 25 % de la suma de las capacidades de sus instalaciones de regasificación, almacenamiento y entrada al sistema de transporte y distribución. Cada comercializador no podrá acceder a más de un 50 % de las capacidades destinadas a este fin. Estos porcentajes podrán ser revisados por el Ministerio de Economía en función de la evolución del mercado.”According to Ministerial Order ITC/2607/2008, from 11th September 2008, which establishes the rules to be applied in the allocation of capacities at interconnection points with France:“La capacidad ofertada se dividirá, para su asignación, en capacidad a largo plazo y capacidad a cortoplazo. Con carácter general, en cada convocatoria se determinará el reparto entre capacidad ofertadalargo plazo y capacidad ofertada a corto plazo, con el objetivo de que se garantice que un mínimodel 20 por ciento de la capacidad total en el punto de interconexión quede destinada acontratos de capacidad a corto plazo, y teniendo en cuenta la viabilidad económica de lasinfraestructuras.”Although offering 90% of the capacity under long-term contracts is not in contradiction with Royal Decree 949/2001, it could be in conflict with Ministerial Order ITC/2607/2008. However, such order already takes into account infrastructures viability, and, if the 90/10 split was agreed, it should not be a mayor concern because the Order can be easily modified.7
8 Market structureCapacity will be offered under the same market structure included in the 1st Phase, with three balancing zones in France and one in Spain:Although it was agreed to include IP 4 (known as IP H during the non-biding round) in the 2nd Phase, some stakeholders in France claim that such capacity should be allocated on a second round once the allocation at the other IPs ( ) is known.Inclusion of IP 4 (IP H during the non-binding round) to be clarified by NRAs8
17 Infrastructures in Spain Information on infrastructure development in Spain was provided by Spanish TSOs at the 13th IG meeting:17
18 Infrastructures in Spain Additional infrastructures in Spain triggered by the OS:MIDCAT+IRUNMIDCATIRUNN-->S24018060290230Midcat (Spain)- Figueras-French border- CS Martorell85XBiriatou (Spain)- CS Border35120Investment estimates based on Spanish standard unit costs approved by Order ITC/3520/2009SPAIN's INVESTMENT (M€)Capacity (GWh /d)18
20 Proposed scheduleTSOs propose the following schedule to proceed with the Second Phase of the OS (2015 capacities).This calendar is based on the assumption that capacities and infrastructures will be totally agreed by end-April.The proposed schedule has not been agreed with regulators and is presented for discussion.
21 Proposed schedule MARCH – APRIL 2010: MAY 2010: 16th March: S-GRI SG meeting31st March: Deadline for comments from stakeholders7th/12th April: S-GRI IG meeting (final decisions)MAY 2010:3rd May: Publication of final documentsInformation Memorandum.Allocation Rules for 2015 capacities.Application forms and related letter of commitment for 2015 capacities.Non-Disclosure Agreements between each TSO and interested subscribers (to be signed only by new participants).Capacity booking contract between each TSO in France and subscribers interested in capacities between GRTgaz South-TIGF and/or TIGF-Spain.Transmission contract between each TSO in Spain and interested subscribers.Before 30th May: Signing of Confidentiality Agreements between each TSO and interested subscribers not participating in the First Phase.
22 Proposed schedule MAY – JUNE – JULY 2010: JANUARY 2011: SG required?. 10th-12th May: Information meetings for stakeholders organised by TSOs (Spain and France).17th May/31st May: Starting date for submitting requests in the Second Phase of the OS.31st May/14th June: Deadline for submitting requests in the Second Phase of the OS.30th June/8th July: Publication of results of the Second Phase of the OS.31st July: Deadline for the signing of contracts.JANUARY 2011:31st January 2011: Approval of GRTgaz and TIGF global investment programs by their respective Boards of Directors.31st January 2011: Approval of GRTgaz and TIGF global investment programs by CRE.
24 Requirements to participate in the OS NON-DISCLOSURE AGREEMENTShippers willing to participate in the 2nd Phase of the Open Season must sign and submit the Non-Disclosure Agreement. This is identical to the one published for the 1st Phase.Shippers having already signed and submitted the NDA during the 1st Phase do not need to take any further action, since the NDA is valid.LICENSESIn France, shippers are not require to obtain any license in advance in order to participate in the 2nd Phase of Open Season.In Spain, the Service Directive* has already been transposed by Law 25/2009. Article 80 of the Hydrocarbons Law has been modified, and thus, it is not necessary to go through the former authorisation process. However, a communication of the starting of activity, and a declaration that all duties are fulfilled, is still required.CNE / MITyC to clarify whether such communication will be required in advance to participate (this will be clarified in the Info Memo).* Directive 2006/123/EC of 12 December 2006 on services in the internal market24
26 Joint Allocation Office Applications forms together with the corresponding letter(s) of commitment should be sent to:Joint Allocation OfficeEnagás, DATRPaseo de los Olmos, 19, 3A28005MadridEspagne/España
27 Contact Any requests for additional information should be sent to: Enagás, S.A.Dirección de Gestión ATRAtt. Fernando Impuesto NoguerasPaseo de los Olmos, 1928005 MADRIDSPAINGRTgazDirection CommercialeAtt. Carole Baron2 rue Curnonsky75017 PARIS FranceTIGFDirection Developpement CommerceAtt. M. MIGLIO17 chemin de la Plaine64140 BILLEREFranceNaturgás Energía Grupo, S.A.Departamento de RegulaciónPío Baroja Nº 348001 Bilbao,España