The new CNG/LNG Regulatory Framework

Transcription

1 Hellenic Association for Energy Economics 3 rd HAEE Conference 3-5 May 2018 The new CNG/LNG Regulatory Framework Irene Iacovides Head, Gas Networks Unit Athens, 4 May 2018

2 Current Regulatory Framework regarding natural gas supply and distribution Directive 2009/73/EC Greek Law 4001/2011 (+ amendments) Gas Licensing Regulation (RAE s opinion 2/2017) Distribution Network Code (RAE s Decision 298/2018) Distribution Network Tariff Regulation (RAE Decision 328/2016) Natural Gas Supply Code (RAE s Opinion 1/2018) All current regulatory framework that applies for natural gas also applies for CNG and LNG. 2

3 Natural Gas Supply & CNG/LNG applications Since , all gas customers in Greece are eligible customers. In order to supply gas to a customer, a Supply License must be granted by RAE. Gas Licensing Regulation distinguishes between two kinds of Supply License: On-network supply license (supply gas to customers connected to networks) Off-network supply license (supply gas to individual customers not connected to networks) Off network supply license concerns CNG / LNG supply 3

4 Decompressor CNG Supply to Individual Remote Customer Off - network supplier Imports CNG or Compresses NG 4

5 Supplying CNG to Remote Individual Customers Off network gas supply is related to supplying CNG to remote (not connected to the network) individual customers and includes the following process: 1) Compression of gas in a compression station or import CNG from abroad 2) Transportation of CNG with tracks 3) Decompression of gas at the decompressor station of the individual customer (household, commercial or industrial) The supply license is need for the sale of gas to an end-customer not connected to network. Import, Compression, transportation and decompression activities do not need a license from RAE. 5

6 Remote Distribution Networks According to the DSO s Development Plans (that have been recently set for Public Consultation), distribution networks are planned to be developed in Remote Areas. The Remote Distribution Networks will not be connected with other transmission systems or distribution networks. All current gas regulatory framework applies to these Remote Distribution Networks. Natural Gas reaches these networks either in the form of CNG or LNG. 6

7 Third party access to Remote Distribution Networks The DSO must install, a CNG / LNG terminal as an entry point to a Remote Distribution Network. All network users have the right to access the entry points of these Remote Distribution Networks. The DSO must submit to RAE for approval the rules and conditions for Third Party Access to these entry points. Do suppliers need an off-network supply license to have access to customers connected in these Remote Networks? Suppliers do not need an off-network supply license to have access to customers connected to Remote Distribution Networks. An on-network supply license is enough! 7

8 Two kinds of Remote Distribution Networks Case I: In geographical regions where no other distribution network exists. The DSO has the obligation to ensure equal access of network users to the entry point. The supply is responsible to bring gas to the entry point. Case II: In geographical regions where distribution network exists. DSO can develop a virtual pipeline (CNG) to virtually connect the networks without a physical connection network. 8

9 Case I :In geographical regions where no other distribution network exists The DSO must submit to RAE the rules for TPA to the entry point (decompressor). The supplier has to bring natural gas to the entry point (decompressor) of the Remote Distribution Network. 9

10 Case II :In geographical regions where other distribution network already exists Virtual Pipeline (CNG) Compressor Station Connection to Transmission System 10

11 Virtual Pipeline (CNG) A way to connect Remote Distribution Networks to all ready existing Distribution Network in the same geographical region 1) The DSO will submit an application to RAE in order to develop a Virtual Pipeline (CNG) 2) RAE evaluates the application and sets a price-cap. 3) The DSO is allowed to receive the service of gas compression and CNG transport from a third party (through a public tender). 4) Total cost of Virtual Pipeline is included in DSO s opex. 5) Suppliers will not have to be concerned about decompression/transport and security of supply of their customers connected in Remote Distribution Networks because the DSO will undertake this service. RAE is setting the regulatory framework for public consultation. We would be grateful for you comments! 11

12 Thank you for your Attention! Pireos 132, , Athens Τel.: Fax: Irene Iacovides Head, Gas Networks Unit Tel