Joint Binding Phase Notice
of LLC "Gas Transmission System Operator of Ukraine" and TRANSGAZ
for the offer of Incremental Capacity
at IP Isaccea 1/Orlovka 1
01 May 2024
This document is jointly published at the websites GTSOU and TRANSGAZ in accordance with Article 28 (3) of Regulation (EU) No 2017/459 of 16 March 2017 (CAM NC) concerning the Incremental Capacity Process 2023.
1
This notice is jointly elaborated and published by:
LLC "Gas Transmission System Operator of | SNTGN TRANSGAZ S.A. |
Ukraine" (GTSOU) | |
Liubomyra Huzara av. 44 | Piața C. I. Motas, Nr. 1 |
03065, Kyiv | |
551130, Mediaș, Jud. Sibiu | |
Ukraine | |
Ukraine | Romania |
Phone: +38 044 239 78 43 | Phone: + 4/0269/80 33 33 |
Fax: - | Fax: + 4/0269/83 90 29 |
Email: commercial@tsoua.com | Email: cabinet@transgaz.ro |
2
Table of content | |
Terms and Conditions for the incremental capacity auction to be accepted by the network user | |
Annexes | 11 |
Contact information | 12 |
3
Disclaimer
Each TSO has acted in good faith to ensure that the information in this Joint Notice is correct as of the date of this Joint Notice, however, no representation or warranty is made by any TSO as to the accuracy or completeness of such information and the TSOs will not accept any liability, of any kind, to each other or to any third party, for any inaccuracies or incompleteness in such information.
Furthermore, whilst each of the TSOs will endeavor to co-ordinate the processes and steps anticipated under the Project Proposal for the Incremental Capacity Process 2023, no TSO will have any liability to any third party for any acts, omissions, breaches or decisions of the other TSOs or any other third party.
Each TSO will be responsible for its own infrastructure upgrades and the other TSO shall not have any liability to any party for the undertaking, or failing to undertake, such infrastructure upgrades.
4
Introduction
This Joint Notice, prepared by GTSOU and TRANSGAZ in accordance with Article 28 (3) of Regulation (EU) No 2017/459 of 16 March 2017 (CAM NC), marks the start of the Binding Phase for the Incremental Capacity Process 2023 at the Interconnection Point (IP) "Isaccea 1/Orlovka 1" (EIC Code: 21Z000000000304Z).
This Incremental Capacity Project is primarily driven by the potential increase of the technical capacity at IP Isaccea 1/Orlovka 1 in the direction Romania → Ukraine and is conducted in close coordination by GTSOU and TRANSGAZ.
The purpose of this Joint Notice is to provide information about the procedure for registration and participation in the Binding Phase of the Incremental Capacity Process 2023 and to inform on the Binding Phase process.
The Incremental Capacity Process 2023 is structured as follows: (i) a Non-Binding Phase (which started in July 2023 and lasting until the opening of the Binding Phase), and (ii) the Binding Phase initiated by the publication of this Joint Notice by the TSOs and publication of further details and supporting documentation on the websites of each of the TSОs1.
During the non-binding phase, interested parties submitted non-binding demand indications for incremental capacity to GTSOU and TRANSGAZ. All non-binding demand indications received have been published in an aggregated manner jointly by GTSOU and TRANSGAZ in their Demand Assessment Report (DAR).
__________________________
- For GTSOU -https://tsoua.com/en/business-services/order-and-payment/capacity-allocation-at-interconnection-points/auction-platforms-and-interconnection-points/incremental-capacity-process-binding-phase/
- For TRANSGAZ -https://www.transgaz.ro/en/incremental-capacity-process-ro-ua
5
This Binding Phase process is subject to the terms and conditions of the Project Proposal for the Incremental Capacity Process 2023 developed jointly by GTSOU and TRANSGAZ and approved by the National Regulatory Authorities (NRAs) of Ukraine (NEURC) and Romania (ANRE) with Resolution no. 831 dated 30 April 2024 of the Ukrainian regulator (NEURC) and Decision no. 797/22.04.2024 of the Romanian ANRE for the approval of the incremental capacity project proposal between the natural gas transmission systems of Romania and Ukraine at the joint interconnection point Isaccea 1/Orlovka 1 respectively (the Project Proposal).
During the binding capacity allocation phase, GTSOU and TRANSGAZ will offer incremental capacity in the annual yearly auction on the Regional Booking Platform (RBP) as approved in the Project Proposal.
The Binding Phase of the Incremental Capacity Process 2023 is open to all interested parties,
irrespective of their participation in the Non-Binding Phase.
Terms and Conditions for the incremental capacity auction to be accepted by the network user
The parties wishing to participate in the Binding Phase shall do so under and in accordance with the terms and conditions of the Project Proposal, as approved by the NRAs, the General Terms & Conditions of each TSO (see annexes), and the rules for auction conduction on RBP, and are also required to follow the procedural rules as laid out in respective documentation.
GTSOU and TRANSGAZ have developed terms and conditions for the incremental capacity auction that need to be accepted by the network users before the auction starts.
GTSOU
Network user registration process is specified in the General terms and conditions to which network users shall agree in order to obtain access to capacity in the binding phase of capacity allocation of the incremental capacity procedure on the border between Ukraine and Romania at IP Isaccea1/Orlovka1 for the flow direction(RO-UA).
TRANSGAZ
Network User registration process
There is no separate registration process associated with this incremental capacity booking procedure, only the standard Network User/Capacity Applicant registration process on the RBP (see RBP Operating Rules on the rbp.eu website). As capacities are offered in an unbundled incremental capacity allocation process, Network Users are eligible to book annual capacity products in accordance with the applicable rules and regulations and in line with the provisions of ANRE Order No. 130/2020, as amended. In addition to the registration on the RBP, the prerequisite for participation in the auctions is to have the natural gas transmission framework contract for capacity booking at interconnection points concluded, as stipulated in Annex No. 1 to ANRE Order No. 130/2020, as amended, or, if no such contract was concluded, to have the affidavit, drawn up in accordance with the template provided for in Annex No. 2 to ANRE Order No. 130/2020, submitted and to establish the auction participation guarantee by the
6
date and time indicated in the timeline presented below (i.e. 25.06.2024, 4:00 p.m.).
Capacity applicants participating in the auctions on the basis of the affidavit drawn up in accordance with the template indicated in Annex No. 2 to ANRE Order No. 130/2020 shall take all the steps provided for in the Network Code for the NTS (approved by ANRE Order No. 16/2013 as amended) in order to be able to use the allocated capacity in the incremental capacity process (obtaining access to the information platform operated by Transgaz, concluding the balancing and VTP access contract).
Capacity Allocation
Additional information for further clarification on the capacity allocation, in full consistency with CAM NC and Operational Rules of the Regional Booking Platform, will be published on GTSOU and TRANSGAZ web sites.
Offer Levels
In the tables below, is a comprehensive breakdown of the harmonized offer that the two TSOs will make available to the market within the annual auctions scheduled for July 1 2024. The Offer Levels take into account the provisions of Article 8 of the NC CAM on the capacity to be set aside for short-term products, i.e. 10% of the existing technical capacity in the first 5 gas years and 20% in the following years and 10% of the incremental capacity starting with 2027/2028.
Level offer 0 (available existing capacity)
No. of | Available existing | |||||||
Gas year | capacity offer | |||||||
years | ||||||||
(kWh/day/year) | ||||||||
1 | 2024/2025 | 109.279.087 | ||||||
2 | 2025/2026 | 109.279.087 | ||||||
3 | 2026/2027 | 109.279.087 | ||||||
4 | 2027/2028 | 109.279.087 | ||||||
5 | 2028/2029 | 109.279.087 | ||||||
6 | 2029/2030 | 97.136.966 | ||||||
7 | 2030/2031 | 97.136.966 | ||||||
8 | 2031/2032 | 97.136.966 | ||||||
9 | 2032/2033 | 97.136.966 | ||||||
10 | 2033/2034 | 97.136.966 | ||||||
11 | 2034/2035 | 97.136.966 | ||||||
12 | 2035/2036 | 97.136.966 | ||||||
13 | 2036/2037 | 97.136.966 | ||||||
14 | 2037/2038 | 97.136.966 | ||||||
15 | 2038/2039 | 97.136.966 |
7
Offer level 1 (available existing capacity + incremental capacity)
No. | Available existing | Incremental | Harmonised offer level in the | |||||||||||
RO →UA direction for existing | ||||||||||||||
of | Gas year | capacity offer | capacity offer | |||||||||||
and incremental capacity | ||||||||||||||
years | (kWh/day/year) | (kWh/day/year) | ||||||||||||
(kWh/day/year) | ||||||||||||||
1 | 2024/2025 | 109.279.087 | 109.279.087 | |||||||||||
2 | 2025/2026 | 109.279.087 | 109.279.087 | |||||||||||
3 | 2026/2027 | 109.279.087 | 109.279.087 | |||||||||||
4 | 2027/2028 | 109.279.087 | 76.589.584 | 185.868.671 | ||||||||||
5 | 2028/2029 | 109.279.087 | 76.589.584 | 185.868.671 | ||||||||||
6 | 2029/2030 | 97.136.966 | 76.589.584 | 173.726.551 | ||||||||||
7 | 2030/2031 | 97.136.966 | 76.589.584 | 173.726.551 | ||||||||||
8 | 2031/2032 | 97.136.966 | 76.589.584 | 173.726.551 | ||||||||||
9 | 2032/2033 | 97.136.966 | 76.589.584 | 173.726.551 | ||||||||||
10 | 2033/2034 | 97.136.966 | 76.589.584 | 173.726.551 | ||||||||||
11 | 2034/2035 | 97.136.966 | 76.589.584 | 173.726.551 | ||||||||||
12 | 2035/2036 | 97.136.966 | 76.589.584 | 173.726.551 | ||||||||||
13 | 2036/2037 | 97.136.966 | 76.589.584 | 173.726.551 | ||||||||||
14 | 2037/2038 | 97.136.966 | 76.589.584 | 173.726.551 | ||||||||||
15 | 2038/2039 | 97.136.966 | 76.589.584 | 173.726.551 | ||||||||||
Milestones
The Binding Phase starts with the publication of the Project Proposal for the Incremental Capacity Process 2023 together with this Joint Notice of GTSOU and TRANSGAZ.
GTSOU and TRANSGAZ will offer the incremental capacity together with the respective available capacity
8
in the annual yearly capacity auction as standard unbundled products in ascending clock auctions according to the provisions of Article 8. paragraphs (8) and (9), Article 17 and Article 19 of Commission Regulation (EU) No 2017/459.
The yearly capacity auction will be conducted on 1 July 2024, according to the Auction calendar 2024.
Following the closure of the auction, GTSOU will proceed with the publication of the final result of the Economic Test (ET), and if ET is positive (only applicable to GTSOU), entering into Gas Transportation Agreements (GTAs) with the successful parties.
Milestones Timeline
Milestone | Deadline* (dd/mm/yyyy) | |
Announcement of the Binding incremental capacity procedure | 1.05.2024 | |
Network User registration for GTSOU on RBP Platform | 24.06.2024 | |
Network User registration for TRANSGAZ on RBP platform | 24.06.2024 | |
Submission of the auction participation security to GTSOU | By 24.06.2024 | |
Submission of the auction participation security to TRANSGAZ and, | ||
where applicable, the submission of the affidavit, drawn up in | 25.06.2024 (16.00 EET) | |
accordance with the template set out in Annex No 2 to ANRE Order | ||
No 130/2020, as subsequently amended and supplemented | ||
Bid submission starting date: Submission of Bids in RBP according | 01.07.2024 (10:00 EET) | |
to the Auction calendar 2024 | ||
within 2 working days from | ||
Publication of the final results of the economic test | the | |
closure of the auction | ||
In case of a positive economic test GTSOU and TRANSGAZ accept | within 1 working day from | |
the | ||
successful bids and send confirmation of the allocation result(s) to | ||
publication of the results of | ||
the successful Network User(s) | ||
the Economic Test | ||
The Gas Transportation Agreement(s) to be concluded within the | Within 10 working days from | |
Incremental Capacity Procedure shall be concluded in written | ||
form. | the closure of the auction | |
In case of a negative economic test GTSOU and TRANSGAZ to | Within 1 working day from | |
the | ||
inform Network Users about terminated Incremental | ||
publication of the results of | ||
Capacity Procedure | ||
the Economic Test | ||
Return of the auction security that did not result in an incremental | within 10 working days from | |
the | ||
capacity contract. | ||
closure of the auction | ||
Duration of project realization
9
GTSOU*
Timeline | Stage |
01/07/2024 | Annual capacity auction in July 2024 followed by an economic test |
3Q/2024 | Final Investment decision |
4Q/2028 | Commissioning of the project |
1/10/2028 | Expected start of commercial operation |
- In case of a positive economic test of GTSOU;
- GTSOU will use its best efforts to prevent delays and minimize delay impacts as necessary.
TRANSGAZ
No investment is needed on the Romanian side.
Economic Test Parameters
GTSOU
The economic test will be carried out by GTSOU after binding bids of network users for contracting capacity have been submitted in RBP and evaluated by GTSOU and shall consist of the following parameters:
GTSOU will use the tariff, which is determined for the period from 1 January 2020 to 31 December 2024, and approved by the NEURC resolution No. 3013 of 24 December 2019 as an estimated reference price for the Economic Test.
The reference price will be utilized for the purpose of the ET only.
For the avoidance of doubts, the reference price effectively applied will be finally determined according to the provisions of the regulatory framework in place at the time of the transmission service.
GTSOU will not apply a mandatory minimum premium.
TRANSGAZ
Given that no investment is planned on TRANSGAZ's side regarding this project Proposal's capacity increase, the ET is not applicable to the Romanian TSO.
The reference price for TRANSGAZ is the capacity booking tariff for exit points out of the NTS, approved by ANRE for the gas year 1 October 2024 - 30 September 2025.
The capacity applicant shall pay to Transgaz the value of the booked transmission capacity established based on the capacity booking tariff applicable at the time when the booked capacity can be used plus the potential auction premium resulted from the conducted auction.
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Societatea Nationala de Transport Gaze Naturale TRANSGAZ SA published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 09:35:50 UTC.