Code Modification Forum Ashling Hotel, Dublin Wednesday, 16 - - PowerPoint PPT Presentation

Code Modification Forum

Ashling Hotel, Dublin Wednesday, 16 October 2019

Agenda

1. Review of minutes from last meeting 2. Review of open actions 3. Update on Maintenance Activities 4. Brexit and ROI Gas Market – Update 5. Code Modification Proposal A087- New Framework for Suppliers in PPM Market 6. Code Modification Proposal A096 – Data Sharing Agreement 7. Code Modification A097 – Amendment of Final Allocation Date 8. Code Modification Proposal A098 – Reduction of Capacity Overrun Multipliers 9. Status of Code Modification Proposals

• 10. Shrinkage Gas
• 11. Gas and Electricity Interaction
• 12. GNI Vision 2050 Presentation
• 13. RGFI –Virtually Integrated Business Case for Biomethane Presentation
• 14. GNI Presentation on TLSI.1 Security withdrawal
• 15. AOB Items/ Date of next Meeting

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1. Review of minutes from last meeting

• Minutes of CMF meeting of 14 August were issued on 23 September 2019
• No comments were received

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2. Review of open actions

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ID Action Responsibility Status Priority C567 Transporter to carry out development work on its Website to make it more user friendly for Shipper Transporter Propose to close Medium C568 Transporter to carry out a review of its operational procedures in the event

• f system repair resulting in the issue of Restricted Capacity Day Notices to

minimise Shipper supply restriction consequences Transporter Propose to close High C571 Transporter to issue letters to Shippers indicating each respective credit position, issue Report to CRU, and settle each credit position through the Disbursement Account Transporter Propose to close High C572 Transporter to monitor on ongoing basis the adequacy of the initial 25% Tolerance for RNG Entry Points Transporter Open High C574 Shippers to forward Submissions to CRU of their post I-SEM experiences od dead-band LDM capacity booking Shippers Open High

3. Update on maintenance activities

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Maintenance Programme Gas Year 2018/2019

Date Duration Entry Points Commentary 7th March 2019 1 Bellanaboy Station testing, valve check and validations at Cappagh South. Deferred and combined with September date. 9th May 2019 1 Inch Odourant injection system planned maintenance. Deferred to 13th August but not expect to interrupt flow 4th Jul 2019 1 Moffat Station testing, valve checks and validations at Beattock and Brighouse Bay compressor station. Complete ahead of schedule as no interruption to the entry point was required 12th Sep 2019 1 Bellanaboy ESD testing at the Corrib Terminal. Combined with the Corrib

• perator shut-down

2019/2020 Maintenance Days

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Maintenance Programme Gas Year 2018/2019

Date Duration Entry Points Commentary 20th May 2020 1 Bellanaboy Station testing, valve check and validations at Cappagh South.. 17th June 2020 1 Inch Odourant injection system planned maintenance. Deferred to 13th August but not expect to interrupt flow 9th Sep 2020 1 Bellanaboy ESD testing at the Corrib Terminal (will be coordinated with the annual Corrib planned maintenance)

4. Brexit and ROI Gas Market

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• Update

5. Code Mod A087- New Framework for Suppliers in PPM Market (1/2)

• On 21st November, 2018 the CRU issued instruction approving A087 and implementation of a new framework.
• The key change is that rather than GNI procuring and negotiating front office service agreements, suppliers will procure their
• wn front office services as of 1st July 2021
• A new agreement between GNI and suppliers will be required to ensure compatibility of such services with the back office

system, to ensure the necessary information flow from the meter to the GNI system and ensure GNI has the ability to coordinate resolution of any industry wide issues.

• This agreement will not address commercial terms related to front office services.

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5. Code Mod A087- New Framework for Suppliers in PPM Market (2/2)

• It is proposed to establish a working group to discuss and analyse the impacts of the proposed solution and develop the

appropriate regulatory framework and procedures, implementation plan and system changes to ensure the proposed solution is implemented.

• Draft of proposed Terms of Reference for working group were circulated to the GMARG forum on 19th Feb with GMARG

documentation.

• GNI requested comments from the GMARG forum on circulated Terms of Reference for proposed Workgroup and nominated

workgroup representatives by 7th March.

• GNI are reviewing comments and initial call with supplier working group representatives to be arranged.
• Cod Mod related requirements will be brought to the Cod Mod forum as required.
• TWO Meetings of Workgroup have taken place with third meeting scheduled for 16 October 2019

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6. AO96 Data Sharing Agreement/A096A Model Clauses to address a Hard Brexit

• A096 -Transporter Proposal – To provide for an updated data sharing regime between Transporter and Shippers to

comply with provisions of Data Protection Act 2018 (implementing the General Data Protection Regulation (GDPR) (EU) 2016/679)

• A096A –Transporter Proposal – To provide for the transfer of personal data between the Transporter and Shippers

based outside the European Economic Area(EEA) through the introduction and application of Model Clauses under a Model Clause Procedure. It is proposed to come into effect on or before the Brexit deadline of 31 October 2019

• Update – The CRU has issued a ‘minded to’ notice which recognises a requirement for the adoption of Model Clauses

and the possibility of a Controller to Controller relationship between GNI and Shippers prior to the BREXIT deadline. Relevant legal drafting has been circulated.

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7. Code Mod A097 – Amendment of Final Allocation Date

• CRU direction

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8. Code Mod A098 – Reduction of Capacity Overrun Multiplier

• CRU direction

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9. Status of Code Modification Proposals

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Number Title of Proposal Proposer Status

A087 New Framework for Suppliers in PPM Market GNI Live/ Implementation process review A096 Data Sharing Agreement GNI Live/Consultation A096A Model Clauses to address a Hard Brexit GNI Live/Consultation A097 Amendment of Final Allocation Date from D+5 to M+5 GNI Live/ Direction A098 Reduction of Capacity Overrun Multipliers GNI Live/Direction

10. Shrinkage Gas

• Shrinkage Gas Report and Industry submissions
• Information flow to Industry in respect of new tariff charging regime
• Procurement of Shrinkage Gas by GNI

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11. Gas and Electricity Interactions

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• Submissions in relation to post I-SEM experiences of dead-band capacity LDM capacity booking

• 12. GNI Vision 2050 Presentation
• Separate slide pack

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• 13. RGFI Presentation– Virtually Integrated Business Case for Biomethane
• Separate slide pack

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14.GNI Presentation on TLS1.1 Security Protocol Withdrawal

• Relevant to users of GTMS and Delphi applications

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What is TLS and why is it used?

• Transport Layer Security or TLS is a cryptographic protocol that provides end-to-end communications security over networks

and is widely used for internet communications and online transactions.

• Many businesses use TLS to secure all communications between their Web servers and browsers regardless of whether

sensitive data is being transmitted.

• TLS allows shippers and other TSOs to communicate securely with Gas Networks Ireland’s ROI and NI Gas Transportation

Management System (GTMS & Delphi).

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Removal of TLS 1.1

• There are currently 4 version of TLS available – 1.0, 1.1, 1.2 and 1.3
• We successfully removed TLS 1.0 a number of years ago and we are now looking to shutdown TLS 1.1. From Dec 2020 we will
• nly support TLS 1.2 and 1.3
• TLS 1.1 has security flaws associated with it and will be deprecated by all major browsers starting in 2020.
• We want to disable all TLS 1.1 connections by December 2020 and only allow connections that use the TLS 1.2 and 1.3

protocols.

• We will be conducting an exercise to determine how many shippers/TSOs are currently using TLS 1.1 to connect to our

systems, and plan to send out appropriate communications to give them ample time to upgrade. We will be recommending that they upgrade to TLS 1.3.

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15. AOB

1. 2019 Emergency Exercise Artic 2. Recent Nomination Behaviour 3. IGEM Gas Quality Working Group 4. Review of impact of VRF tariff

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AOB 1: NEC Exercise Arctic

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• The UK Network Emergency Coordinator (NEC) Exercise Arctic took place on 2nd & 3rd October.
• Aim of exercise is to demonstrate that the gas industry is prepared and able to meet its obligations in the event of a Network Gas

Supply Emergency.

• Validation of T/PM/E/1 – Procedure for Network Gas Supply Emergency.
• GNI(UK) as the operator of the IC’s at Moffat obliged to participate.
• https://www.nationalgridgas.com/safety-and-emergencies/network-gas-supply-emergencies-ngse

NEC Exercise Arctic

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• NEC Exercise based on demand from 1st March 2018.
• Simulated demand exceeding supply due to multiple supply failures and high demand due to extreme cold weather.
• GNI provides load category breakdown for demand at Moffat (LDM/DM/NDM).
• Scenario necessitated demand reduction at Moffat resulting in load shedding of gas-fired power generation initially.
• Scenario based on 4-day duration.
• Sample news reel as follows…

EXERCISE ‘ARCTIC’ TUESDAY 2nd NOVEMBER

BREAKING NEWS MAJOR GAS SUPPLY LINE DAMAGED

Specialist response teams sent to the site of sunken trawler. Disruption to the UK’s gas supply expected

EXERCISE ARCTIC |||

Sunken Trawler

NGEM Exercise

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• National Gas Emergency Manager (NGEM) exercise run in tandem with NEC Exercise Arctic involving Irish gas industry

stakeholders.

• Gas-fired power generation load shedding simulated with EirGrid.

‒ For this scenario real time data for 2nd October was used (low wind / high gas demand).

• Simulated load shedding of industrial customers.
• Simulated identification and load shedding of 10% of NDM sector (small I&C impacted only).
• Bellanaboy outage incorporated into NGEM scenario.
• Gas Emergency Response Team (GERT) convened – DCCAE, CRU, EirGrid & GNI

Feedback & Report

• Feedback request to be issued this week to stakeholders.
• Exercise report to be completed by NGEM for the Gas Emergency Response Team (GERT).
• Lessons learned and recommendations from previous exercises captured in the annual exercise report.
• Any queries can be directed by email to: emergencyplanning@gasnetworks.ie

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AOB 2: Recent Nomination Behaviour

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• Bellanaboy Entry Point was unavailable from 27/09/19 until 06/10/2019
• On Wednesday the 2nd of October GNI issued the following notice to all Shippers

Further to the notice below issued by GNI Grid Control, as you are aware the Bellanaboy Terminal is unavailable until 04/10/2019 (05:00) per REMIT notification by the terminal operator. https://iip.remitor.eu/#/?publisher=47X000000000296P The aggregate Exit Nominations by all Shippers exceeds the aggregate Entry Nominations by all Shipper by 103 GWh, which is more than 50% of the total Exit Demand for the Gas Day. Given the impending severe weather, GNI requests that all Shippers exercise reasonable endeavours to match their aggregate Entry Nominations with their aggregate Exit Nominations as soon as possible for today and tomorrow.

AOB 2: Recent Nomination Behaviour

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• Most Shippers responded and Entry Nomination were made at Moffat
• On Wednesday the 2nd of October GNI issued the following notice to all Shippers

Aggregate nominated Position appears to leave the system short 5.67 GWh

AOB 2: Recent Nomination Behaviour

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• One Shipper nominated 150 kTherms (4.397 GWh) at Bellanaboy on the 2nd and 3rd of October despite an active REMIT

notification of ZERO capacity availability at the Entry Point

‒ This nomination gave that Shipper the appearance of being balanced from a nominations perspective

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AOB 2: Recent Nomination Behaviour

• The system was left cumulatively short 15 GWh between the 1st and 3rd of October

AOB 2: Recent Nomination Behaviour

• What changed on the 1st of October ?
• What do we do next?

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Fully loaded cost from NBP to IBP GNI Moffat daily Capacity - Oct

5.03 p/therm

GNI Moffat commodity

0.27 p/therm

NTS TO SO Exit

1.13 p/therm

NTS Moffat capacity

0.05 p/therm

Total

6.48 p/therm

Shorthaul saving

1.00 p/therm

estimate Net cost from NBP to IBP 5.48

AOB 3: IGEM Gas Quality Working Group (GQWG)

• Current specification for UK gas quality is defined in GS(M)R 1996. The GNI Code of Operation specification is closely aligned

with GS(M)R specification.

• There is a requirement to change the specification to align the UK standard with the European standard – focus is on widening

the Wobbe Index (WI).

• Why – to permit low carbon alternatives to natural gas e.g. the current WI requires the addition of propane to some

biomethane products.

• Information about this and the GQWG are available on the IGEM website.
• https://www.igem.org.uk/technical-services/gas-quality-working-group/
• GNI attended the July IGEM working group meeting, minutes for same are pending.

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Original Timelines

• Original timelines presented by UK HSE Consultation Report:

‒ March 2019 industry consultation on IGEM GQ standard ‒ April 2019 conclusion of GSMR impact assessment ‒ July 2019 IGEM GQ standard finalised ‒ April 2020 revised GSMR comes into force in UK

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October 2019 Update

• DNVGL & UK gas industry experts support the view that timelines have, and may continue to slip for a number of reasons

making April 2021 a reasonable estimate:

‒ HSE still have a serious body of work to get through;

• Technical assessment & industry consultation
• Regulatory Impact Assessment
• Parliamentary Approval

‒ Delays due to BREXIT ‒ Lower Wobbe Index is coming into discussions meaning timeframes will again be pushed out as a whole programme of work needs to take place around this. ‒ IGEM group approval is required – quite a lot of opposition at this stage so again difficult to see April 2020 or even October 2020 as viable.

• GNI continues to monitor developments and will update as necessary.

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AOB 4: VRF Tariff/KPIs

• From CRU decision on tariffs:

Nevertheless, the CRU acknowledges some uncertainty in relation to the impacts of the VRF tariff. The CRU therefore considers it important that, to the extent possible, the impacts of the VRF tariff be assessed and revised if negative impacts are identified due to the tariff being either too high or too low. The CRU will work with the Code Modification Forum to establish the factors that could be practically considered in this assessment; including the impact on the IBP.

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Code Modification Forum Meetings in 2019

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CMF Dates 2019 Location 16th January 2019 (Wednesday) Dublin 27th March 2019 (Wednesday) Dublin 12th June 2019 (Wednesday) Cork 14th August 2019 (Wednesday) Dublin 16th October 2019 (Wednesday) Dublin 11th December 2019 (Wednesday Dublin

Thank you for your participation