Code Modification Forum Ashling Hotel, Dublin Wednesday, 27 March - - PowerPoint PPT Presentation

Code Modification Forum

Ashling Hotel, Dublin Wednesday, 27 March 2019

Agenda

1. Review of minutes from last meeting 2. Review of open actions 3. Update on maintenance activities 4. Code Modification Proposal A087- New Framework for Suppliers in PPM Market 5. Code Modification Proposal A096 – Data Sharing Agreement 6. Code Modifications A094/A095 7. Code Modification A097 – Amendment of Final Allocation Date 8. Code Modification Proposal A098 – Reduction of Capacity Overrun Multipliers 9. Status of Code Modification Proposal 10. Brexit and ROI Gas Market 11. Gas and Electricity Interaction Shrinkage Gas Update 12. Shrinkage gas update 13. Presentations relating to Renewable Natural Gas 14. Presentation on the Cluden-Brighouse Bay Pipeline 15. Presentation on Physical Reverse Flow at Moffat study 16. AOB

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1. Review of minutes from last meeting

• Minutes of CMF meeting of 16th January 2019 were issue on 23rd January
• No comments were received

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2. Review of open actions

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ID Action Responsibility Status Priority C538 Transporter to continue consultation process surrounding intra-day nomination patterns and profiles Transporter Propose to close High C567 Transporter to carry out development work on its Website to make it more user friendly for Shipper Transporter Open Medium C568 Transporter to carry out a review of its operational procedures in the event of system repair resulting in the issue of Restricted Capacity Day Notices to minimise Shipper supply restriction consequences Transporter Open High C569 Transporter to carry out analysis of extent of Eirgrid Dispatches during Trading Platform deadband and formulate scheme to process imbalance charge exemptions 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 Open High C572 Transporter to monitor on ongoing basis the adequacy of the initial 1.5% Tolerance for RNG Entry Points Transporter Open High C573 Transporter to consider question of Exit Capacity Overrun Charges resulting from Eirgrid directed dispatches to power generators in the dead band period Transporter Propose to close

3. Update on maintenance activities

1. Upstream Operator updates

‒ Nothing to report

2. GNI 2018/2019 maintenance updates

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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. Date may move due to contractor availability. 4th Jul 2019 1 Moffat Station testing, valve checks and validations at Beattock and Brighouse Bay compressor station 12th Sep 2019 1 Bellanaboy ESD testing at the Corrib Terminal

4. 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 own 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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4. 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.

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5. Code Modification Proposal A096 – Data Sharing Agreement

• 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)

• Transporter has consulted with Industry on the provision through the GMARG and Code

Modification Fora particularly in relation to an amended Clause 9 (Confidentiality and Data Protection) of Part I (Legal and General) of the Code of Operations

• A joint GMARG and CMF teleconference with Industry in relation to draft Clause 9 provision
• n 12 March took place where it was agreed;
• Shippers would submit written comments on draft Clause 9 by COB on 26 March
• GNI to collate and respond to Shipper comments
• Further joint teleconference to be convened circa 9 April for further review of Clause 9

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6. Code Modifications A094/A095

• Code Modification Proposal A095 - Adjustment of Daily Imbalance Charges

‒ CRU Direction

• Code Modification Proposal A094- Changes to Shipper Portfolio Tolerances

‒ CRU Direction

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7. Code Modification A097 – Amendment of Final Allocation Date

• Proposal by GNI:

‒ To amend the Final Allocation Date in respect of Exit Points from D+5 to M+5

• i.e. 5 calendar days after month end
• Current position:

‒ Sect.2.9.2 of Part D of Code provides that “ The Transporter shall make available to Shippers the Final Allocation in respect of a Shipper’s LDM Offtake(s), DM Offtake(s), NDM Supply Point(s), and/or the Sub-Sea Offtake by 16:00 hours on D+5” ‒ Meter cleansing takes place at the start of a calendar month for a preceding month which is after D+5 ‒ Transporter cannot correct metering issues uncovered after D+5 other than as a cumulative month end adjustment which is not date specific and hinders Shippers in detailing their customer invoices

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• Procedure going forward

‒ GNI will be able correct metering issues as they arise, adjust the metered quantity for the day, reallocate and issue more accurate monthly allocation statements/invoices to Shippers ‒ Shippers will be able to issue accurate statement/invoices to customers and will not have to obtain subsequent account adjustments. 1. Grid Control identify a requirement for a MDC action 2. Re-run allocations for the affected days. 3. Grid notifies Shipper Operations of details. 4. Shipper Operations will notify affect Shipper

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7. Code Modification A097 – contd.

8. Code Mod Proposal A098 – Reduction of Capacity Overrun Multipliers

• Transporter Proposal:

‒ To reduce Overrun Multiplier from eight times to four times the applicable Daily Capacity Charge

• Transporter Rationale:

‒ The proposed Overrun Multiplier seeks to strike a balance between incentivizing Shippers to book adequate capacity on the GNI network whilst not unduly penalizing exposed Shippers. ‒ The present capacity overage charge calculation predates the introduction of Short Term Capacity products and could be viewed as unduly penal, particularly in shoulder and winter periods.

• A power station Shipper with an overrun of 750,000 kWh (equivalent to approx. 1 hour of max load at a

particular power station) at Moffat Entry and at its LDM Exit in the month of February when the Daily Capacity Charge would be circa. €12,600 would at present attract overrun charges of €101,000. If the Overrun Multiplier was reduced from 8 times to 4 times, the overrun charges would be c. €50,500.

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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 A094 Changes to Shipper Portfolio Tolerances GNI Approved A095 Adjustment of Daily Imbalance Charges GNI Approved A096 Data Sharing Agreement GNI Live/Consultation A097 Amendment of Final Allocation Date from D+5 to M+5 GNI Live/ Consultation A098 Reduction of Capacity Overrun Multipliers GNI Live/Legal Drafting

10. Brexit and ROI Gas Market

• Verbal update from GNI

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11. Gas and Electricity Interactions

• Verbal update from GNI

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12. Shrinkage Gas Update

• Verbal update from GNI

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13. GNI Presentations relating to Renewable Natural Gas

• Cush BNEF & Connection Policy for Renewable Gas

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Gas Networks Ireland Cush BNEF & Connection Policy for Renewable Gas

Jason Hannon | March 2019

Renewable Gas – Nurney AD & Cush BNEF

GNI’s ambition

• 20% Renewable Gas by 2030
• 250 – 350 Anaerobic Digesters (RGas Producers)
• 350 individual connections to the network

Or

• 17.5 Centralised Facilities

Or

• A hybrid solution, e.g.

‒ 15 CGIs ‒ 50 Direct pipeline connections

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20%

What does a connection look like?

Digester Plant

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Gas Upgrading Biomethane Grid Entry Unit

Grid Injection

Gas Connection

Propane Storage

Developing a Renewable Gas Project

1. Develop competency 2. Identify Sites / Landowners 3. Identify Feedstock Availability/ Suppliers / Logistics 4. Project Feasibility screening / business case development 5. Acquire Land / Landowner consents 6. Plant Preliminary Design 7. Submit Planning Permission 8. DAFM engagement / approval 9. Planning Permission Approval 10. Feedstock supplier contractual arrangements 11. Project Financing 12. Detailed Design 13. Procurement 14. Construction 15. Commissioning 16. Secure appropriate market for gas 17. EPA license

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High Risk of non progression Medium Risk of non progression Low Risk of non progression 0-18 months 18-36 months 36-54 months

Renewable Gas Connection Policy

• CRU approved & published on 15th October 2018
• Key Points

‒ Pay 30% capital contribution (subject to +ve NPV), ‒ Appraisal assessed over 10 year horizon

• Overall, very favourable for Renewable Gas producers
• Transcribed into the GNI Connection Policy V5.0

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NFO GNI

The 6 Stage Connection Process

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Application fee of €10,000 plus VAT Advanced Connection Offering valid up to 24 months Pay a contribution (~10% of cost) Formal Connection Offering – Payment of balance Preliminary network assessment & report DAFM Approval Planning Approval

Renewable Gas Enquiries current state of play…

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Leads Total Received February

Total 98 29 Rated >=4 24 13 Open 61 29 Open & Rated >=4 20 13 1. A lead denotes a person interested in producing Renewable Gas that has engaged with GNI 2. A Lead rated 4 or more indicates a strong interest matched with what GNI deemed to be the capability to progress a project (technical competence & financing track record) 3. For a lead to be open, GNI must have engage with said lead within the past 30 days

Projects Total Receive d

Enquiries Received 45 Formal Applications Received 2 Contracts Issued 1. An enquiry denotes a lead has identified a site and flow rate of Biomethane and now is requesting some preliminary design works (high level desktop analysis –free of charge) from GNI 2. A formal application denotes a lead has formally submitted a connection application (payment of €10k associated). Planning permission application / land owner consents required to progress.

Enduring Networks Tariff Consultation

• Published 11 Dec, response deadline 11 Feb
• Proposes notional entry point for Renewable Gas connections

‒ Common tariff treatment

• CRU query if Distribution tariff should have alternative tariff

‒ Socialisation of tariff into exit tariffs?, ‒ Or a discount tariff ?

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Q&A

Biomethane Certification in Ireland

Brendan O’Riordan – Green Gas Certification Project Lead

Code Modification Forum - 26th March 2019

Green Gas Certification - Background

• Biomethane = a renewable energy source

‒ a green gas, identical properties to fossil gas (methane) ‒ Produced from biodegradable organic materials (e.g. organic waste, sludge, silage/grass, slurry, etc.) ‒ A clean, renewable & carbon-neutral fuel

• Biomethane Certificates

‒ Each certificate represents a guarantee that 1 MWh of biomethane has been injected into the GNI grid. ‒ Certificate issued to the producer of biomethane, who can transfer ownership to an end-consumer of gas.

• Valued by end-consumers = using a carbon-neutral fuel & EU-ETS
• National Targets - facilitate overall national reporting of GHG emissions reductions
• National Schemes – facilitate interface for both BOS for transport & SSRH for biomethane in heat

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RED II, Art.19: Elements of a Guarantee of Origin (‘GO’)

M.S. must issue a GO for each MWh of energy produced from all renewable sources Proof of Origin

 From which Green Gas production plant did this green gas originate from?

 Name, Location, Type, Capacity

Proof of Amount

 How much green gas was produced?  When was is produced/injected?

Proof of Quality

 Sustainability Criteria: GHG Value

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Green Gas Certification Scheme for Ireland

• System to issue certs for biomethane produced &

injected into grid.

• Processes to trace biomethane from production

to consumption

• Auditor to verify origin of biomethane within the

Registry ‒ inspect production plant, feedstocks and processes, ‒ verify quantity & quality

• Comply with RED II sustainability criteria &

classifications

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Process: End-to-End

Producer

Waste to Biogas to Biomethane to Grid Injection Certificate for each 1 MWh Contract with Shipper to sell Biomethane and/or Cert

GNI

Transport bio-methane through T & D networks Capacity Booking from Shipper Entry – Biomethane Pt Exit – Pt of Consumption Issue Certs (GO’s) for biomethane injected

Shipper

Contract with Biomethane Producer

• Gas & Certificate

Capacity Booking & Commodity Charge w/ GNI Contract w/ gas consumer to supply Fossil Gas or Green Gas

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Life Cycle Analysis (LCA)

Life Cycle Calc of GHG Emissions

• Grass Bio-methane

‒ Prodn. & transport of subtrates

• Manure storage, Sowing, fertilizing, harvesting, ensiling

‒ Prodn. Biogas at AD facility

• Methane slippage

‒ Cleaning & upgrading of biogas to bio-methane ‒ Compression ‒ Road Transport

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Green Gas Registry Operator – ‘Back Office’

• GNI in process of implementing the Green Gas registry for Ireland
• Provide for different account types = GG Producer, Trader, Auditor…
• Receive & validate metered quantities of bio-methane = SCADA feed to the Registry
• Issue, split, transfer & cancel certs
• Different sustainability criteria applies to use in heat, transport & electricity sectors – certs to record

eligible sectors for trading

• Certs must be issued within 12m of production = System to be implemented early 2020 to register

first production and injection of biomethane in Ireland

• EU examples – biomethane being produced & certified in many EU countries by TSO’s

‒ E.g. Denmark, Finland, France, Italy, Spain.

• SEMO - currently issuing certificates for renewable electricity produced in Ireland.

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Certification Entity – ‘Front Office’

• Develop standard practices/procedures to be followed for auditing service
• All biomethane produced in Ireland must comply with RED II & meet sustainability criteria.
• Implement a GHG Calculation Tool. Ensure auditors are suitably trained and qualified.
• Flexibility to adapt to any other requirements or compliance obligations, e.g. incentive or

subsidy schemes.

• Primary Authority – DAFM oversight required at all AD’s in Ireland.
• Biofuels Obligation Scheme – Green Gas certification can deliver solution to meet

requirements of the BOS for gaseous transport fuels.

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Next Steps

• Develop detailed concept for an ‘interim’ solution
• Identify IT system to support Back Office functionality – Grexel
• Identify certification system & auditing process to verify GHG properties

‒ ISCC EU Scheme: ‘Voluntary’ scheme recognised by EU

• Stakeholder Engagements

‒ Workshops in 2019 to be arranged to update stakeholders & take feedback

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Implementation - Progress To Date

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IERC ‘Blueprint’ for Green Gas Certification 1st Bio-methane Injection Mar’19 RED II Transposed Dec’18 EBA & ENTSOG/GIE WG’s on Guaranties of Origin Stakeholders Actively Engaged – Workshop’s GNI Connection Policy – c.30 Connections Applications

Q&A

14. Presentation on the Cluden-Brighouse Bay Pipeline

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Code Modification Forum

Cluden to Brighouse Bay – GNI (UK)

Robert Flanagan – Ervia Major Projects

27th March 2019

Cluden to Brighouse Bay

Cluden to Brighouse Bay

Project Need Gaslink’s Network Development Plan 2014-2023 (NDP 2014) indicated that peak day gas demand is forecast to increase by 6% by 2022/23. Modelling demonstrated that it was necessary to complete the pipeline twinning to reinforce the interconnector system by 2020/21. In November 2014, GNI successfully secured a grant of €33m to complete the project as part of the Connecting Europe Facility (CEF) under the PCI 5.2 programme. Security of supply - likelihood of a loss on an offshore pipeline is low, the impact on the gas shipping community is very high. This project completed the twinning of the onshore system in Scotland.

Cluden to Brighouse Bay

Interconnection point to ROI – Moffat (85 bar) 2 no sub-sea ICs – built 1993 & 2003 Phase 1 of IC2 land based - 29.6km Phase 2 (previous) – 49.7km Pipe dia: 914.4mm (36”) Material: steel

Cluden to Brighouse Bay

Designer pre-con: Penspen Designer con: Arup Site supervisors: Arup ALO: GVA O’Buachalla (4) Main contractor: Sicim/Roadbridge Ltd.

Cluden to Brighouse Bay

Contract production Tender process main contractor Pipe procurement (5,600 units) Landowner negotiations/agreements Budget development Design supervision GNI (UK)

Cluden to Brighouse Bay

Process Pre-existing survey Install fence line Topsoil strip Archaeology Pre-con drainage Install skids String the pipe (350 track machine with vacuum lift)

Cluden to Brighouse Bay

Process contd. Pre-break trench Stockpile bedding, surround Install crossing sleeves Welder and coating quals. Weld strings Trench excavation Ditch pipe Tie-in & backfill

Cluden to Brighouse Bay

Wayleaves Poor drainage on IC1 Opportunity Special agreements (off spec) Post con drainage Off easement reqmts. 42m working width Agricultural crossings

Cluden to Brighouse Bay

Welding Automatic 30 welds/day Manual stick 2 welds/day Testing regime: destructive, AUT, RT Forged bends + bending machine

Cluden to Brighouse Bay

Coating Factory applied system Field coating system Sand blasting Polypropylene (PP) Polyethylene (PE) CP system

Cluden to Brighouse Bay

Crossings 1 dual carriage way 31 roads 3 major rivers IC1 x 3 Auger TBM

Cluden to Brighouse Bay

BV Stations BV 7 & 8 Ball valve with bypass Permanent access Hydrotest Golden welds

Cluden to Brighouse Bay

Environmental Himalayan Balsam Badgers, Otters, Red Kites Great crested newts, Other nesting birds. Surface water & SEPA

Cluden to Brighouse Bay

RDX 33 During construction

Cluden to Brighouse Bay

RDX 33 Post construction

15. Presentation on Physical Reverse Flow at Moffat study

• To be added at CMF meeting

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16. AOB – Item 1

Proposed Typographical and Textual Changes to Code of Operations in advance of updated Version 5.03

• Proposal that the new defined term in Part D is amended from “ Counterparty Trade Shipper” to

“Counterparty Trading Shipper

‒ The term “Counterparty Trade Shipper’ is already used in Part C in a different context.

• Proposal to remove the defined term “Delivery Facility Operator” from its only reference at Section

3.2.4 in Part H and refer instead to “ operator of an RNG Delivery Facility”

‒ The term is now not used, as originally intended, in the RNG CSA and need not be included as a defined term here

• Proposal that the defined term “Commission for Energy Regulation” is amended to “Commission for

Regulation of Utilities” in Part A with the following wording added after Act “ as renamed pursuant to the Energy Act 2016 and S.I. No.397 of 2017”

‒ To record the amended name of the Regulator

• Proposal to add bracket to formula at Section 11.3.5 (b) of Part C to read: EnOQ = EnA-(AC+EOT)

‒ To correct typographical error

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16. AOB – Item 1

Proposed Typographical and Textual Changes to Code of Operations in advance of updated Version 5.03

• Proposal that the new defined term in Part D is amended from “ Counterparty Trade Shipper” to

“Counterparty Trading Shipper

‒ The term “Counterparty Trade Shipper’ is already used in Part C in a different context.

• Proposal to remove the defined term “Delivery Facility Operator” from its only reference at Section 3.2.4 in

Part H and refer instead to “ operator of an RNG Delivery Facility”

‒ The term is now not used, as originally intended, in the RNG CSA and need not be included as a defined term here

• Proposal that the defined term “Commission for Energy Regulation” is amended to “Commission for Regulation
• f Utilities” in Part A with the following wording added after Act “ as renamed pursuant to the Energy Act

2016 and S.I. No.397 of 2017”

‒ To record the amended name of the Regulator

• Proposal to add bracket to formula at Section 11.3.5 (b) of Part C to read: EnOQ = EnA-(AC+EOT)

‒ To correct typographical error

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AOB - Item 2 - Gas Quality – Wobbe Index Increase

• GNI previously provided an update on Gas Quality to

the CMF on the 27th Nov 2017

• Focus then was on IGEM continuing it’s review of

GS(M)R and combustion parameters, in particular increasing the Wobbe Index (WI) upper limit from 51.41 MJ/m³ to 53.25 MJ/m³

• Principle drivers in increasing the WI allows a wider

range of gas supplies to enter the network

• Currently, IGEM review is still in progress
• GNI has carried out an impact assessment of potential

changes in the UK natural gas interchangeability requirements on the Republic of Ireland

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Impact assessment conclusions / recommendations

Conclusions

• In principle, the ROI gas industry is relatively modern, and the domestic appliance population is estimated to be

newer and more tolerant of a wider Wobbe range

• Further information on domestic, commercial and industrial appliances would benefit a more thorough

assessment of impacts on gas consumers Recommendations

• It is likely that the studies currently being carried out for the IGEM GQWG, in conjunction with ROI appliance

population data, ought to allow an assessment to be made for the ROI This topic should be an Industry concern (shippers) and not merely one for the transporter

• Information on commercial and industrial appliances in use in ROI is not available and further assessment of

these sectors is recommended

• Similar customer surveys completed in UK should be completed in ROI

Update – 27 March 2019 The Transporter will present progress report at Code Modification Forum Meeting on 12 June 2019. It the meantime it welcomes any comments/contributions from Industry

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AOB – Item 3

• Administrative Procedures at the Bellanaboy Entry Point
• Vermilion Exploration & Production Ireland Limited, as the Connected Systems Operator

performs the function of entry allocation agent for the registered shippers at the Bellanaboy Entry Point

• The Code of Operations allows for administrative procedures to be agreed between the

Transporter and the CSO in relation to shippers entitled to book capacity at an Entry Point.

• As agreed during 2018, Vermilion has notified the Transporter of the current list of

Bellanaboy Shippers with entitlement to Capacity at the Entry Point

• The Transporter will only allow the Shippers on the list to book Bellanaboy Entry Capacity
• n GTMS

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AOB – Item 4 – GNI Website developments

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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) Cork 11th December 2019 (Wednesday Dublin Next Meeting

Thank you for your participation