Overview

Date Published: Thu, 08/09/2011 - 08:36 Author: Ian Dempster
Owner: Ian Dempster
Status: In Progress
 

Transmission Update and Workshop on Gas Supply/Demand

Friday, 18 May, 10:00 AM and 1:00 PM at Gas Industry Co offices, 95 Customhouse Quay, Level 8 The Todd Building, Wellington

 

Gas Industry Co held two transmission-related sessions on Friday, 18 May for industry participants and interested stakeholders.  They were held to ensure that stakeholders were up to date on the range of transmission-related workstreams that are progressing, particularly as we move towards the phase of considering options for transmission access arrangements. 

 

 

Morning session:  Transmission Update

The morning session provided an update on transmission capacity work, including a progress report on the Bridge Commitments, an overview of the operation of the Gas Transmission Capacity Trading bulletin board, and a summary of the work undertaken by the Panel of Expert Advisers on transmission capacity access and pricing.

 

 

Afternoon session:  Gas supply/demand workshop

The afternoon session focussed on the gas supply/demand modelling that Concept Consulting is undertaking as a means of understanding future scenarios for gas demand and thus demand for transmission capacity.  This session presented an overview of the modelling approach, describe modelled supply and demand scenarios, and present some preliminary results from the modelling.

 

 

The purpose of the supply/demand workshop was to present preliminary results and elicit feedback from stakeholders on the modelled assumptions and inputs. Although this is not a formal consultation, Gas Industry Co would welcome feedback from interested parties on the modelling, including the assumption and information that were used as inputs on the preliminary conclusions reached.

 

Please send any comments to Pamela [dot] cairdatgasindustry [dot] co [dot] nz (subject: Gas%20Supply%2FDemand%20workshop%20feedback.)  by Monday, 4 June 2012. Please note that any comments received after that date may not be able to be considered.

 

Gas Transmission Investment Programme:

Introduction

The Gas Transmission Investment Programme (GTIP) is Gas Industry Co’s response to industry concerns over the long-term outlook for gas transmission capacity availability in the Auckland region. This work has its origins in 2009, when Vector announced to the industry that it would no longer be able to sell new capacity on its North Pipeline as that pipeline has reached the limits of its capacity.

 

Objective

The objective of the GTIP is to:

  • ensure that existing and future gas transmission assets are used efficiently;
  • establish the need for gas transmission investment; and
  • develop an effective pathway for efficient gas transmission investment to take place.

Structure and Governance

The GTIP is structured as a package of interconnected projects:

Two working groups have been developed to provide advice to Gas Industry Co in relation to the GTIP:

The diagram below illustrates the GTIP structure and governance.

 

 

GTIP Structure and Scope paper and review

Gas Industry Co has prepared the paper: Gas Transmission Investment Programme - Structure and Scope. The aim of the paper is to provide:

  • a clear objective and scope for the Programme;
  • further detail on the GTIP governance arrangements and component projects; and
  • a detailed work plan.

Gas Transmission Investment Programme - Structure and Scope.

 

The scope of projects identified in the paper will be reviewed by the Panel of Expert Advisers (PEA). Any advice the panel has on revising the scope will be considered by Gas Industry Co before the scope of the GTIP is finalised.

 

Background to this work

 

Gas Industry Co has been working on transmission pipeline capacity issues for several years. Our work in this area has sought to address both short and long-term issues that have arisen from the North Pipeline constraint. In relation to the short-term, large end users on the North Pipeline have experienced a reduction in the number of credible bids they receive when seeking a new gas supplier. Gas Industry Co's investigation of this situation prompted key industry memebers to put in place a set of commitments known as the, 'Bridge Commitments'. Gas Industry Co is monitoring the market to assess the effectiveness of these commitments.

 

 

 

More information on this work can be found here: Short-term Capacity Workstream

 

 

 

In relation to the long-term, Gas Industry Co has investigated Vector's access regime and developed various options for improving the performance of the regime. Stakeholders have participated in this work through various workshops and consultation papers. At an April 2011 workshop, attendees strongly endorsed the need for a more holistic approach to finding solutions to the longer-term transmission capacity issues. It was proposed that Gas Industry Co lead a structured programme of work, and subsequent industry submissions endorsed an outline for the GTIP prepared by Gas Industry Co.

 

 

 

More information on this work can be found here: Long-term Capacity Workstream