Transmission Pipeline Balancing
Overview
Owner: Ian Wilson
Consultation
Previously Consulted On
Transmission Balancing Second Options Paper
Author: Ian Wilson
To view the workshop presentation, please click here.
Submissions received
Transmission Pipeline Balancing Options Paper
Author: Ian Wilson with assistance from Energy Acumen and Castalia
The Transmission Pipeline Balancing Options Paper progresses the discussion on improving balancing arrangements by better defining the problems associated with gas balancing and explaining why Gas Industry Co proposes intervening. It also sets out the key principles for balancing arrangements and considers what a solution might comprise.
Submissions received
Transmission Pipeline Balancing Issues Paper
Author: Ian Wilson
The paper describes issues arising from existing balancing arrangements, and discusses why regulatory intervention may be necessary. The paper also prepares the ground for future work on developing and analysing alternative balancing options. It discusses the design elements from which such options would be built, and suggests criteria that could be used for evaluating those options.
Submissions received
Transmission Pipeline Balancing Research Paper
Author: Ian Wilson
The purpose of this research paper, published in April 2008, was to gather information relevant to pipeline balancing as a resource for the industry to use in further consideration of the issues, and taking action to resolve them.
Transmission Pipeline Balancing
Gas Industry Co has completed its review of New Zealand transmission pipeline balancing and has concluded that a regulatory solution is the preferred option for improving balancing arrangements and meeting the objectives of the Gas Act and GPS. Gas Industry Co has determined that the participative regulation option, first described in the Transmission Pipeline Balancing Second Options Paper, should be pursued. This is Gas Industry Co’s statement of proposal to pursue this option.
Previously Consulted On
Supplement to the SOP- Analysis of Submissions
Gas Industry Co has completed an analysis of submissions and cross-submissions on the Supplement to the SOP.
To view the analysis, please follow the link below.
Supplement to the SOP- Analysis of Submissions
Statement of Proposal
Date Published: 01 October 2009
Author: Ian Wilson
Submissions received
Cross-submissions
All submissions and cross-submissions will be considered in an analysis of submissions paper.
Submissions received
Transmission Pipeline Balancing - Supplement to the October 2009 Statement of Proposal
Author: Ian Wilson
Gas Industry Co has determined that, before making its formal balancing recommendation to the Associate Minister of Energy and Resources, it is prudent to pull together and explain all the work that has taken place since the Transmission Pipeline Balancing Statement of Proposal was published in October 2009.
This paper contains:
- an update on developments since the Statement of Proposal
- a description of key changes made to the Draft Rules following further industry discussions (including a copy of the Draft Rules)
- implementation plans for the Draft Rules determined with industry input, and
- a quantitative cost-benefit analysis of the Draft Rules.
Submissions received
Industry Code Development ( ICD) Process
The ICD process is a facilitated consultative forum at which pipeline owners, industry participants, and Gas Industry Co work together to design and implement a unified balancing regime for the gas transmission system that will avoid or minimise the need for regulatory intervention to achieve the relevant objectives of the Gas Act and GPS.
In order to participate in the process each party must complete the ICD Process Commitment Form, by which they agree to the terms of reference; contribute toward the funding; and attend weekly meetings. The links to the Commitment Form and Terms of Reference are provided below.
090918 - Gas Industry Co - Agenda for 18 September 2009 ICD meeting
090918 - Gas Industry Co - Work Plan: suggested coverage
090925 - Gas Industry Co - Minutes of 18 September 2009 ICD meeting
090925 - Gas Industry Co - Agenda for 25 September 2009 ICD meeting
090925 - Gas Industry Co - Balancing objectives
090925 - Gas Industry Co - Draft Balancing Regime Checklist
091002 - Gas Industry Co - Minutes of 25 September 2009 meeting
091002 - Gas Industry Co - Agenda for 2 October 2009 ICD meeting
091002 - Maui Development Ltd - ICD Presentation
091002 - Gas Industry Co - D+1 Presentation
091002 - Gas Industry Co - Note on Governance
091009 - Gas Industry Co - Minutes of 2 October 2009 ICD Meeting
091009 - Gas Industry Co - Agenda for 9 October Meeting
091009 - Vector Gas Limited - Balancing Contractual Option Presentation
091009 - David Bott - Unification: Beyond the Residual Presentation
091016 - Gas Industry Co - Agenda for 16 October ICD Meeting
091016 - Gas Industry Co - Statement of Proposal Presentation
091023 - Gas Industry Co - Agenda for 23 October ICD Meeting
091023 - Gas Industry Co - Minutes of 9 October 2009 Meeting
091023 - Gas Industry Co - Minutes of 16 October 2009 Meeting
091023 - Maui Development Limited - Tolerances and Welded Party Claims Presentation
091030 - Gas Industry Co - Agenda of 30 October 2009 ICD Meeting
091030 - Gas Industry Co - Minutes of 23 October 2009 ICD Meeting
091030 - Maui Development Limited - ICD Presentation
091030 - Contact Energy Limited - Notional Welded Points presentation
091030 - Contact Energy Limited - Notional Welded Points paper
091030 - Contact Energy Limited - Notional Welded Points model
091106 - Gas Industry Co - Agenda for 6 November 2009 ICD Meeting
091106 - Gas Industry Co - Minutes of 30 October 2009 Meeting
091106 - OnGas Limited and New Zealand Steel - Nomination Cycle Times presentation
091106 - Gas Industry Co - HoA Schedules presentation
091113 - Gas Industry Co - Agenda for 13 November 2009 ICD Meeting
091113 - Gas Industry Co - Minutes of 6 November ICD Meeting
091120 - Gas Industry Co - Agenda for 20 November ICD Meeting
091120 - Gas Industry Co - Minutes of 13 November ICD Meeting
091120 - Gas Industry Co - Minutes of 20 November ICD Meeting
Memorandum of Understanding- Integrated Gas Balancing Regime
The output of the ICD process was a Memorandum of Understanding (MoU) intended to provide a high level of confidence that an industry solution is achievable and could come into affect by 1 October 2010.
The MoU describes the principles and a package of changes to achieve an integrated gas balancing regime through changes to the existing contractual framework. Although the MoU is non-binding, the 11 companies who participated in the ICD process agreed that it should be signed as an indication of support.
Responses from companies who supported the MoU were:
Contact Energy Limited - Memorandum of Understanding
Genesis Power Limited - Memorandum of Understanding
Greymouth Gas New Zealand Limited - Memorandum of Understanding
Maui Development Limited - Memorandum of Understanding
Mighty River Power - Memorandum of Understanding
Multigas New Zealand Limited - Memorandum of Understanding
New Zealand Steel Limited - Memorandum of Understanding
OMV New Zealand Limited - Memorandum of Understanding
Todd Energy Limited - Memorandum of Understanding
Responses from companies who did not sign the MoU were:
Vector Gas Contracts Limited - Letter regarding Memorandum of Understanding
Vector Gas Limited - Letter regarding Memorandum of Understanding
Gas Industry Co acknowledges the content of the MoU and has considered its content and the level of support it has obtained.
Consideration of Recent Balancing Industry Initiatives
The 'Consideration of Recent Industry Balancing Initiatives' paper investigates whether any industry initiatives on balancing matters since the development of Gas Industry Co's October 2009 Statement of Proposal would cause it to reassess the conclusion of that paper.
Consideration of Recent Industry Balancing Initiatives
Recommendation
Transmission Pipeline Balancing letter to Minister
As indicated in the Statement of Proposal, Gas Industry Co will make a recommendation to the Associate Minister of Energy and Resources that rules be made for balancing arrangements in New Zealand. The text of the advice can be viewed or downloaded here.
Letter to Associate Minister of Energy and Resources regarding Transmission Pipeline Balancing
Balancing Rules Workshops
Gas Industry Co wished to ‘workshop’ the draft balancing rules before including them in its formal recommendation to the Associate Minister at the end of February 2010. To use our time as efficiently as possible we held two workshops, the first, on Tuesday 2 February 2010 for only MDL and Vector, the second, on Friday 5 February 2010, for anyone else who wished to suggest improvements to the draft rules.
To view or download the redlined version of the Draft Rules here
To view or download the clean version of the Draft Rules here
A copy of the workshop presentation can be found here
Comments on draft Balancing Rules
Gas Industry Co invited industry participants to comment on the Draft Rules. The comments received can be viewed here:
Greymouth Gas New Zealand Limited