Grain LNG: Open season for primary capacity sales process. The contractual arrangements at the site allow the primary capacity holders to sell importation capacity to secondary users.
South Hook: The primary shipper will be required to offer to the market any part of the base capacity that does not require. Such capacity will be termed Available Capacity. South Hook will promptly advertise the available capacity to the market in an appropriate electronic from such as on a website, together with dates by which applications for access are to be submitted and allocated or rejected. All other information necessary for third parties to determine their applications will be made available including: 1) quality specification ranges; 2) all standard terms and conditions, including credit requirements; 3) framework contract; 4) priorities.
Dragon LNG: Open season for primary capacity sales process. Under the terms of the Throughput Agreements, the primary capacity holders have contracted for 100% of the terminal capacity. The Throughputters will be obliged to notify Dragon in the event that they do not expect to use any of their capacity entitlement. In the event that there is capacity available which the Throughputters do not intend to use, Dragon will advertise this available capacity to the market in an appropriate electronic form such as on a website, together with dates by which applications for access are to be submitted and allocated or rejected. All other information necessary for third parties to determine their applications will be made available including: 1) quality specification ranges; 2) all standard terms and conditions, including liabilities; 3) framework contract; 4) timing and priorities.
Number of months ahead that terminal operators provide information on available capacities: Grain LNG: The primary shipper’s three month unloading programme (also known as the Ninety Day Schedule), is published in advance on the LNG Grain Agency website (www.lngga.com). Ten days in advance of a scheduled unloading date, if the primary shipper decides, at its discretion, not to use the next available scheduled berthing slot, then the primary shipper will make that berthing slot available for use by third parties under the secondary capacity mechanism.
South Hook: not available.
Dragon LNG: The precise arrangements by which the market will be advised of available capacity will be developed and notified prior to first operation of the facility.
Short-term available capacities and frequency of updates:
Grain LNG: The commercial operations section at GLNG web site holds information on how parties may be able to access secondary or Use It Or Lose It (UIOLI) capacity at the terminal.
South Hook: According to the “Application for exemption”, South Hook will advise the market promptly on any spot capacity that may be identified within the year.
Dragon LNG: The precise arrangements by which the market will be advised of available capacity will be developed and notified prior to first operation of the facility.
Capacity allocation and congestion management procedures:
Grain LNG: All primary capacity at the terminal was auctioned through open season processes and was fully contracted: BP/Sonatrach have a 3.3 mtpa, 20-year contract to use the terminal to berth and unload LNG ships and store LNG, before regasification and nomination of gas for delivery into the UK’s National Transmission System. 6.5 mtpa of expansion capacity has been contracted to Centrica, Gaz de France and Sonatrach, again on a long term basis.
Ofgem granted an exemption from rTPA requirements on the basis that GLNG would meet certain requirements, including the allocation of the terminal capacity to primary capacity holders through open season processes and the implementation of effective anti- hoarding measures. GLNG has provided information on how it satisfies these requirements: the Commercial Operations web page holds information on how parties may be able to access secondary or Use It Or Lose It (UIOLI) capacity at the terminal.72
72 Since the start of commercial operations, in July 2005, capacity at the Terminal has been accessible to potential third party shippers through arrangements with the Primary Shipper to sell LNG on an ex-ship basis or through interruptible capacity made available by the Terminal Operator. This interruptible capacity offered by the Terminal Operator to date comprises the unused berthing slot together with any storage and delivery capacity which the Primary Shipper is not using. From 31 July, 2006, these two existing methods are complemented by a third method – the “Secondary Capacity Mechanism”. Under the Secondary Capacity Mechanism a berthing slot the Primary Shipper decides not to use will be auctioned with corresponding temporary storage and delivery capacity. The Primary Shipper will, in these circumstances, be making available storage capacity and delivery capacity which they would otherwise be using, to complement the unused berthing slot.
South Hook: The terminal operator will manage a process that invites priced offers for Available Capacity and where there is more than one qualifying third party user making an application, South Hook will allocate capacity in the following manner:
– preference will be given to the applicant whose access request allows revenues for South Hook to be maximised;
– spot capacity which becomes available from time to time will be allocated either on the same basis as Available Capacity, or on the basis of first come, first served, depending on the timing of spot capacity availability.
To further encourage the efficient use of capacity, the operator would intend to establish an appropriate system to enable the primary shipper and third parties who obtain Available Capacity to market such capacity on a secondary market.
Dragon LNG: Throughput Agreements require to pay fixed charges irrespective of use of the terminal. Thoughputters will have an incentive to maximise use of the terminal. In addition, the Throughput Agreements enable secondary trading of capacity between the throughputters in the event that they do not use its fully capacity entitlement.
Historical data on capacity utilization and flows:
Grain LNG: Information in relation to Grain daily export flows is posted on the TSO web site.
South Hook: terminal currently under construction. Dragon LNG: terminal currently under construction. User-friendly instruments for calculating tariffs:
Grain LNG: a bulletin board is available for parties to express interest in buying or selling capacity at the terminal.
South Hook: The terminal operator will advertise the Available Capacity to the market in an appropriate electronic form such as on a website.
Dragon LNG: The precise arrangements by which the market will be advised of available capacity will be developed and notified prior to first operation of the facility.
A.3.7. Portugal
Total annual throughput: 5.25 bcm/yr; available capacity: approximately 4 bcm/yr. At present, Transgás Atlántico does not provide any information on capacities in its web site.
A.3.8. Turkey
Marmara Ereğlisi LNG Import Terminal has a total annual throughput: 5.2 bcm/yr. In the winter period, the terminal is in its full capacity, while in the summer period the terminal is run roughly with 60% capacity.
With respect to the capacity allocation procedure in this terminal, there is a priority for BOTAŞ existing Contracts. Pro Rata is applied for the remaining Capacity.
Contractual Congestion Management has not been clarified yet. In the drafted Code of Operations for the Marmara Ereğlisi Terminal, it is stated that Pro Rata is to be applied in proportion with the existing amount of LNG in Storage Tanks.