Trans Adriatic Pipeline (TAP) has started its consultation process on the draft TAP Network Code. The public consultation process has recently been prolonged and is now open till 30th September 2018.
The main documents published by TAP are the “TAP Network Code (TNC) and Annexes” and the “Supporting Documents for TAP Network Code (TNC).
TAP will offer firm forward flow capacities on yearly, quarterly, monthly and daily basis from the entry Point at the Turkish – Greece Border (Kipoi, tie-in with TANAP) to the exit points in Greece (Komotini and/or Nea Mesimvria) and the exit point in Italy (Melendugno, tie-in with Snam Rete Gas network).
Commercial reverse capacity on a yearly, quarterly, monthly and daily basis, which is conceptually designed as a Point to Point transport with no access to the virtual trading point, is offered from the Entry Point Melendugno to the Exit Point Nea Mesimvria or to the Exit Point Komotini and the entry point Nea Mesimvria to the exit point Komotini.
The tariff mechanism renders commercial reverse capacity economically attractive and Italian shippers could use this competitive advantage to play an important role in Greece and to develop new business opportunities. It needs to be mentioned that exit capacity at the Greece exit points will have different tariffs depending on if capacity is booked as commercial reverse flow or forward flow.
Nevertheless, it is worthwhile for interested shippers to analyse the TNC to understand the involved risks and operational processes in detail.
Apparently, TAP still does not have all relevant interconnection agreements with adjacent TSOs concluded and therefore it remains open if entry and exit points will have an Operational Balancing Agreement and if double or single side nomination will be applicable. These open points could induce imbalance quantities also with commercial reverse flow capacities and shippers have no possibility to influence these imbalances and mitigate that risk.
TAP will purchase or sell gas quantities for balancing services, fuel gas and Unaccounted for gas (UFG) with transparent, market-based auction at interconnections points or the virtual trading point.
Nevertheless, there is a high probability that gas will be bought or sold by TAP at unattractive prices since the liquidity at the virtual trading point and the interconnection points will be very limited.
With the neutrality arrangement TAP, like regulated TSOs, is shifting any price risks of gas quantities purchased or sold to shippers booking commercial reverse flow capacities. TAP will furthermore charge the costs of electric power to all shippers.
The fact that TAP is requesting a guarantee covering the costs of at least a 12 months booking period is more stringent than the Italian guarantee requirements.
Further and a more detailed analysis of the TNC can be made available by Josef Winkler, Managing Director Winkler Energy & Logistics Consulting GmbH, email@example.com
© Riproduzione riservata.