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United Nations Economic and Social Council

Working Party on Transport Statistics

Transport of natural gas through pipelines

Definitions used

Bernard Gonze

EUROGAS

WP.6 / 8-10 june 2005, Genève

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EUROGAS IS

A non profit industry organization based in Brussels

A forum and an ambassador

Representing federations and companies from 21 European countries including associate members

Supply to the European Market

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EUROGAS Membership since June 2004

•30 MEMBERS (10 National Federations / 20 corporate members)•21 COUNTRIES

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Gas Share of Primary Energy (2003)

4,2%2%

15,2%

15,1%

39%

24,5%Natural Gas

Oil

Solid Fuels

Nuclear

Hydro

Renewable & Other

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Gas Consumption in Europe (preliminary figures)

443,9

458,3

400

425

450

475

500

525

2003 2004

+ 3,3%

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100

105

110

115

120

125

130

135

140

2003 2005 2010 2015 2020

% Demand Increase

24

25

26

27

28

29

30

2003 2005 2010 2015 2020

Market Share of Primary Energy

Gas Demand Trends

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What is natural gas ?

There is no international definition.(In the Belgian law : all gaseous combustible product of underground origin make up of essentially methane, including LNG, but excluding fire-damp)

1859, 8 km 2” Titusville

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Different types of natural gases

Slochteren (Ned) : 83,1 % of methaneEKOFISK (Norway) : 87,7% of methaneAlgeria : 90,2% of methaneTroll (Norway) 91,3% of methane

In the network: problem of

interoperability

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First uses of the natural gas and origin of the name

First reported uses:In 600 B.C., Confucius wrote of wells 30 m deep yielding water and natural gas (the “air which smells bad”). The Chinese piped the gas to where it was needed through long, hollow bamboo rods in the Se Chouan country (Tibetan border).

In Persia, around the 1st century A.C., natural gas seeped out of the ground and was ignited by lightning, producing a hot flame. The King of Persia build his royal kitchen near the flame.

The name of “gas” was first given by Van Helmont (Brussels, 1579-1644) in his Hortus Medicinae (“gheist” i.e. spirit gas). The word “gas” was not used in England until the 19th century because Robert Boyle used the word “air”

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EUROPEAN NORM EN 437:2003

At 15°C, 1013,25 mbar in MJ/m3

First family of gas Second family of gas

group L 39,1 MJ/m3 =< Ws =< 44,8 MJ/m3 (Slochteren)

group H 45,7 MJ/m3 =< Ws =< 54,7 MJ/m3 (Algeria, North Sea, Russia, ...)

Third family of gas

***************************************NB :1m3 Normal conditions : 0°C and 1013,25 mbar Standard conditions (EUROPE) : 15°C and 1013,25 mbarW(obbe index) = Calorific value divided by the square root of the density International conditions : at 0°C and 1013,25 mbar ( in MJoule/m3)

Madrid Forum : 1 normal m3 ; calorific value at 25°C and 1013,25 mbar ( in kWh/m3)

•Natural gas “L”

•Natural gas “H”

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Directive 2003/55/EC of june 2003

Natural gas undertaking : any natural or legal person carrying out at least one of the following function : production, transmission, distribution, supply, purchase or storage of NGincluding LNGand which is responsible for the commercial, technical, and/or maintenance tasks related to those function (not include final customers)

Transmission : transport of natural gas through a high pressure pipeline network with a view to its delivery to customers but not including supply (difference with 98/30/EC due to the unbundling)comment 1 : no definition of high pressure,comment 2 : in some countries storage, LNG installations are also included use of “acheminement”comment 3 : transit Directive (91/296/CE) is repealed

Distribution : transport of natural gas through local or regional pipelines with a view to its delivery to customers, but not including supply

In some case, it is not easy to make a clear difference between transmission and distribution

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Directive 2003/55/EC of june 2003 (2)

Transmission system operator (dif with 98/30/EC): a natural or a legal person who carries out the function of transmission and is responsible for operating, ensuring the maintenance and, if necessary, developing the transmission system

Distribution system operator (dif with 98/30/EC): a natural or a legal person who carries out the function of distribution and is responsible for operating, ensuring the maintenance and, if necessary, developing the transmission system

Comment : possibility of ownership separated from operation (guaranty of independance of the operator)

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Directive 2003/55/EC of june 2003 (3)

Supply : sale (including resale) of natural gas (including LNG) to customers

Storage facility : a facility used for the stocking of natural gas, including the part of LNG facilities used for storage but excluding the portion used for production operations and facilities reserved exclusively for transmission system operators (dif with 98/30/EC)

LNG facility : a terminal which is used for the liquefaction of natural gas or the importation, offloading and regaseification of LNG excluding LNG facilities used for storage (dif with 98/30/CE)

System : any transmission network, distribution network, LNG facilities and/or storage facilities owned and/or operated by a natural gas undertaking

Linepack : storage of gas by compression in gas transmission and distribution system

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Directive 2003/55/EC of june 2003 (4)

Interconnector: transmission lines which crosses or spans a border between Member States for the sole purpose of connecting the national transmission systems of the Member States.

Direct lines : a NG pipeline complementary to the interconnected system

Customers : wholesale and final customers + NG undertakings which purchase NG

Household customers : customers purchasing NG for their own household consumption

Non-household customers : customers purchasing NG which is not use for their own use

Eligible customers : customers who are free to purchase gas from suppliers of their choice

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Guidelines for Good Practice (Madrid Forum)

Madrid Forum = European Gas Regulatory Forum

participants : the Commission the representative of the Presidency Regulators representatives of the EU/EEA Member states representatives of the industry and consumers

+ others in some cases : repres. of the Russian Federation, Gazprom

output (among others) : Guidelines for Good Practice (GGP)

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GGP definitions

Guidelines for good TPA Practice (GGP) : purpose is to ensure that TSO aim to provide the quality of services needed by the network users and that the systems and processes promote sustainable development of competition in gas supply.

TSO : Transmission system operator

IAs and OBAs : TSO should ensure interoperability between different systems inter alia by entering into both standard interconnection agreements (IAs) and standardised operational balancing agreements (OBAs) at any interface

Network users : end-use customers, producers, suppliers, traders, TSOs (in relation to cross-border transmission), ...

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GGP definitions (2)

Capacity : the maximum flow, expressed in normal cubic meters (1013,25 mbar and 0°C) per time unit or in energy unit per time unit, to which the system user is entitled in accordance with the provisions of the transmission contract

Firm capacity : capacity guaranteed by the undertaking

Available firm capacity : the part of the technical capacity that is not allocated and is still available to the system users at that moment

Non-firm or interruptible capacity : capacity that can be interrupted by the undertakings according to the conditions stipulated in the access contract

Balancing period : the period within which the off-take of an amount of NG, expressed in units of energy, must be offset by every system user by mean of the injection of the same amount of NG into the transmission network in accordance with the contract

Nomination : the prior reporting by the system user to the transmission undertaking of the actual flow that he wishes to inject or withdraw from the system

Nominated flow : the flow that the system user has previously reported to the transmission undertaking

Re-nomination : the reporting of a corrected nomination

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GGP definitions (3)

Contractual congestion : situation where the level of firm capacity demand exceeds the technical capacity

Physical congestion : situation where the level of demand for actual deliveries exceeds the technical capacity at some point in time

System integrity : any situation in respect of a transmission network or a transmission facility in which the pressure and the quality of the NG remain within the minimum and maximum limits laid down by the transmission undertaking

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