Energy Glossary

We have assembled a very extensive industry wide glossary for your free use. A lot of care and attention has been taken with regards to it's accuracy, but mistakes do happen. If you happen to spot one then please let us know.

Everything is displayed by default, but if you want to check a specific sector of the energy industry then click the sector name below and it will be sorted by that sector alphbetically for you.

Everything Carbon/Emissions Electricity Gas LNG Oil
AAR Additional Account Representative, responsible for checking transactions in an account in a national registry but unable to initiate or carry out transactions.
ACER The Agency for the Cooperation of Energy Regulators is the European Union body created by the Third Energy Package to progress the internal energy market both for electricity and natural gas. It was launched 2011 and is located in Slovenia.
ACI Model A code written by ACI recommending ethical and operational principles for trading staff, covering areas such as personal conduct, controls and authorisation, and encouraging the swift settlement of contracts, and the use of master agreements and standard terms.(ACI was founded in Paris in 1955 as Association Cambiste Internationale.)
Allocation 1. Any process by which entry capacity or NTS exit capacity may be allocated by or on behalf of National Grid in accordance with the Network Code. 2. An end of day process whereby National Grid (and Claims Validation Agents) allocate actual gas flows to each shipper’s account.
AMSEC Annual Monthly System Entry Capacity - monthly capacity to be offered in annual auctions, run by National Grid typically in February for the following April to March.
Annual Monthly Entry Monthly capacity to be offered in annual auctions, typically in February for the following April to March.
API American Petroleum Institute - represents all aspects of the U.S. petroleum and natural gas industry.
APX Amsterdam Power Exchange
APX ENDEX Netherlands exchange, separated into two companies from March 2013 - the power spot exchange APX and the gas spot, gas derivatives and power derivatives exchange ENDEX, now called ICE Endex
APX Gas Now divided into ICE Endex and APX
Arbitrage The practice of exploiting price differentials between different markets, products or locations when trading.
Argus An independent media organisation with HQ in London and world-wide offices. It publishes energy price assessments, market commentary, news, and business intelligence reports.
ASEP Aggregate System Entry Point
Back Office The part of the organisation that takes responsibility for a deal once it has been agreed, checking that all the information about the deal has been correctly captured, confirming the details of the deal with both parties, and ensuring that the contract is properly executed and paid for.
Banking Carrying forward allowances from one trading period into another.
Basel II An international banking accord that recommends standards for financial institutions in terms of minimum capital, supervision of banks, and market discipline.
Basis The price differential between different markets, products or locations.
BAU Business as usual
Bcf/d Billion cubic feet of gas per day
Bcm Billion cubic metres (gas)
BDS Bid Data Sheet
Beach gas Gas delivered to terminals on the Great Britain coast by producers.
Bilateral Agreement An agreement between two parties to net off payments owed between themselves.
BOD Basis of Design
BoM Balance of Month - price average for gas to be delivered on each of the remaining days of the current month, not counting today.
Booked capacity Any capacity that a shipper buys from a pipeline company.
BOT Build, Own, Operate and Transfer
BoW Balance of Week, Price average from tomorrow and to the first weekend (not defined on Friday-Sunday).
Broker A party that mediates between a buyer and a seller, in return for a commission fee (normally from the seller).
Btu or BTU British thermal unit. The heat required to raise the temperature of 1lb of water by 1 degree Fahrenheit (F) at or near 39.2 degrees F.
C Centigrade
Calorific value The energy in mega-joules produced by the combustion of 1 cubic metre of gas.
CAM Network Code Capacity Allocation Mechanisms network code, developed by ENTSOG
Capacity The amount of gas that can be held within the physical structures – e.g. pipeline and storage facilities.
Capacity (entry) The amount of gas that a shipper is entitled to put into the system at a particular input point (terminal) on a day.
Capacity trading The process by which shippers with spare capacity sell it to other shippers that require more capacity through a process of offers and bids.
CCC Committee on Climate Change Advises the UK and devolved Governments on tackling and preparing for climate change.
CCGT Combined-Cycle Gas Turbine
CEER The Council of European Energy Regulators - exists to facilitate the creation of a single, competitive, efficient and sustainable EU internal energy market that works in the public interest.
CER (With ref to Ireland) The Commission for Energy Regulation is the independent body responsible for overseeing the liberalisation of Ireland's energy sector.
CFR Cost and Freight
Churn Rate Measure of the number of times a parcel of a commodity is traded and re-traded, between its initial sale by the producer and it final purchase by the purchaser. A market is said to have reached maturity when the churn rate is greater than 10 times.
CIA Central Intelligence Agency, USA – publishes a World Factbook including statistics about the energy industry, and covering most countries in the world.
CIF Cost, Insurance and Freight
CIP Carriage and Insurance Paid to (named place or destination)
Claims Validation The Claims Validation Agent is an independent body, set up and funded by the industry, to manage the process whereby gas is allocated to shippers at an entry point.
Collateral Security pledged by a buyer as a guarantee of performance of a contract.
Commodity charge A charge in respect of the use of the gas distribution system, determined by the quantity of gas flow at a certain point.
Constraint management services Services in relation to the management of capacity rights by National Grid, in order to maintain system pressures within safe limits.
Counterparty A broker, investment bank or other securities dealer that serves as the contracting party when completing "over the counter" securities transactions.
CPD Continuing Professional Development (See www.icaew.com/en/members/cpd) Points awarded for attendance at training courses by the ICAEW.
CPM Critical Path Method – a tool for project management
CPT Carriage Paid to
Credit limit The maximum amount of credit that a party is prepared to extend to a particular counterparty.
DAF Delivery at Frontier
Daily balancing Shipper inputs and outputs are balanced at the end of each gas flow day, and the appropriate imbalance charges are calculated.
DAT Delivery at Terminal
DBERR The Department for Business Enterprise and Regulatory Reform in UK, where most of the responsibility of UK energy policy rests. Former DTI (Department of Department of Trade & Industry)
DDP Delivered Duty Paid (named place of destination)
DDU Delivered Duty Unpaid
Deliverability The maximum quantity of gas that can be withdrawn from a storage facility on a single day. Also referred to as withdrawal (capacity).
DEQ Delivered Ex Quay
DES Delivered Ex Ship
DFN Daily flow notifications - hourly flow rates at each beach sub-terminal submitted to National Grid by sub-terminal operators.
DISEC Daily Interruptible System Entry Capacity. Interruptible capacity offered by National Grid before the day.
DM Daily-metered Customers - large or ‘interruptible’ customers whose daily gas consumption is measured and transmitted to shippers or National Grid, typically through a data-logger.
Downstream The oil and gas industries are divided into two parts - upstream and downstream. The downstream sector refers to the refining of crude oil and the processing of natural gas, after it has been extracted. The downstream sector delivers to consumers through such products as petrol, aviation fuel, diesel, natural gas, and liquefied petroleum gas (LPG). Midstream operations are often included in the downstream sector.
DSEC Daily System Entry Capacity. Firm capacity offered by National Grid before or on the day.
ECTT Entry Capacity Transfer and Trade
ECTT Entry Capacity Transfer and Trade
EEX Operates a market platform for a broad range of energy and related products in Germany including power, natural gas, CO2 emission rights and coal.
EFET The European Federation of Energy Traders. Also used to refer to the various commodity trading master agreements created by EFET.
EFETnet A system for electronic data exchange based on EFET standards, which facilitates energy trading.
EFP Exchange-of-futures-for-physical. The substitution of offsetting futures market positions for an existing physical market position by a buyer and a seller.
EFS Exchange-of-futures-for-swap. The substitution of offsetting futures market positions for an existing OTC swaps position by a buyer and a seller.
EMR Electricity Market Reform - UK Government initiative to make sure the UK remains a leading destination for investment in low-carbon electricity.
Entry point 1) The point at which gas enters the gas transportation system. 2) Point where the Shipper makes all or part of the gas available to the Operator. An Entry Point is associated with a single Balancing Zone.
ENTSOG European Network of Transmission System Operators for Gas.
EoD End of Day shows all physical gas flows entering National Transmission System (MTS) at the end of the day.
EPC Energy Performance Certificate which states the energy efficiency of a home as part of Home Information Packs
EPC Engineering Procurement and Construction.
ETRM Energy trading, transaction and risk management software supporting the business processes associated with energy trading.
EU10 The 10 countries which acceded to the EU in May 2004: Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia.
EU15 The 15 countries which formed the EU up until May 2004: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, UK.
EUAA European Union Aviation Allowances
Exit zone A geographical gas distribution area (wholly contained within an LDZ) that groups together supply points, which, on a peak day, receive gas from a specified NTS off-take point and therefore attracts the same exit capacity.
EXW Ex factory, ex works or ex warehouse.
F Fahrenheit
FAS Free alongside Ship
FCA Free Carrier
FEED Front End Engineering Design
FIDIC Fédération Internationale des Ingénieurs Conseils (International Federation of Consulting Engineers)
Firm entry capacity Entry capacity right that gives the holder a firm right either to flow gas or to receive compensation from National Grid.
FOB Free on Board
Four eyes principle A risk control procedure that requires two people, ideally from separate parts of the business, to cross-check key processes.
Front Office The part of the organisation that is responsible for preparing for, negotiating and capturing deals.
Futures exchange A regulated market for trading futures contracts and options in commodities and other derivative financial instruments. Futures exchanges provide a central counterparty for every trade and positions are marked-to-market every day.
G or g Giga 109 or 1,000,000,000
Gas day Lasts from 06:00 am - 06:00 am in most countries.
GCC General Conditions of Contract.
GDP Gross Domestic Product
GECF The Gas Exporting Countries Forum - gathering of the world’s leading gas producers set up to increase the level of coordination among Member countries.
GEMA The Gas and Electricity Markets Authority. The main onshore gas (and electricity) regulator in Britain. GEMA is in effect the executive board of Ofgem.
GIE Gas Infrastructure Europe - represents gas transmission companies, storage system operators and LNG terminal operators in Europe.
GPA and GPSA Gas Processers’ Association & Gas Processers’ Suppliers Association.
GSA Gas Sales Agreement.
HH Henry Hub - a natural gas pipeline in Louisiana, USA that serves as the official delivery location for futures contracts on the NYMEX. It connects with many other pipelines, and is the pricing point for natural gas futures on the New York Mercantile Exchange.
HSE Health, Safety and Executive, UK
IAOEC Incremental Annual Obligated Entry Capacity. Any obligated entry capacity for a given terminal which National Grid is required to offer for sale for a period of less than five years.
IBEC Initial Baseline Entry Capacity
ICAEW The Institute of Chartered Accountants in England and Wales. Professional membership organisation for over 140,000 chartered accountants worldwide. It provides qualifications and professional development, and protects the quality and integrity of the accountancy and finance profession.
ICC International Chamber of Commerce
ICE Interconnector Exchange. For prompt or ‘Day Ahead’ markets in North American power, ICE is a major execution venue for over-the-counter (OTC) trading.
ICE Endex Gas spot, gas derivatives and power derivatives exchange. (Was APX Gas).
ICE Futures Europe Established in 1981 as the International Petroleum Exchange of London (IPE), and acquired by ICE in 2001, ICE Futures Europe offers benchmark energy and emissions futures and options contracts cleared by ICE Clear Europe.
ICIS/HEREN Large petrochemical and energy market information provider across all continents. Provides independent pricing data, analysis and consultancy for the oil, gas, liquefied natural gas, carbon and coal sectors.
ICO The Information Commissioner's Office – independent advice and guidance about data protection and freedom of information.
ICO Independent Oil and Gas Company. A non-integrated company which receives nearly all of its revenues from production at the wellhead. Usually in the exploration and production segment of the industry, with no downstream marketing or refining within their operations.
IEA International Energy Agency - an autonomous organisation which works to ensure reliable, affordable and clean energy for its 28 member countries and beyond.
IEC Incremental entry capacity. Capacity that National Grid releases to the market above SO baseline. This may be obligated incremental entry capacity or non-obligated incremental entry capacity.
IECR process Incremental Entry Capacity Release - describes the methodology by which NGG determines whether to make incremental entry capacity available for sale to gas shippers.
IFB Invitation for Bids
IGEM The Institution of Gas Engineers and Managers
IGU International Gas Union
Imbalance The difference between the quantity of gas delivered to the system by a shipper and the quantity delivered to the shipper’s customers.
Interconnector A pipeline linking two consumption markets, as opposed to pipelines linking a gas field and a consumption market.
Interruptible Customer A customer whose supply may be interrupted, either by National Grid for system security reasons, or in some cases, by shippers for commercial reasons. Interruptible customers are currently supplied under interruptible transportation contracts between National Grid and the relevant shippers.
Interruptible entry capacity Entry capacity that gives the holder an interruptible right to flow gas into the system. National Grid may curtail interruptible capacity without cost.
IOEC Incremental obligated entry capacity - firm entry capacity in excess of NTS SO Baseline entry capacity which National Grid is required to offer for sale, having been approved by Ofgem via the IECR process.
IOGC Integrated oil and gas companies – are considered integrated if they combine upstream, midstream and downstream activities as part of their overall operations.
IPOEC Incremental permanent obligated entry Capacity. Any obligated incremental entry capacity in respect of a given terminal which National Grid is required to offer for sale for a period of five years or more.
ISDA International Swaps and Derivatives Association.
ITB Instructions to Bidders.
JOA Joint Operating Agreement.
JVCA Joint Venture, Consortium or Association.
Kwh Kilowatt hour, equals 3,600,000 Joules.
LBEC Long-term baseline entry capacity The amount of capacity that National Grid is obliged to offer for sale in the long-term auctions, currently set at 80% of SO baseline.
LDC Local District Company
LDZ Local distribution zones (gas)
LDZ network The aggregate of the Local Distribution Zones.
Linepack Linepack is the volume of gas in the National Transmission System (NTS, National Grid Transco's high pressure grid). Opening Linepack (OLP) is the actual volume at 06:00 (the beginning of the gas day). Closing linepack (PCLP1) is the nominated volume at the end of the gas day.
LOC Letter of Credit
Low cal gas Gas with a low calorific value
Lower 48 Name for the 48 states in the USA all connected within the continent – Alaska and Hawaii are detached.
LPG Liquid Petroleum Gas Liquefied petroleum gas - also called GPL, LP Gas, liquid petroleum gas, propane or butane - a flammable mixture of hydrocarbon gases used as a fuel in heating appliances and vehicles. It is also used as a refrigerant or propellant and a, replacing chlorofluorocarbons in an effort to reduce damage to the ozone layer. When used as a vehicle fuel it is sometimes referred to as autogas.
LRS Long range storage
LTSEC Long-term System Entry Capacity offered by National Grid in annual auctions for years 3 to 15.
Mark-to-market The practice of revaluing deals every day to reflect current prices so that profits and losses are realised immediately.
Master Agreement A single over-arching contract between two parties. This means that any individual deal between those parties becomes a transaction under the terms of that single master agreement. The two main types of master agreements widely used in energy trading are provided by ISDA and EFET.
Maturity The date at which contract obligations are due.
Mega One thousand, 1,000
Micro-generation Small-scale generation of heat and electric power as an alternative to centralised suppliers from the grid. Term common among individuals and small concerns who aspire to zero or low-carbon footprints.
Middle Office The part of the organisation that is responsible for risk management, reporting and counterparty credit control.
Midstream Midstream operations are often included in the downstream sector. They take place after the initial production phase and through to the point of sale.
MISEC Monthly Interruptible System Entry Capacity
Mmcf/d 1000 million cubic feet per day
MOU Memorandum of Understanding
MRS Medium Range Storage
MSEC Monthly System Entry Capacity
Multi-lateral clearing and settlement systems Operated by some brokers or exchanges to reduce counterparty risk by enabling all parties to net off payments due.
NBP National Balancing Point - an imaginary point on the UK gas supply system through which all gas passes in accounting and balancing terms. NBP also refers to the series of gas markets with delivery at the NBP, and is therefore shorthand for the UK spot gas market.
N2EX The name of the market which NASDAQ OMX Commodities and Nord Pool Spot operate in the UK.
N2EX Market for UK energy contracts including the UK physical power market, technical trading and clearing, a regulatory framework, and clearing procedures.
NASDAQ OMX The National Association of Securities Dealers Automated Quotation set up in 1971. Now a global electronic marketplace for the buying and selling of stock. NASDAQ OMX Commodities Europe offers cash-settled derivatives contracts in the Nordic, German, Dutch, and UK power markets with futures, forward, option, and CfD-contracts of up to six years’ duration, including contracts for days, weeks, months, quarters, and years. The reference price for the power derivatives contracts is the underlying day-ahead price as published by Nord Pool Spot (Nordics), the EEX (Germany), APX ENDEX (Netherlands), and N2EX (UK).
National Grid National Grid is an international electricity and gas company and one of the largest investor-owned energy companies in the world. Owns and maintains the high-voltage electricity transmission system in England and Wales, together with operating the system across Great Britain, balancing supply with demand on a minute by minute basis. National Grid is also responsible for ensuring that gas is delivered to over 20 million consumers around the country safely and efficiently. In 1986, British Gas was privatised. In 1992, smaller industrial consumers were allowed to select a supplier other than British Gas. By the end of 1998 all gas consumers were able to choose their own supplier.
National transmission system (NTS) The high pressure network of pipes that transports the gas between the terminals, storage facilities and specific regional sites for local distribution in the UK.
NCC National Contracts Commission
NDM Non-daily metered customers - all customers who do not have a daily meter-reading facility. National Grid estimates demand for NDM customers based on its demand algorithm. Differences between actual metered demand and deemed demand may be resolved after the day through the reconciliation process.
NEP National Energy Policy
Netting statement A statement summarising all the long and short positions held with a particular counterparty, and calculating the net position relative to that counterparty.
Network Code A set of business rules within a legal framework that defines the rights and obligations of National Grid and shippers, and forms the basis for all contracts between them.
NGG NTS National Grid Gas National Transmission System
NGV’s Natural Gas Vehicles
Nomination A request for National Grid to receive or deliver gas to or from its system. Shippers submit daily (and sometimes within-day) nominations via AT-Link for the quantity of gas they wish to input to the system at each entry point, and the quantity of gas their customers are expected to take off the system at each exit point.
Non-obligated incremental entry capacity Firm entry capacity other than obligated entry capacity. This is additional capacity that National Grid may choose to release to the market, without requiring Ofgem approval through the IECR process.
Nordpool (Nordics) Nord Pool Spot runs the leading power market in Europe, offering both day-ahead and intraday markets to its customers.
NTS National Transmission System - the high pressure network of pipes which transports gas between the terminals, storage facilities and specific regional sites for local distribution in the UK.
NTS System Operator (SO) revenue Revenue derived by National Grid from the carrying on of the NTS SO activity.
OCM On-the-day Commodity Market.
Ofgem Office of Gas and Electricity Markets (the UK regulator for both gas and electricity, previously separate as Ofgas and Offer). Ofgem is also the office of the Gas and Electricity Markets Authority (GEMA).
OLP Opening Linepack (OLP) is the actual volume at 06:00 (the beginning of the gas day).
On-the-day commodity market A screen-based trading system operated by EnMO to allow gas trading within day.
OT Open Tender
OTC Over-the-counter - a bilateral contract for commodities or any financial instrument agreed between two counterparties either directly or through a broker. This is trading directly between companies rather than in an exchange or futures market.
OUR Office of Utilities Regulation
PAR Primary Account Representative, one of two people responsible for the operation of an account in a national registry.
PEP Project Execution Plan
Position limits A predetermined limit on the maximum position that a company or a particular trader can take on a contract.
Producer Company which explores for gas, drills the wells, and flows the gas from the sea bed. It sends the gas along undersea pipelines and hands it over to terminal operators.
Proved reserves Those quantities of natural gas, which, by analysis of geological and engineering data, can be estimated with a high degree of confidence to be commercially recoverable from a given date forward, from known reservoirs, and under current economic conditions.
QA/QC Quality Assurance/Quality Control.
QSEC Quarterly System Entry Capacity. Entry capacity in quarterly bundles offered by National Grid in the long-term auctions. Also referred to as Rolling Monthly System Entry Capacity (RMSEC).
Reference price Some contracts (particularly long-term contracts) are indexed to prices of other commodities, particularly oil and oil products, or, in the UK, to short-term gas market prices. In such a contract a reference price is the price (or one of the prices) on which this indexation is based.
Reserve lifetime or R/P ratio Defined as the ratio of the reserves of crude oil or natural gas in units of barrels or cubic feet to the annual production in barrels per year or cubic feet per year. The units of this ratio are years and are equivalent to the number of years of production left in the reserve at the current production rate.
RFP Request for Proposal
RHI The Renewable Heat Incentive helps businesses, the public sector and non-profit organisations meet the cost of installing renewable heat technologies.
Risk Management Committee A committee typically made up of senior management, which has overall responsibility for risk management, control and compliance.
RMR Retail Market Review
RMSEC Rolling Monthly System Entry Capacity Unsold MSEC offered by National Grid just before the start of the relevant month.
RMTNTSEC Rolling Monthly Transfer and Trade System Entry Capacity Auction
SAP System Average Price - the volume weighted average of trades on the OCM. Also referred to as WAP (weighted average price).
SAR Secondary Account Representative - one of two people responsible for the operation of an account in a national registry.
Sarbanes-Oxley The Sarbanes-Oxley Act (2002) is a piece of US legislation, passed after the Enron collapse, requiring US public companies to maintain high standards of internal control and record-keeping making the Directors personally responsible for financial reports.
SBD Standard Bidding Document
SBEC Short-term Baseline Entry capacity The amount of SO baseline capacity that National Grid is obliged to withhold from long-term auctions in order to offer for sale in the short-term auctions, currently set at 20% of SO baseline.
SBLC Standby Letter of Credit
SCC Special Conditions of Contract
Scheduling The (initially day-ahead) process whereby NATIONAL GRID decides how to manage gas flows on its system in order to meet demand.
Scheduling charges Charges levied on shippers based on differences between their end of day nominated and allocated volumes.
Seasonal normal temperature The average temperature that might be expected on any particular day, based on historical data.
Shipper A company that contracts with the pipeline company for the use of transportation and storage facilities.
Shrinkage Gas losses in the transportation and distribution system. Shrinkage gas is either own use gas (gas used by National Grid in operating its system, e.g. as compression fuel) or unaccounted for gas (leaks and theft).
SIGTTO Society of International Gas Tanker and Terminal Operators.
SMPbuy System Marginal Buy Price The greater of SAP+0.95p/th or the highest priced National Grid trade on the OCM on that day.
SMPsell System Marginal Sell Price - the lessor of SAP-0.84p/th or the lowest priced National Grid trade on the OCM on that day.
SND Seasonal normal demand. Forecast demand based on seasonal normal temperatures.
SO System Operator The body that manages the operation of the system from day-to-day – part of National Grid’s role in Britain.
SO Baseline entry capacity The minimum amount of capacity that National Grid is required to offer for sale at a particular entry point. SO baseline is set as 90% of TO baseline, and is sometimes referred to as IBEC (initial baseline entry capacity).
SO revenue Revenue derived by NATIONAL GRID from the carrying on of the NTS SO activity.
SPA Supply point administration - the process whereby supply points are registered to particular shippers and suppliers, and transferred between parties.
Spark green spread See ‘Clean spark spread’
SPV Special Purpose Vehicle
SRA Solicitor’s Regulation Authority
SSIs Standardised settlement instructions - a system used to facilitate the settlement of transfers of funds or financial instruments.
STP Straight-through processing. Functionality on computer systems designed to enable deals to be captured, confirmed, risk managed and settled automatically.
Supplier A party licensed by Ofgem to sell gas to end-users.
Supply point The metered point where gas is supplied from the pipeline system to the end-user. May include multiple Meter points.
System The pipeline system operated by the pipeline company for the conveyance of gas.
System Average Price (SAP) The volume weighted average of trades on the OCM. Also referred to as WAP (Weighted Average Price).
System management services Services in relation to the balancing of gas inputs to and gas off-takes from the NTS. Includes balancing trades, balancing trade derivatives and constraint management services.
System Management Services Services in relation to the balancing of gas inputs to and gas off-takes from the NTS and includes balancing trades and balancing trade derivatives and constraint management services.
System Marginal Buy Price (SMPbuy) The greater of SAP (System Average Price) plus 0.95p/th or the highest priced National Grid trade on the OCM on that day.
System Marginal Sell Price (SMPsell) The lessor of SAP (System Average Price) minus 0.84p/th or the lowest priced National Grid trade on the OCM on that day.
TSO Transmission System Operators
T or t Ton or Tonne. An American ton is 2,000 pounds. In non-U.S. ton is 2,240 pounds. A metric ton, or tonne, is 1,000 kilograms.
TCM Trillion cubic metres (gas)
Term contract A contract negotiated between parties, typically for several or many years’ duration, as contrasted to a short-term OTC contract.
TFA Terminal flow - also referred to as a transportation flow advice. A request from National Grid to a sub-terminal operator to reduce gas flows into a particular terminal.
Third Energy Package A legislative package intended to further open up the internal gas and electricity market in the European Union.
Tight Gas Tight gas is natural gas held in rock pores up to 20,000 times narrower than a human hair. Often it flows at a much slower rate than in normal gas reservoirs, but the overall volume of available gas can be much higher than in conventional gas reservoirs.
TJ Terajoule - a unit of energy = 1e12 joules
TO Transmission Asset Owner - the body that owns the transportation system, and is responsible for its long-term maintenance and development – part of National Grid’s role in Britain.
TO baseline entry capacity A measure of entry capacity at each system entry point agreed by National Grid and Ofgem, based on the maximum physical capability of that point.
TOP Take or Pay. This obliges the buyer either to take delivery of (and pay for) a specified minimum amount of a commodity, or to pay for the contract value of that minimum amount. Often applies to gas.
Top-up manager The body (now National Grid) that ensures that the industry has sufficient gas placed in storage to meet firm demand under severe weather conditions.
TPES Total Primary Energy Supply – net result of summing imports, exports and storage, as applied to coal, oil, gas and electricity.
TPOSA Transportation, Processing and Operating Services Agreement.
Trayport Electronic trading and order matching software widely used by brokers, exchanges and traders in commodity and financial derivative markets.
Troll price Continental long term gas prices - represent the price level in the oil-indexed long term gas contracts from continental Europe.
TYNDP Ten-Year Network Development Plan – developed by ENTSOG.
UCA Unit Cost Adjuster - an estimate of the cost of incremental investment in capacity at a particular system entry point. UCAs are used for setting capacity reserve prices.
UKCS UK Continental Shelf - those areas of the sea bed and subsoil beyond the territorial sea, over which the UK exercises sovereign rights of exploration and exploitation of natural resources.
UNC Uniform Network Code
Upstream Operation stages in the oil and gas industry which involve exploration and production. Upstream companies take the first steps to locate, test, drill for and extract oil and gas from the reserve.
UVDB Utility Vendor Database - EU Procurement Legislation.
VaR Value-at-Risk - a standard method for measuring the financial risk associated with any investment portfolio.
WAP Weighted Average Price
WGC World Gas Conference