Gas Transportation Arrangements (GTAs) Around the World
Enabling third party access (TPA) to gas transportation and LNG infrastructure is a crucial building block for developing effective and efficient gas markets around the world. Access to gas infrastructure is often arranged through industry-wide contracts referred to as network codes.
MJMEnergy's staff have been involved with third party access (TPA) from the beginnings of the competitive gas market in the UK in the early 1990s, including drafting on Transco's Network Code which was the first of its kind, and have since been active developing, reviewing, analysing and implementing network codes and other gas transportation arrangements around the world. MJMEnergy has also worked on TPA for LNG and storage infrastructure.
The following titles are examples of some of the energy consultancy projects that we have carried out in this area of expertise. (Clicking the title will provide more information.)
- TECCS Service
- Singapore Gas Market Monitoring
- Review of Nigerian Network Code
- Northern Ireland Utility Regulator Network Code Expert
- Support to DESFA
- UK and Germany Market Entry and Trading Study and Workshop
- UK Entry Capacity Advice
- Advice on Application of EU Network Codes to Merchant Pipeline
- UK LNG Market Entry and UNC Accession Study
- Review of Nigerian Petroleum Industry Bill
- EU Competition Enquiry Advice
- Drafting of Regulatory Exemption Application for Merchant Interconnector Pipeline
- Indonesia Gas Infrastructure Optimisation and Investment Framework
- Gas Infrastructure Optimisation;
- Investment Framework for Gas Infrastructure; and
- Review of Gas Infrastructure Planning Function.
- Israel Linepack Study
- Drafting Heads of Terms for Canadian LNG facility
- Singapore Expert Witness on Contractual Dispute
- Ireland Gas Balancing
- European Commission Competition Enquiry Support
- Due Diligence for Potential Purchase of a Gas Distribution Business
- The current and future potential customer base.
- The current and future planned infrastructure, focussing on its capacity, condition and level of maintenance.
- The level of leakage and other unaccounted for gas in the network.
- The number and quality of personnel, including an assessment of the experience, and professional qualifications of the staff and manual employees.
- Thailand LNG Terminal User Agreement Drafting and Benchmarking Study
- Pakistan LNG Import Fast Track Project
- Ghana LNG Project
- Development of tender documentation - in order to develop this project the VRA would need to tender for the FSRU and associated LNG supplies from the international market. The purpose of this tender was to facilitate that process.
- High level review of Terminal User Agreements - the project team provided the client with a brief review of TUAs in order for the client team to appreciate the complexity of the project.
- Analysis of the supply/demand match - the supply/demand match in Ghana and in particular the highly seasonal nature of the gas demand will influence the commercial framework. Therefore the project team analysed the characteristics of the demand profile.
- Expert Witness in Dispute over Legacy Gas Transportation Agreements in the UK
- Pakistan Network Code Support
- UK and Italy Gas Transportation Study
- Gas Tariff Study for Libya
The Energy Codes Changes Service (TECCS)
The competitive gas and electricity markets in the UK are made possible by a series of industry codes enabling supply companies to gain access to gas and electricity transportation networks.
This is a monthly subscription consultancy service based on providing clients with frequent, comprehensible,
information on current proposals, including short summaries, and impact
assessments and recommendations tailored to your company position.
Currently we are offering this service for the Uniform Network Code (UNC) in gas and for the Balancing and Settlement Code (BSC) and the Connection and Use of System Code (CUSC) in electricity.
For more information or a quotation for this service, contact us.close
Singapore Gas Market Monitoring
MJMEnergy, acting as consultants to the Singapore Gas Market Surveillance Panel (GMSP) on behalf of the Energy Markets Authority, analysed roughly 1TB of data on gas flows and system capacities through the Singapore National Gas Transmission System (NGTS) in order to produce an independent quarterly market monitoring report for the Singapore Energy EMA and the GMSP.
Areas covered included pipeline capacity bookings versus actual usage, discrepancies in shipper nominations and the recommendations for changes to the Singapore Gas Network Code and wider regulatory structure.close
Review of Nigerian Network Code
Working for the World Bank, MJMEnergy reviewed the draft Nigerian Network Code, providing a summary of key issues to be considered by the Ministry of Petroleum Resources, with supporting technical analysis and evidence drawn from Network Codes elsewhere.
As part of the report MJMEnergy identified areas where more work would be needed before implementation of the Network Code would be possible.close
Northern Ireland Utility Regulator Network Code Expert
MJMEnergy were engaged as specialist Network Code advisors to the Northern Ireland Authority for Utility Regulation (NIAUR) providing advice on the development of a common energy market.
Areas covered included a review of reports and documents produced by the various players on the Common Arrangements for Gas (CAG) project (a plan to integrate the Northern Ireland and Republic of Ireland gas systems), and assistance in the development of policy, particularly in relation to system operation, supply security and infrastructure investment.close
Support to DESFA
Over an extended period MJMEnergy, in conjunction with CERA, provided Greek gas company, DESFA, with support on implementation of the EU Gas Directives, including reviews of the Network Code and LNG terminal user agreements, regulatory support, and EU liberalisation analysis.close
UK and Germany Market Entry and Trading Study and Workshop
MJMEnergy provided a new entrant with a UK and Germany gas market entry and trading study and workshop, looking at opportunities, risks and operations in energy trading market, costs and benefits of becoming a gas shipper, and making recommendations for next steps in strategy development, including requirements for UNC Accession.close
UK Entry Capacity Advice
MJMEnergy entry capacity expert, Nick White, provided CERA with advice on the GB entry capacity regime and the impact of new capacity substitution rules on the future availability of capacity at St Fergus.close
Advice on Application of EU Network Codes to Merchant Pipeline
MJMEnergy advised IUK on the application of EU Network Codes to IUK’s UK-Belgium Interconnector business. MJMEnergy consultants commented on drafts of IUK’s proposals for implementing EU Network Codes, in particular Congestion Management Principles.close
UK LNG Market Entry and UNC Accession Study
MJMEnergy provided an industrial gases business with a UK gas market entry study, considering the practicalities of sourcing LNG within the UK in order to supply the LNG road transport market. A key part of the study included advice on the cost, benefits and process of becoming UK gas shipper and acceding to the Uniform Network Code.
The analysis included estimates of gas supply costs from a range of sources, including peak-shaving LNG and imported LNG.close
Review of Nigerian Petroleum Industry Bill
MJMEnergy, acting for a Nigerian energy producer, provided analysis of the Nigeria Petroleum Investment Bill 2012 (PIB-2012) to aid the development of a lobbying strategy.
In particular MJMEnergy provided support on issues pertaining to gas market liberalisation, trading and tariffs. Areas covered included the development of infrastructure, third party access, tariffs and legal issues such as the Network Code.close
EU Competition Enquiry Advice
MJMEnergy, working in conjunction with Gas Strategies, provided advice to the EU’s Directorate-General for Competition on the development and interpretation of results of questionnaires sent to European energy market players, including transporters, suppliers and traders.
The questionnaires were intended to assess the state of competition and identify barriers to competitive gas supply markets in EU states.close
Drafting of Regulatory Exemption Application for Merchant Interconnector Pipeline
Working for a major merchant interconnector operator in Europe, MJMEnergy drafted a regulatory access proposal with supporting documentation, relating to Article 22 of the EU Gas Directive. MJMEnergy worked to assimilate material provided by the client and supplement it with market analysis, review of competing infrastructure, review of the relevant legislation, and a review of the contractual arrangements.
Working to very tight timescales, we then drafted a full exemption application for the project.close
Indonesia Gas Infrastructure Optimisation and Investment Framework
MJMEnergy completed an extensive review of Indonesia’s gas market infrastructure and the associated investment planning processes for Indonesian regulatory, DG MIGAS, on behalf of the World Bank. The work focussed on three main work areas:
Israel Linepack Study
MJMEnergy advised OPC-ROTEM (an independent power producer) on the impact of potential changes to the allocation of linepack being suggested by Israel Gas Lines and the Natural Gas Authority in Israel. The work involved a comparison of the different linepack usage patterns based on different power generation profiles, with the results being fed into the discussions hosted by the regulator.close
Drafting Heads of Terms for Canadian LNG facility
MJMEnergy, in conjunction with Gas Strategies, developed heads of terms and draft Terminal User Agreement for a Canadian LNG import facility.close
Singapore Expert Witness on Contractual Dispute
Mike Madden of MJMEnergy acted as an expert witness in a dispute regarding third party access to pipeline infrastructure in Singapore.
The key issues related to allocation arrangements and concerns regarding commingling of gas and the impact on gas quality, specifications and pressures.close
Ireland Gas Balancing
MJMEnergy, in conjunction with Deloittes, provided the Republic of Ireland regulator, CER, with advice and support on the development of the gas balancing regime in Ireland, covering the Bord Gais’ Code of Operations and balancing penalties.close
European Commission Competition Enquiry Support
MJMEnergy, in conjunction with Gas Strategies, supported the European Commission in its energy sector competition enquiry.
In particular MJMEnergy was involved in the development and assessment of questionnaires that were sent to all EU gas operators focussing on key issues and barriers in market liberalisation.close
Due Diligence for Potential Purchase of a Gas Distribution Business
Mike Madden, in conjunction with Gas Strategies, advised an IOC in its potential purchase of a Russian gas distribution business. The areas of work involved the initial due diligence in terms of the following areas:
Thailand LNG Terminal User Agreement Drafting and Benchmarking Study
MJMEnergy, in conjunction with Gas Strategies, assisted PTT in drafting an LNG terminal user agreement to facilitate third party access to the Map Ta Phut LNG terminal.
In addition MJMEnergy undertook a benchmarking study of LNG terminal tariffs together with capital construction cost of facilities, operating costs and local regulatory regimes.close
Pakistan LNG Import Fast Track Project
The purpose of this project was to provide support to SSGC and the Government of Pakistan (MPNR) in order to facilitate the importation of LNG into Pakistan. This involved writing the original tender, reviewing the bids and supporting the GOP in the technical and commercial negotiations.
MJMEnergy were technical and commercial advisors, working alongside QED.close
Ghana LNG Project
MJMEnergy in conjunction with an international energy consultancy provided support to VRA in Ghana in relation to developing LNG imports via an FSRU. Whilst Ghana does obtain a large amount of its power from large hydroelectric projects, during periods of drought the shortfall is currently made up by diesel-fired power generation. This is neither very efficient nor environmentally friendly, therefore the purpose of this project was to provide an alternative source of fuel to diesel when required by the power generators.
Areas covered during the project included the following:
Expert Witness in Dispute over Legacy Gas Transportation Agreements in the UK
Mike Madden of MJMEnergy acted as an expert witness in a dispute between a gas producer and a large power generator in the UK over the impact of switching from a distance-related monthly balancing transportation contract to an entry/exit Network Code based transportation agreement. This work entailed comparing the relative strengths and weaknesses of the two regimes from an operational and commercial perspective and presenting them to the court.close
Pakistan Network Code Support
MJMEnergy working on behalf of the World Bank and the Government of Pakistan, assisted in the development of the Pakistan Network Code. This included guiding the process of drafting the code text, working with government, regulatory and industry stakeholders to explain and refine the text, through a series of industry workshops, as well as assisting the regulator, OGRA, in the development of licences and other associated regulation.close
UK and Italy Gas Transportation Study
MJMEnergy, working in conjunction with Gas Strategies, provided a Japanese utility with a detailed study of gas transportation arrangements under the network codes in the UK and Italy, including the impact of market liberalization and gas tariff structures.close
Gas Tariff Study for Libya
MJMEnergy undertook this work for CERA who were working for the Libyan Energy Ministry. The study involved a detailed review of gas policy, pricing and tariffs in Algeria, Egypt, the Netherlands and Russia, and recommendations for gas pricing policies to facilitate development of the Libyan gas market.close
Training and Capacity Building:
The following are examples of some of the energy training and capacity building we have carried out that is relevant to this area of expertise. (Clicking the title will provide more information.)
- Uniform Network Code Course
- Introduction to the Network Code
- Entry Capacity of Gas
- Exit Capacity of Gas
- The Network Code Modification Process
- Energy Balancing and System Security
- The Customer Interface
- Development of Network Code Course
- CREG Open Season Training
- 21st Century Regulation
- EU Gas Markets
- Bangladesh gas transmission capacity building for GTCL
- Maintaining gas networks (schedules, standards and staffing)
- Operating gas networks (Daily operations, pipelines, safety etc.)
- Commercial operations (GTA, Network Codes, contracts and tariffs)
- Energy Markets Course
Uniform Network Code Course
The day starts with an introduction to the Uniform Network Code (UNC), building on that with a detailed look at entry capacity and exit capacity, the UNC modification process, energy balancing and system security, rounding off with the customer interface.
This one-day course explores:
The next public course date is: close
Development of Network Code Course
MJMEnergy delivered a bespoke in-house course for a European transporter on the development of the GB Network Code from its origins in 1996 to the Uniform Network Code in 2005 and beyond. The aim was to assist the transporter in developing its own network code, exploring how changing market requirements, regulation and corporate structure in the GB gas market impacted on Network Code development and utilisation.close
CREG Open Season Training
MJMEnergy provided Colombian energy regulator, CREG, with a bespoke training seminar on Open Seasons and their application to the construction of gas pipelines. The training included explanation of the concepts of Open Season and a review of their use in different jurisdictions around the world as well as recommendations for Colombia.close
21st Century Regulation
This three-day course has been specifically developed in order to explain both the background and practice of gas market regulation as well as providing suitable tools and intellectual and practical frameworks for parties involved in 21st Century gas regulation.
Understanding and applying regulation to gas markets is a crucial skill as energy market liberalisation gathers pace around the world.
The purpose of this first day is to provide you with a solid academic theoretical and historical basis to energy market regulation, drawing on the experience of European and North American energy markets in particular.
The purpose of this second day, building on regulatory economic theory, is to provide a series of practical examples of how regulation is undertaken in the real world. This will be achieved firstly with a series of sessions on specific regulatory issues followed by a number of case studies.
The purpose of this third day is to build on both economic theory and practical application in order to provide you with useful tools and approaches that you can apply to your own particular regulatory environment, whether you are a regulator, the regulated, or a participant in a regulated market.close
EU Gas Markets
This two-day overview explores the EU Gas Markets with teaching sessions, case studies and our gas balancing simulation game.
This two-day course looks at:Day One:
You will gain an overview the whole EU gas market, examining the infrastructure and supply/demand match. We will explain the principles of liberalisation and together we will explore contracts, pricing, markets, gas transportation and security of supply.Day Two:
We will spend some time investigating the key European markets, looking at energy
trading regulation and discuss the future of gas in Europe and the possible effect
the UK’s departure from Europe might have on the European gas market.
The next public course date is:
Bangladesh gas transmission capacity building for GTCL
In conjunction with PPA Energy, MJMEnergy provided a technical and commercial training program that worked with senior managers and executives in gas transmission, operation, maintenance and safety. Key areas covered included:
Energy Markets Course
This three day course provides a thorough understanding of the dynamics of the gas and power industry. The main focus being: physical gas and electricity systems, commercial energy markets and energy trading.close
The following titles are examples of energy reports that we have written, published or sell and are included to complement this section. Feel free to click on the titles for more information.
- The Long Term Capacity Auctions
- Network 2000
- Liberalising Gas Markets in Europe
- The Network Code
The Long Term Capacity Auctions
Shippers wishing to deliver gas into Transco's supply system are required to hold entry capacity rights. Entry capacity is available at the six major beach terminals, as well as a number of smaller entry points. Capacity is variable depending on demand and network flows. The cost and availability of entry capacity is major factor in UK gas producers and shippers profitability.close
Mike Madden and Nick White authored this report for FT Energy, explaining the key changes to the UK Network Code arrangements in 1999, including the creation of a within-day gas balancing market for both shippers and the transporter, the On-the-day Commodity Market, and the development of entry capacity auctions.close
Liberalising Gas Markets in Europe
In this ground-breaking report published by Petroleum Economist, Mike Madden and Nick White reviewed the state of the gas market in each of the then 15 EU states and considered the impact of the EU Gas Directive on companies, markets and suppliers.close
The Network Code
The Transco Network Code introduced in 1996 was a new approach to gas transportation arrangements, which has now been used as a model f or many liberalising gas markets. Mike Madden’s report written for FT Energy explained the background, rationale, development, text and operation of the Network Code, helping readers to understand the huge changes in the UK gas market at the time.close
Key staff and associates:
- Mike Madden
- Nick White
- Jeremy Bending
- Chris Le Fevre
- Duncan Jack