German TSOs Prepare for Major Change in 2020s
German gas transmission system operators (TSOs) published July 2 a supply security scenario for the TENP (Trans Europa Naturgas Pipeline) in the event that scheduled repairs overrun.
They have also published there a Nord Stream 2-related addendum to the draft 2018-2028 Gas Network Development Plan (NDP) released earlier this year.
Separately, the TSOs last week reached agreement on a date by which Germany's two market zones and virtual trading hubs can be amalgamated into one.
Installed in the 1970s to flow Dutch gas to Italy, TENP-1 now requires urgent repairs to welds, according to operator Fluxys TENP and partner Open Grid Europe, a result of which is that overall TENP exit capacity at Wallbach on the Swiss border with southwest Germany has been reduced by about 50% and the entry capacity at Bocholtz (German-Dutch border) by about 20%, both until September 30 2020. At Wallbach, the TENP system connects to the Swiss Transitgas system (which crosses the Alps from Germany to Italy).
FNB-Gas has now launched a two-week consultation on the TENP supply security scenario document (in German only).
The TSOs modelled the new alternative supply security scenario to examine what the situation would look like if the current transportation constraints affecting the TENP were to last beyond October 1 2020, which FNB Gas says is theoretically possible. These take into account of the supply security needs of the southwest German state of Baden-Wurttemberg, as well as demand for southbound transports to Switzerland and Italy. Two of these scenarios have been fully modelled and the resulting network development projects identified.
The TENP pipeline system consists of two lines: TENP-1 (36-38 inch diameter) has worked since 1974; TENP-2 (40-inch) was completed in 2006 although part of it has been working from 1978.
Physical gas flow remains from north to south (chiefly Norwegian gas), but Fluxys is engaged to make the infrastructure bi-directional so as to enable south to north gas flows. This is in line with its, and co-operation partner Italian grid Snam's, long-term strategy of increasing the gas hub capabilities of their two countries and pipeline joint ventures. It also reflects the reality that Dutch gas production is declining, as the Groningen field is further capped there, whereas more gas is expected to enter Italy from the Caspian, or from existing sources (Russia, North Africa, LNG).
A workshop on the document for market participants will take place in Frankfurt am Main on July 10; final comments are due by July 13 to info@fnb-gas.de; the finished document is to be submitted to Germany's networks regulator (BNetzA) on August 1.
Also July 2, German TSOs published an addendum to the 2016-2026 NDP on the FNB website; this fulfils their obligation to incorporate the measures necessary to carry out the Nord Stream 2 project into the 2016-2026 NDP once the related German permits and approvals were granted, which since March is now the case.
Single market zone in Germany from Oct.2021
The joint, nationwide market area to be established in Germany is expected start operations on October 1, 2021, according to an agreement reached between German TSOs and national regulator BNetzA. Their association FNB Gas said June 28 they believe that the planned timing, which coincides with the start of the gas year, is the most convenient solution for market participants from an operational perspective.
The German government had said last year it wanted this to happen no later than April 2022.
The single market area means that existing German virtual trading hubs NetConnect Germany (NCG) and Gaspool will be amalgamated, with their respective TSOs becoming shareholders in the future joint German market area manager. BNetzA welcomed the June 28 announcement by FNB Gas as "a positive sign for the future dynamic development of the German gas market."
BNetzA added that in the coming months TSOs and BNetzA will conduct a regular market dialogue, informing all market participants of the roadmap towards establishment of the single market area.
TENP system map credit: Fluxys TENP