Industry expert Covec to determine the Critical Contingency Price for the System Imbalance Event of 23 May 2017
A Critical Contingency was declared by the Critical Contingency Operator (CCO) at 10:50 on Tuesday 23 May 2017.
The cause of the event was low linepack due to downstream delivery points taking significantly more gas than was being injected into the pipeline, which was exacerbated during a planned outage of the Pohokura Production Station. During the period of this outage, the imbalance between supply and demand caused pipeline linepack and pressures to fall to the point where the critical contingency threshold of 3 hours to 37.5 barg at the Kapuni Gas Treatment Plant was breached. The Critical Contingency was terminated at 18:15 the same day, after Pohokura returned to expected flows and the CCO considered that the supply of gas into the system was sufficient to meet expected demand.
Critical Contingency Price
Under regulations 67 to 72, Gas Industry Co is required to engage an industry expert to determine a Critical Contingency price that will be applied to contingency imbalances sustained by interconnected parties and shippers during a Critical Contingency event. Tim Denne of Covec has been engaged as the independent expert for this work.
Further information on the event including the CCO Incident Report can be found on the CCO website here.