Gas Transmission Investment Programme
Introduction
The Gas Transmission Investment Programme (GTIP) is Gas Industry Co’s response to industry concerns over the long-term outlook for gas transmission capacity availability in the Auckland region. This work has its origins in 2009, when Vector announced to the industry that it would no longer be able to sell new capacity on its North Pipeline as that pipeline has reached the limits of its capacity.
Overview
Introduction
The Gas Transmission Investment Programme (GTIP) is Gas Industry Co's response to industry concerns over the long-term outlook for gas transmission capacity availability in the Auckland region. This work has its origins in 2009, when Vector announced to the industry that it would no longer be able to sell new capacity on its North Pipeline as that pipeline has reached the limits of its capacity.
Objective
The objective of the GTIP is to:
- ensure that existing and future gas transmission assets are used efficiently;
- establish the need for gas transmission investment; and
- develop an effective pathway for efficient gas transmission investment to take place.
Structure and Governance
The GTIP is structured as a package of interconnected projects:
- Information Projects: to minimise information asymmetries;
- Market Projects: to provide efficient market design; and
- Regulatory Projects: to define appropriate regulatory arrangements.
Two working groups have been developed to provide advice to Gas Industry Co in relation to the GTIP:
The diagram below illustrates the GTIP structure and governance.
GTIP Structure and Scope paper and review
Gas Industry Co has prepared the paper: Gas Transmission Investment Programme - Structure and Scope. The aim of the paper is to provide:
- a clear objective and scope for the Programme;
- further detail on the GTIP governance arrangements and component projects; and
- a detailed work plan.
Gas Transmission Investment Programme - Structure and Scope.
The scope of projects identified in the paper will be reviewed by the Panel of Expert Advisers (PEA). Any advice the panel has on revising the scope will be considered by Gas Industry Co before the scope of the GTIP is finalised.
Background to this work
Gas Industry Co has been working on transmission pipeline capacity issues for several years. Our work in this area has sought to address both short and long-term issues that have arisen from the North Pipeline constraint. In relation to the short-term, large end users on the North Pipeline have experienced a reduction in the number of credible bids they receive when seeking a new gas supplier. Gas Industry Co's investigation of this situation prompted key industry memebers to put in place a set of commitments known as the, 'Bridge Commitments'. Gas Industry Co is monitoring the market to assess the effectiveness of these commitments.
More information on this work can be found here: Short-term Capacity Workstream
In relation to the long-term, Gas Industry Co has investigated Vector's access regime and developed various options for improving the performance of the regime. Stakeholders have participated in this work through various workshops and consultation papers. At an April 2011 workshop, attendees strongly endorsed the need for a more holistic approach to finding solutions to the longer-term transmission capacity issues. It was proposed that Gas Industry Co lead a structured programme of work, and subsequent industry submissions endorsed an outline for the GTIP prepared by Gas Industry Co.
More information on this work can be found here: Long-term Capacity Workstream
Information Projects
Information Projects
Purpose of the Information Projects: to minimise information asymmetries to allow stakeholders to make informed decisions that will result in the efficent allocation of resources.
In the paper Gas Transmission Investment Programme-Structure and Scope, Gas Industry Co identified four Information Projects:
- Vector's capacity determination;
- Supply and demand outlook;
- Transmission market disclosures; and
- Backstop information gathering and analysis.
Request for Expressions of Interest: Supply/Demand Study
Backstop Information Gathering and Analysis Workstream
More information on this work can be found here: Policy Development and Information Gathering
Vector Pipeline Capacity Consultation
Vector Ltd has commenced a comprehensive consultation with industry participants as part of its process to determine available pipeline capacity, particularly as it relates to the North Pipeline.
Details of this process are available on Vector's website
Market Projects
Market Projects
Purpose of the Market Projects: to provide for efficient market arrangements to allow an efficient allocation of transmission capacity and signal the need for new investment.
In the paper: Gas Transmission Investment Programme - Structure and Scope, Gas Industry Co identified one Market Project, Transmission Access and Pricing.
Depending on the outcome of the review of the GTIP project scope, to be considered by the PEA, the possibility of a further project related to Gas Trading Arrangements is also noted.
Regulatory Projects
Regulatory Projects
Purpose of the Regulatory Projects: to define appropriate regulatory arrangements that support efficient investment in transmission infrastructure.
In the paper: Gas Transmission Investment Programme-Structure and Scope, Gas Industry Co identified one Regulatory Project, Tesing Investment Options.
Advisory Panels
Advisory Panels
Panel of Strategic Advisers
The Panel of Strategic Advisers (PSA) comprising senior stakeholder executives will provide programme oversignt. We have asked Gas Industry Co Independent Director, Andrew Brown, to chair the PSA.
Panel of Expert Advisers
Panel of Strategic Advisers
The Panel of Strategic Advisers (PSA) comprising senior stakeholder executives will provide programme oversight. The PSA Members and Chair are as follows:
- Andrew Brown (Chair)
- Allan Carvell (nominated by Vector Limited)
- Doug Watson (nominated by Major Gas Users' Group)
- Duncan Jared (nominated by MRP)
- Hayden Laird (nominated by Greymouth Gas)
- Malcolm Alexander (nominated by Genesis Energy)
- Murray Jackson (nominated by Shell)
- Sharon Wray (nominated by Contact Energy)
The PSA Terms of Reference can be found here:
Meetings
| # | Meeting Date | Meeting material |
| 1 | Monday 19 December 2011 |
Panel of Expert Advisers
The Panel of Expert Advisers (PEA) comprising industry experts, will provide advice on a range of market design issues. The PEA Members and the Chair are as follows:
- Graham Scott (Chair)
- Brenda Talacek (nominated by Vector Limited)
- Bruce Girdwood (nominated by Vector Limited)
- Charles Teichert (nominated by Todd Energy)
- Don Gray (nominated by Maui Development Limited)
- John Small (nominated by Major Gas Users' Group)
- Nick McDougall (nominated by OMV)
- Ross Parry (nominated by Genesis Energy)
The PEA Terms of Reference can be found here:
Meetings
|
# |
Meeting date |
Meeting material |
|
1 |
Thursday 13 October 2011 |
|
| 2 | Monday 7 November 2011 | |
| 3 | Friday 16 December 2011 | |
| 4 | Monday 20 February 2012 | 20 February PEA Meeting Material |