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.
The Gas Transmission Investment Programme (GTIP) was developed by Gas Industry Co in late 2011, at the request of industry participants, to address issues relating to efficient access to, and investment in gas transmission. The GTIP comprises Market, Information, and Regulatory Projects. More detail on the GTIP can be found under the GTIP Background tab. Each of those Projects is also discussed in more detail under separate tabs.
Most recently, Gas Industry Co has released an Analysis of Submissions in relation to:
The Panel of Expert Advisors' (PEA) Second Advisory Report on Transmission Access and Pricing (July 2013)
Gas Industry Co's GTIP Status and Development Report (July 2013)
The Analysis of Submissions can be found here. Significant points include:
The Analysis of Submissions also sets out Gas Industry Co's proposed path forward, which largely endorses the PEA's recommendations. In particular, Gas Industry Co has written to the Transmission System Owners (TSOs) inviting them to confirm that they, with support from code signatories and other interested stakeholders, will progress the PEA's proposals for the industry to adopt and operationalise the guiding principles and recommendations. This letter can be found here.
At the same time Gas Industry Co will continue the Transmission Access and Capacity Pricing Project through its policy development and Gas Act processes identifying and consulting on options. Subject to progress made by the industry itself, this work could lead to a Statement of Proposal that may include regulated terms and conditions of access.
Gas Industry Co's report considers the broader perspective of the overall GTIP work and the context of the PEA's current advice - which it describes as a significant milestone. It notes that several GTIP projects are complete and have delivered valuable outputs, while others have yet to begin. It discusses how matters should be progressed. In particular, it suggests that the PEA's recommended industry-led approach will need to involve timely changes, subject to a public cost-benefit analysis.
Submissions recieved on this report and the PEA's second advice report can be found below
The objective of the GTIP is to:
The GTIP is structured as a package of interconnected projects:
Two advisory panels provide advice to Gas Industry Co in relation to the Programme. The panels are two key ways the industry can be substantively involved in the GTIP, although care will be taken to keep all stakeholders informed of progress, and consulted on critical issues.
The diagram below illustrates the GTIP structure and governance.
Gas Industry Co has prepared the paper: Gas Transmission Investment Programme - Structure and Scope. The aim of the paper is to provide:
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.
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 members 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 in the 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 in the Long-term Capacity Workstream
On Tuesday 15th January 2013 a workshop was held relating to Demand Management and Transparency.
Here are two presentations from this workshop
These are issues that the PEA have provided advice on and their work can be found here
Morning session: Transmission Update
Afternoon session: Gas supply/demand workshop
The Panel of Strategic Advisers (PSA), comprising senior stakeholder executives, provides programme oversight. The PSA Members and Chair are as follows:
The PSA Terms of Reference can be found here:
|#||Meeting Date||Meeting material|
|3||Wednesday 12 December 2012|
Friday 6 July 2012
|1||Monday 19 December 2011|
On 11 April 2013 GIC held a workshop with industry participants to review and discuss the progress and direction of the Transmission Access and Capacity Pricing project, which is part of our Gas Transmission Investment Programme (GTIP).
11 April 2013 Workshop Presentations (zip folder)
|19||Wednesday 3 July 2013|
|18||Wednesday 12 June 2013|
|17||Monday 6 May 2013|
|16||Monday 8 April 2013|
|15||Friday 15 March 2013||15 March PEA Meeting Material|
|14||Thursday 21 February 2013|
|13||Tuesday 29 January 2013|
|12||Tuesday 4 December 2012|
|11||Friday 2 November 2012|
Thursday 14 June 2012
|8||Thursday 7 June 2012|
|7||Monday 7 May 2012|
|6||Monday 2 April 2012|
|5||Thursday 8 March 2012|
|4||Monday 20 February 2012|
|3||Friday 16 December 2011|
|2||Monday 7 November 2011|
|1||Thursday 13 October 2011|
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.
The second key deliverable is a report to Gas Industry Co that recommends an 'evolutionary convergence' approach to achieve improvements to gas transport arrangements on both the Maui and Vector transmission pipelines systems. The advice includes a set of proposed guiding principles to take this approach forward.
Following establishment of the Gas Transmission Investment Programme in September 2011, a Panel of Expert Advisers (PEA) was established to provide advice on a range of market design issues.
The PEA's latest advice to Gas Industry Co recommends an 'evolutionary convergence' approach to achieve improvements to gas transport arrangements on both the Maui and Vector transmission pipelines systems. It notes there are already a number of commonalities between the two codes and considers that the firm and non-firm services currently provided for on both systems can be progressively evolved and harmonised to allow shippers to seek the mix of rights that best match their needs. The advice includes a set of proposed guiding principles to take this approach forward.
The PEA also proposes a system of daily nominations, a price-based auction process for scarce capacity, the phasing-out of 'in perpetuity' grandfathering , and improved transparency.
It suggests the improvement process should begin immediately and that Gas Industry Co invites signatories to the MPOC and VTC to adopt and operationalise its guiding principles.
Submissions recieved on this report and the Gas Industry Co update report on the broader GTIP work can be found below
Analysis of Submissions 5 March 2013
Letter to submitters from Dr Graham Scott, PEA Chair, and Steve Bielby, dated 22 November 2012.
Following establishment of the Gas Transmission Investment Programme in September 2011, a Panel of Expert Advisers (PEA) was established to provide advice on a range of market design issues. The first key deliverable of the PEA Work Plan is presented here. It is a report from the PEA to Gas Industry Co
Submissions on the PEA report closed on Friday 24 August 2012.
Concept Consulting has amended its gas supply and demand study to include an analysis of the demand on the Maui pipeline north of the Mokau compressor. Gas Industry Co has commissioned this addition in response to feedback on the original report. This analysis is contained in Appendix D of the revised report (note that the rest of the report remains unchanged). The analysis develops projections for annual and peak day demands on the Maui pipeline north of the Mokau compressor station, taking account of trends in generation demand, coal prices, and carbon dioxide prices.
The modelling tool has been updated to include the Maui pipeline analysis. To download the model, visit: https://docs.google.com/folder/d/0B8Fpt8nHFgDZdU1VbzZ6M0pLcjA/edit The model consists of an Excel file and a supporting Access database. The files are compatible with Excel 2007 (and above) and Access 2007 (and above).
Download the two files labelled 'Gas_dem_sum.accdb' and 'Gas_Dem_v22.xlsm' by clicking on them (the folder labelled '20121129 Release' contains the original model and database released in November 2012).
Click 'Download'. A window may appear stating it is too large to be scanned - click 'Download anyway'.
The Access file must be saved to the same folder as the Excel file for the model to work properly. Also, both files should not be marked as Read-only (to check, right-click the file in the file list, click Properties, then make sure that the Read-only box on the General tab is not ticked).
The Access document may open automatically and request a password but can be closed as it does not need to be open for the model to work; simply open the Excel file called Gas_Dem_v22.xlsm. The first tab in the Excel file consists of notes about the model and the second tab is a diagram of the model.
The report has been produced by Concept Consulting Group and is the first substantive look at gas supply and demand in New Zealand. The report includes national gas supply/demand scenarios, regional gas demand scenarios, and peak demand projections that can assist the industry and large users to assess the need for, and timing of, investment in pipeline infrastructure.
In response to requests from submitters, the final versions of the report and associated model include more information on the data inputs and modelling results:
Gas Industry Co has released a draft report, "Gas Supply and Demand Scenarios 2012 - 2027," for public comment. The report has been produced by Concept Consulting Group and is the first substantive look at gas supply and demand in New Zealand. Gas Industry Co commissioned the report to develop a set of national gas supply/demand scenarios, regional gas demand scenarios, and peak demand projections that can assist the industry and large users to assess the need for, and timing of, investment in pipeline infrastructure.
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
The Backstop information gathering and analysis workstream is currently underway. The work is being pursued in parallel to the GTIP and will apply to all areas of Gas Industry Co's work. With respect to the GTIP, this information gathering process (or any regulation implemented for this purpose) has the potential to assist in the development of market arrangements - that could lead to improved availability of information in the market. More information on this work can be found here: Policy Development and Information Gathering
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.