Overview

Background

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. More detail on the background to the GTIP can be found here under the GTIP Background tab.

Work on the overall GTIP can be viewed here under the GTIP (All Projects) tab and the associated work of the Panel of Expert Advisers (PEA) can be viewed here.

The GTIP comprises Market, Information, and Regulatory Projects. Each of these Projects is also discussed in more detail under separate tabs. In particular the Information Projects include development of New Zealand's first gas supply/demand study and a gas demand management study which can be viewed here.

Gas Industry Co 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 viewed here. Significant points include:

  • Submissions generally endorse the good progress made under the GTIP to date.
  • There is a range of views on the PEA's analysis but general support for continuing to develop the existing multilateral codes for the Maui Pipeline and Vector transmission system through a process of 'evolutionary convergance'.
  • While Gas Industry Co agrees with views that the current absence of constrains on the North Pipeline system (excluding Northland) provides some leeway, it firmly supports the PEA's assessment that the Industry should not wait until a future constraint arises before implementing measures to allocate and price scarce capacity. Consequently, a number of measures to improve current transmission access and pricing arrangements need to be considered now.
  • Gas Industry Co shares with the PEA a preference for the industry to develop its own responce and for changes to be implemented through an industry initiative.

The Analysis of Submissions also set out Gas Industry Co's proposed path forward, which largely endorses the PEA's recommendations. In particular, Gas Industry Co wrote 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 viewed 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.

Latest

Following the workshop in February 2014, presenting an options paper on Transmission Access, Gas Industry Co held a subsequent workshop on 31 July 2014 to discuss the work being done by the industry, and to assist the further development of GIC's regulatory counterfactual arrangements. Presentations from this workshop can be found here.

In 2013, the TSOs responded to Gas Industry Co confirming 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. The progress of this industry led process, including its quarterly progress reports, can be viewed here.

Gas Industry Co has continued through its policy development and Gas Act processes, to develop 'regulatory counterfactual' arrangements which can be progressed if industry efforts falter. This involved the publishing of an Options Paper on 23 December 2013. A workshop presenting the Options Paper was held at Gas Industry Co on 12 February 2014. Further details can be viewed here.

In October 2013, Gas Industry Co 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)

GTIP Background

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:

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.

GTIP Structure and Scope paper and review


Gas Industry Co prepared the paper: Gas Transmission Investment Programme - Structure and Scope. The aim of the paper was 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.

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 members to put in place a set of commitments known as the, 'Bridge Commitments'. Gas Industry Co monitors the market to assess the effectiveness of these commitments.

More information on this work can be viewed 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 viewed in the Long-term Capacity Workstream

Workshop on Demand Management and Transparency

On Tuesday 15th January 2013 a workshop was held relating to Demand Management and Transparency.

Here are two presentation slides from this workshop

Demand Management and Transparency

GIC Physical Constraint Management

These are issues that the PEA have provided advice on and their work can be viewed here

Transmission Update and Workshop on Gas Supply/Demand

Gas Industry Co held two transmission-related sessions on Friday, 18 May, 2012 for industry participants and interested stakeholders. They were held to ensure that stakeholders were up to date on the range of transmission-related workstreams that were progressing, particularly as we moved towards the phase of considering options for transmission access arrangements.

Morning session: Transmission Update

The morning session provided an update on transmission capacity work, including a progress report on the Bridge Commitments, an overview of the operation of the Gas Transmission Capacity Trading bulletin board, and a summary of the work undertaken by the Panel of Expert Advisers on transmission capacity access and pricing.

Afternoon session: Gas supply/demand workshop

The afternoon session focussed on the gas supply/demand modelling that Concept Consulting was undertaking as a means of understanding future scenarios for gas demand and thus demand for transmission capacity. This session presented an overview of the modelling approach, described modelled supply and demand scenarios, and presented some preliminary results from the modelling.

The purpose of the supply/demand workshop was to present preliminary results and elicit feedback from stakeholders on the modelled assumptions and inputs. Although this was not a formal consultation, Gas Industry Co welcomed feedback from interested parties on the modelling, including the assumption and information that was used as inputs on the preliminary conclusions reached.