The objective of the project is to ensure that transmission pipeline balancing arrangements allow for the safe, efficient and reliable delivery of gas. As such, specific objectives are to identify issues with current arrangements and/or any market failures, identify and assess all reasonably practicable options for providing effective transmission pipeline balancing arrangements, and to make a recommendation to the Minister of Energy on how effective transmission pipeline balancing should be achieved. Gas Industry Co will follow its normal policy development process to ensure that effective transmission pipeline balancing arrangements are established.
This work is currently on hold. See the 'Recommendation' tab for more information.
Under the 'Reports and Comments' tab you will find links to reports generated by third parties on Transmission Pipeline Balancing matters as well as any comments we have received from stakeholders on those third party reports.
Author: Ian Wilson
To view the workshop presentation slides, please click here.
Author: Ian Wilson with assistance from Energy Acumen and Castalia
The Transmission Pipeline Balancing Options Paper progresses the discussion on improving balancing arrangements by better defining the problems associated with gas balancing and explaining why Gas Industry Co proposes intervening. It also sets out the key principles for balancing arrangements and considers what a solution might comprise.
Author: Ian Wilson
The paper describes issues arising from existing balancing arrangements, and discusses why regulatory intervention may be necessary. The paper also prepares the ground for future work on developing and analysing alternative balancing options. It discusses the design elements from which such options would be built, and suggests criteria that could be used for evaluating those options.
Author: Ian Wilson
The purpose of this research paper, published in April 2008, was to gather information relevant to pipeline balancing as a resource for the industry to use in further consideration of the issues, and taking action to resolve them.
Gas Industry Co completed its review of New Zealand transmission pipeline balancing and concluded that a regulatory solution was the preferred option for improving balancing arrangements and meeting the objectives of the Gas Act and GPS. Gas Industry Co determined that the participative regulation option, first described in the Transmission Pipeline Balancing Second Options Paper, would be pursued. This was Gas Industry Co's statement of proposal - to pursue this option.
Gas Industry Co completed an analysis of submissions and cross-submissions on the Supplement to the SOP.
To view the analysis, please follow the link below.
Gas Industry Co determined that, before making its formal balancing recommendation to the Associate Minister of Energy and Resources, it would be prudent to pull together and explain all the work that has taken place since the Transmission Pipeline Balancing Statement of Proposal was published in October 2009.
This paper contains:
All submissions and cross-submissions were considered in an analysis of submissions paper.
The ICD process is a facilitated consultative forum at which pipeline owners, industry participants, and Gas Industry Co work together to design and implement a unified balancing regime for the gas transmission system that will avoid or minimise the need for regulatory intervention to achieve the relevant objectives of the Gas Act and GPS.
In order to participate in the process each party must complete the ICD Process Commitment Form, by which they agree to the terms of reference; contribute toward the funding; and attend weekly meetings. The links to the Commitment Form and Terms of Reference are provided below.
The output of the ICD process was a Memorandum of Understanding (MoU) intended to provide a high level of confidence that an industry solution is achievable and could came into affect in October 2010.
The MoU describes the principles and a package of changes to achieve an integrated gas balancing regime through changes to the existing contractual framework. Although the MoU is non-binding, the 11 companies who participated in the ICD process agreed that it should be signed as an indication of support.
Gas Industry Co acknowledges the content of the MoU and has considered its content and the level of support it has obtained.
The 'Consideration of Recent Industry Balancing Initiatives' paper investigates whether any industry initiatives on balancing matters since the development of Gas Industry Co's October 2009 Statement of Proposal would cause it to reassess the conclusion of that paper.
As requested by the associate Minister of Energy and Resources, Hon Pansy Wong, in September, 2010, Gas Industry Co provided the following update on Transmission Pipeline Balancing matters to the (then) Minister of Energy and Resources, Hon Phil Heatley, in March 2012. In essence, we note that a number of industry initiatives are underway and, given the high level of activity, suggest that these should run their course before determining the next step. We provided the Minister with a further update after 1 June 2013.
Transmission Pipeline Balancing has been an important area of work for Gas Industry Co. Recent correspondence between Gas Industry Co and the Associate Minister of Energy and Resources marks a significant step, bringing this phase of the workstream to a close.
This correspondence is available below.
As indicated in the Statement of Proposal, Gas Industry Co made a recommendation to the Associate Minister of Energy and Resources that rules be made for balancing arrangements in New Zealand. The text of the advice can be viewed or downloaded below.
Draft Balancing Rules
The final draft of the Gas Governance (Balancing Rules) are available below
Balancing Rules Workshops
Gas Industry Co wished to 'workshop' the draft balancing rules before including them in its formal recommendation to the Associate Minister at the end of February 2010. To use our time as efficiently as possible we held two workshops, the first, on Tuesday 2 February 2010 for only MDL and Vector, the second, on Friday 5 February 2010, for anyone else who wished to suggest improvements to the draft rules.
To view or download the redlined version of the Draft Rules here
To view or download the clean version of the Draft Rules here
A copy of the workshop presentation can be viewed here
Comments on draft Balancing Rules
Gas Industry Co invited industry participants to comment on the Draft Rules. The comments received can be viewed here:
The following papers have been issued by various stakeholders to promote discussion on transmission pipeline gas balancing. Links to these papers are provided here for the convenience of readers. Gas Industry Co does not necessarily endorse the content of these papers.
In February 2014, the gas market operator emTrade published a paper entitled Gas Balancing: International Benchmarking and Good Practices. The report is available here.
In March 2014, Gas Industry Co obtained a report it had commissioned from Concept Consulting entitled Gas Balancing in Selected European Jurisdictions. The report is available here.
In April 2014 the Maui Development Limited (MDL) Commercial Operator engaged with stakeholders to discuss its view of how transmission pipeline balancing arrangement could evolve. It's views are set out in a paper entitled The types of pipeline balancing and related concerns, available here.
No comments have been received to date, in relation to these reports