Owner: Ian Wilson
Author: Ian Wilson
To view the workshop presentation, 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 has completed its review of New Zealand transmission pipeline balancing and has concluded that a regulatory solution is the preferred option for improving balancing arrangements and meeting the objectives of the Gas Act and GPS. Gas Industry Co has determined that the participative regulation option, first described in the Transmission Pipeline Balancing Second Options Paper, should be pursued. This is Gas Industry Co's statement of proposal to pursue this option.
Gas Industry Co has 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 has determined that, before making its formal balancing recommendation to the Associate Minister of Energy and Resources, it is 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 will be 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 come into affect by 1 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 (then) 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 (now) 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 propose to provide 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 will make 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 here.
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 found 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: