Linepack ‘Park and Loan’ Quantity - Influencing Factors Review Group 291 – July 2010 Summary Pre-assessment of available quantity for park and loan is complex. Competing needs for flexibility and contingency impact on the operating range of linepack. This motivates discretionary release, with appropriate incentive. Operational Range of Linepack Flexibility Maximum operating pressures Demand / supply pattern Linepack Flexibility NTS set-up Flexibility + contingency Contractually agreed pressures day System Flexibility NTS has historically been built to transport gas efficiently, based on flat supply and demand, within a range of operating pressures. System flexibility is inherently a “by-product” of operating the NTS within a range of pressure limits. Current “limits” of flexibility entirely dependent on the daily NTS setup and the supply/demand pattern and therefore quite complex to define and model outer-boundary and maxima of available flexibility. National Grid is incentivised to minimise day-on-day linepack changes but has no incentive on within-day linepack ‘release’ or ‘use’ Flow Pattern Volatility – “Time of flight” The ability to profile energy within day across a number of entry/exit points whilst maintaining an energy balance in aggregate across the day. Supply patterns responding to demand and market changes. Plant issues and Portfolio balancing. Price-responsive supplies and demands. Supply B Supply A 50km 200km Offtake Flows from Supply A switch to Supply B. Linepack levels at Offtake will drop due to the inherent lag of flow from Supply B taking time to reach the Offtake Single Entry/Exit Point Flexibility The ability to profile an entry or exit flow above and below a flat rate. DN offtake profiles. Power station changes driven by electricity market interaction. Storage and interconnector within-day switching. Flow Within-day entry flow fluctuations driven by demand changes and nomination changes. Average flow (1/24th rate) Removing Linepack from NTS Example: DN Offtake Flows vary within day due to domestic demand Replenishing Linepack to NTS Time Flow (2) NTS Flow, Pressure & Flexibility Replenishing Linepack to NTS Removing Linepack from NTS DN Offtake Flow profile varying about the 1/24th rate Average flow (1/24th rate) Increasing Linepack Usage Time Minimum pressure at point where depletion of linepack ceases Min Daily Pressure Pressure Max Daily Pressure Finite limit of flexibility linked to compression/ flow rates required to return to start of day pressure Increases the severity of NTS pressure drop Time 06:00 Start of Day 22:00 06:00 Example Day – 9th January (Actual Data) Within day linepack movement - 9th January 2010 360 355 345 340 335 06 :0 0 04 :0 0 T G M 02 :0 0 00 :0 0 22 :0 0 20 :0 0 18 :0 0 16 :0 0 14 :0 0 12 :0 0 10 :0 0 08 :0 0 330 06 :0 0 mcm 350 Operational Range of Linepack Flexibility Maximum operating pressures Compressor trip risk Linepack Flexibility Contractually agreed pressures day Operational Range of Linepack Flexibility Maximum operating pressures Compressor trip risk Within-day exit flexibility Linepack Flexibility Contractually agreed pressures day Operational Range of Linepack Flexibility Maximum operating pressures Compressor trip risk Within-day exit flexibility Linepack Within day entry flexibility Flexibility Contractually agreed pressures day Date 01/03/10 01/02/10 01/01/10 01/12/09 01/11/09 01/10/09 01/09/09 01/08/09 01/07/09 01/06/09 01/05/09 01/04/09 01/03/09 01/02/09 01/01/09 01/12/08 01/11/08 01/10/08 MCM Within-day Linepack Utilisation Within-day Max-Min Range of NTS Linepack 30 25 30 day rolling average 20 15 10 5 0 Operational Range of Linepack Flexibility Maximum operating pressures Compressor trip risk Within-day exit flexibility Linepack Flexibility Within day entry flexibility Information uncertainty, EOD imbalance Contractually agreed pressures day 01/06/2010 01/04/2010 01/02/2010 01/12/2009 01/10/2009 01/08/2009 01/06/2009 01/04/2009 01/02/2009 01/12/2008 01/10/2008 01/08/2008 01/06/2008 01/04/2008 mcm Day-to-day linepack change Closing Linepack minus Opening Linepack, 01-Apr-08 to 06-Jun-10 12 9 6 3 0 -3 -6 -9 -12 Within-day PCLP swings Predicted Closing Linepack (PCLP) Daily Range of Hourly PCLP: Monthly Maximum and Average 80 70 60 mcm 50 40 30 20 10 monthly maximum Apr-10 Feb-10 Dec-09 Oct-09 Aug-09 Jun-09 Apr-09 Feb-09 Dec-08 Oct-08 Aug-08 Jun-08 Apr-08 Feb-08 Dec-07 Oct-07 Aug-07 Jun-07 Apr-07 Feb-07 Dec-06 Oct-06 Aug-06 Jun-06 Apr-06 0 monthly average PCLP = Opening linepack + System Inputs (Daily Flow Nominations and Storage Flow Nominations) – System Demand (Offtake Profile Notifications) This graph shows ranges of hourly PCLP values during the gas day. Operational Range of Linepack Flexibility Maximum operating pressures Compressor trip risk Within-day exit flexibility Linepack Flexibility Within day entry flexibility Information uncertainty, EOD imbalance Supply loss risk Contractually agreed pressures day Example Day – 4th January (Supply Loss) Within day linepack movement - 4th January 2010 350 345 335 330 325 320 0 0 06 :0 G M 0 02 :0 04 :0 T 0 00 :0 0 22 :0 0 20 :0 0 18 :0 0 16 :0 0 14 :0 0 12 :0 0 10 :0 0 08 :0 0 315 06 :0 mcm 340 4th January - Continued Within day linepack movement - 4th January 2010 350 345 335 330 325 320 315 06 :0 0 08 :0 0 10 :0 0 12 :0 0 14 :0 0 16 :0 0 18 :0 0 20 :0 0 22 :0 0 00 :0 02 0 :0 0 G M T 04 :0 0 06 :0 0 mcm 340 Actual Linepack Linepack based on a Average profile Operational Range of Linepack Flexibility Maximum operating pressures Compressor trip risk Within-day exit flexibility Linepack Flexibility Inter-Day Linepack ‘park and loan’ Within-day entry flexibility Information uncertainty, EOD imbalance Supply loss risk Contractually agreed pressures day Release volume Competing requirements for flexibility and contingency, and varying conditions day to day, determines the release will be discretionary if the quantity is to be maximised. The risks and rewards inherent in linepack release leads to an incentivised regime.
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