Network Development Statement 2010/11 to 2019/20 - Gaslink
Network Development Statement 2010/11 to 2019/20 - Gaslink
Network Development Statement 2010/11 to 2019/20 - Gaslink
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NETWORK<br />
DEVELOPMENT<br />
STATEMENT<br />
<strong><strong>20</strong>10</strong>/<strong>11</strong> <strong>to</strong> <strong><strong>20</strong>19</strong>/<strong>20</strong><strong>20</strong>
DISCLAIMER<br />
<strong>Gaslink</strong> has followed accepted industry practice in the collection and analysis of data available. However, prior <strong>to</strong> taking business<br />
decisions, interested parties are advised <strong>to</strong> seek separate and independent opinion in relation <strong>to</strong> the matters covered by the<br />
present <strong>Network</strong> <strong>Development</strong> <strong>Statement</strong> (NDS) and should not rely solely upon data and information contained therein.<br />
Information in this document does not purport <strong>to</strong> contain all the information that a prospective inves<strong>to</strong>r or participant in<br />
Ireland’s gas market may need.
CONTENTS<br />
NETWORK DEVELOPMENT STATEMENT<br />
1. Introduction 2<br />
2. Executive Summary 4<br />
2.1 ROI Gas Demand 4<br />
2.2 Gas Supplies 4<br />
2.3 <strong>Network</strong> <strong>Development</strong> 5<br />
3. Demand 6<br />
3.1 Record Peak Gas Demands in <strong><strong>20</strong>10</strong> 6<br />
3.2 His<strong>to</strong>ric ROI Demand – <strong>20</strong>05/06 <strong>to</strong> <strong>20</strong>09/10 7<br />
3.3 Forecast ROI Gas Demand 13<br />
4. Gas Supply Outlook 18<br />
4.1 His<strong>to</strong>rical gas supplies 18<br />
4.2 Future gas supply outlook 19<br />
5. The ROI Transmission System 22<br />
5.1 Overview of the existing ROI gas network 23<br />
5.2 New connections and New Towns 24<br />
5.3 System Reinforcement 24<br />
5.4 System Refurbishment 27<br />
6. <strong>Network</strong> Analysis 28<br />
6.1 Overview of <strong>Network</strong> Analysis 28<br />
6.2 The <strong>Network</strong> Model 29<br />
6.3 Entry Point Assumptions 29<br />
6.4 System Configuration 30<br />
6.5 Summary of Modelling Results 30<br />
6.6 Physical Exports <strong>to</strong> GB 35<br />
6.7 Conclusions 37<br />
7. Asset Management 38<br />
7.1 Compressor Stations 38<br />
7.2 AGIs & DRIs 40<br />
7.3 Meters 41<br />
7.4 Communications and Instrumentation 43<br />
7.5 Pipelines 44<br />
7.6 Asset Integrity 45<br />
7.7 Gas Quality 46<br />
7.8 Natural Gas as a transport fuel 47<br />
8. Security of supply 48<br />
8.1 Overview of Legal Framework 48<br />
8.2 Existing Operational and Planning arrangements 48<br />
9. Commercial Market <strong>Development</strong>s 50<br />
9.1 <strong>Gaslink</strong>: Independent System Opera<strong>to</strong>r 50<br />
9.2 European <strong>Development</strong>s 50<br />
9.3 New Connections 52<br />
9.4 Moffat 52<br />
9.5 CAG Summary 53<br />
Appendix 1: Demand Forecasts 54<br />
Appendix 2: His<strong>to</strong>ric Demand 57<br />
Appendix 3: Energy Efficiency assumptions 59<br />
National Energy Efficiency Action Plan (NEEAP) 59<br />
Glossary 61<br />
1
1. Introduction<br />
The publication of the <strong>Network</strong><br />
<strong>Development</strong> <strong>Statement</strong> (NDS) covers<br />
the 10 year period from <strong><strong>20</strong>10</strong>/<strong>11</strong> <strong>to</strong><br />
<strong><strong>20</strong>19</strong>/<strong>20</strong>. It has been prepared by <strong>Gaslink</strong><br />
(the independent Gas System Opera<strong>to</strong>r),<br />
with assistance from Bord Gáis<br />
<strong>Network</strong>s (BGN). Previous publications<br />
of this document were referred <strong>to</strong><br />
as the Transmission <strong>Development</strong><br />
<strong>Statement</strong> (TDS).The document was<br />
renamed <strong>to</strong> reflect all aspects of<br />
the Bord Gáis system, not just the<br />
transmission system.<br />
2
NETWORK DEVELOPMENT STATEMENT<br />
<strong>Gaslink</strong> is required <strong>to</strong> produce a Long-term <strong>Development</strong><br />
Plan under Condition <strong>11</strong> of its Transmission System<br />
Opera<strong>to</strong>r Licence. The publication of the NDS is designed<br />
<strong>to</strong> meet this obligation, and also serves as the <strong>Gaslink</strong><br />
input in<strong>to</strong> the Joint Gas Capacity <strong>Statement</strong> (JGCS)<br />
consultation process.<br />
Natural gas continues <strong>to</strong> play a very important role<br />
in the Republic of Ireland (ROI) energy mix. It brings<br />
considerable economic and environmental benefits<br />
such as being cheaper than oil, having the lowest CO 2<br />
emissions of any fossil fuel and providing the most<br />
efficient form of thermal power generation.<br />
It is hoped that the NDS will inform market participants<br />
about gas usage, and thereby, maximise the resulting<br />
economic and environmental benefits <strong>to</strong> the ROI<br />
economy. It is intended <strong>to</strong> provide existing and potential<br />
users of the ROI system with an overview of future<br />
demand, likely sources of supply and the capacity of the<br />
existing system.<br />
The main focus of the NDS is the ROI transmission system,<br />
which for the purposes of the NDS is defined <strong>to</strong> include<br />
both the onshore ROI transmission system and the BGE<br />
Interconnec<strong>to</strong>r (“IC”) system, which includes:<br />
• The two subsea interconnec<strong>to</strong>rs from Loughshinny and<br />
Gormans<strong>to</strong>n in Ireland, <strong>to</strong> Brighouse Bay in Scotland;<br />
and<br />
• The Brighouse and Beat<strong>to</strong>ck compressor stations<br />
and connecting transmission pipeline, which connect<br />
the two subsea interconnec<strong>to</strong>rs <strong>to</strong> the Great Britain<br />
(GB) National Transmission System (NTS) at Moffat in<br />
Scotland.<br />
This year the NDS discusses other assets in the ROI system<br />
and reports on significant projects completed on the<br />
distribution system.<br />
The Northern Ireland (“NI”) and Isle of Man (“IOM”)<br />
peak-day and annual demands are also included in the<br />
NDS demand forecasts for completeness, as they have a<br />
material impact on the capacity of the IC system. These<br />
forecasts are based on information provided by Premier<br />
Transmission LTD (PTL) in NI and the Manx Electricity<br />
Authority (MEA) on the IOM.<br />
In order <strong>to</strong> complete the detailed analysis and modelling<br />
required <strong>to</strong> produce this document, the demand and<br />
supply scenarios were defined in November <strong><strong>20</strong>10</strong>, based<br />
on the most up <strong>to</strong> date information at that time.<br />
July <strong>20</strong><strong>11</strong><br />
3
2. Executive Summary<br />
2.1 ROI Gas Demand<br />
The <strong>20</strong>09/10 gas year proved <strong>to</strong> be a year of records<br />
for ROI gas demand. The gas demand for the 12<br />
month period was up +6.4% on the previous year, and<br />
the record peak demand day occurred on the 7th of<br />
January <strong><strong>20</strong>10</strong>, realising a +8.8% increase on <strong>20</strong>08/09.<br />
Annual demand growth was primarily driven by gas<br />
demand from the power generation sec<strong>to</strong>r, despite<br />
a reduction in electricity demand. Power generation<br />
gas demand grew by +9.3% on <strong>20</strong>08/09, which can<br />
be attributed <strong>to</strong> favourable gas prices relative <strong>to</strong><br />
other fuels for power generation, and low wind levels<br />
resulting in low wind generation.<br />
The very cold weather experienced in December <strong>20</strong>09<br />
and January <strong><strong>20</strong>10</strong>, resulted in high demand from the<br />
primarily weather sensitive non-daily metered (NDM)<br />
sec<strong>to</strong>r, comprising of residential and small <strong>to</strong> medium<br />
size Industrial and Commercial (I/C) cus<strong>to</strong>mers. A record<br />
NDM demand peak, 95.2 GWh/d, occurred during this<br />
cold weather period, on the 7th of January <strong><strong>20</strong>10</strong>, an<br />
increase of 19.4% on the previous NDM peak.<br />
Despite the severe cold weather I/C gas demand<br />
remained flat on <strong>20</strong>08/09, which can be attributed <strong>to</strong><br />
the ongoing economic recession.<br />
The gas demand outlook for the next 10 years is<br />
positive, with growth being driven primarily by the<br />
power generation sec<strong>to</strong>r. I/C gas demand is anticipated<br />
<strong>to</strong> experience some growth in line with economic<br />
recovery, while residential gas demand is expected<br />
<strong>to</strong> slightly contract as a result of increasing energy<br />
efficiency.<br />
2.2 Gas Supplies<br />
Over 93% of ROI gas supplies will continue <strong>to</strong> be<br />
sourced from GB imports over the next 2 years, until<br />
<strong>20</strong>13, when Corrib is assumed <strong>to</strong> commence commercial<br />
operation.<br />
Celtic Sea s<strong>to</strong>rage and production operations are<br />
expected <strong>to</strong> continue in the short <strong>to</strong> medium term,<br />
though uncertainty surrounds the medium <strong>to</strong> long<br />
term future.<br />
4
NETWORK DEVELOPMENT STATEMENT<br />
There are also a number of proposed supply projects,<br />
including two separate salt cavity s<strong>to</strong>rage projects in<br />
the Larne area of Northern Ireland and the Shannon<br />
Liquefied Natural Gas (LNG) terminal in Co. Kerry.<br />
The two Larne project developers have indicated a<br />
start state for commercial operations in the <strong>20</strong>16 and<br />
<strong>20</strong>17 period. Shannon LNG have indicated they cannot<br />
currently provide a likely start date for commercial<br />
operation of the LNG facility.<br />
However, due <strong>to</strong> the uncertainty surrounding the<br />
timing of the various proposed supply projects, it<br />
should also be emphasised, if there is any significant<br />
change <strong>to</strong> the future supply outlook, resulting in the<br />
likelihood of Moffat being the only source of supply <strong>to</strong><br />
ROI, NI and IOM in the short <strong>to</strong> medium term, it is likely<br />
the “South West Scotland On Shore System” (SWSOS)<br />
will require reinforcement. Based on demand forecasts<br />
and the capacity at Moffat, this reinforcement would<br />
need <strong>to</strong> be in place for <strong>20</strong>13/14.<br />
2.3 <strong>Network</strong> <strong>Development</strong><br />
The network analysis detailed in chapter 6 examined<br />
the capacity of both the onshore ROI transmission<br />
system and the onshore Scotland system (including<br />
the subseas Interconnec<strong>to</strong>rs). Results indicate there is<br />
sufficient capacity available on the existing onshore<br />
ROI transmission system <strong>to</strong> meet the required forecast<br />
peak-day demand over the forecast period, and equally,<br />
the local transmission systems have sufficient capacity<br />
<strong>to</strong> meet the forecast peak day demands (subject <strong>to</strong> local<br />
growth not exceeding assumed national growth levels).<br />
5
3. Demand<br />
3.1 Record Peak Gas Demands in <strong><strong>20</strong>10</strong><br />
<strong><strong>20</strong>10</strong> was a record year for gas demand, December <strong><strong>20</strong>10</strong><br />
was a record month for gas demand and the 7th of<br />
January <strong><strong>20</strong>10</strong> was a record day for gas demand. These<br />
record gas demands coincided with some of the most<br />
severe cold weather conditions on record, particularly the<br />
month of December, which was the coldest month on<br />
record at Dublin Airport, according <strong>to</strong> Met Éireann.<br />
Gas demand in the month of December <strong><strong>20</strong>10</strong>, 6,671 GWh<br />
(c. 605 mscm/m) grew by 6.0% on January <strong><strong>20</strong>10</strong> (the<br />
previous record month) and <strong>11</strong>.7% on December <strong>20</strong>09.<br />
Demand on the 7th of January, 253 GWh/d (23.0 mscm/d)<br />
was 9.5% up on the previous peak, 7th of January<br />
<strong>20</strong>09. Even though a number of days in December<br />
<strong><strong>20</strong>10</strong> realised similar levels of gas demand <strong>to</strong> the 7th of<br />
January, they were slightly short on the 7th of January<br />
peak demand record.<br />
The electricity system also experienced record peak<br />
demands during both January and December <strong><strong>20</strong>10</strong>. The<br />
record demands combined with very low wind levels<br />
and favourable gas prices relative <strong>to</strong> coal for electricity<br />
generation, resulted in record gas demand for the power<br />
generation sec<strong>to</strong>r.<br />
The month of December <strong><strong>20</strong>10</strong> was the coldest December<br />
on record, corresponding with the coldest record day at<br />
Dublin airport on the 24th of December, since records<br />
commenced in 1942. The average temperature over a<br />
24 hour period on the 24th of December was -8.6°c.<br />
Similar freezing conditions occurred in early January,<br />
particularly on the 7th and 8th of January, with an<br />
average temperatures of c. -5.0°c.<br />
The weather sensitive non-daily-metered sec<strong>to</strong>r, which<br />
comprises of residential and small Industrial and<br />
Commercial (I/C) cus<strong>to</strong>mers, experienced record peak<br />
daily demands of c. 95 GWh/d, in both January and<br />
December.<br />
Gas flows through the subsea inter-connec<strong>to</strong>rs (ICs)<br />
exceeded 188.2 GWh (17.0 mscm/d), the design capacity<br />
of IC1 on a number of days during the January and<br />
December peak demand periods. Both gas supplies and<br />
the Bord Gáis transmission system were sufficient in<br />
meeting demand throughout the high demand periods.<br />
Fig. 3.1: Actual demand by sec<strong>to</strong>r for January and December <strong><strong>20</strong>10</strong><br />
Demand (GWh/d)<br />
January December <strong><strong>20</strong>10</strong> Daily Demand<br />
270<br />
240<br />
210<br />
180<br />
150<br />
1<strong>20</strong><br />
90<br />
60<br />
30<br />
01 JAN 10<br />
03 JAN 10<br />
05 JAN 10<br />
07 JAN 10<br />
09 JAN 10<br />
<strong>11</strong> JAN 10<br />
13 JAN 10<br />
15 JAN 10<br />
17 JAN 10<br />
19 JAN 10<br />
21 JAN 10<br />
23 JAN 10<br />
25 JAN 10<br />
27 JAN 10<br />
29 JAN 10<br />
31 JAN 10<br />
22 NOV 10<br />
24 NOV 10<br />
26 NOV 10<br />
28 NOV 10<br />
30 NOV 10<br />
02 DEC 10<br />
04 DEC 10<br />
06 DEC 10<br />
08 DEC 10<br />
10 DEC 10<br />
12 DEC 10<br />
14 DEC 10<br />
16 DEC 10<br />
18 DEC 10<br />
<strong>20</strong> DEC 10<br />
22 DEC 10<br />
24 DEC 10<br />
26 DEC 10<br />
28 DEC 10<br />
30 DEC 10<br />
Power Tx DM I Dx DM I NDM Shrinkage Jan & Dec 09 Demand
NETWORK DEVELOPMENT STATEMENT<br />
Fig. 3.2: His<strong>to</strong>rical daily ROI gas demand summarised by sec<strong>to</strong>r<br />
300<br />
His<strong>to</strong>ric ROI Demand by Sec<strong>to</strong>r<br />
Demand (GWh/d)<br />
250<br />
<strong>20</strong>0<br />
150<br />
100<br />
50<br />
0<br />
01 OCT 05 01 APR 06 01 OCT 06 01 APR 07 01 OCT 07 01 APR 08 01 OCT 08 01 APR 09 01 OCT 09 01 APR 10<br />
I/C RES Power<br />
3.2 His<strong>to</strong>ric ROI Demand – <strong>20</strong>05/06 <strong>to</strong> <strong>20</strong>09/10<br />
3.2.1 Overall ROI demand<br />
The his<strong>to</strong>rical ROI daily gas demand is shown in Fig. 3.2,<br />
<strong>to</strong>gether with the corresponding peak-day and annual<br />
demand statistics in Table 3.1. The peak-day and annual<br />
demand has grown by +6.9% p.a. and +4.8% p.a.<br />
respectively, between <strong>20</strong>05/06 and <strong>20</strong>09/10.<br />
The power generation sec<strong>to</strong>r was the largest user of<br />
natural gas and accounted for 67.5% of <strong>to</strong>tal ROI annual<br />
gas demand in <strong>20</strong>09/10, followed by the I/C sec<strong>to</strong>r which<br />
accounted for 17.9% and the residential sec<strong>to</strong>r which<br />
accounted for 14.6%.<br />
The weather sensitive nature of the residential demand<br />
means that it makes a bigger contribution <strong>to</strong> peakday<br />
demand (27.0% in <strong>20</strong>09/10). The corresponding<br />
contributions of the power and I/C sec<strong>to</strong>rs on the peak-day<br />
were 54.2% and 18.8% respectively.<br />
Table 3.1: His<strong>to</strong>ric ROI Peak-day and annual gas demand (actual demands) 1<br />
<strong>20</strong>05/06 <strong>20</strong>06/07 <strong>20</strong>07/08 <strong>20</strong>08/09 <strong>20</strong>09/10<br />
(GWh) (GWh) (GWh) (GWh) (GWh)<br />
Peak-day<br />
Power 2 96.8 <strong>11</strong>1.2 <strong>11</strong>9.7 126.4 134.3<br />
I/C 43.4 43.1 43.4 44.4 46.3<br />
RES1 49.4 50.4 52.5 56.7 67.0<br />
Total 189.6 <strong>20</strong>4.7 215.7 227.5 247.6<br />
Annual<br />
Power 29,775 34,688 37,758 36,007 39,338<br />
I/C 10,352 10,486 10,507 10,415 10,409<br />
RES 8,149 7,716 8,239 8,312 8,492<br />
Total 48,276 52,890 56,504 54,734 58,239<br />
1<br />
Actual demands shown (no weather correction), with RES estimated as % of NDM demand<br />
2<br />
Power sec<strong>to</strong>r demand includes Aughinish gas demand<br />
7
3. Demand continued<br />
Fig. 3.3: His<strong>to</strong>rical fuel-prices<br />
30.0<br />
His<strong>to</strong>ric Fuel Prices<br />
25.0<br />
Fuel Prices (€/GJ)<br />
<strong>20</strong>.0<br />
15.0<br />
10.0<br />
5.0<br />
0.0<br />
01 DEC 03<br />
01 APR 04<br />
01 AUG 04<br />
01 DEC 04<br />
01 APR 05<br />
01 AUG 05<br />
01 DEC 05<br />
01 APR 06<br />
01 AUG 06<br />
01 DEC 06<br />
01 APR 07<br />
01 AUG 07<br />
01 DEC 07<br />
01 APR 08<br />
01 AUG 08<br />
01 DEC 08<br />
01 APR 09<br />
01 AUG 09<br />
01 DEC 09<br />
01 APR 10<br />
01 AUG 10<br />
Gas LSFO Coal<br />
*LSFO = Low Sulphur Fuel Oil, i.e. the main fuel burned by oil-fired power stations<br />
3.2.2 Power sec<strong>to</strong>r gas demand<br />
Despite declining electricity demand, power generation gas<br />
demand grew by approximately 9.25% on <strong>20</strong>08/09 levels.<br />
This increase in power sec<strong>to</strong>r gas demand was attributed <strong>to</strong>;<br />
• Low wind levels, resulting in relatively low wind generation.<br />
• Relatively low gas prices, resulting in modern gas fired<br />
generation been more competitive than coal and oil<br />
generation throughout <strong>20</strong>09/10 (see fig. 3.3).<br />
• Two new gas fired entrants <strong>to</strong> the SEM in the Cork area,<br />
Aghada and Whitegate CCGTs.<br />
EirGrid have indicated wind generation exports during<br />
<strong>20</strong>09/10 were down on <strong>20</strong>08/09 levels despite increased wind<br />
generation capacity. This can be attributed <strong>to</strong> the lower than<br />
normal wind levels for the year.<br />
In <strong>20</strong>09/10 the gas demand of the power sec<strong>to</strong>r on the ROI<br />
peak-day increased by +6.3% <strong>to</strong> 134.3 GWh/d on 7th January<br />
<strong><strong>20</strong>10</strong>. This corresponded with a record ROI electricity system<br />
demand peak of 4,950 MW. This high demand coincided with<br />
low levels of wind generation (83 MW at the time of the system<br />
peak), and resulted in record power generation gas demand.<br />
(This record was subsequently broken on the 21st of December<br />
<strong><strong>20</strong>10</strong>, 5,090 MW, though power generation gas demand was<br />
only 121.4 GWh/d, due <strong>to</strong> unscheduled outages at a number of<br />
gas fired power stations).<br />
8
NETWORK DEVELOPMENT STATEMENT<br />
Fig. 3.4: I/C gas demand monthly growth by connection type<br />
30.0%<br />
Month on Month % Change <strong>20</strong>09/10 and <strong>20</strong>08/09 I&C Demand<br />
<strong>20</strong>.0%<br />
Month on Month % Change<br />
10.0%<br />
0.0%<br />
-10.0%<br />
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP<br />
-<strong>20</strong>.0%<br />
-30.0%<br />
TRANSMISSION<br />
DISTRIBUTION<br />
3.2.3 I/C gas demand<br />
The annual gas demand of the I/C sec<strong>to</strong>r remained on<br />
par with <strong>20</strong>08/09 levels, however, there were significant<br />
differences between the trends for transmission and<br />
distribution connected sites (which respectively accounted for<br />
43.6% and 56.4% of <strong>to</strong>tal I/C gas demand in <strong>20</strong>09/10):<br />
• Annual gas demand of the transmission connected I/C sites<br />
rose by +5.2%.<br />
• Annual gas demand of the distribution connected I/C sites<br />
fell by -1.4%.<br />
The transmission connected I/C sec<strong>to</strong>r includes the larger<br />
manufacturing, pharmaceutical and dairy co-op sites, which<br />
primarily use natural gas <strong>to</strong> provide heat for manufacturing and<br />
processing purposes.<br />
The distribution connected I/C sec<strong>to</strong>r includes the small I/C<br />
sec<strong>to</strong>r, offices, retail units, hospitals and schools etc, which<br />
would primarily use gas for space-heating purposes and<br />
therefore, their gas demand would be much more weather<br />
sensitive.<br />
Fig. 3.4 illustrates the trend divergence between transmission<br />
and distribution I/C gas demand. Distribution I/C demand<br />
demonstrated growth during winter, particularly in early <strong><strong>20</strong>10</strong>,<br />
in response <strong>to</strong> the very cold weather conditions experienced in<br />
this period.<br />
Transmission I/C gas demand recovered strongly in the second<br />
half of <strong>20</strong>09/10. This recovery coincides with Irish economic<br />
growth detailed in the CSO’s Quarterly National Accounts<br />
for Q3 <strong><strong>20</strong>10</strong>, driven primarily by the export sec<strong>to</strong>rs of<br />
manufacturing and industry.<br />
9
3. Demand continued<br />
3.2.4 His<strong>to</strong>rical residential gas demand<br />
Total residential gas demand grew by +2.2% during <strong>20</strong>09/10,<br />
and annual gas demand per residential cus<strong>to</strong>mer increased<br />
slightly by 0.7%. The contraction in demand per cus<strong>to</strong>mer<br />
experienced in <strong>20</strong>08/09 was expected <strong>to</strong> continue in <strong>20</strong>09/10,<br />
as a result of enhanced building regulations for new houses,<br />
increasing energy efficiency initiatives for existing houses and<br />
the ongoing economic recession.<br />
The slowdown in the construction sec<strong>to</strong>r can also be seen in the<br />
new connection numbers. The <strong>to</strong>tal number of new residential<br />
connections dropped from approximately 13,294 in <strong>20</strong>08/09<br />
<strong>to</strong> 5,939 in <strong>20</strong>09/10, a reduction of -55.3%. The latest house<br />
building data published by the Department of the Environment,<br />
Heritage and Local Government indicates, new housing<br />
completions fell by approximately 46% in <strong><strong>20</strong>10</strong>.<br />
However, the very cold weather conditions experienced during<br />
the winter period, particularly in January <strong><strong>20</strong>10</strong>, which resulted<br />
in higher demand from the residential sec<strong>to</strong>r is likely <strong>to</strong> have<br />
affected this trend.<br />
Table 3.2: Residential gas demand per cus<strong>to</strong>mer<br />
<strong>20</strong>05/06 <strong>20</strong>06/07 <strong>20</strong>07/08 <strong>20</strong>08/09 <strong>20</strong>09/10<br />
(GWh) (GWh) (GWh) (GWh) (GWh)<br />
No. of cus<strong>to</strong>mers<br />
On 1st Oc<strong>to</strong>ber 500,837 538,822 571,485 595,740 609,034<br />
On 30th September 538,822 571,485 595,740 609,034 614,973<br />
Cus<strong>to</strong>mer growth 37,985 32,663 24,255 13,294 5,939<br />
Average for Gas Yr 1 519,830 555,154 583,613 602,387 612,004<br />
RES Demand<br />
Total RES demand 8,148.9 7,716.1 8,238.5 8,3<strong>11</strong>.8 8,491.5<br />
Demand per cus<strong>to</strong>mer 2 0.0157 0.0139 0.0141 0.0138 0.0139<br />
1<br />
Average <br />
for Gas Yr = Average number of residential cus<strong>to</strong>mers connected <strong>to</strong> the distribution system over the course of the gas year (i.e. the average number of<br />
cus<strong>to</strong>mers at the start and end of gas year)<br />
2<br />
Per cus<strong>to</strong>mer = Average residential annual gas demand per cus<strong>to</strong>mer (before weather adjustment)<br />
10
NETWORK DEVELOPMENT STATEMENT<br />
3.2.5 ROI annual energy demand<br />
Natural gas continues <strong>to</strong> make an important contribution <strong>to</strong> the<br />
overall ROI energy-mix, and accounts for approximately 29.0%<br />
of the ROI Total Primary Energy Requirement (TPER) in <strong>20</strong>09 (see<br />
Fig. 3.5 & 3.6).<br />
The TPER includes the use of fuel for electricity generation.<br />
Natural gas is also an important fuel for electricity generation,<br />
accounting for 56.0% of all fuels used for electricity generation<br />
in <strong>20</strong>09.<br />
Natural gas accounted for 12.9% of Total Final Consumption<br />
(TFC). Its lower share of TFC compared <strong>to</strong> TPER, can be<br />
explained by the fact the TFC excludes the use of energy for<br />
electricity generation (the largest use of natural gas). Natural<br />
gas accounted for <strong>20</strong>.2% of the residential TFC, 26.7% of the<br />
commercial TFC and 24.1% of the industrial TFC.<br />
TPER by fuel (kTOE/year)<br />
Fig. 3.5: Analysis of his<strong>to</strong>rical ROI TPER<br />
Irish TPER by fuel ROI TPER analysis by fuel (<strong>20</strong>09)<br />
18,000<br />
16,000<br />
14,000<br />
12,000<br />
10,000<br />
8,000<br />
6,000<br />
4,000<br />
2,000<br />
0<br />
Coal Peat Oil Gas REN E. Import<br />
ROI TPER analysis by fuel (<strong>20</strong>09)<br />
6%<br />
8%<br />
5%<br />
29%<br />
52%<br />
Coal Peat Oil Gas REN E. Import<br />
Table 3.3: His<strong>to</strong>ric BGE Peak-day and annual gas demand (actual demands)<br />
Fig. 3.6: Breakdown of ROI TPER for <strong>20</strong>09<br />
<strong>20</strong>05/06 <strong>20</strong>06/07 <strong>20</strong>07/08 <strong>20</strong>08/09 <strong>20</strong>09/10<br />
(GWh) (GWh) (GWh) (GWh) (GWh)<br />
Peak-day 1<br />
ROI 165.7 196.7 <strong>20</strong>5.9 227.5 247.6<br />
NI + IOM 79.8 79.0 74.8 67.7 80<br />
Total 245.5 275.7 280.7 295.2 327.5<br />
Annual<br />
ROI 48,276 52,890 56,504 54,734 58,239<br />
NI+IOM 19,353 <strong>20</strong>,216 19,294 18,022 17,232<br />
Total 67,629 73,106 75,798 72,756 75,471<br />
1<br />
Excludes shrinkage gas consumed on the peak day<br />
<strong>11</strong>
3. Demand continued<br />
Fig. 3.7: His<strong>to</strong>rical daily demand on the BGE transmission system<br />
350<br />
Total BGE Demand<br />
300<br />
250<br />
Demand (GWh/d)<br />
<strong>20</strong>0<br />
150<br />
100<br />
50<br />
0<br />
01 Oct 02<br />
01 Apr 03<br />
01 Oct 03<br />
01 Apr 04<br />
01 Oct 04<br />
01 Apr 05<br />
01 Oct 05<br />
01 Apr 06<br />
01 Oct 06<br />
01 Apr 07<br />
01 Oct 07<br />
01 Apr 08<br />
01 Oct 08<br />
01 Apr 09<br />
01 Oct 09<br />
01 Apr 10<br />
NI & IOM<br />
ROI<br />
3.2.6 BGE system demand<br />
The his<strong>to</strong>rical peak-day and annual demand of the overall<br />
BGE system is shown in Table 3.3 and includes the aggregated<br />
demands of the ROI, NI and the IOM. The his<strong>to</strong>rical daily<br />
demand of the BGE system is shown in Fig. 3.7.<br />
The overall BGE system peak-day demand increased +<strong>11</strong>.1%<br />
during <strong>20</strong>09/10, and the annual demand increased by +3.7%.<br />
The ROI peak-day coincided with the BGE system peak-day on<br />
the 7th of January <strong><strong>20</strong>10</strong>, which was an all time record demand<br />
for both systems, as a result of the exceptionally cold weather<br />
conditions experienced during this period. Very low wind levels<br />
on this date also contributed <strong>to</strong> higher power generation gas<br />
demand. Wind generated electricity met approximately 1.7% of<br />
peak electricity demand on the 7th January <strong><strong>20</strong>10</strong>.<br />
The ROI peak day was driven by record power generation and<br />
NDM gas demand, of 134.8 GWh and 95.2 GWh respectively.<br />
DM I/C gas demand at <strong>20</strong>.8 GWh/d was not as high as previous<br />
years, due <strong>to</strong> the current economic recession.<br />
The annual demand on the BGE system increased by +3.7%<br />
during <strong>20</strong>09/10, despite NI & IOM annual demand contracting<br />
by -4.4%. The BGE system increase is attributed <strong>to</strong> ROI annual<br />
growth of +6.4%, resulting from power generation annual gas<br />
demand growing by +9.25%.<br />
12
NETWORK DEVELOPMENT STATEMENT<br />
3.3 Forecast ROI Gas Demand<br />
3.3.1 ROI power sec<strong>to</strong>r forecast<br />
The gas demand of the ROI power sec<strong>to</strong>r will be determined by<br />
a number of fac<strong>to</strong>rs including:<br />
• The overall demand for electricity and the order in which<br />
power stations are despatched <strong>to</strong> meet that demand (i.e.<br />
the “merit-order”, which is very sensitive <strong>to</strong> fuel-prices).<br />
• National and international policies in relation <strong>to</strong> targets for<br />
renewable electricity production, electrical interconnection<br />
and global warming (including carbon prices).<br />
The latest electricity demand forecasts published by EirGrid<br />
and SONI reflect further downward revision on last year’s<br />
forecast, as a result of the continued impact of the current<br />
economic recession. This combined with continuing investment<br />
in renewable electricity production, increased electricity<br />
interconnection with GB, and rising gas prices relative <strong>to</strong> coal<br />
prices, affects the ability for future gas demand growth in the<br />
power sec<strong>to</strong>r. This is reflected in the following:<br />
• The forecasts published by EirGrid & SONI in the <strong>20</strong><strong>11</strong>-<strong>20</strong><strong>20</strong><br />
All Island Generation Capacity <strong>Statement</strong> assume that the<br />
All-Island electricity peak-demand will increase from 6,308<br />
MW in <strong><strong>20</strong>10</strong> <strong>to</strong> 7,235 MW by <strong>20</strong><strong>20</strong> in their median forecast<br />
(i.e. an increase of + 927 MW);. The ROI accounts for<br />
approximately 73% of the Island’s electricity demand.<br />
• The forward price curve for winter gas indicates that prices<br />
will increase from circa 50.0 p/therm in <strong><strong>20</strong>10</strong>/<strong>11</strong> <strong>to</strong> 64 p/<br />
therm in <strong>20</strong>14/15 (an increase of +28.0%), while forward<br />
prices indicate coal will only increase by <strong>11</strong>% over the same<br />
period.<br />
• EirGrid & SONI forecast the installed All-Island on-shore<br />
wind-capacity will increase from 1,756 MW in <strong><strong>20</strong>10</strong> <strong>to</strong><br />
4,826 MW by <strong>20</strong><strong>20</strong> (an increase of +3,070 MW), and have<br />
confirmed that they are on schedule <strong>to</strong> complete the 500<br />
MW East/West electricity interconnec<strong>to</strong>r <strong>to</strong> GB in <strong>20</strong>12.<br />
The global drive <strong>to</strong> reduce greenhouse gases may provide<br />
some upside for gas demand, however, by displacing coal for<br />
electricity generation. The carbon price is assumed <strong>to</strong> reach c.<br />
€30/tCO 2 by <strong>20</strong>18/19, during Phase III of the Emission Trading<br />
Scheme (ETS). This should lead <strong>to</strong> a recovery in power sec<strong>to</strong>r<br />
gas demand <strong>to</strong>wards the end of the forecast period.<br />
The NDS planning assumptions in relation <strong>to</strong> the construction<br />
and retirement of power stations in both the ROI and NI are<br />
tabulated in Table 3.4, and may be briefly summarised as<br />
follows:<br />
• Endesa plan <strong>to</strong> retire their oil-fired plants by <strong>20</strong>13/14, and<br />
replace them with a 440 MW CCGT at Great Island, and a<br />
300 MW OCGT at Tarbert (and later a 430 MW CCGT).<br />
• A number of additional gas-fired stations have also been<br />
included in the NDS for planning purposes, including two<br />
new CCGTs in the Midlands and Belfast, and two small<br />
OCGTs in the Midlands.<br />
The NDS forecast assumes that peak-day electricity demand will<br />
increase from 6,308 MW in <strong><strong>20</strong>10</strong>/<strong>11</strong> <strong>to</strong> 7,235 MW by <strong><strong>20</strong>19</strong>/<strong>20</strong>,<br />
an increase of +927 MW. This level of growth in electricity<br />
demand will be insufficient <strong>to</strong> fully utilise all of the proposed<br />
new generation:<br />
• The combined export capacity of all the gas-fired power<br />
stations is assumed <strong>to</strong> increase from 5,627 MW <strong>to</strong> 6,967<br />
MW by <strong><strong>20</strong>19</strong>/<strong>20</strong> (an increase of +1,340 MW).<br />
• The installed wind-capacity is assumed <strong>to</strong> increase from<br />
approximately 1,756 MW <strong>to</strong> 4,826 MW by <strong><strong>20</strong>19</strong>/<strong>20</strong> (an<br />
increase of +3,070 MW).<br />
• The level of electrical interconnection is assumed <strong>to</strong><br />
increase from 450 MW <strong>to</strong> 950 MW by <strong>20</strong>12/13 (an<br />
increase of +500 MW).<br />
13
3. Demand continued<br />
Table 3.4: New and retired power station assumptions<br />
Name Type Status Export Start Location<br />
(MW)<br />
Date<br />
New<br />
Great I. CCGT CCGT Assumed 440 Oct-13 Wexford<br />
Tarbert OCGT* OCGT Assumed 300 Oct-13 Kerry<br />
New CCGT1 CCGT Assumed 350 Oct-13 Midlands<br />
New CCGT2 CCGT Assumed 430 Oct-13 Belfast<br />
New OCGT1 OCGT Assumed 100 Oct-12 Midlands<br />
New OCGT2 OCGT Assumed 100 Oct-13 Midlands<br />
Total 1,7<strong>20</strong><br />
Retired<br />
Tarbert Oil Assumed 590 Mar-13 Kerry<br />
Great Island Oil Assumed 216 Mar-13 Wexford<br />
Total 806<br />
*Assumed <strong>to</strong> be converted in<strong>to</strong> 430MW CCGT by <strong>20</strong>16/17<br />
The most likely outcome from the above assumption is that<br />
the potential increase in gas demand from the assumed new<br />
gas-fired power stations, will be largely offset by reduced gas<br />
demand from the older and less efficient gas-fired stations<br />
(which will be forced further-up the merit-order and despatched<br />
less frequently).This can also be seen in Fig. 3.8, which shows<br />
the NDS forecast of hourly power generation by fuel for the<br />
<strong><strong>20</strong>10</strong>/<strong>11</strong> peak-day.<br />
There is already insufficient baseload electricity demand for the<br />
existing baseload coal, peat and gas-fired stations. The gas-fired<br />
stations will need <strong>to</strong> be curtailed at night-time. The forecast<br />
trends for power sec<strong>to</strong>r annual demand are as follows:<br />
• It will decline until <strong>20</strong>14/15 due <strong>to</strong> the combination of rising<br />
gas prices, rising renewable energy, lower electricity demand<br />
and increased electrical interconnection with GB.<br />
• It will begin <strong>to</strong> recover from <strong>20</strong>14/15 onwards due <strong>to</strong> the<br />
assumptions of increasing electricity demand, rising carbon<br />
prices and a phasing out of the Public Service Obligation<br />
(PSO) levy for peat stations.<br />
The annual gas demand of the power sec<strong>to</strong>r is expected <strong>to</strong><br />
increase by +8.8% over the forecast period (or by +0.9% p.a.).<br />
The peak-day gas demand of the power sec<strong>to</strong>r will follow a<br />
broadly similar trend, which may be summarised as follows:<br />
• It is forecast <strong>to</strong> grow at a higher rate of +<strong>20</strong>.2% over<br />
the forecast period or +1.6% p.a., primarily due <strong>to</strong> the<br />
assumption that wind-power will have a lesser impact on the<br />
peak-day demand of the sec<strong>to</strong>r (since the system peak-day<br />
is assumed <strong>to</strong> occur on a calm day, which is the worst-case<br />
scenario for gas system planning purposes).<br />
• It is expected <strong>to</strong> decline from <strong>20</strong>12/13 due <strong>to</strong> the impact<br />
of the East/West electricity interconnec<strong>to</strong>r <strong>to</strong> GB, which is<br />
assumed <strong>to</strong> commence operation from <strong>20</strong>12/13.<br />
• It is expected <strong>to</strong> recover from <strong>20</strong>14/15 onwards due <strong>to</strong> the<br />
assumptions of increasing electricity demand, rising carbon<br />
prices and a phasing out of the peat PSO levy.<br />
14
NETWORK DEVELOPMENT STATEMENT<br />
Fig. 3.8: Forecast despatch of SEM power sec<strong>to</strong>r by fuel-type on <strong><strong>20</strong>10</strong>/<strong>11</strong> gas peak-day<br />
7,000<br />
SEM Generation by Fuel Type for 07 Jan <strong>11</strong><br />
6,000<br />
5,000<br />
Hourly Generation (MW)<br />
4,000<br />
3,000<br />
2,000<br />
1,000<br />
0<br />
1<br />
2<br />
3<br />
4<br />
5<br />
6<br />
7<br />
8<br />
9<br />
10<br />
<strong>11</strong><br />
12<br />
13<br />
14<br />
15<br />
16<br />
17<br />
Hour No.<br />
18<br />
19<br />
<strong>20</strong><br />
21<br />
22<br />
23<br />
24<br />
E. Import Peat Oil Gas REN Coal<br />
3.3.1.1 Electricity Demand Forecast Assumption<br />
The electricity transmission peak demand forecasts published by<br />
EirGrid & SONI in the <strong>20</strong><strong>11</strong>-<strong>20</strong><strong>20</strong> All Island Generation Capacity<br />
<strong>Statement</strong> are based on a temperature standard known as<br />
Average Cold Spell (ACS), which represents an average type<br />
winter. Currently EirGrid and SONI don’t publish transmission<br />
peak demand forecasts for severe type winter.<br />
The actual ROI electricity transmission peak demand, 5,090<br />
MW, experienced during the severe weather period in<br />
December <strong><strong>20</strong>10</strong> exceeded the All Island Generation Capacity<br />
<strong>Statement</strong> <strong><strong>20</strong>10</strong> transmission peak demand forecast, 4,602<br />
MW by approximately 10.6%.<br />
To date this statement and previous TDS publications adopted<br />
the electricity transmission peak demand forecasts published by<br />
EirGrid & SONI, for both average winter peak day and 1-in-50<br />
peak day power generation gas demand forecasts. However, it<br />
is likely, future statements will adopt the EirGrid & SONI forecast<br />
for average year peak day power generation gas demand<br />
forecasts only.<br />
The actual electricity transmission peak, 5,090 MW, which<br />
occurred on 21st December <strong><strong>20</strong>10</strong>, in conjunction with the<br />
growth rates derived from the electricity transmission peak<br />
forecasts published by EirGrid & SONI, will be adopted for the<br />
1-in-50 peak day power generation gas demand forecasts.<br />
15
3. Demand continued<br />
3.3.2 Forecast I/C gas demand<br />
The future growth in annual I/C gas demand will primarily be<br />
driven by the recovery in the ROI economy and the demand for<br />
economic goods and services, which will drive the demand for<br />
the associated primary inputs such as natural gas.<br />
The NDS forecast uses the economic forecasts published in the<br />
ESRI Quarterly Economic Commentary (QEC) for Autumn <strong><strong>20</strong>10</strong>,<br />
which forecast that Gross Domestic Product (GDP) will reduce by<br />
-0.25% during <strong>20</strong>09 and grow by +2.25% during <strong>20</strong><strong>11</strong>.<br />
The ‘Recovery Scenarios for Ireland: An Update’, published by<br />
the ESRI in July <strong><strong>20</strong>10</strong>, and subsequent consultation with the<br />
ESRI, have provided the economic outlook post <strong>20</strong><strong>11</strong>;<br />
• The economy will come out of recession by <strong><strong>20</strong>10</strong>/<strong>11</strong>, and<br />
will slowly recover, growing at approximately 2.5% in the<br />
first two years.<br />
• Economic growth will then revert back <strong>to</strong> its long-term trend<br />
potential of between 3.0% and 3.5% p.a. post <strong>20</strong><strong>11</strong>/12.<br />
The NDS forecast assumes that the annual I/C gas demand<br />
will grow at 80% of the GDP growth rate, but this will be<br />
offset by both rising gas prices and increasing energy efficiency<br />
(particularly post <strong>20</strong>16). The forecast trends in the annual I/C<br />
gas demand may be summarised as follows:<br />
• I/C gas demand is anticipated <strong>to</strong> experience further decline<br />
in <strong><strong>20</strong>10</strong>/<strong>11</strong> due <strong>to</strong> weak economic growth, increasing<br />
energy efficiency and the assumption of rising gas prices.<br />
• It will recover from <strong>20</strong><strong>11</strong>/12 onwards due <strong>to</strong> rising economic<br />
growth, however, this will be increasingly offset by rising<br />
energy efficiency (particularly post <strong>20</strong>16).<br />
• Overall I/C annual gas demand is assumed <strong>to</strong> grow by 7.7%<br />
(or +0.8% p.a.) over the forecast period, with the peak-day<br />
gas demand following a similar trend.<br />
Assumptions regarding I/C energy efficiency savings are similar<br />
<strong>to</strong> those published in last year’s TDS, which are the energy<br />
efficiency savings identified in the National Energy Efficiency<br />
Action Plan (NEEAP) for Ireland. The NDS forecast assumes<br />
annual energy efficiency savings of 65 GWh/y up <strong>to</strong> <strong>20</strong>15/16,<br />
and 266 GWh/y from <strong>20</strong>15/16 onwards (equivalent <strong>to</strong> 0.6%<br />
and 2.6% respectively of the I/C annual gas demand in<br />
<strong>20</strong>09/10).<br />
The forecast peak-day and annual gas demand of the I/C sec<strong>to</strong>r<br />
are summarised in Appendix No.1, and the assumptions in<br />
relation <strong>to</strong> the I/C energy efficiency savings are explained in<br />
more detail in Appendix No.3.<br />
16
NETWORK DEVELOPMENT STATEMENT<br />
Table 3.5: New residential connection assumption by gas year<br />
10/<strong>11</strong> <strong>11</strong>/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/<strong>20</strong><br />
New 3,125 3,375 4,625 6,875 8,625 10,125 <strong>11</strong>,625 13,125 13,500 13,500<br />
One-off 3,900 3,975 4,375 4,875 5,000 5,000 5,000 5,000 5,000 5,000<br />
Total 7,025 7,350 9,000 <strong>11</strong>,750 13,625 15,125 16,625 18,125 18,500 18,500<br />
3.3.3 Forecast residential gas demand<br />
The future gas demand of the residential sec<strong>to</strong>r will be driven<br />
by both the number of new connections, and the impact of the<br />
various proposed energy efficiency measures. The assumptions<br />
in relation <strong>to</strong> new connections are summarised in Table 3.5.<br />
New residential connection numbers reflect further downward<br />
revision on last year’s forecast, as a result of the continued<br />
impact of the current economic recession, and the uncertainty<br />
surrounding the level of recovery in the construction sec<strong>to</strong>r over<br />
the short <strong>to</strong> medium term.<br />
The <strong>to</strong>tal number of residential cus<strong>to</strong>mers is forecast <strong>to</strong> grow<br />
from 614,973 at the start of <strong>20</strong>09/10 <strong>to</strong> 750,598 by the end<br />
of <strong><strong>20</strong>19</strong>/<strong>20</strong>, an increase of +22.1% over the forecast period<br />
(+2.2% p.a.). Residential annual gas demand is forecast <strong>to</strong><br />
reduce by -9.5% over the forecast period (-1.1 % p.a.), for a<br />
number of reasons:<br />
• The incremental gas demand of new residential cus<strong>to</strong>mers<br />
has been falling due <strong>to</strong> tighter building regulations.<br />
• The average gas demand of existing residential cus<strong>to</strong>mers<br />
has also been falling due <strong>to</strong> increasing energy efficiency,<br />
greater vacancy rates and in response <strong>to</strong> rising gas prices in<br />
recent years.<br />
• Further initiatives are planned for improving the energy<br />
efficiency of existing houses in the NEEAP, including<br />
retrofitting insulation <strong>to</strong> older houses, smart metering and<br />
setting a new standard for more efficient boilers.<br />
All of these trends are expected <strong>to</strong> intensify over the forecast<br />
period. The average incremental annual gas demand of a new<br />
cus<strong>to</strong>mer in <strong>20</strong>05 was approximately 12.3 MWh/y; under the<br />
latest building regulations this is expected <strong>to</strong> reduce by 60% <strong>to</strong><br />
4.9 MWh/y by <strong>20</strong>12.<br />
The proposed standard for more efficient boilers, smart<br />
metering and the Low Carbon Homes, Warmer Homes and<br />
Home Energy Savings schemes are designed <strong>to</strong> improve the<br />
energy efficiency of the existing housing s<strong>to</strong>ck. It is estimated<br />
that these measures could lead <strong>to</strong> an reduction of -1.8% p.a. <strong>to</strong><br />
the existing residential gas demand.<br />
It should be emphasised that there is still considerable<br />
uncertainty surrounding the rollout and implementation of the<br />
energy efficiency initiatives for existing housing. The energy<br />
efficiency assumptions regarding the residential sec<strong>to</strong>r are<br />
similar <strong>to</strong> those published in last year’s TDS, which are the<br />
savings identified in the National Energy Efficiency Action Plan<br />
(NEEAP) for Ireland.<br />
The NEEAP energy efficiency savings are detailed in Appendix 3.<br />
The peak-day and annual residential gas demand forecasts are<br />
tabulated in Appendix 1.<br />
17
4. Gas Supply Outlook<br />
4.1 His<strong>to</strong>rical gas supplies<br />
Approximately 93.0% of the ROI gas demand was<br />
supplied from GB gas imports through the Moffat<br />
entry point in south-west Scotland during <strong>20</strong>09/10. The<br />
remaining 7.0% of <strong>20</strong>09/10 ROI gas demand was supplied<br />
from Celtic Sea production and s<strong>to</strong>rage gas through the<br />
Inch entry point.<br />
Moffat gas was also supplied through the Inch entry<br />
point <strong>to</strong> help refill the Kinsale s<strong>to</strong>rage facility during the<br />
summer (supplementing the offshore production). The<br />
his<strong>to</strong>rical indigenous gas production is shown in Fig. 4.1,<br />
<strong>to</strong>gether with GB imports.<br />
Fig. 4.1: His<strong>to</strong>rical annual indigenous (IND) gas production<br />
and GB imports<br />
Supplies (kTOE/year)<br />
5,000<br />
4,500<br />
4,000<br />
3,500<br />
3,000<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
0<br />
1990<br />
1992<br />
1994<br />
Sources of ROI gas supplies<br />
1996<br />
1998<br />
<strong>20</strong>00<br />
<strong>20</strong>02<br />
<strong>20</strong>04<br />
<strong>20</strong>06<br />
<strong>20</strong>08<br />
The peak-day and annual entry supplies through Moffat<br />
and Inch are shown in Table 4.1. It can be seen that gas<br />
supplies through the Inch entry point made a bigger<br />
contribution <strong>to</strong> the peak-day demand compared <strong>to</strong><br />
annual demand (supplying 13.8% of the ROI peak-day in<br />
<strong>20</strong>09/10 compared <strong>to</strong> 7.0% of annual demand), due <strong>to</strong> the<br />
operation of Kinsale s<strong>to</strong>rage.<br />
IND<br />
GB<br />
Table 4.1: His<strong>to</strong>rical peak-day and annual supplies through Moffat and Inch<br />
<strong>20</strong>02/03 <strong>20</strong>03/04 <strong>20</strong>04/05 <strong>20</strong>05/06 <strong>20</strong>06/07 <strong>20</strong>07/08 <strong>20</strong>08/09 <strong>20</strong>09/10<br />
(GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh)<br />
Peak-day<br />
Moffat 2 190.2 169.5 175.8 197.7 234.5 245.6 251.4 292.5<br />
Inch 41.1 60.9 46.8 40.6 43.6 40.0 35.6 34.8<br />
Total 231.2 230.4 222.6 238.3 278.1 285.6 287.0 327.3<br />
Annual<br />
Moffat 2 53,221 51,982 56,890 64,023 69,236 72,645 70,446 73,843<br />
Inch 6,637 9,705 6,397 5,451 4,976 4,772 4,259 4,128<br />
Total 59,858 61,687 63,287 69,474 74,212 77,417 74,705 77,971<br />
1<br />
Daily supply data taken from Gas Transportation Management System (GTMS)<br />
2<br />
Table shows <strong>to</strong>tal Moffat supplies including supplies <strong>to</strong> ROI, NI and IOM<br />
18
NETWORK DEVELOPMENT STATEMENT<br />
4.2 Future gas supply outlook<br />
4.2.1 General overview<br />
In the short-term the majority of the ROI gas demand will<br />
continue <strong>to</strong> be met from GB imports through the Moffat<br />
entry point. It is likely <strong>to</strong> change significantly from <strong>20</strong>13/14<br />
onwards, with a number of new gas supply projects at<br />
various stages of completion:<br />
• The Corrib gas field off the Mayo coast is expected <strong>to</strong><br />
commence commercial production in late summer <strong>20</strong>13.<br />
• Shannon LNG has received all the relevant permits and<br />
licences required <strong>to</strong> develop a LNG terminal on the river<br />
Shannon, near Ballylongford in Co. Kerry.<br />
• Islandmagee S<strong>to</strong>rage and North East S<strong>to</strong>rage are<br />
separately looking in<strong>to</strong> the commercial feasibility of<br />
developing salt-cavity s<strong>to</strong>rage near Larne in NI.<br />
• PSE Kinsale Energy are investigating the commercial<br />
feasibility of developing further gas assets in the<br />
Celtic Sea.<br />
4.2.2 Corrib Gas<br />
The Corrib gas field, located 83 km off the coast of Mayo,<br />
will be the main source of future indigenously produced<br />
gas. The project’s final stage, involves the construction of a<br />
9 km pipeline between land-fall at Glenagad and the gas<br />
processing terminal at Bellanaboy.<br />
The Corrib developers have recently received the final<br />
planning consents and permits from An Bord Pleanala, the<br />
DCENR and the Department of the Environment, allowing<br />
the developers <strong>to</strong> proceed with the construction of the<br />
final stage of the onshore pipeline.<br />
This pipeline will be routed through Sruwaddacon Bay,<br />
and will involve building a tunnel under the bay <strong>to</strong> lay<br />
the pipeline in. Based on the current construction and<br />
commissioning schedule, the Corrib field opera<strong>to</strong>rs have<br />
indicated that the first commercial production of Corrib gas<br />
will take place in July/August <strong>20</strong>13.<br />
Fig. 4.2: Glengad (Landfall) <strong>to</strong> Bellanaboy Terminal<br />
Pipeline Route<br />
Source: Shell E&P Ireland Ltd<br />
For planning purposes the NDS forecast assumes first<br />
commercial production from Oc<strong>to</strong>ber <strong>20</strong>13. The impact<br />
of a 1 year delay is also assessed, in the event of the<br />
construction period for the 9 km pipeline between<br />
Glengad and Bellanaboy taking longer than assumed.<br />
4.2.3 Shannon LNG<br />
Shannon LNG has received planning permission for both its<br />
proposed LNG terminal near Ballylongford in Co. Kerry, and<br />
for the associated transmission pipeline that will deliver<br />
the gas in<strong>to</strong> the ROI transmission system. Shannon LNG has<br />
indicated that the terminal will be developed on a phased<br />
basis:<br />
• Phase I will involve the construction of LNG s<strong>to</strong>rage<br />
tanks, and re-gasification facilities with a maximum<br />
export capacity of up <strong>to</strong> 127.0 GWh/d (<strong>11</strong>.3 mscm/d).<br />
• The LNG terminal has been designed <strong>to</strong> accommodate<br />
two additional expansion phases at a later date. The<br />
maximum send out for the two subsequent phases are<br />
noted as 191.1 GWh/d (17.0 mscm/d) and 314.7 GWh/d<br />
(28.3 mscm/d).<br />
19
4. Gas Supply Outlook continued<br />
Shannon LNG received a TPA exemption from the CER<br />
in November <strong><strong>20</strong>10</strong>. However this exemption was made<br />
subject <strong>to</strong> a formal market test regarding Phase III capacity<br />
at the proposed terminal. This market test is being currently<br />
progressed by Shannon LNG, with the results expected in<br />
mid <strong>20</strong><strong>11</strong>.<br />
Fig. 4.3: Corrib Gas Field, Pipeline and Terminal<br />
Shannon LNG have recently indicated they cannot provide a<br />
likely start date for commercial operation of the LNG facility.<br />
However, at the time of modelling for the NDS, in Q4 <strong><strong>20</strong>10</strong>,<br />
Shannon LNG facility was assumed <strong>to</strong> commence commercial<br />
operation from <strong>20</strong>16/17, based on consultation with the<br />
developer. This is reflected in the network modelling, detailed in<br />
chapter 6.<br />
4.2.4 Larne S<strong>to</strong>rage<br />
There are currently two separate salt-cavity gas s<strong>to</strong>rage projects<br />
being proposed for the Larne area in NI, by Islandmagee<br />
S<strong>to</strong>rage and North East S<strong>to</strong>rage respectively. Both projects<br />
are looking in<strong>to</strong> the commercial feasibility of developing gas<br />
s<strong>to</strong>rage in the salt-layers that run underneath the Larne area:<br />
• Islandmagee S<strong>to</strong>rage is a consortium of Infastrata plc and<br />
Mutual Energy Ltd, and is looking <strong>to</strong> develop a 5,514 GWh<br />
(500 mscm) salt-cavity gas s<strong>to</strong>rage facility underneath Larne<br />
Lough, with a maximum withdrawal rate of 243 GWh/d<br />
(22.0 mscm/d) and injection rate of 132 GWh/d (12.0<br />
mscm/d).<br />
• North East S<strong>to</strong>rage is a consortium of Bord Gáis Energy and<br />
S<strong>to</strong>rengy (a GDF-Suez company), is looking <strong>to</strong> develop a<br />
3,308 GWh (300 mscm) s<strong>to</strong>rage facility near Larne, with<br />
maximum withdrawal and injection rates of 165-221<br />
GWh/d (15-<strong>20</strong> mscm/d) and 66-88 GWh/d (6-8 mscm/d)<br />
Source: Shell E&P Ireland Ltd<br />
Fig. 4.4: An LNG tanker transporting LNG <strong>to</strong> an LNG<br />
regasification terminal<br />
Source: Shannon LNG<br />
respectively. North East S<strong>to</strong>rage completed seismic testing in early <strong><strong>20</strong>10</strong>,<br />
and will undertake a test drill in early <strong>20</strong><strong>11</strong>, with the results<br />
expected in the 3rd quarter of <strong>20</strong><strong>11</strong>. Pending the outcome of<br />
the test drill results, the s<strong>to</strong>rage developers have indicated a<br />
planning submission will be made in <strong>20</strong>12. North East S<strong>to</strong>rage<br />
has indicated <strong>20</strong>16/17 as a likely start date for commercial<br />
operation.<br />
<strong>20</strong>
NETWORK DEVELOPMENT STATEMENT<br />
Islandmagee completed seismic testing in late <strong>20</strong>07, and<br />
subsequently submitted a full planning application <strong>to</strong> the NI<br />
authorities in March <strong><strong>20</strong>10</strong>. The Islandmagee s<strong>to</strong>rage developers<br />
have indicated <strong>20</strong>15/16 as a possible start date for commercial<br />
operation.<br />
Fig. 4.5: Inch Terminal, East Cork<br />
For the purpose of the NDS, a generic salt cavity s<strong>to</strong>rage facility<br />
in the Larne area has been modelled based on the flow and<br />
volume parameters associated with the proposed Islandmagee<br />
facility. This assumption reflects no bias <strong>to</strong> either of the two<br />
projects, and is been utilised for modelling purposes, as it<br />
represents the larger of the two projects, therefore constitutes<br />
the greater stress on the transmission systems in Ireland and<br />
Northern Ireland.<br />
4.2.5 Celtic Sea gas s<strong>to</strong>rage<br />
The existing Kinsale s<strong>to</strong>rage facility is Ireland’s first and only<br />
offshore gas s<strong>to</strong>rage facility, which was developed and is<br />
operated by PSE Kinsale Energy. It currently has a working<br />
volume of c. 230 mscm, with a maximum withdrawal and<br />
injection rate of 2.6 mscm/d and 1.7 mscm/d respectively. This<br />
s<strong>to</strong>rage facility connects <strong>to</strong> the BGÉ transmission system at Inch.<br />
PSE Kinsale Energy is investigating the commercial feasibility of<br />
expanding its s<strong>to</strong>rage capacity by both increasing the s<strong>to</strong>rage<br />
capacity of the Southwest Kinsale facility. The new expanded<br />
s<strong>to</strong>rage facility would result in a <strong>to</strong>tal working volume of 400<br />
mscm <strong>to</strong> 900 mscm, with a withdrawal and injection rate<br />
ranging from 5 mscm/d <strong>to</strong> 12 mscm/d and 4 mscm/d <strong>to</strong> 8<br />
mscm/d respectively.<br />
Kinsale Energy has indicated, as Celtic Sea gas production is<br />
gradually declining, the existing s<strong>to</strong>rage operations will not<br />
be economic on a standalone basis. In the event of no further<br />
development, it is possible that existing s<strong>to</strong>rage operations<br />
may cease in the next 2 <strong>to</strong> 3 years, followed by a cessation of<br />
operations about two years thereafter.<br />
Source: PSE Kinsale Energy<br />
4.2.6 Other Supply <strong>Development</strong>s<br />
San Leon Energy has a number of exploration operations off<br />
the West coast of Ireland, located in the Porcupine, Rockall and<br />
Slyne basins on the Atlantic margin. They recently expanded<br />
their operations in<strong>to</strong> the Celtic Sea, through the acquisition of<br />
Island Oil and Gas during <strong><strong>20</strong>10</strong>.<br />
Providence resources are currently investigating the<br />
development of a gas s<strong>to</strong>rage facility, Ulysses, in the Kish<br />
Bank Basin offshore from Dublin in the Celtic Sea. Providence<br />
Resources recently announced, results from initial concept<br />
studies indicating the project is both economically and<br />
technically feasible, and are currently progressing further<br />
studies.<br />
There is currently no firm data regarding these projects,<br />
therefore, they have been omitted in the NDS forecast. This<br />
situation will continue <strong>to</strong> be kept under review for future NDS<br />
publications.<br />
21
5. The ROI Transmission System<br />
5.1 Overview of the existing ROI gas network<br />
The ROI gas network consists of approximately<br />
12,923kms of high-pressure steel transmission pipeline<br />
and lower pressure polyethylene distribution pipelines,<br />
Above Ground Installations (AGIs), District Regulating<br />
Installations (DRIs) and compressor stations in the ROI<br />
and Scotland. The integrated supply system is sub-divided<br />
in<strong>to</strong> 2,147kms of high pressure sub-sea & cross country<br />
transmission pipes and approximately 10,776kms of lower<br />
pressure distribution pipes. The distribution network<br />
operates in two tiers; a medium pressure and a low<br />
pressure network. The high-level system statistics are<br />
summarised in Tables 5.1 and 5.2 and shown in Figure 5.1.<br />
The ROI transmission system includes the IC system and<br />
the onshore ROI system. The IC system includes two<br />
subsea Interconnec<strong>to</strong>rs <strong>to</strong> Scotland; two compressor<br />
stations at Beat<strong>to</strong>ck and Brighouse Bay, and the <strong>11</strong>0-km<br />
of onshore pipeline between Brighouse and Moffat in<br />
Scotland.<br />
The IC system connects the onshore ROI system <strong>to</strong> the<br />
GB National Transmission System (NTS) at Moffat in<br />
Scotland. It also supplies gas <strong>to</strong> the NI market from<br />
Twynholm and <strong>to</strong> the IOM market from IC2. The IC<br />
system is also used <strong>to</strong> provide a gas inven<strong>to</strong>ry service<br />
<strong>to</strong> ROI shippers (see Fig. 5.1)<br />
The onshore ROI system consists of a ring-main<br />
system between Dublin, Galway and Limerick, with<br />
cross-country pipelines running from the ring-main<br />
system <strong>to</strong> Cork, Limerick, Waterford, Dundalk and the<br />
Corrib Bellanaboy terminal in Mayo. It also includes a<br />
compressor station at Midle<strong>to</strong>n.<br />
Table 5.1: ROI Pipeline summary statistics<br />
Location Current Max<br />
MOP* Total Nominal Pipe<br />
Pressure Length Diameter<br />
(bar-g) (km) (mm)<br />
Onshore ROI 85.0 160.9 650<br />
Onshore ROI 1 75.0 60.1 450<br />
Onshore ROI 70.0 1,132.9 900<br />
Onshore ROI 40.0 91.6 500<br />
Onshore ROI 2 37.5 14.6 600<br />
Onshore ROI 3 19.0 152.0 600<br />
Onshore ROI 7.0/4.0 15.8 600<br />
Sub<strong>to</strong>tal N/A 1,627.9 N/A<br />
Scotland 85.0 109.9 900<br />
Subsea 148.0 409.0 750<br />
Total Tx N/A 2,146.8 N/A<br />
Onshore Ireland Dx >100mBar 6,395.4 315<br />
Onshore Ireland Dx
NETWORK DEVELOPMENT STATEMENT<br />
Fig. 5.1: Overview of the ROI transmission system<br />
Corrib<br />
Gas Field<br />
Derry City<br />
Pwr Station<br />
Coleraine<br />
Ballymone<br />
Limavady<br />
Ballymena<br />
Antrim<br />
Lurgan<br />
Craigavon<br />
Portadown<br />
Armagh<br />
Banbridge<br />
Scotland<br />
Twynholm AGI<br />
Ballina<br />
Newry<br />
Castlebar<br />
Crossmolina<br />
Knock<br />
Lough Egish<br />
Carrickmacross<br />
Dundalk<br />
Isle of Man<br />
Bailieborough Kingscourt<br />
Westport<br />
Ballyhaunis<br />
Virginia<br />
Ballinrobe Claremorris<br />
Kells Navan Drogheda<br />
Trim<br />
Headford<br />
Mullingar<br />
Tuam<br />
Gormans<strong>to</strong>n<br />
Athlone<br />
Athenry<br />
Loughshinny<br />
Enfield<br />
Abbots<strong>to</strong>wn<br />
Kilcock Dublin<br />
Galway<br />
Ballinasloe Prosperous<br />
Tullamore<br />
Naas<br />
5 Pwr Stations<br />
Tynagh Portarling<strong>to</strong>n Kildare Brownsbarn<br />
Craughwell Pwr Station<br />
Monasterevin<br />
Bray<br />
Loughrea<br />
Gort<br />
Portlaoise<br />
Kilcullen<br />
Wicklow<br />
Ennis Sixmilebridge<br />
Athy<br />
Ballina Ballyragget<br />
Carlow<br />
Shannon<br />
Arklow<br />
Limerick<br />
Tarbert<br />
Cashel<br />
Askea<strong>to</strong>n<br />
Tipperary <strong>to</strong>wn<br />
Aughinish<br />
Kilkenny<br />
Existing Pipelines<br />
Pwr Station<br />
Cahir<br />
Planned Pipelines<br />
Charleville<br />
Carrick-on-Suir<br />
Mitchels<strong>to</strong>wn<br />
Waterford<br />
Mallow<br />
Ardfinnan<br />
Proposed Pipelines<br />
Great Island<br />
Fermoy<br />
Tramore<br />
Innishannon Cork<br />
Pipelines Owned by Others<br />
Midle<strong>to</strong>n Compressor<br />
Bandon<br />
Ballineen<br />
2 Pwr Stations<br />
City<br />
Kinsale<br />
Lehenaghmore<br />
Inch Entry Point<br />
Town<br />
Kinsale Head Gas Field<br />
Seven Heads Gas Field<br />
Belfast<br />
S.N.I.P.<br />
Interconnec<strong>to</strong>r 2<br />
Interconnec<strong>to</strong>r 1<br />
Town (proposed)<br />
Entry Points<br />
City Gate Entry Points<br />
Landfall Station<br />
Power Station<br />
Moffat<br />
Entry Point<br />
Beat<strong>to</strong>ck Compressor<br />
Brighouse<br />
Bay<br />
Compressor<br />
Pwr Station<br />
23
5. The ROI Transmission System continued<br />
5.2 New connections and New Towns<br />
Various projects were completed during the course of <strong>20</strong>09/10,<br />
which will facilitate the connection of various large I/C sites and<br />
new <strong>to</strong>wns <strong>to</strong> the gas transmission and distribution systems.<br />
The list of projects completed during <strong>20</strong>09/10 includes:<br />
• The connection of the following <strong>to</strong>wns from the New Towns<br />
Review (Phase II): Gort and Loughrea.<br />
• Planning and front-end engineering works commenced<br />
on the proposed Endesa gas-fired station at Great Island<br />
with construction planned <strong>to</strong> commence during the first<br />
half of <strong>20</strong>12.<br />
A number of new connections and new <strong>to</strong>wn projects are<br />
planned for <strong><strong>20</strong>10</strong>/<strong>11</strong> gas year, including:<br />
• The connection of the following <strong>to</strong>wn from the New Towns<br />
Review (Phase II): Cahir.<br />
• The following <strong>to</strong>wns will be connected under the New<br />
Towns Review (Phase III): Kinsale, Innishannon and Macroom<br />
(Brinny AGI), Kells (Burrencarragh AGI), Tipperary Town<br />
(Raheen AGI).<br />
5.3 System Reinforcement<br />
It is necessary from time <strong>to</strong> time <strong>to</strong> reinforce the existing gas<br />
transmission <strong>to</strong> facilitate local development etc. Reinforcement<br />
projects that were either completed during <strong>20</strong>09/10 (or are in<br />
the final phases of commissioning) include:<br />
• Completion of the new 24” Curraleigh West <strong>to</strong> Midle<strong>to</strong>n<br />
pipeline and the associated Midle<strong>to</strong>n <strong>to</strong> Lochcarrig Lodge<br />
pipeline, these pipelines were commissioned during latter<br />
end of <strong><strong>20</strong>10</strong>.<br />
• Substantial completion of capacity upgrades <strong>to</strong> Glebe West<br />
AGI (Blessing<strong>to</strong>n), Loughboy AGI (Kilkenny), Nessans Road<br />
AGI (Limerick) and Ballinacurra Bridge AGI (Limerick).<br />
• Volume control was installed in Midle<strong>to</strong>n compressor station<br />
<strong>to</strong> increase the operating envelope of the turbo compressor<br />
units <strong>to</strong> accommodate the recent pipeline reconfiguration in<br />
the Cork area.<br />
• A bypass system was installed in Brighouse Bay compressor<br />
station connecting the Onshore IC1 system <strong>to</strong> subsea IC2<br />
<strong>to</strong> allow a complete bypass of Brighouse Bay compressor<br />
station.<br />
The twinning of the Curraleigh West <strong>to</strong> Midle<strong>to</strong>n Pipeline and<br />
the construction of the associated Lochcarrig Lodge <strong>to</strong> Midle<strong>to</strong>n<br />
Pipeline has transferred the Cork area transmission system <strong>to</strong><br />
the discharge side of Midle<strong>to</strong>n compressor station. This has<br />
brought significant benefits in terms of enhanced pressures <strong>to</strong><br />
the cus<strong>to</strong>mers connected <strong>to</strong> the system.<br />
24
NETWORK DEVELOPMENT STATEMENT<br />
The old Aghada power station and the Whitegate and Long<br />
Point AGIs remain connected <strong>to</strong> the transmission system<br />
between Midle<strong>to</strong>n compressor station and the Inch Entry Point.<br />
Any Inch gas in excess of these demands will be compressed at<br />
Midle<strong>to</strong>n in<strong>to</strong> the 70-bar system in the Cork area.<br />
Fig. 5.2: River Suir Estuary crossing & Waterford/<br />
Rosslare railway line<br />
The upgrades <strong>to</strong> Hollybrook AGI and Loughshinny AGI are<br />
scheduled <strong>to</strong> be completed in <strong>20</strong><strong>11</strong>. Further capacity upgrades<br />
have been identified and are scheduled <strong>to</strong> commence detailed<br />
design in early <strong>20</strong><strong>11</strong>.<br />
A volume control system is <strong>to</strong> be installed in Beat<strong>to</strong>ck<br />
compressor station in <strong>20</strong><strong>11</strong> in anticipation of Corrib flows and<br />
higher suction pressures from National Grid.<br />
<strong>11</strong>kms of reinforcement <strong>to</strong> the distribution network was<br />
carried out during <strong><strong>20</strong>10</strong>. One of the more significant projects<br />
completed last year was the trenchless crossing of the River<br />
Suir Estuary and the Waterford / Rosslare railway. The crossing<br />
was just under 0.6 km in length and the pipeline was laid<br />
approximately 45 metres below the river. The polythleyne (PE)<br />
pipe was constructed of SDR 9 material with a wall thickness<br />
of 38 mm and the pipeline operates at a design pressure of 4<br />
bar. The pipeline was required <strong>to</strong> reinforce the network on the<br />
northside of Waterford City and parts of south Kilkenny.<br />
The pipeline had been the subject of detailed design and<br />
engineering analysis which commenced in July <strong>20</strong>08 and<br />
identified the most advantageous option of crossing the<br />
River Suir east of Rice Bridge in the city. A number of other<br />
construction techniques were investigated, from micro<br />
tunnelling, thrust boring, and open cut techniques.<br />
25
5. The ROI Transmission System continued<br />
The selection criteria for the crossing included but was not<br />
limited <strong>to</strong> the following:<br />
• Health and safety.<br />
• Proximity <strong>to</strong> centres of population and future developments.<br />
• Environmental issues minimising impacts on wildlife, habitats<br />
and environmentally designated areas such as:<br />
- Special Areas of Conservation (SAC).<br />
- Special Protection Areas (SPA).<br />
- Natural Heritage Areas (NHA).<br />
• Impacts on archaeology and cultural heritage.<br />
• Cost.<br />
• Minimising visual impact.<br />
• Pipeline design and operation.<br />
• Minimising construction impacts.<br />
• Minimising pipeline length.<br />
Fig. 5.3: 250 <strong>to</strong>nne rig <strong>to</strong> drive the drill mo<strong>to</strong>r<br />
Once the drilling was completed the PE pipe was pulled<br />
in<strong>to</strong> position beneath the river bed over a period of 24 / 48<br />
hours. The pipeline then underwent further testing before<br />
commissioning of the pipeline and connecting in<strong>to</strong> the existing<br />
network on the Waterford side of the river. Phase 2 of the<br />
project consisted of laying 2.7 km of 250 mm PE100 SDR17<br />
mains reinforcement from the Horizontal Directional Drill (HDD)<br />
<strong>to</strong> the New Ross Road on the Kilkenny side and from the HDD<br />
<strong>to</strong> the Inner Ring Road on the Waterford City side.<br />
Fig. 5.4: 17 ¼” Pilot, used <strong>to</strong> drill the profile<br />
26
NETWORK DEVELOPMENT STATEMENT<br />
5.4 System Refurbishment<br />
There is a continuous programme <strong>to</strong> review and refurbish the<br />
gas transmission system, <strong>to</strong> ensure that it continues <strong>to</strong> comply<br />
with all of the relevant legislation, technical standards and<br />
Codes of Practice. This refurbishment work is coordinated with<br />
reinforcement work (where possible), <strong>to</strong> minimise overall costs<br />
and <strong>to</strong> limit disturbance <strong>to</strong> local communities.<br />
Increases in population density in the vicinity of transmission<br />
pipelines may require preventative measures <strong>to</strong> be taken such<br />
as the diversion of pipelines, the provision of impact protection<br />
and the installation of “heavy-wall” pipe. The following<br />
refurbishment and diversion projects were undertaken during<br />
<strong>20</strong>09/10:<br />
• The Dublin-4 pipeline replacement project is progressing<br />
well – the project is a 2 year build and is expected <strong>to</strong> be<br />
completed in <strong><strong>20</strong>10</strong>/<strong>11</strong>.<br />
• A remotely actuated emergency bypass was installed around<br />
Midle<strong>to</strong>n compressor station for the purposes of supplying<br />
the 30 barg Cork network in the event of a failure of the<br />
MCS Pressure Reduction System.<br />
• Completion of Kilshane block valve refurbishment.<br />
The following transmission system refurbishment and diversion<br />
projects are planned for the <strong><strong>20</strong>10</strong>/<strong>11</strong> gas year:<br />
• Detailed integrity and capacity assessments have been<br />
carried out on the Limerick 19 barg network which has<br />
identified the need <strong>to</strong> refurbish and reinforce the network.<br />
Preliminary engineering is progressing with a view <strong>to</strong><br />
construction commencing next year.<br />
• Santry <strong>to</strong> Eastwall pipeline replacement project; Optimal<br />
solution for the refurbishment of the 6.5kms Santry –<br />
Eastwall pipeline is being progressed.<br />
• Waterford pipeline replacement project; Optimal solution for<br />
the refurbishment of the 4.5kms Waterford City pipeline is<br />
being progressed.<br />
• 4 diversions are required <strong>to</strong> facilitate the M<strong>20</strong> Cork <strong>to</strong><br />
Limerick mo<strong>to</strong>rway. The 1st of these diversions, on the 6”<br />
pipeline near Mallow Hospital is due <strong>to</strong> be carried out this<br />
year with the remaining 3 diversions <strong>to</strong> follow.<br />
27
6. <strong>Network</strong> Analysis<br />
Fig. 6.1: Total system demand peak day forecasts<br />
Peak Day 1-in-50 Forecast Comparison<br />
300<br />
290<br />
280<br />
270<br />
260<br />
250<br />
240<br />
230<br />
2<strong>20</strong><br />
210<br />
<strong>20</strong>0<br />
<strong><strong>20</strong>10</strong>/<strong>11</strong><br />
<strong>20</strong><strong>11</strong>/12<br />
<strong>20</strong>12/13<br />
<strong>20</strong>13/14<br />
<strong>20</strong>14/15<br />
<strong>20</strong>15/16<br />
<strong>20</strong>16/17<br />
<strong>20</strong>17/18<br />
<strong>20</strong>18/19<br />
<strong><strong>20</strong>19</strong>/<strong>20</strong><br />
NDS <strong><strong>20</strong>10</strong>/<strong>11</strong> JGCS <strong><strong>20</strong>10</strong> TDS <strong>20</strong>09/10<br />
6.1 Overview of <strong>Network</strong> Analysis<br />
<strong>Network</strong> analysis is undertaken <strong>to</strong> determine the<br />
adequacy of the existing gas network <strong>to</strong> transport the<br />
required levels of gas for a forecast period of ten years,<br />
under a number of supply scenarios. Three demand type<br />
days are analysed for each supply scenario over a ten year<br />
period, from <strong><strong>20</strong>10</strong>/<strong>11</strong> <strong>to</strong> <strong><strong>20</strong>19</strong>/<strong>20</strong> inclusive, <strong>to</strong> assess the<br />
system on days of different demand profile:<br />
• Severe 1-in-50 winter peak.<br />
• Average year winter peak.<br />
• Average year summer minimum.<br />
Fig. 6.1 illustrates the strong correlation between<br />
1-in-50 peak day demand forecasts generated for this<br />
publication, the <strong>20</strong>09/10 TDS and the <strong><strong>20</strong>10</strong> Joint Gas<br />
Capacity <strong>Statement</strong>. The assumptions surrounding the<br />
future gas supply projects on the Island remain relatively<br />
unchanged from last year. On this basis, the results and<br />
conclusions detailed in this chapter, are representative of<br />
the results and conclusions from the analysis completed<br />
for last year’s TDS and the <strong><strong>20</strong>10</strong> Joint Gas Capacity<br />
<strong>Statement</strong>.<br />
These demand days, which are generated from the<br />
gas demand forecast, investigate the capability of the<br />
existing infrastructure <strong>to</strong> cater for the various supply/<br />
demand scenarios, including injection and withdrawal<br />
<strong>to</strong>/from s<strong>to</strong>rage.<br />
28
NETWORK DEVELOPMENT STATEMENT<br />
Table 5.1: Entry point assumptions<br />
Unit Moffat Inch Corrib Shannon Larne<br />
Pressure<br />
Contractual barg 42.5 30.0 up <strong>to</strong> 85.0 N/A N/A<br />
Assumed barg 47.0 30.0 up <strong>to</strong> 85.0 up <strong>to</strong> MOP up <strong>to</strong> 85.0<br />
Other<br />
GCV MJ/scm 39.7 37.6 37.5 40.5 39.7<br />
Flow profile Flat Flat Flat Flat Flat<br />
6.2 The <strong>Network</strong> Model<br />
<strong>Network</strong> analysis involves constructing a single hydraulic<br />
model of the ROI and NI and SWSOS transmission systems<br />
in Pipeline Studio ® software. This software is configured<br />
<strong>to</strong> analyse the transient 24 hour demand cycle over a<br />
minimum period of 3 days <strong>to</strong> obtain consistent steady<br />
results, for each of the ten years, under a number of<br />
supply scenarios. The results from the network modelling<br />
are validated against a series of boundary conditions,<br />
establishing if there are locations on the network with<br />
insufficient capacity <strong>to</strong> transport the necessary gas. The<br />
boundary conditions are defined as follows:<br />
• Maintaining the specified minimum and maximum<br />
operating pressures at key points on the transmission<br />
systems, including:<br />
- Minimum of 55 barg at the Dublin city gates.<br />
- Minimum of 56 barg at the inlet <strong>to</strong> Twynholm.<br />
- Not <strong>to</strong> exceed the Maximum Operating Pressure<br />
(MOP) of the onshore transmission systems, currently<br />
70 barg in Ireland and 75 barg in NI.<br />
• Ensuring gas velocities do not exceed their design limit<br />
of 10 – 12 m/s.<br />
• Operating the compressor stations within their<br />
performance envelopes.<br />
6.3 Entry Point Assumptions<br />
The main assumptions regarding the entry (supply) points<br />
included in the network modelling are summarised in the<br />
above table;<br />
As per the existing Pressure Maintenance Agreement<br />
(PMA), National Grid is required <strong>to</strong> provide gas at a<br />
minimum pressure of 42.5 barg at Moffat. They have also<br />
advised a higher Anticipated Normal Off-take Pressure<br />
(ANOP) pressure for Moffat of 47 barg (i.e. the expected<br />
pressure under normal circumstances). The ANOP pressure<br />
has been used in the network modelling for the 1-in-50<br />
peak day analysis.<br />
A minimum pressure of 30 barg is provided at Inch, and<br />
the Corrib Opera<strong>to</strong>r is required <strong>to</strong> provide up <strong>to</strong> 85 barg<br />
at Bellanaboy. No contractual arrangements have been<br />
discussed with Shannon LNG, but it is assumed that they<br />
will be able <strong>to</strong> deliver up <strong>to</strong> the Maximum Operating<br />
Pressure (MOP) of the ring-main.<br />
Similarly no contractual arrangements have been agreed<br />
with either of the proposed Larne gas s<strong>to</strong>rage projects;<br />
however, it is assumed that they will be able <strong>to</strong> deliver gas<br />
at 85 barg. This higher pressure is considered necessary <strong>to</strong><br />
make these s<strong>to</strong>rage projects viable. It also assumes that<br />
the MOP of the NI transmission system can be raised from<br />
75 <strong>to</strong> 85 barg.<br />
29
6. <strong>Network</strong> Analysis continued<br />
6.3.1 Future review of Moffat entry point assumptions<br />
To date a 1-in-50 peak day peak day source pressure of 47.0<br />
barg has been assumed for network modelling purposes. This<br />
assumption was validated by actual pressures on the peak days<br />
that occurred in early January <strong><strong>20</strong>10</strong>, when hourly pressures at<br />
Moffat ranged between 50.0 and 56.7 barg, averaging at 54.4<br />
barg for the day. However, during the peak demand period<br />
in December <strong><strong>20</strong>10</strong> lower daily average pressures approaching<br />
47.0 barg were observed on occasion.<br />
<strong>Gaslink</strong> are currently engaging with National Grid regarding<br />
the contractual and ANOP pressures at Moffat. Subject <strong>to</strong><br />
the outcome of these discussions, certain future network<br />
modelling scenarios may adopt the contractual minimum<br />
pressure at Moffat of 42.5 barg.<br />
Also, the assumption recording the flat flow profile at Moffat<br />
maybe revised <strong>to</strong> reflect the actual flow profiles that occurred<br />
on the record peak days during the severe weather periods in<br />
<strong><strong>20</strong>10</strong>. Adopting actual peak day flow profiles in the network<br />
modelling will better identify any reinforcement requirement <strong>to</strong><br />
the SWSOS.<br />
6.4 System Configuration<br />
Under the current configuration, the Irish and Northern Ireland<br />
transmission systems are physically separated at Gormans<strong>to</strong>n,<br />
and operate as two separate markets.<br />
For certain years included in the analysis, due <strong>to</strong> the availability<br />
of multiple supply sources on the Island, there is a requirement<br />
<strong>to</strong> transfer surplus gas between the two jurisdictions. For these<br />
relevant years, it is assumed the necessary infrastructural,<br />
operational, commercial and market arrangements are in place,<br />
under the CAG (Common Arrangements for Gas) project, <strong>to</strong><br />
facilitate the option of inter-jurisdictional flows between the<br />
North and South.<br />
6.5 Summary of Modelling Results<br />
6.5.1 Overall Results<br />
The network analysis results indicate that there is sufficient<br />
capacity available on the existing onshore ROI transmission<br />
system <strong>to</strong> transport the necessary gas <strong>to</strong> meet the required<br />
forecast peak-day demand over the forecast period; however,<br />
this conclusion is subject <strong>to</strong> a number of restrictions depending<br />
on timing of the new gas supply sources and the balance of<br />
supply between these various new supply sources. Should<br />
these restrictions be considered unacceptable, then system<br />
reinforcement would be required.<br />
There are a number of scenarios where the existing network<br />
cannot simultaneously accommodate the proposed maximum<br />
flows from all of the assumed supply sources for a number of<br />
reasons;<br />
• The combined maximum flow from all of the proposed new<br />
supply sources on the Island exceeds the forecast peak day<br />
demand of the ROI and NI markets, i.e. there is insufficient<br />
demand <strong>to</strong> absorb the <strong>to</strong>tal supply.<br />
• There are a number of physical constraints regarding the<br />
transportation of large volumes of gas from the west coast<br />
(Corrib and Shannon LNG) and/or the south coast (Inch),<br />
<strong>to</strong> the majority of the demand on the east coast, while<br />
maintaining system pressure requirements.<br />
Gas supplies entering the ROI ring-main in the west and south<br />
are restricted <strong>to</strong> the system’s maximum operating pressure of 70<br />
barg, while a minimum pressure of 55 barg is required at Dublin<br />
city gates. Increasing the flow of gas from the west and/or<br />
south <strong>to</strong> the east, increases the pressure drop across the system,<br />
eventually resulting in maximum and/or minimum pressure<br />
requirements being breached.<br />
• The maximum withdrawal rate of Larne s<strong>to</strong>rage<br />
is potentially limited by the NI peak day demand.<br />
Modifications would be required <strong>to</strong> the existing<br />
transmission system <strong>to</strong> physically export gas <strong>to</strong> the ROI.<br />
30
NETWORK DEVELOPMENT STATEMENT<br />
Fig. 6.2: Corrib Sensitivity - 1 year delay and no Inch supply after <strong>20</strong>12/13<br />
Demand/Supply (GWh/d)<br />
500<br />
450<br />
400<br />
350<br />
300<br />
250<br />
<strong>20</strong>0<br />
150<br />
100<br />
50<br />
0<br />
Peak Day 1-in-50 Demand & Supply<br />
<strong><strong>20</strong>10</strong>/<strong>11</strong><br />
<strong>20</strong><strong>11</strong>/12<br />
<strong>20</strong>12/13<br />
<strong>20</strong>13/14<br />
<strong>20</strong>14/15<br />
<strong>20</strong>15/16<br />
<strong>20</strong>16/17<br />
<strong>20</strong>17/18<br />
<strong>20</strong>18/19<br />
<strong><strong>20</strong>19</strong>/<strong>20</strong><br />
Inch Corrib Moffat Peak Demand<br />
Indigenous gas supplies (Corrib and Inch production) are<br />
assumed <strong>to</strong> dispatch ahead of all other supply sources. It should<br />
be noted; this assumption has been applied solely for demand/<br />
supply and network modelling purposes. The actual orders in<br />
which supplies will be dispatched will be determined by shipper<br />
nominations and commercial arrangements between the<br />
shippers and suppliers at the various entry points.<br />
A slightly different approach has been adopted in presenting<br />
the modelling results and conclusions for this year’s NDS. This<br />
year’s statement presents the results by supply source, rather<br />
than the previous format of supply scenario.<br />
6.5.2 Corrib<br />
Corrib supply is assumed <strong>to</strong> be available from <strong>20</strong>13/14,<br />
providing up <strong>to</strong> 103 GWh/d (10 mscm/d) for the first three<br />
years, and then slowly declining from <strong>20</strong>16/17 onwards.<br />
A sensitivity has also been included in the analysis <strong>to</strong> assess<br />
the impact of a 1 year delay <strong>to</strong> the Corrib project, with first<br />
gas assumed in <strong>20</strong>14/15. This sensitivity also excludes Inch<br />
supply, in the event Celtic Sea s<strong>to</strong>rage operations cease (or are<br />
unavailable) during this period.<br />
As illustrated in fig. 6.2, Moffat supply is required <strong>to</strong> meet all of<br />
the forecast peak day demand in <strong>20</strong>13/14, resulting in capacity<br />
limits at Beat<strong>to</strong>ck and Brighouse Bay compressor station being<br />
reached.<br />
It should be noted the capacity of Beat<strong>to</strong>ck compressor<br />
station, 353 GWh/d (32 mscm/d), is based on ANOP of 47<br />
barg (and the station operating in ‘Series’ mode). If a lower<br />
pressure is assumed the capacity of the station reduces, e.g. if<br />
the contractual (PMA) pressure of 42.5 barg is assumed, the<br />
capacity of the station reduces <strong>to</strong> 302 GWh/d (27.4 mscm/d).<br />
The NDS assumes Corrib supply is fully available on the<br />
respective days analysed in the network analysis. However, the<br />
risk of an outage is inherent with any piece of infrastructure.<br />
On this basis, future network analysis may consider a sensitivity<br />
scenario analysing the impact of an outage <strong>to</strong> Corrib supply.<br />
The inclusion of this sensitivity would not suggest or reflect the<br />
likelihood of a supply outage at Corrib.<br />
31
6. <strong>Network</strong> Analysis continued<br />
6.5.3 Inch Supply<br />
Under the existing network configuration the maximum volume<br />
of gas that can be transported from the Inch entry point is<br />
determined by the capacity of Midle<strong>to</strong>n compressor station,<br />
6 mscmd/d, and demand from the Cork area (upstream of<br />
Midle<strong>to</strong>n compressor station).<br />
If gas supply from the Inch entry point was <strong>to</strong> significantly<br />
increase on current levels, due <strong>to</strong> further developments in the<br />
Celtic Sea, there would need <strong>to</strong> be a number of modifications<br />
<strong>to</strong> the existing infrastructure;<br />
• The existing pipeline between Inch and Midle<strong>to</strong>n compressor<br />
station would need <strong>to</strong> be up-rated if supply pressures at Inch<br />
were <strong>to</strong> exceed the current MOP of this pipeline, 37.5 barg.<br />
• Midle<strong>to</strong>n compressor station would need <strong>to</strong> be upgraded<br />
<strong>to</strong> accommodate flows in excess of its current capacity.<br />
Alternatively, if compression is relocated <strong>to</strong> Inch entry point,<br />
there is the possibility of Midle<strong>to</strong>n compressor station being<br />
bypassed.<br />
It must be emphasised, considerable detailed engineering<br />
studies would need <strong>to</strong> be undertaken <strong>to</strong> determine the<br />
feasibility and optimum approach <strong>to</strong> such modifications.<br />
Assuming this work could be completed in the event of<br />
increased Celtic Sea supplies, the volume of gas that can be<br />
transported from Inch then depends primarily on two fac<strong>to</strong>rs;<br />
• Cork area demand.<br />
• The volume of gas that can be exported in<strong>to</strong> the Ring-Main<br />
at Curraleigh West.<br />
6.5.3.1 Cork Area Demand<br />
Cork area gas demand impacts on the volume of gas that can<br />
be transported from Inch. An increase in Cork area demand<br />
allows for an increase in Inch supply.<br />
6.5.3.2 Exports in<strong>to</strong> the Ring-Main at Curraleigh West<br />
Curraleigh West is the point on the network, where the Ring-<br />
Main and Cork spur connect. The volume of Inch gas that can<br />
flow in<strong>to</strong> the Ring-Main at Curraleigh West depends on;<br />
• Pressure at Curraleigh West.<br />
• Level of west coast supplies.<br />
• Ensuring the minimum pressure of 55 barg at Dublin city<br />
gates is not breached.<br />
The volume of Inch gas that can be exported in<strong>to</strong> the Ring-<br />
Main, depends on the pressures at Curraleigh West; higher<br />
pressures (below the MOP) imply higher volumes. Any change<br />
<strong>to</strong> the location of compression between Inch and Curraleigh<br />
West, will impact on pressures at Curraleigh West, and<br />
consequently supply volumes from Inch.<br />
<strong>Network</strong> analysis also highlighted a significant pressure drop in<br />
the 16” pipeline between Curraleigh West and Goatisland. This<br />
section of pipeline is the limiting restriction on the ring-main<br />
with respect <strong>to</strong> its diameter, and is consequently a ‘bottleneck’<br />
for high flows. Twinning this pipeline will remove this<br />
‘bottleneck’ and consequently increase the volume of gas that<br />
can flow west at Curraleigh West. The twinning of this pipeline<br />
also benefits the west <strong>to</strong> east transfer limit (see section 6.5.5.2).<br />
6.5.3.3 Injections <strong>to</strong> Celtic Sea gas s<strong>to</strong>rage<br />
Gas is injected in<strong>to</strong> s<strong>to</strong>rage during the summer months through<br />
Inch, which is effectively acting as an exit point on the network<br />
for this period.<br />
The volume of gas the can be transported <strong>to</strong> Inch for injection<br />
in<strong>to</strong> s<strong>to</strong>rage is potentially restricted by the volume of gas that<br />
can flow south from Curraleigh West less Cork area demand.<br />
Any increase in Cork area demand will reduce the volume of<br />
gas that can be transported <strong>to</strong> Inch for injection in<strong>to</strong> s<strong>to</strong>rage.<br />
32
NETWORK DEVELOPMENT STATEMENT<br />
When Inch is acting as an exit point, pressures at Curraleigh<br />
West are dictated by pressures at Shannon LNG or Corrib, or<br />
in the absence of these supplies, pressures at the ICs landfall in<br />
North Dublin. Higher pressure at Curraleigh West increases the<br />
flow potential <strong>to</strong> the south.<br />
West coast gas supplies supports/increases the volume of gas<br />
that can flow south at Curraleigh West, and consequently the<br />
volume of gas that can be transported <strong>to</strong> Inch for injection in<strong>to</strong><br />
s<strong>to</strong>rage.<br />
<strong>Network</strong> analysis also highlighted significant pressure drops<br />
across the Goatisland <strong>to</strong> Curraleigh West pipeline. Twinning<br />
this pipeline, result in higher pressures at Curraleigh West and<br />
consequently will increase the volumes of gas that can flow<br />
south <strong>to</strong> Inch.<br />
6.5.3.4 Minimum flows through Midle<strong>to</strong>n Compressor Station<br />
The level of Celtic Sea production gas has been declining in<br />
recent years and may fall below the minimum design-flow<br />
criteria of Midle<strong>to</strong>n compressor units in certain scenarios.<br />
<strong>Gaslink</strong> are currently engaging with the Inch opera<strong>to</strong>r regarding<br />
the transportation of smaller volumes of gas, and further<br />
analysis will be required.<br />
It should also be noted, in the event of existing Celtic Sea<br />
assets ceasing operation in the future, PSE Kinsale Energy<br />
and <strong>Gaslink</strong> would need <strong>to</strong> investigate any potential issues<br />
which may arise with the transportation of gas during the<br />
decommissioning phase.<br />
It is envisaged that the Inch connection agreement will be<br />
reviewed and amended as necessary.<br />
6.5.4 Larne Supply<br />
The maximum volume of gas that can be withdrawn from<br />
Larne s<strong>to</strong>rage, is limited by<br />
• NI peak day demand.<br />
• The volume of gas which the existing transmission system<br />
can transport <strong>to</strong> the ROI via the SNP and SNIP pipelines.<br />
It was assumed in the analysis undertaken for Larne that the<br />
existing NI transmission system could be upgraded <strong>to</strong> 85 barg,<br />
and the onshore Scotland system could be configured <strong>to</strong><br />
accommodate reverse flows from SNIP. It must be emphasised,<br />
considerable detailed engineering studies would need <strong>to</strong> be<br />
undertaken <strong>to</strong> determine the feasibility of these assumptions.<br />
Analysis indicates that under certain conditions, it is feasible <strong>to</strong><br />
withdraw up <strong>to</strong> 22 mscm/d from Larne s<strong>to</strong>rage, when NI peak<br />
day demand is approximately 10 mscm/d.<br />
6.5.4.1 Exporting Larne Gas <strong>to</strong> the ROI<br />
The requirement <strong>to</strong> maintain a minimum pressure of 55 barg<br />
at Dublin city gates combined with the demand profiles in NI<br />
and on the SNP will determine the capacity available for gas<br />
<strong>to</strong> flow via the SNP in<strong>to</strong> the Irish market. Analysis indicates<br />
approximately up <strong>to</strong> 4 mscm/d of Larne gas can be exported <strong>to</strong><br />
the ROI via the SNP, under certain conditions.<br />
Depending on the flow requirement, the assumed available<br />
pressure from Moffat and the need <strong>to</strong> maintain a minimum<br />
pressure lift across Beat<strong>to</strong>ck compressor station will determine<br />
the maximum reverse flow capability at Twynholm, whilst<br />
maintaining the minimum inlet pressure of 52 barg at Brighouse<br />
Bay. Analysis indicates up <strong>to</strong> 8.5 mscm/d can be exported <strong>to</strong> the<br />
ROI via the SNIP and subsea ICs, under certain conditions.<br />
33
6. <strong>Network</strong> Analysis continued<br />
6.5.4.2 Injecting gas in<strong>to</strong> Larne S<strong>to</strong>rage<br />
The volume of gas that can be injected in<strong>to</strong> Larne s<strong>to</strong>rage is<br />
restricted by the volume of gas that can be imported via the<br />
SNP and SNIP less NI demand<br />
The volume of gas that can be imported through the SNP<br />
partly depends on the pressure available at the southern end of<br />
the pipeline. Higher pressures imply a higher import capacity.<br />
Pressures can range from 55 barg <strong>to</strong> 85 barg, depending on<br />
supply conditions in the ROI. 85 barg would be available if the<br />
subsea IC system was supplying the gas, however, if there was<br />
no interconnec<strong>to</strong>r supply, supply pressure would be equal <strong>to</strong><br />
Dublin area pressures, which may be 55 barg, depending on<br />
the daily demand profile.<br />
SNIP capacity is restricted <strong>to</strong> the capacity available at Tywnholm.<br />
Under existing contractual arrangements, this capacity is 8.08<br />
mscm/d. Analysis has indicated if this restriction is removed<br />
(with Twynholm modified/bypassed), and depending on onshore<br />
Scotland conditions, flows up <strong>to</strong> <strong>11</strong>.5 mscm/d may be<br />
feasible.<br />
Analysis indicates based on the above, injection rates can vary<br />
between 6.0 mscm/d and 8.5 mscm/d.<br />
6.5.5 Shannon Supply<br />
6.5.5.1 West coast <strong>to</strong> east coast transfer limit<br />
There is a physical limit <strong>to</strong> the quantity of gas that can be<br />
transported from the west <strong>to</strong> the east coast while maintaining<br />
the ring-main’s maximum operating pressure of 70 barg and<br />
the minimum pressure requirement of 55 barg at Dublin city<br />
gates. This implies a restriction on the volume of gas that can<br />
supplied from west coast supply sources.<br />
Previous statements have indicated this restriction is<br />
approximately 210 GWh/d (18.6 mscm/d) assuming no supply<br />
from Inch, reducing <strong>to</strong> 192 GWh/d (17.0 mscm/d) if current<br />
Inch supply levels are included. An increase in Inch supply on<br />
current levels would further reduce this limit.<br />
It should be emphasised that these limits are subject <strong>to</strong> forecast<br />
demands and assumed demand profiles. Also, an increase in<br />
local west coast demand will result in an increase in these limits,<br />
and equally, a decrease in local demand reduces the limit.<br />
6.5.5.2 Shannon LNG development phases<br />
Shannon LNG has indicated the intention <strong>to</strong> develop the LNG<br />
facility on a phased basis. Only phase I with a supply capacity of<br />
<strong>11</strong>.3 mscm/d applies <strong>to</strong> the review period in the NDS, with first<br />
commercial production assumed from <strong>20</strong>16/17.<br />
34
NETWORK DEVELOPMENT STATEMENT<br />
Fig. 6.3: West coast gas supply and west coast transfers limits<br />
West Coast Peak Day gas flows & Transfer Limits<br />
<strong>20</strong>0<br />
150<br />
Supply (GWh/d)<br />
100<br />
50<br />
0<br />
<strong>20</strong>13/14<br />
<strong>20</strong>14/15<br />
<strong>20</strong>15/16<br />
<strong>20</strong>16/17<br />
<strong>20</strong>17/18<br />
<strong>20</strong>18/19<br />
<strong><strong>20</strong>19</strong>/<strong>20</strong><br />
Corrib Shannon Transfer Limit (with Inch Supply) Transfer Limit (no Inch Supply)<br />
Fig. 6.3 illustrates the requirement <strong>to</strong> restrict west coast gas<br />
supplies for years <strong>20</strong>16/17 <strong>to</strong> <strong>20</strong>17/18, with the level of<br />
restriction depending on the level of Inch supply.<br />
The existing network has the ability <strong>to</strong> accommodate the<br />
supply volume associated with phase II, 17.0 mscm/d,<br />
providing its timing coincides with the expiry of Corrib, and<br />
Inch supplies do not exceed current levels.<br />
Even in the absence of Corrib and Inch supply, the existing<br />
network would not be able <strong>to</strong> accommodate the supply volume<br />
of 28.3 mscm/d associated with phase III, without significant<br />
reinforcement.<br />
Preliminary analysis indicates twinning the existing Goatisland <strong>to</strong><br />
Curraleigh West pipeline will increase the west <strong>to</strong> east transfer<br />
limit. In addition <strong>to</strong> this,<br />
up-rating the western section of the ring-main (Pipeline <strong>to</strong> the<br />
West (PTTW)) from 70 barg <strong>to</strong> 85 barg (MOP review required<br />
<strong>to</strong> confirm if this is possible) would further increase the west <strong>to</strong><br />
east coast limit.<br />
6.6 Physical Exports <strong>to</strong> GB<br />
6.6.1 Overview<br />
Depending on the timing of the proposed supply projects<br />
on the Island, the assumed maximum flows from the various<br />
supply sources may exceed the combined demand of the ROI,<br />
NI and IOM, even during severe weather conditions.<br />
If such a scenario arises, the relevant producers and s<strong>to</strong>rage<br />
opera<strong>to</strong>rs may wish <strong>to</strong> physically export the surplus supply from<br />
Ireland <strong>to</strong> GB.<br />
6.6.2 Infrastructural Requirements<br />
In order for gas <strong>to</strong> flow from Ireland in<strong>to</strong> Great Britain, it needs<br />
<strong>to</strong> leave the island. Therefore it first needs <strong>to</strong> get <strong>to</strong> one of<br />
three beach stations, namely, Loughshinny, Gormans<strong>to</strong>n or<br />
Ballylumford (NI). Any additional infrastructure that may be<br />
necessary <strong>to</strong> get the gas <strong>to</strong> the beach is primarily dependant on<br />
the supply location, volume & pressure.<br />
35
6. <strong>Network</strong> Analysis continued<br />
The ability <strong>to</strong> physically export gas from the ROI supply sources<br />
in the west (Corrib and Shannon) and south (Inch) depends on;<br />
• The physical capacity of the ROI transmission system <strong>to</strong><br />
transport the gas <strong>to</strong> Loughshinny and Gormans<strong>to</strong>n on the<br />
east coast.<br />
• Suitable pressures at Loughshinny and Gormans<strong>to</strong>n <strong>to</strong><br />
transport the gas through the sub-sea inter-connec<strong>to</strong>r<br />
system <strong>to</strong> Brighouse Bay in south west Scotland.<br />
This would require significant reinforcement <strong>to</strong> the existing<br />
on-shore ROI transmission system, in order <strong>to</strong> transport<br />
the gas from the west and south coast <strong>to</strong> the east coast. In<br />
addition <strong>to</strong> this, a new compressor station would be required<br />
on the PTTW near Ballough in Co. Dublin, <strong>to</strong> provide the<br />
required pressure for transporting the gas through the subsea<br />
interconnec<strong>to</strong>r system <strong>to</strong> Scotland. Modifications would<br />
also be required at Brighouse Bay and Beat<strong>to</strong>ck compressor<br />
stations in order <strong>to</strong> enable bi-directional flow.<br />
The Larne facilities may have an advantage in so far as they are<br />
relatively close <strong>to</strong> Ballylumford and any associated compression<br />
facilities may be utilised for export through the SNIP. However,<br />
raising the SNIP operating pressure from 75 <strong>to</strong> 85 barg and the<br />
modifications <strong>to</strong> Beat<strong>to</strong>ck compressor station, <strong>to</strong> facilitate bidirectional<br />
flow, would also be required for Larne exports.<br />
In addition <strong>to</strong> the above, National Grid (NG) maybe required<br />
<strong>to</strong> complete modifications at Moffat <strong>to</strong> facilitate bi-directional<br />
flows.<br />
Twinning the Cluden <strong>to</strong> Brighouse Bay pipeline would allow<br />
for significant operational flexibility of the Scottish system,<br />
and consequently enhance the systems ability <strong>to</strong> facilitate the<br />
physical export of gas <strong>to</strong> GB.<br />
It must be emphasised the above conclusions are indicative and<br />
are based on high level conceptual studies. Significant detailed<br />
engineering studies would be required <strong>to</strong> determine the<br />
feasibility and cost associated with such a project.<br />
6.6.3 Gas Quality Issues and National Grid (NG)<br />
requirements<br />
Moffat is currently classified as an exit point on the NG NTS.<br />
In order for Moffat <strong>to</strong> be classified as an Entry point, the<br />
physical connection arrangements and the gas composition<br />
requirements would need <strong>to</strong> be agreed with NG.<br />
The principal difference between Ireland’s transmission system<br />
and the NG transmission system is Ireland’s transmission system<br />
is odourised, whereas NG system is odourless. In GB odour is<br />
added <strong>to</strong> the gas at the point of entry <strong>to</strong> distribution networks<br />
(LDZs).<br />
NG publishes an indicative gas quality specification for entry<br />
points in their annual ten year statement, which refers <strong>to</strong> the<br />
presence of odorant in gas. Any gas exported from Ireland <strong>to</strong><br />
GB, may potentially conflict with this entry point gas quality<br />
requirement.<br />
NG have indicated that the export of odorised gas in the NTS,<br />
would be of material change <strong>to</strong> the indicative gas quality<br />
specification and the Gas Safety Management Regulations<br />
(GSMR) requirements, and would require consultation and<br />
the agreement with the affected users of the NTS. These users<br />
include power generation stations, manufacturing and industrial<br />
consumers and distribution network vendors.<br />
36
NETWORK DEVELOPMENT STATEMENT<br />
An alternative <strong>to</strong> physically exporting odorised gas in<strong>to</strong> the NG<br />
NTS, would be <strong>to</strong> adopt a similar approach <strong>to</strong> NG, by flowing<br />
un-odorised gas in the ROI and NI transmission system, and<br />
odorising the gas at the point of entry <strong>to</strong> the various distribution<br />
networks, i.e. move the odorisation units from the entry points<br />
on the transmission system <strong>to</strong> the relevant city gates and<br />
distribution off-takes.<br />
A second alternative may also be considered as a solution <strong>to</strong><br />
the odorisation issue. Twinning the Cluden <strong>to</strong> Brighouse Bay<br />
pipeline may allow for a limited odourless system <strong>to</strong> operate,<br />
from Moffat <strong>to</strong> Ireland via one or more of the sub-sea pipelines,<br />
while operating an odourised system in parallel. This would<br />
significantly reduce the requirement for odourisation units at<br />
the city gates and distribution off-takes.<br />
More detailed studies would need <strong>to</strong> be carried out by the<br />
system opera<strong>to</strong>rs in ROI, NI and GB <strong>to</strong> establish the feasibility,<br />
impact and costs associated with each of the above options.<br />
6.7 Conclusions<br />
<strong>Network</strong> analysis results indicate that there is sufficient capacity<br />
available on the existing on-shore ROI transmission system <strong>to</strong><br />
transport the necessary gas <strong>to</strong> meet the required forecast peakday<br />
demand over the forecast period.<br />
Equally, network analysis indicated that the local transmission<br />
systems had sufficient capacity <strong>to</strong> meet the forecast peak<br />
day demands. However, the growth levels assumed in the<br />
models for the local transmission systems are uniform with<br />
national growth levels. If localised growth was <strong>to</strong> exceed the<br />
assumed national growth levels, there maybe a requirement<br />
for reinforcement at the relevant location on the transmission<br />
network.<br />
Greater uncertainty surrounds the timing of the various<br />
proposed supply projects and consequently the optimum<br />
reinforcement solution(s) required <strong>to</strong> accommodate their<br />
associated flows.<br />
It should also be emphasised, if there is any significant change<br />
<strong>to</strong> the future supply outlook, resulting in the likelihood of<br />
Moffat being the only source of supply <strong>to</strong> ROI, NI and IOM in<br />
the short <strong>to</strong> medium term, it is likely the SWSOS will require<br />
reinforcement. Based on demand forecasts and the capacity<br />
at Moffat, this reinforcement would need <strong>to</strong> be in place for<br />
<strong>20</strong>13/14.<br />
In addition <strong>to</strong> this, the capacity of Beat<strong>to</strong>ck compressor station<br />
is subject <strong>to</strong> the available pressure at Moffat. The capacity of<br />
353 GWh/d (32.0 mscmd) is based on the ANOP pressure of<br />
47.0 barg. If pressures lower than the ANOP are assumed for<br />
the winter peak day, it is likely the requirement <strong>to</strong> reinforce the<br />
SWSOS will need <strong>to</strong> be accelerated, or other options would<br />
need <strong>to</strong> be investigated.<br />
The requirement <strong>to</strong> reinforce the SWSOS is also sensitive <strong>to</strong> the<br />
assumed flat flow profile at Moffat. If this assumption is revised<br />
<strong>to</strong> reflect the actual stepped/swing flow profile observed at<br />
Moffat, it is likely the requirement <strong>to</strong> reinforce the SWSOS may<br />
need <strong>to</strong> be accelerated.<br />
37
7. <strong>Network</strong>s Asset Management &<br />
<strong>Development</strong><br />
The operation of a gas network is dependent on the<br />
entirety of the asset base of the network performing<br />
<strong>to</strong> required levels from the point of entry on a network<br />
through <strong>to</strong> the point of delivery. In order <strong>to</strong> safely and<br />
efficiently deliver gas <strong>to</strong> cus<strong>to</strong>mers, as well as maintain a<br />
satisfac<strong>to</strong>ry level of system performance, the performance<br />
and care of those assets used in the transportation of<br />
gas is continually reviewed and analysed by the Asset<br />
Management function within BGN.<br />
For ease of management of these assets, Bord Gáis<br />
<strong>Network</strong>s have defined five asset categories:<br />
• Compressor Stations.<br />
• AGIs & DRIs.<br />
• Meters.<br />
• Communications & Instrumentation.<br />
• Pipelines.<br />
Each asset class has been assigned a dedicated<br />
“Asset Owner” who is responsible for optimising the<br />
performance of their asset class while ensuring a quality<br />
cus<strong>to</strong>mer service is delivered safely in a cost efficient<br />
manner. While these five asset categories have assets<br />
which are specific <strong>to</strong> these categories, other assets have<br />
interdependent relationships and multiple “Asset Owners<br />
“may hold a common vested interest in the performance<br />
and care of such assets.<br />
In addition <strong>to</strong> the Asset Owner role of Asset<br />
Management, the Asset Integrity function is responsible<br />
for maintaining and maximising the integrity of all of the<br />
asset categories. Asset Integrity also ensures the quality of<br />
the natural gas which enters and passes through the BGN<br />
pipeline network is <strong>to</strong> a satisfac<strong>to</strong>ry standard in terms<br />
of its composition for delivery <strong>to</strong> cus<strong>to</strong>mers while also<br />
moni<strong>to</strong>ring levels of impurities within the gas.<br />
Asset Management also looks at new ways of utilising the<br />
BGN asset base <strong>to</strong> best serve their cus<strong>to</strong>mers and examine<br />
areas in which natural gas can be used <strong>to</strong> aid sustainable<br />
development, including developing natural gas as a<br />
transport fuel in the Irish market.<br />
7.1 Compressor Stations<br />
Compressor stations are used in high pressure gas networks<br />
<strong>to</strong> raise the pressure of the gas within the system and<br />
therefore increase the capacity of the pipelines. Bord Gais<br />
operates three compressor stations within the <strong>Network</strong>,<br />
two located in the UK and one in Cork.<br />
• Midle<strong>to</strong>n compressor station (12 MW),<br />
Built 1986.<br />
• Brighouse Bay compressor station (42MW), Built 1993<br />
(Phase 1), <strong>20</strong>03 (Phase 2).<br />
• Beat<strong>to</strong>ck compressor station (40MW),<br />
Built <strong>20</strong>00.<br />
While the stations were constructed at different times<br />
the technology used and the station layout is similar in<br />
all cases.<br />
7.1.1 Station Design<br />
The compressor stations consist of three primary<br />
components<br />
• Turbo Compressor Units.<br />
- Gas turbine Prime Mover<br />
- Centrifugal Compressor<br />
- Associated Pipework and Valves<br />
- Turbo Compressor Control System<br />
• Above Ground Installation (AGI).<br />
- Station Filters<br />
- Metering Streams<br />
- Fuel Gas Treatment System<br />
- Station Valves<br />
• Site.<br />
- Station Control room containing<br />
• Station Control System, ESD, and Fire and Gas Systems.<br />
• <strong>Network</strong> SCADA Connection.<br />
- Administration Offices<br />
- Workshop and S<strong>to</strong>res Facilities<br />
- Security Systems<br />
38
NETWORK DEVELOPMENT STATEMENT<br />
7.1.1.1 Turbo Compressor Units<br />
1. Gas Turbine: The gas turbine provides a relatively<br />
compact low maintenance prime mover <strong>to</strong> drive the<br />
gas compressor. The fuel source is natural gas and<br />
BGE employs the latest low emission technology here<br />
applicable on the gas turbine units.<br />
Fig. 7.1: Filtration system at Brighouse Bay compressor<br />
Station.<br />
2. Natural Gas Compressor: The gas compressor is a multi<br />
stage centrifugal type designed around the specific<br />
requirements of the site; suction/discharge pressure,<br />
flow rates etc. The other major component of the<br />
compressor is the gas seals at either end of the drive<br />
shaft which prevents the high pressure gas from<br />
leaking <strong>to</strong> atmosphere.<br />
3. Turbine Ancillary Equipment: Included in the turbine<br />
package is the necessary ancillary equipment, this<br />
includes;<br />
• Lubrication oil systems.<br />
• Servo Oil Systems.<br />
• Fuel Measurement/Control package.<br />
• Control system / Feedback equipment.<br />
Fig. 7.2: Administration Building<br />
4. Enclosure: For safety the entire turbine is encased in a<br />
protective enclosure, this contains both fire detection<br />
and suppression systems.<br />
7.1.1.2 AGI<br />
As the compressor stations tend <strong>to</strong> be at the points of<br />
highest flows within the network they contain some<br />
of the largest filtration systems, metering and AGI<br />
components within the <strong>Network</strong>.<br />
7.1.1.3 Site<br />
As well as offices the Administration Building contains the<br />
control room. This area contains all the control systems,<br />
electrical distribution panels, communications systems and<br />
emergency backup systems. The control room is protected<br />
by an advanced fire detection and suppression system.<br />
The compressor stations have a high degree of security<br />
including remote alarms, and CCTV systems.<br />
39
7. <strong>Network</strong>s Asset Management &<br />
<strong>Development</strong> continued<br />
7.2 AGIs & DRIs<br />
The network consists of a number of Above Ground Installation<br />
(AGI) assets, on the transmission system where the pressure<br />
of the gas in the system is controlled and delivered <strong>to</strong> large<br />
consumers such as power stations or reduced <strong>to</strong> be put<br />
through the distribution system for delivery <strong>to</strong> domestic end<br />
users. The complexity of these systems varies. In the intricate<br />
interconnec<strong>to</strong>r stations, gas passes though filtering systems<br />
<strong>to</strong> remove any particulate matter and capture any liquids prior<br />
<strong>to</strong> metering. Once metered the gas is heated <strong>to</strong> overcome the<br />
Joules-Thompson effect of pressure reduction this is carried out<br />
in stages and via multiple streams.<br />
A further refinement in the Interconnec<strong>to</strong>r sites is the ability<br />
<strong>to</strong> control both gas flow and pressure so as <strong>to</strong> allow load<br />
balancing across the network; this is carried out via an on-site<br />
station control system. The on-site control system accepts<br />
set point commands from the national grid control centre.<br />
This is particularly important <strong>to</strong> facilitate the gas market in<br />
accommodating Shippers’ instructions.<br />
Fig. 7.3: Gormons<strong>to</strong>wn IC2 Landfall AGI<br />
On the distribution systems further pressure reduction occurs<br />
<strong>to</strong> supply high density locations such as those found within<br />
city and <strong>to</strong>wn centres. In these District Regulating Installations<br />
(DRI’s) gas pressure is further reduced via regulating stream(s) <strong>to</strong><br />
domestic inlet pressures.<br />
AGI’s supplying a regional <strong>to</strong>wn or city gate also consist of<br />
filtering, heating and gas pressure reduction via multiple<br />
streams <strong>to</strong> a fixed value for imputing in <strong>to</strong> the transmission and<br />
distribution systems.<br />
The redundancy of the pressure reducing streams is a critical<br />
fac<strong>to</strong>r in all AGI’s as it allows for the continuous supply of gas<br />
while servicing and inspections are carried out, or in the event<br />
of a fault developing on a stream. These individual streams also<br />
contain many important safety elements <strong>to</strong> ensure that pressure<br />
is maintained and delivered safely and within pre-prescribed<br />
limits, the SCADA system continually moni<strong>to</strong>rs these limits <strong>to</strong><br />
ensure the correct pressures are maintained.<br />
40
NETWORK DEVELOPMENT STATEMENT<br />
7.3 Meters<br />
7.3.1 Meter Replacement Programme<br />
Bord Gáis <strong>Network</strong>s has agreed with the CER and the<br />
Direc<strong>to</strong>r of Legal Metrology <strong>to</strong> carry out a Meter Replacement<br />
Programme <strong>to</strong> replace the oldest domestic gas meters with<br />
meters which have ‘Smart Ready’ capabilities.<br />
These new meters can be upgraded <strong>to</strong> ‘Smart Meters’ when<br />
required at some point in the future by the addition of a<br />
communications module <strong>to</strong> the front of the meter. ‘Smart<br />
Meters’ will allow consumers <strong>to</strong> moni<strong>to</strong>r and record how much<br />
gas they use and when they use it. ‘Smart Meters’ will give the<br />
cus<strong>to</strong>mer more time-of-use information regarding their gas<br />
consumption and in turn it is anticipated will encourage energy<br />
efficiency.<br />
The replacement programme is being carried out in sections<br />
by geographical areas throughout the country. The upgrade<br />
is free of charge with no hidden costs for the tenant / home<br />
owner and includes a free gas safety inspection within the<br />
property. The upgrade takes less than an hour <strong>to</strong> complete with<br />
minimum disruption <strong>to</strong> the cus<strong>to</strong>mer.<br />
The simple installation of a communications module <strong>to</strong> enable<br />
the full ‘Smart Meter’ capability will take place at a future date<br />
in line with the National Smart Metering rollout plan.<br />
Ever conscious of safety, contract personnel working on behalf<br />
of Bord Gáis <strong>Network</strong>s bear and present pho<strong>to</strong> ID on calling <strong>to</strong><br />
houses. This is particularly appropriate in respect of this project<br />
as the majority of meters being replaced happen <strong>to</strong> be in<br />
households occupied by older people.<br />
Fig 7.4 Smart Meter<br />
7.3.2 Smart Metering Solution<br />
Bord Gáis <strong>Network</strong>s is currently supporting the National Smart<br />
Metering programme which is focussed on both gas and<br />
electricity. The programme includes Cus<strong>to</strong>mer Behaviour Trials<br />
utilising smart metering technology, time of use tariffs, and<br />
in-home displays. These trials, along with a public and industry<br />
consultation process will help <strong>to</strong> validate the consumer benefits<br />
of smart metering solutions. The full business and infrastructure<br />
requirements, as well as the rollout schedule will also be defined<br />
and agreed in the current phase of the programme (<strong>20</strong><strong>11</strong>).<br />
Gas and Electricity smart metering will be rolled out (subject<br />
<strong>to</strong> the validation of a cost benefit analysis) on a shared<br />
communication infrastructure in order <strong>to</strong> benefit from<br />
combined efficiencies and leveraging of costs. The Department<br />
of the Environment, Heritage & Local Government is<br />
considering whether or not <strong>to</strong> also include water metering in<br />
this infrastructure at a later stage.<br />
The final upgrade <strong>to</strong> smart metering will allow a dwelling <strong>to</strong><br />
have more accurate and frequent meter readings. Furthermore,<br />
it will ultimately allow households <strong>to</strong> better manage their<br />
energy consumption and costs; and will also assist households<br />
contribute <strong>to</strong>wards National targets for improved energy<br />
efficiency carbon emission reduction.<br />
41
7. <strong>Network</strong>s Asset Management &<br />
<strong>Development</strong> continued<br />
7.3.3 Prepayment Metering<br />
Bord Gais <strong>Network</strong>s with the agreement of the Commission for<br />
Energy Regulation and the Natural Gas Suppliers introduced<br />
its’ Prepayment Metering System in <strong>20</strong>08. The Natural Gas<br />
Prepayment Meter allows cus<strong>to</strong>mers <strong>to</strong> purchase an amount of<br />
gas credit on a Gas Card, which is then inserted in<strong>to</strong> the meter<br />
and the monetary credit is transferred directly from the card<br />
<strong>to</strong> the meter. The Prepayment Meter can assist a cus<strong>to</strong>mer in<br />
budgeting their gas usage and payments. The system is very<br />
efficient and reasonably easy <strong>to</strong> use.<br />
The Prepayment solution offers many benefits <strong>to</strong> the cus<strong>to</strong>mer:<br />
• Cus<strong>to</strong>mers have improved management of gas bills.<br />
• Smaller payment amounts spread over a longer period of<br />
time.<br />
• No unexpectedly large bills and associated problems.<br />
• Better moni<strong>to</strong>ring and awareness of energy consumption<br />
leading <strong>to</strong> improved energy conservation.<br />
• Control of own usage and payment. Ability <strong>to</strong> build up<br />
credits for periods of higher usage.<br />
• Greater participation in the billing process leads <strong>to</strong> increased<br />
cus<strong>to</strong>mer satisfaction.<br />
• There is no requirement for regular meter reading and<br />
associated access problems, no meter disconnection or<br />
reconnection fees along with Improved Social Welfare<br />
payment receipt system.<br />
• Pre-Pay meters also help landlords avoid large bills issues<br />
when tenants move out.<br />
The Roles of Bord Gáis <strong>Network</strong>s, the Gas Supplier, Payzone and<br />
the Cus<strong>to</strong>mer can be summarised as follows:<br />
• Bord Gáis <strong>Network</strong>s: The prepayment meters are owned<br />
by Bord Gáis <strong>Network</strong>s. They measure usage of gas which<br />
facilitates the supply of a quantity of gas as designated<br />
by the cus<strong>to</strong>mer’s gas supplier for the amount of credit<br />
purchased.<br />
• The “Gas Supplier” sells gas <strong>to</strong> the cus<strong>to</strong>mer based on<br />
the billing tariff rate agreed between the supplier and the<br />
cus<strong>to</strong>mer. The gas supplier receives the cus<strong>to</strong>mer’s meter<br />
reading and gas consumption on a regular basis from Bord<br />
Gáis <strong>Network</strong>s. In line with the CER’s guidelines for cus<strong>to</strong>mer<br />
billing, gas suppliers are required <strong>to</strong> supply their prepayment<br />
cus<strong>to</strong>mer with an annual statement of the gas usage and<br />
payments.<br />
• Payzone are a cus<strong>to</strong>mer payments acceptance company,<br />
with extensive retail point facilities throughout the country.<br />
Payzone facilitate prepayment gas cus<strong>to</strong>mers in ‘<strong>to</strong>pping-up’<br />
credit at selected shops which display both Payzone and the<br />
Gas Card logo.<br />
• The “Cus<strong>to</strong>mer” must sign up with a gas supplier <strong>to</strong> obtain<br />
a supply of natural gas and agree <strong>to</strong> pay for gas consumed<br />
by means of a credit prepayment system using a ‘Gas Card’.<br />
The cus<strong>to</strong>mer is also obliged <strong>to</strong> provide Bord Gáis <strong>Network</strong>s<br />
with reasonable access <strong>to</strong> their prepayment gas meter when<br />
required.<br />
42
NETWORK DEVELOPMENT STATEMENT<br />
7.4 Communications and Instrumentation<br />
7.4.1 SCADA<br />
Supervisory Control and Data Acquisition (SCADA) is used<br />
extensively <strong>to</strong> moni<strong>to</strong>r and control the pipeline network.<br />
The central equipment is located in a purpose built facility in<br />
Gasworks Road, a control room is also located in this building<br />
<strong>to</strong> facilitate control and moni<strong>to</strong>ring of the pipeline network on a<br />
24/7/365 basis.<br />
The SCADA system uses remote terminal units (RTU) <strong>to</strong> retrieve<br />
information from the transmission network. The RTU typically<br />
measures gas flows, pressures, temperatures, valve status<br />
signals, cathodic protection voltages and utility signals. The<br />
RTU have output capability which is used <strong>to</strong> remotely control<br />
strategically placed line valves which can be used in emergency<br />
<strong>to</strong> shutdown pipeline sections. Low cost dialup solutions are<br />
used <strong>to</strong> moni<strong>to</strong>r distribution assets. There are approximately<br />
130 transmission connected RTUs and 250 distribution SCADA<br />
nodes. A Honeywell Experion system with Plant His<strong>to</strong>rian is<br />
used for transmission SCADA and a Wonderware and Industrial<br />
SQL Server is used <strong>to</strong> drive distribution SCADA.<br />
Communications is by means of digital leased lines, dialup lines<br />
and by use of text and mobile data calls over GPRS.<br />
7.4.2 Cathodic Protection Moni<strong>to</strong>ring<br />
Cathodic Protection (CP) is used <strong>to</strong> mitigate the effects<br />
of corrosion on buried steel pipe work. Impressed current<br />
techniques are used for the majority of transmission cross<br />
country pipelines with sacrificial techniques used in urban areas<br />
covering transmission and distribution. There are over 4,000<br />
test points and 90 transformer rectifiers.<br />
The care regime for the maintenance and upkeep of the CP<br />
assets is a combination of annual survey of all test points and<br />
rectifiers and monthly moni<strong>to</strong>ring using remote CP measuring<br />
devices strategically located in all of the transformer rectifiers<br />
and approximately 5% of the test posts. Close interval surveys<br />
are used <strong>to</strong> provide close and detailed inspection of pipelines<br />
once every five years. Differential current voltage gradient<br />
surveys (DCVG) are used <strong>to</strong> locate coating anomalies.<br />
7.4.3 Instrumentation<br />
Instrumentation is in place at all transmission installations <strong>to</strong><br />
moni<strong>to</strong>r process gas pressure, temperature, flow information,<br />
cathodic protection voltages and general ancillary signals<br />
such as 2<strong>20</strong>V AC mains incomers, genera<strong>to</strong>r faults, intrusion<br />
detection etc. Sophisticated flow computers are used <strong>to</strong> correct<br />
for pressure and temperature at the metering element and<br />
so provide accurate billing data. All of these systems are tied<br />
in<strong>to</strong> the telemetry units which are then relayed <strong>to</strong> Cork via the<br />
SCADA systems.<br />
43
7. <strong>Network</strong>s Asset Management &<br />
<strong>Development</strong> continued<br />
7.5 Pipelines<br />
The pipeline system is composed of transmission and<br />
distribution mains. The transmission system transports gas at<br />
high pressure through steel pipes, typically at 70 barg or greater<br />
from the producers through the interconnec<strong>to</strong>rs across the Irish<br />
Sea and throughout the country <strong>to</strong> pressure reduction stations<br />
at cities and <strong>to</strong>wns. Distribution mains carry the gas at a lower<br />
pressure from the transmission stations for delivery <strong>to</strong> the end<br />
users. There are approximately <strong>11</strong>,000 kilometres of distribution<br />
mains in the state and they are constructed primarily of high<br />
density polyethylene. Service pipes carry the gas from the<br />
main <strong>to</strong> the cus<strong>to</strong>mer’s meter. In addition <strong>to</strong> the line pipe both<br />
systems contain many valves, bends and connections.<br />
There is a continuous programme <strong>to</strong> ensure the network<br />
continues <strong>to</strong> comply with the relevant legislation, technical<br />
standards and codes of practice and that the pipeline assets are<br />
maintained in accordance with best international practice.<br />
It is recognised that third party damage is the highest risk <strong>to</strong><br />
both the transmission and distribution networks. A variety of<br />
measures, work practices and dedicated resources are in place<br />
<strong>to</strong> face this challenge. Nonetheless recent years have seen an<br />
increase in the number of third party encroachments on the<br />
transmission system. A closer review of the individual incidents<br />
shows that there appeared <strong>to</strong> be an increase in the volume of<br />
drainage works being performed by landowners, most likely<br />
in response <strong>to</strong> serious flooding over the past winter. In urban<br />
areas there was also a significant increase in encroachments<br />
related <strong>to</strong> water pipe repairs and upgrades performed by local<br />
authorities again as a result of the extreme cold weather. Given<br />
the potential for a national water metering project being rolled<br />
out over the coming years, a similar trend of activity is possible.<br />
Fig 7.5 Pipeline Marker<br />
Consequently a significant upgrade of current pipeline<br />
markers is proposed <strong>to</strong> reduce the number of encroachments<br />
and the likelihood of a serious incident as a result of damage.<br />
Under the proposed new pipeline marking policy which is<br />
closely aligned with other systems in use on continental<br />
Europe and the UK, Bord Gáis <strong>Network</strong>s will aim <strong>to</strong> install<br />
above ground markers on pipelines such that a marker can<br />
be seen in the line of sight at any point along the pipeline.<br />
Furthermore there will be considerably more marking in<br />
urban areas. Prior <strong>to</strong> a national upgrade project, a pilot of this<br />
approach on a smaller area has been identified. The lessons<br />
learnt from this pilot can then be used <strong>to</strong> finalise a detailed<br />
marking policy/procedure and roll it out across the network.<br />
Given the age profile of the network, the relatively dense<br />
concentration of rural pipeline and urban lines, the Cork<br />
County and City has been selected for the pilot project.<br />
44
NETWORK DEVELOPMENT STATEMENT<br />
Work also continues on a number of specific measures which<br />
were adopted <strong>to</strong> further improve public safety, the Dublin-4<br />
pipeline refurbishment programme is substantially complete<br />
and this will significantly reduce the potential for an incident in<br />
this location. Further initiatives have been identified for Limerick<br />
and for Waterford and options are under consideration.<br />
Leakage and damage <strong>to</strong> the distribution system by third parties<br />
is modelled on the Geographical Information System, (GIS).<br />
Analysis of these data indicates that a significant number of<br />
these damage incidents are caused by small contrac<strong>to</strong>rs doing<br />
works at domestic premises, consequently this has resulted in<br />
specific awareness training campaigns with <strong>to</strong>ol hire outlets<br />
which are utilised by many of these contrac<strong>to</strong>rs.<br />
The completion of the accelerated renewals programme in<br />
Dublin and Cork has significantly reduced the risk posed by<br />
older type cast and ductile iron mains. A small programme <strong>to</strong><br />
investigate mains still indicated as iron on the mapping system<br />
is in progress. The completion of the renewals project has<br />
facilitated a new distribution leak survey policy based on risk<br />
rather than network material. A pilot of this policy is currently<br />
underway. The new approach utilises the GIS system <strong>to</strong> model<br />
distribution pipelines, based on the adjoining population<br />
density; material type and the leakage density data <strong>to</strong> construct<br />
a risk based model of the network. Accordingly the frequency<br />
of survey is based on the indicated risk.<br />
7.6 Asset Integrity<br />
BGN designs, constructs and operates the natural gas pipeline<br />
network <strong>to</strong> the highest safety standards. As a result of<br />
extensive capital investment in recent years, <strong>to</strong>gether with very<br />
stringent operating and management procedures, the Irish<br />
pipeline network is amongst the most modern and safe in the<br />
world. BGN has set safety as its <strong>to</strong>p priority and considerable<br />
resources have been invested <strong>to</strong> ensure that our operations,<br />
procedures and processes benchmark favourably with the best<br />
of international utility safety standards.<br />
The Asset Integrity department in conjunction with the Asset<br />
Owners are responsible for formulating and implementing<br />
strategies which maximise the integrity of all asset categories<br />
within BGN in the safest, most reliable and cost-effective<br />
manner.<br />
In line with best international practice, it is the intention<br />
of BGN <strong>to</strong> move <strong>to</strong>wards a risk based maintenance and<br />
inspection regime and the Asset Integrity department will have<br />
an integral role in this process. A risk based regime will allow<br />
BGN <strong>to</strong> focus maintenance and inspection resources where<br />
they are most effective, resulting in increased asset safety and<br />
reliability while constraining costs. The recent introduction<br />
of new technologies such as Decision Support Tool and the<br />
Maximo Work and Asset Management system will support the<br />
move <strong>to</strong> such a regime.<br />
BGN currently internally inspect approximately 70% of the<br />
gas transmission system using intelligent in-line inspection<br />
vehicles, a percentage which is high in international terms.<br />
The remainder are checked using above ground inspection<br />
techniques. The Asset Integrity department are examining ways<br />
<strong>to</strong> further increase this percentage through the use of new<br />
in-line inspection technologies. Current inspection intervals will<br />
also be assessed in terms of a risk based approach.<br />
45
7. <strong>Network</strong>s Asset Management &<br />
<strong>Development</strong> continued<br />
7.7 Gas Quality<br />
7.7.1 Physical and Chemical Properties<br />
All gas entering the transmission network must comply with the<br />
gas quality specification as prescribed in the Code of Operations<br />
(available on the <strong>Gaslink</strong> website) at www.gaslink.ie.<br />
The Gas Combustion Characteristics are measured online<br />
(calorific value, wobbe – index and relative density) by<br />
process gas chroma<strong>to</strong>graphs. These process gas analysers<br />
and associated software comply with relevant international<br />
standards and the online measurements are available live<br />
through SCADA <strong>to</strong> our Grid Control Centre in Cork.<br />
The natural gas impurities are measured offline. Spot samples<br />
are taken monthly and analysed by an accredited labora<strong>to</strong>ry <strong>to</strong><br />
the appropriate standard methods.<br />
A decision paper CER/09/035 issued by the CER details a<br />
revised gas quality specification which is <strong>to</strong> be applied in the<br />
ROI. A modification <strong>to</strong> the Code of Operations will be required<br />
<strong>to</strong> implement the revised specification and this process is<br />
currently underway. The new specification includes additional<br />
constituents and specifies a narrower Wobbe range.<br />
<strong>Gaslink</strong> are currently carrying out a comprehensive review<br />
of all entry point measurement arrangements <strong>to</strong> ensure that<br />
gas entering the network is fully compliant with the revised<br />
specification.<br />
7.7.2 Odour<br />
Natural gas is odourless and for safety reasons a proprietary<br />
odorant is added <strong>to</strong> the gas entering the Bord Gáis network.<br />
This differs from practice in the UK and most other European<br />
transmission networks where the gas remains unodourised until<br />
it enters the lower pressure distribution networks<br />
Gas delivered in<strong>to</strong> the network is odorised on the basis of a<br />
logarithmic delivery scale at the rate of approximately 6 mg/m³<br />
<strong>to</strong> achieve an Odour Intensity (OI) of 2 on the Sales Scale.<br />
To verify the odour intensity of gas delivered <strong>to</strong> consumers,<br />
gas samples are taken from locations throughout the network,<br />
analysed by a gas chroma<strong>to</strong>graph and odour intensity<br />
calculated. Odour Intensity reports are issued monthly.<br />
7.8 Natural Gas as a transport fuel<br />
Bord Gáis <strong>Network</strong>s has a strategic objective <strong>to</strong> grow the size of<br />
the Irish natural gas market and, thereby, improve the utilisation<br />
of its gas transmission and distribution system. In accordance<br />
with this objective, Bord Gáis <strong>Network</strong>s is developing the<br />
application of Natural Gas as a transport fuel.<br />
Natural Gas as a transport fuel - known as Compressed Natural<br />
Gas (CNG) is used across the world within Natural Gas Vehicles<br />
(NGV).<br />
Since <strong>20</strong>00 there has been substantial growth of NGVs<br />
worldwide, with an annual growth of approximately 30%.<br />
According <strong>to</strong> the Natural Gas Vehicle Association of Europe, in<br />
<strong><strong>20</strong>10</strong> there were over 12million NGVs worldwide.<br />
46
NETWORK DEVELOPMENT STATEMENT<br />
This growth of NGVs is driven by a number of important fac<strong>to</strong>rs<br />
especially the economic and environmental benefits:<br />
• Economic – According <strong>to</strong> NGVA Europe CNG is typically 30<br />
– 60% cheaper than traditional fuels (petrol or diesel) across<br />
Europe.<br />
• Environmental – Significant reductions in emissions including<br />
substantially reducing Carbon Dioxide, Particulate Matter<br />
and Nitrogen Oxide.<br />
Fig. 7.6: Natural Gas Vehicle<br />
Bord Gáis <strong>Network</strong>s is currently involved in a number of<br />
activities including:<br />
• Researching the CNG and NGV markets in Europe and<br />
across the world.<br />
• Learning lessons from developed CNG markets.<br />
• Analysing CNG through its use within the Bord Gáis<br />
<strong>Network</strong>s fleet.<br />
• Installed a trial CNG refuelling unit in Finglas, Dublin.<br />
.• Planning a ‘fast-fill’ refuelling unit for the commercial use<br />
of CNG within Bord Gáis <strong>Network</strong>s fleet. This will refuel<br />
vehicles in approx. 2-4minutes.<br />
• Working with NSAI, amongst others, <strong>to</strong> develop a CNG<br />
refuelling station standard for Ireland.<br />
• Meeting with stakeholders <strong>to</strong> ensure a cross-functional<br />
industry partnership.<br />
• Liaising with interested parties <strong>to</strong> commercially use CNG<br />
within captive fleets.<br />
The use of CNG will also reduce the dependency on oil and<br />
diversify the energy mix within the Irish transport system.<br />
47
8. Security of supply<br />
8.1 Overview of Legal Framework<br />
Ireland’s natural gas market is substantial, with more that<br />
50% of electricity generation fuelled by gas. Therefore<br />
maintaining secure supplies of gas <strong>to</strong> Ireland is essential, in<br />
order <strong>to</strong> support economic recovery.<br />
The vast majority of Ireland’s gas is supplied through<br />
the UK. There are two sub-sea pipelines interconnecting<br />
Ireland with Scotland. A third sub-sea pipeline links<br />
Northern Ireland <strong>to</strong> Scotland. All three sub-sea pipelines<br />
are supplied from a single onshore pipeline in Scotland.<br />
Studies indicate that the likelihood of a major supply<br />
interruption, resulting in a prolonged and severe shortfall<br />
in gas supply <strong>to</strong> the island of Ireland is very low. Whilst the<br />
risk is remote, it nonetheless remains, particularly in the<br />
absence of a supply from the Corrib gas field.<br />
In December <strong><strong>20</strong>10</strong>, the European Commission issued<br />
EU Regulation No 994/<strong><strong>20</strong>10</strong>, which concerns measures<br />
<strong>to</strong> safeguard security of gas supply. The legislation puts<br />
several obligations on member states and deals with a<br />
variety of gas security matters. For example, the regulation<br />
puts forward the principal of N-1, namely that the member<br />
state competent authority shall ensure that in the event<br />
of a disruption of the single largest gas infrastructure, the<br />
capacity of the remaining infrastructure is able <strong>to</strong> satisfy<br />
the <strong>to</strong>tal gas demand of the calculated area during a day<br />
of exceptionally high demand statistically occurring once<br />
every twenty years. This obligation may be considered<br />
fulfilled where the competent authority demonstrates<br />
that such a supply disruption may be compensated for<br />
by appropriate market-based demand side measures.<br />
The competent authority may deem the obligation <strong>to</strong> be<br />
fulfilled at a regional level instead of at a national level,<br />
where appropriate according <strong>to</strong> a risk assessment.<br />
The competent authority shall carry out a security of<br />
supply risk assessment, running various high demand<br />
& supply disruption scenarios and assessing the likely<br />
consequences of these scenarios. Where applicable, the<br />
competent authorities shall also perform a joint risk<br />
assessment at regional level. Work has commenced on<br />
conducting Ireland’s risk assessment.<br />
8.2 Existing Operational and Planning<br />
arrangements<br />
The CER has designated <strong>Gaslink</strong> <strong>to</strong> act as the National<br />
Gas Emergency Manager (NGEM) under Section 19(B) of<br />
SI 697. <strong>Gaslink</strong> has produced a Natural Gas Emergency<br />
Plan (NGEP), which has been approved by the CER and<br />
details the roles and responsibilities of all natural gas<br />
undertakings in the event of a potential or actual gas<br />
supply emergency.<br />
The NGEM will be responsible for managing any potential<br />
or actual gas supply emergency, in accordance with the<br />
provisions of the NGEP. The NGEM will act as the incident<br />
controller and will be responsible for declaring an<br />
emergency.<br />
BGN would support the NGEM by acting as the interface<br />
with other natural gas undertakings, producers, s<strong>to</strong>rage<br />
opera<strong>to</strong>rs and any connected system opera<strong>to</strong>rs, and by<br />
implementing the NGEM instructions.<br />
BGN has put in place emergency arrangements with other<br />
connected systems opera<strong>to</strong>rs, e.g. PSE Kinsale Energy,<br />
PTL, the MEA and NG in GB. BGN has also clarified with<br />
the <strong>Network</strong> Emergency Coordina<strong>to</strong>r (NEC) in GB, the<br />
arrangements that will apply in the event of a gas supply<br />
emergency in GB.<br />
48
NETWORK DEVELOPMENT STATEMENT<br />
A Gas Emergency Response Team (GERT) is in place as<br />
part of the NGEP. This group convenes in the event of an<br />
actual emergency and includes representatives from BGN,<br />
<strong>Gaslink</strong>, Eirgrid and CER/DCENR.<br />
The CER chairs the Task Force on Emergency Procedures<br />
(TFEP), which also includes representatives from the<br />
Department of Communications, Energy and Natural<br />
Resources (DCENR), <strong>Gaslink</strong>, BGN, EirGrid and ESB<br />
<strong>Network</strong>s.<br />
The TFEP is responsible for ensuring that coordinated<br />
procedures are in place <strong>to</strong> manage a supply emergency on<br />
the gas and electricity systems, and that an emergency on<br />
one system does not lead <strong>to</strong> an emergency on the other.<br />
The first TFEP report was published in <strong>20</strong>07 and included<br />
recommendations <strong>to</strong> enhance the existing arrangements<br />
and procedures, including:<br />
• Giving EirGrid a role in the curtailment of gas<br />
supplies <strong>to</strong> power stations during a natural gas supply<br />
emergency, in order <strong>to</strong> mitigate as far as possible the<br />
impact on electricity supplies.<br />
• Requiring power stations <strong>to</strong> hold adequate s<strong>to</strong>cks of<br />
secondary fuels, and testing their ability <strong>to</strong> switchover<br />
<strong>to</strong> these secondary fuels in an emergency.<br />
As part of the NGEP a Gas Emergency Planning Team<br />
(GEPT) meets with a view <strong>to</strong> further developing the<br />
emergency arrangements contained in the NGEP. This<br />
team includes BGN, <strong>Gaslink</strong>, EirGrid and CER/DCENR. This<br />
team also discusses forthcoming gas emergency exercises<br />
and exercises already conducted.<br />
Exercise Avogadro was conducted between opera<strong>to</strong>rs/<br />
regula<strong>to</strong>rs and Government Departments in Ireland<br />
and the UK in the summer of <strong><strong>20</strong>10</strong>. This exercise tested<br />
the communications pro<strong>to</strong>cols between government<br />
and industry in the event of a major gas emergency.<br />
The exercise also included liaison with the equivalent<br />
authorities in Northern Ireland. The exercise was deemed<br />
a success and a number of initiatives have stemmed from<br />
the lessons learned.<br />
In addition <strong>to</strong> planning arrangements for potential or<br />
actual gas supply emergency’s, BGN put in a place a<br />
number of preventative measures <strong>to</strong> reduce the risk of an<br />
emergency.<br />
Grid Control, a department within BGN, are responsible<br />
for the 24 hour technical operation and supervision of<br />
the gas network using a sophisticated Supervisory Control<br />
and Data Acquisition (SCADA) system which captures and<br />
presents live data from each above ground installation<br />
(AGI). Alarm limits are set on all key parameters in<br />
SCADA and when a process variable falls outside of these<br />
alarm limits it is escalated <strong>to</strong> a Field Operations team <strong>to</strong><br />
remedy, where a 24 / 7 on-call rota is operated all year<br />
round. Emergency repair arrangements are maintained<br />
with contrac<strong>to</strong>rs that would allow the timely repair of<br />
any damage <strong>to</strong> the transmission network if required. In<br />
addition <strong>to</strong> this 24 hour operation and supervision of the<br />
network, security cameras are installed and moni<strong>to</strong>red at<br />
various key stations and the transmission pipeline network<br />
is moni<strong>to</strong>red regularly by helicopter and line walks.<br />
BGN also encourage public gas safety awareness through<br />
advertising campaigns a presence at major trade shows<br />
and the Ploughing Championships, and operates dial<br />
before you dig and 24 hour emergency lines.<br />
49
9. Commercial Market<br />
<strong>Development</strong>s<br />
9.1 <strong>Gaslink</strong>: Independent System Opera<strong>to</strong>r<br />
In accordance with licences granted by the Commission<br />
for Energy Regulation (CER), <strong>Gaslink</strong>, as the Independent<br />
System Opera<strong>to</strong>r operates, maintains and develops the ROI<br />
transportation system. BGÉ, as System Owner, holds a licence<br />
relating <strong>to</strong> its ownership of the transportation system.<br />
The key role and responsibilities of <strong>Gaslink</strong> are as follows:<br />
• To operate, maintain and develop, under economic<br />
conditions secure, reliable and efficient transmission and<br />
distribution systems with due regard <strong>to</strong> the environment.<br />
• To provide any natural gas undertaking with sufficient<br />
information <strong>to</strong> ensure that transport of natural gas on<br />
the transmission system may take place in a manner<br />
compatible with the safe, secure and efficient operation<br />
of the network.<br />
• To provide users of the transmission system with the<br />
information they need for efficient access <strong>to</strong> the<br />
transmission and distribution systems.<br />
• To procure the energy it uses for the carrying out of its<br />
functions according <strong>to</strong> a transparent, non-discrimina<strong>to</strong>ry<br />
and market based procedure subject <strong>to</strong> CER approval.<br />
• To adopt rules for the purposes of balancing the gas<br />
system which are objective, transparent and nondiscrimina<strong>to</strong>ry.<br />
• To report <strong>to</strong> the CER, as outlined in the Gas (Interim)<br />
(Regulation) Act, <strong>20</strong>02, and in respect of any other<br />
matters as the CER may specify.<br />
<strong>Gaslink</strong> is independent of BGÉ in terms of its organisation<br />
and decision making processes, when executing its<br />
responsibility for the operation of the transmission and<br />
distribution systems.<br />
<strong>Gaslink</strong> identifies all work necessary for the operation,<br />
maintenance and development of the transportation<br />
system, and instructs BGÉ <strong>to</strong> carry out works in accordance<br />
with the Operating Agreement (specified in the legislation<br />
and approved by the CER). <strong>Gaslink</strong> holds two Licences from<br />
the CER for the operation of the ROI transmission and<br />
distribution systems, which inter alia cover the following<br />
areas:<br />
• Connection <strong>to</strong> the transmission and distribution systems.<br />
• Transmission and distribution system standards.<br />
• Operating security standards.<br />
• Provision of metering and data Services.<br />
• Provision of services pursuant <strong>to</strong> the Code of Operation<br />
(the “Code”).<br />
9.2 European <strong>Development</strong>s<br />
The passing in<strong>to</strong> law of the 3rd Energy package in<br />
September <strong>20</strong>09 represented a key miles<strong>to</strong>ne for the<br />
development of the gas markets within each EU member<br />
state. In addition the implementation of the new<br />
legislative requirements will serve as a major step <strong>to</strong>wards<br />
a single European gas market. The package prescribes<br />
extensive changes <strong>to</strong> the legislative and regula<strong>to</strong>ry<br />
frameworks covering gas transportation and will also<br />
result in considerable redefinition of the transportation<br />
arrangements themselves particularly at interconnection<br />
points across Europe such as Moffat. The 3rd package<br />
consists of the following key elements:<br />
• Directive <strong>20</strong>09/73/EC which from March <strong>20</strong><strong>11</strong> will<br />
supersede Directive <strong>20</strong>03/55.<br />
• Regulation (EC) No. 713/<strong>20</strong>09 which from March <strong>20</strong><strong>11</strong><br />
mandates a new Agency for the Co-operation of Energy<br />
Regula<strong>to</strong>rs (ACER).<br />
• Regulation (EC) No. 715/<strong>20</strong>09 which from March<br />
<strong>20</strong><strong>11</strong> requires the setting up of European <strong>Network</strong><br />
Transmission System Opera<strong>to</strong>rs in gas or ENTSOG.<br />
50
NETWORK DEVELOPMENT STATEMENT<br />
The European Transmission System Opera<strong>to</strong>rs (TSO) have<br />
already put in place the organisation which will ultimately,<br />
once approved by the Commission in <strong>20</strong><strong>11</strong>, constitute<br />
the ENTSOG. All European TSOs will be legally obliged <strong>to</strong><br />
co-operate with this group once the Directive comes in<strong>to</strong><br />
effect. <strong>Gaslink</strong>, as the Irish TSO, is a founding member of this<br />
organisation and is already participating actively in the work<br />
of ENTSO-G. The ENTSO-G foundation meeting <strong>to</strong>ok place<br />
on the 1st of December <strong>20</strong>09 in Brussels.<br />
At the heart of the 3rd Energy package legislation is the<br />
development of EU-wide network codes for 12 areas, aiding<br />
the integration of European gas markets and <strong>to</strong> facilitate<br />
effective cross-border trade and competition <strong>to</strong> develop<br />
across the EU member states. Framework guidelines will<br />
be developed by ACER for the Cooperation of Energy<br />
Regula<strong>to</strong>rs (The Agency) and will form the basis for the<br />
<strong>Network</strong> Codes.<br />
ACER will have a role in reviewing, based on matters of<br />
fact, draft network codes, including their compliance<br />
with the framework guidelines, and it will be enabled <strong>to</strong><br />
recommend them for adoption by the Commission. ACER<br />
will assess proposed amendments <strong>to</strong> the network codes and<br />
it will be enabled <strong>to</strong> recommend them for adoption by the<br />
Commission. Transmission system opera<strong>to</strong>rs should operate<br />
their networks in accordance with those network codes. This<br />
process, which will include a manda<strong>to</strong>ry public consultation,<br />
is set out in Article 6 of EC/715/<strong>20</strong>09.<br />
The ENSTO-G is responsible for developing the 12 binding<br />
<strong>Network</strong> Codes based on the framework guidelines. Once<br />
adopted by the Commission the application of the network<br />
codes will become manda<strong>to</strong>ry in all member states<br />
The network codes referred <strong>to</strong> Article 6 of the Regulation<br />
shall cover the following areas, and, where appropriate,<br />
those rules will evolve over time, taking in<strong>to</strong> account the<br />
special characteristics of national and regional markets with<br />
a view <strong>to</strong> ensuring the proper functioning of the internal<br />
market in gas<br />
(a) network security and reliability rules.<br />
(b) network connection rules.<br />
(c) third-party access rules.<br />
(d) data exchange and settlement rules.<br />
(e) interoperability rules.<br />
(f) operational procedures in an emergency.<br />
(g) capacity-allocation and congestion-management rules.<br />
(h) rules for trading related <strong>to</strong> technical and operational<br />
provision of network access services and system<br />
balancing.<br />
(i) transparency rules.<br />
(j) balancing rules including network-related rules on<br />
nominations procedure, rules for imbalance charges and<br />
rules for operational balancing between transmission<br />
system opera<strong>to</strong>rs’ systems.<br />
(k) rules regarding harmonised transmission tariff structures.<br />
(l) energy efficiency regarding gas networks.<br />
Further development across Europe of arrangements<br />
relating <strong>to</strong> the definition and management of capacity<br />
products <strong>to</strong>gether with enhanced balancing will be given<br />
priority by the various stakeholders in <strong>20</strong><strong>11</strong>. During <strong>20</strong><strong>11</strong><br />
transparency requirements of EC 715 will be implemented.<br />
<strong>Gaslink</strong> will continue <strong>to</strong> participate in these various<br />
initiatives and will work with other Irish stakeholders in<br />
advancing the new arrangements.<br />
51
9. Commercial Market<br />
<strong>Development</strong>s continued<br />
9.3 New Connections<br />
<strong>Gaslink</strong> continues <strong>to</strong> engage with parties looking <strong>to</strong> connect<br />
<strong>to</strong> the transmission and distribution networks. In accordance<br />
with the Operating Agreement, <strong>Gaslink</strong> undertakes all the<br />
large connections agreements <strong>to</strong> the transmission system and<br />
manages the provision of all other connections agreements<br />
undertaken by Bord Gáis <strong>Network</strong>s on <strong>Gaslink</strong>’s behalf.<br />
All new connections are managed in compliance with the CER<br />
approved Connections Policy. This Policy sets out the criteria for<br />
connecting new cus<strong>to</strong>mers <strong>to</strong> the gas network.<br />
In <strong><strong>20</strong>10</strong> <strong>Gaslink</strong> and BGN, in conjunction with the CER<br />
reviewed various elements of the current policy. One area that<br />
was reviewed was the treatment of new large gas connection<br />
with an expected low load fac<strong>to</strong>r under the Connections Policy.<br />
<strong>Gaslink</strong> has been approached by various developers requesting<br />
gas connections <strong>to</strong> fuel peaking power generation plants <strong>to</strong><br />
compensate the intermittent nature of wind. The CER published<br />
a decision paper in April <strong><strong>20</strong>10</strong> amending the definitions of<br />
cus<strong>to</strong>mer classifications so that it is now based on the size of<br />
connection rather than projected annual load.<br />
In <strong>20</strong><strong>11</strong> further review of the policy will take place in<br />
conjunction with BGN and the CER. One of the main areas<br />
<strong>to</strong> be reviewed is the connection process for those interested<br />
in connecting bio-methane generating facilities. <strong>Gaslink</strong> has<br />
been engaging with the CER on this matter – it is our intention<br />
in <strong>20</strong><strong>11</strong> <strong>to</strong> consider the inclusion of specific requirements<br />
in the Policy that governs the terms for connection of such<br />
entry points <strong>to</strong> the gas network. In conjunction with the CER,<br />
<strong>Gaslink</strong> will review an appropriate mechanism for renewable<br />
gas entry points and <strong>to</strong>gether develop proposals as appropriate.<br />
These proposals will endeavour <strong>to</strong> bring clear and transparent<br />
arrangements which will clarify the approach for these facilities<br />
which should assist the wider use of renewable gas ensuring<br />
non discrimina<strong>to</strong>ry access <strong>to</strong> the gas network.<br />
9.4 Moffat<br />
9.4.1 Selling Gas at the NBP<br />
In response <strong>to</strong> requests from the market for the facility <strong>to</strong> sell<br />
gas in<strong>to</strong> Great Britain (GB) at the National Balancing Point (NBP)<br />
from the Irish market, <strong>Gaslink</strong> is in the process of developing a<br />
virtual reverse flow product at the Moffat Entry Point. Physically<br />
the flow is unidirectional but through virtual reverse flow,<br />
contractual reverse flow of the gas is possible.<br />
Moffat is currently designated as an Exit Point from the GB<br />
Transmission System. It will be necessary for Moffat <strong>to</strong> also be<br />
designated as an Entry Point in order <strong>to</strong> allow ROI Shippers <strong>to</strong><br />
sell their gas in GB.<br />
9.4.2 NTS Exit Reform<br />
92.3 % of the Irish gas requirements and 100% of Northern<br />
Ireland and Isle of Man gas is supplied via the Moffat<br />
interconnection point with the GB system operated by National<br />
Grid. The current arrangement for booking capacity <strong>to</strong> ship<br />
gas through the inter-connec<strong>to</strong>r pipelines is a ‘Ticket <strong>to</strong> ride’<br />
Process. This means that GB parties can only book capacity<br />
at Moffat if they were nominated <strong>to</strong> do so by a counter party<br />
downstream of Moffat.<br />
As part of what is commonly termed NTS Exit Reform, the Office<br />
of Gas and Electricity Markets (OFGEM), approved a modification<br />
(UNC 195AV) <strong>to</strong> the GB code in early <strong>20</strong>09 which puts in place<br />
a user commitment model at Moffat where ultimately, parties<br />
will be required <strong>to</strong> book exit capacity several years in advance in<br />
order <strong>to</strong> ensure access <strong>to</strong> such capacity. The new arrangements<br />
come in<strong>to</strong> full effect in 30th of September <strong>20</strong>12 and will result<br />
in substantial changes <strong>to</strong> the allocation of NTS exit capacity at<br />
Moffat. One key impact is the abolition of the Downstream<br />
Capacity Register which facilitated the ticket <strong>to</strong> ride required by<br />
upstream shippers in order <strong>to</strong> procure exit capacity.<br />
Stakeholders in the GB gas market will continue throughout<br />
<strong>20</strong><strong>11</strong> <strong>to</strong> develop further initiatives pursuant <strong>to</strong> NTS Exit Reform.<br />
On 31st March <strong>20</strong><strong>11</strong> Ofgem published a decision paper<br />
stating that it would be appropriate <strong>to</strong> exclude capacity at GB<br />
interconnec<strong>to</strong>rs from exit capacity subsitution.<br />
52
NETWORK DEVELOPMENT STATEMENT<br />
9.5 CAG Summary<br />
Background<br />
“The All-island Energy Market <strong>Development</strong> Framework” paper<br />
(agreed by Irish and Northern Irish Ministers in November <strong>20</strong>04<br />
November 04) set the scene for the review of Energy markets<br />
on an All-Island basis. The Single Electricity Market (SEM) was<br />
the first phase in this development. In establishing Common<br />
Arrangements for Gas (CAG), the CER and the Northern Ireland<br />
Authority for Utility Regulation (NIAUR), plan, subject <strong>to</strong> the<br />
approval of the relevant authorities, <strong>to</strong> progress phase two of<br />
this energy management harmonisation work through the<br />
facilitation of the operation of the natural gas market in Ireland<br />
and Northern Ireland on an all-island basis.<br />
Potential benefits of CAG include:<br />
• enhanced interconnectivity of gas networks on the island.<br />
• enhanced competition.<br />
• more optimised investment.<br />
• increased Security of Supply.<br />
Current Status<br />
• The Regula<strong>to</strong>ry Authorities has initiated a number of<br />
preliminary CAG work streams.<br />
• <strong>Gaslink</strong> has worked closely, throughout <strong><strong>20</strong>10</strong>, with the<br />
CER and NIAUR <strong>to</strong> advance the approach <strong>to</strong> development<br />
of a Single <strong>Network</strong> Code for CAG. Work in this area is<br />
continuing in <strong>20</strong><strong>11</strong>.<br />
• Work on the <strong>20</strong><strong>11</strong> Joint Gas Capacity <strong>Statement</strong> (JGCS) is<br />
being currently progressed, with an expected publication<br />
date of July <strong>20</strong><strong>11</strong>. The <strong>20</strong><strong>11</strong> JGCS has been expanded <strong>to</strong><br />
cover a 10 year period, from <strong><strong>20</strong>10</strong>/<strong>11</strong> <strong>to</strong> <strong>20</strong><strong>11</strong>/<strong>20</strong>.<br />
The CAG work plan is aimed <strong>to</strong> be aligned with legislative<br />
timetables with respect <strong>to</strong> CAG Governance Structure if and<br />
when it is finalised.<br />
The first JGCS was produced in <strong>20</strong>09, as part of the CAG<br />
project. The JGCS examines forecasts of cus<strong>to</strong>mer demand for<br />
natural gas, the relevant sources of supply and the capacity of<br />
the gas transmission system on the island for the period <strong>20</strong>08/9<br />
<strong>to</strong> <strong>20</strong>15/16. It constitutes an important step in developing a<br />
harmonised approach <strong>to</strong> security of supply on the island under<br />
the CAG project. This work will be central <strong>to</strong> the CAG project<br />
and the systems operations function going forward.<br />
53
Appendix 1: Demand Forecasts<br />
The demand forecasts are summarised in Tables A1.1 – A1.3.<br />
Table A1.4 presents the various supply sources by entry point,<br />
both existing and proposed. The values represent the maximum<br />
supply volume each source could potentially provide.<br />
The ROI demand is broken down by sec<strong>to</strong>r, while the <strong>to</strong>tal<br />
demand is given for NI and the IOM. The forecasts are based on<br />
the following weather scenarios:<br />
• Table A1.1: Peak-day gas demand under severe 1 in 50<br />
weather conditions, i.e. weather so severe that it only occurs<br />
once every 50 years.<br />
• Table A1.2: Peak-day gas demand under ‘average year’<br />
weather conditions, i.e. the weather conditions that typically<br />
occur each year.<br />
• Table A1.3: Annual gas demand in average year weather<br />
conditions.<br />
The NI peak-day demand used for both the 1 in 50 and<br />
average year weather forecast is based on the latest available<br />
NI Postalised tariff data (extrapolated forward), plus provision<br />
for a new CCGT at Kilroot. The IOM peak-day is based on<br />
information provided by the Manx Electricity Authority (MEA).<br />
The weather correction is only applied <strong>to</strong> the distribution<br />
connected load, i.e. primarily <strong>to</strong> the residential and small I/C<br />
sec<strong>to</strong>rs. There is no weather correction applied <strong>to</strong> the power<br />
sec<strong>to</strong>r gas demand forecast and, therefore, its peak-day<br />
demand is the same for both the 1 in 50 and average year<br />
weather conditions.<br />
Table A1.1: Peak-day demand (1 in 50 weather) & Base Supply by gas year (in GWh/d)<br />
10/<strong>11</strong> <strong>11</strong>/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/<strong>20</strong><br />
(GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh)<br />
Demand<br />
Power 130.8 130.6 129.2 128.3 130.3 131.5 137.0 140.4 151.5 151.0<br />
I/C 49.3 50.1 51.1 52.2 53.5 53.6 53.7 54.6 53.7 53.8<br />
RES 69.7 68.8 67.8 66.9 66.1 65.4 64.8 63.3 63.6 63.1<br />
Own use 4.7 4.8 4.7 5.2 3.8 4.0 4.1 4.1 4.5 4.7<br />
Sub <strong>to</strong>tal 254.6 254.3 252.9 252.6 253.7 254.5 259.5 262.3 273.3 272.6<br />
Injection 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0<br />
IOM 5.8 6.2 6.3 6.4 6.5 6.6 6.6 6.7 6.8 7.0<br />
NI 85.1 86.2 87.3 88.4 89.1 108.3 109.0 109.6 <strong>11</strong>0.3 <strong>11</strong>1.0<br />
Total 345.4 346.7 346.4 347.3 349.2 369.4 375.1 378.7 390.5 390.6<br />
Notes<br />
1<br />
Injection refers <strong>to</strong> s<strong>to</strong>rage injections from the transmission system in<strong>to</strong> Kinsale and Larne S<strong>to</strong>rage<br />
2<br />
Own-use <br />
refers <strong>to</strong> fuel-gas used by the transmission system <strong>to</strong> transport the gas, e.g. fuel-gas used the compressor stations and heat exchangers at Above Ground<br />
Installations (AGIs)<br />
54
NETWORK DEVELOPMENT STATEMENT<br />
Table A1.2: Peak-day demand (average year weather) & Base Supply by gas year (GWh/d)<br />
10/<strong>11</strong> <strong>11</strong>/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/<strong>20</strong><br />
(GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh)<br />
Demand<br />
Power 130.8 130.6 129.2 128.3 130.3 131.5 137.0 140.4 151.5 151.0<br />
I/C 42.4 43.1 43.9 44.8 45.9 46.0 46.0 46.8 46.1 46.1<br />
RES 55.3 54.5 53.7 53.0 52.4 51.8 51.3 50.2 50.4 50.0<br />
Own use 3.4 3.4 3.4 3.7 2.7 2.8 2.8 2.8 3.2 3.3<br />
Sub <strong>to</strong>tal 231.8 231.6 230.3 229.8 231.3 232.2 237.2 240.1 251.2 250.5<br />
Injection 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0<br />
IOM 5.1 5.4 5.5 5.5 5.6 5.7 5.8 5.8 5.9 6.0<br />
NI 80.3 81.3 82.1 83.1 83.6 102.7 103.3 103.8 104.4 105.0<br />
Total 317.2 318.3 317.9 318.5 3<strong>20</strong>.5 340.6 346.3 349.7 361.5 361.5<br />
Table A1.3: Annual demand (average year) & Base Supply scenario by gas year (TWh/y)<br />
10/<strong>11</strong> <strong>11</strong>/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/<strong>20</strong><br />
(TWh) (TWh) (TWh) (TWh) (TWh) (TWh) (TWh) (TWh) (TWh) (TWh) (TWh)<br />
Demand<br />
Power 38.51 35.70 34.19 33.<strong>11</strong> 35.98 36.01 37.76 38.64 41.81 41.92<br />
I/C 10.30 10.45 10.63 10.84 <strong>11</strong>.08 <strong>11</strong>.09 <strong>11</strong>.09 <strong>11</strong>.09 <strong>11</strong>.09 <strong>11</strong>.09<br />
RES 7.93 7.82 7.70 7.60 7.51 7.43 7.36 7.29 7.23 7.17<br />
Own use 0.83 0.81 0.82 0.79 0.44 0.44 0.47 0.48 0.58 0.63<br />
Sub <strong>to</strong>tal 57.57 54.77 53.35 52.34 55.01 54.97 56.68 57.50 60.70 60.81<br />
Injection 1.74 1.90 2.08 2.19 2.32 2.38 2.43 2.48 2.51 2.54<br />
IOM 1.34 1.41 1.42 1.44 1.46 1.47 1.50 1.52 1.54 1.56<br />
NI 16.79 17.39 18.39 18.37 18.54 24.42 24.54 24.66 24.77 24.88<br />
Total 77.44 75.47 75.21 74.33 77.32 83.25 85.14 86.15 89.53 89.79<br />
The forecast assumes that the peak-day gas demand of the power sec<strong>to</strong>r is coincident with that of the residential and I/C sec<strong>to</strong>rs, as<br />
this gives the worst case scenario for gas system planning purposes.<br />
The power peak-day gas demand forecast assumes that all of the non gas-fired thermal power stations are available on the day, i.e.<br />
all of the peat, coal and oil-fired power stations. If there is a forced outage one or more of the non gas-fired thermal power stations,<br />
then the peak-day gas demand of the sec<strong>to</strong>r may be higher than indicated in the above forecasts.<br />
55
Appendix 1: Demand Forecasts continued<br />
Table A1.4: Maximum Daily Supply Volumes<br />
10/<strong>11</strong> <strong>11</strong>/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/<strong>20</strong><br />
(GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh) (GWh)<br />
Supply<br />
Corrib 0.0 0.0 0.0 104.5 104.5 102.5 102.5 85.7 71.1 59.6<br />
Inch 1 34.3 33. 2 32.1 31.0 30.2 29.4 29.0 28.7 28.4 28.1<br />
Shannon 2 0.0 0.0 0.0 0.0 0.0 0.0 127.0 127.0 127.0 127.0<br />
Larne 3 0.0 0.0 0.0 0.0 0.0 66.2 <strong>11</strong>0.5 243.0 243.0 243.0<br />
Larne 4 0.0 0.0 0.0 0.0 0.0 0.0 165.6 165.6 165.6 165.6<br />
Moffat 5 353.0 353.0 353.0 353.0 353.0 353.0 353.0 353.0 353.0 353.0<br />
Total 387.3 386.2 385.1 488.5 487.7 551.1 887.6 1,003 988.1 976.3<br />
1 <br />
Combination of existing s<strong>to</strong>rage and forecast production levels<br />
2<br />
This volume represents phase I of the proposed Shannon LNG facility<br />
3<br />
Refers <strong>to</strong> the proposed Islandmagee La s<strong>to</strong>rage facility<br />
4<br />
Refers <strong>to</strong> the proposed North East s<strong>to</strong>rage facility<br />
5<br />
The capacity of Moffat is based on the capacity of Beat<strong>to</strong>ck compressor station<br />
56
Appendix 2: His<strong>to</strong>ric Demand<br />
NETWORK DEVELOPMENT STATEMENT<br />
His<strong>to</strong>ric Daily Demand by Metering Type<br />
The his<strong>to</strong>ric demand data in Section No.3 is presented by<br />
sec<strong>to</strong>r (i.e. residential I/C and power), as this is more useful<br />
for forecasting purposes and is also considered <strong>to</strong> be a more<br />
familiar classification for the users of this document. The actual<br />
daily demand data is collected by metering type:<br />
• Large Daily Metered (LDM) sites with an annual demand of<br />
57.0 GWh/y or greater, and includes all the power stations<br />
and the large I/C sites.<br />
• Daily Metered (DM) sites with an annual demand greater<br />
than 5.6 GWh/y and less than 57.0 GWh/y, and includes the<br />
medium I/C, hospitals and large colleges etc.<br />
• Non-Daily Metered (NDM) with an annual demand of 5.6<br />
GWh/y or less, and includes the small I/C and residential<br />
sec<strong>to</strong>rs.<br />
The daily demands of the above categories are then<br />
recombined in<strong>to</strong> the following categories for reporting and<br />
forecasting purposes, using the monthly billed residential data<br />
<strong>to</strong> split the NDM sec<strong>to</strong>r in<strong>to</strong> its residential and I/C components:<br />
• Power sec<strong>to</strong>r: The individual power stations are separated<br />
out from the LDM <strong>to</strong>tal.<br />
• The I/C sec<strong>to</strong>r: Which is comprised of the demand from the<br />
remaining LDM sites, the DM sec<strong>to</strong>r and the NDM I/C sec<strong>to</strong>r<br />
(calculated as the residual of the <strong>to</strong>tal NDM demand and the<br />
residential demand).<br />
• Residential sec<strong>to</strong>r: Which is calculated as a percentage of<br />
the NDM demand, using the ratio of the <strong>to</strong>tal billed monthly<br />
NDM and residential demand.<br />
The his<strong>to</strong>rical daily demand on the transmission and distribution<br />
systems is shown in Fig. A2.1 and A2.2, with the corresponding<br />
peak-day, minimum-day and annual demands tabulated in<br />
Table A2.1. The transmission and distribution daily demands<br />
have been broken down in<strong>to</strong> the following sub-categories:<br />
• Transmission demand has been subdivided in<strong>to</strong> the power<br />
sec<strong>to</strong>r demand, with all of the remaining LDM and DM I/C<br />
demand combined in<strong>to</strong> the TX DM I/C category.<br />
• Distribution demand has been subdivided in<strong>to</strong> the NDM<br />
demand, with all of the remaining LDM and DM I/C demand<br />
combined in<strong>to</strong> the DX DM I/C category.<br />
It can be seen from Fig. A2.1 that the distribution connected<br />
demand is very weather sensitive, peaking in the colder winter<br />
period and falling off in the warmer summer period. The NDM<br />
demand is particularly weather sensitive, as it includes the<br />
residential and small I/C sec<strong>to</strong>rs, which primarily use gas for<br />
space heating purposes.<br />
The transmission connected demand on the other hand, does<br />
not appear <strong>to</strong> be particularly weather sensitive. The gas demand<br />
of the power sec<strong>to</strong>r in particular is driven by relative fuel prices<br />
rather than the weather (although the gas price can be weather<br />
related as well).<br />
The peak-day demands shown in Table A2.1 represent the<br />
coincident peak-day demands, i.e. the peak-day demand<br />
of each sec<strong>to</strong>r on the date of the overall system peak-day<br />
demands. Each sec<strong>to</strong>r may have had a higher demand on a<br />
different date. The non-coincident peak-day demand of each<br />
sec<strong>to</strong>r is shown in Table A2.2.<br />
57
Appendix 2: His<strong>to</strong>ric Demand continued<br />
Fig. A2.1: His<strong>to</strong>rical daily demand of<br />
transmission connected sites<br />
Table A2.1: His<strong>to</strong>rical coincident peak-day and annual demands<br />
Demand (GWh/d)<br />
160<br />
140<br />
1<strong>20</strong><br />
100<br />
80<br />
60<br />
40<br />
<strong>20</strong><br />
His<strong>to</strong>ric Transmission (TX) Demand<br />
<strong>20</strong>05/06 <strong>20</strong>06/07 <strong>20</strong>07/08 <strong>20</strong>08/09 <strong>20</strong>09/10<br />
(GWh) (GWh) (GWh) (GWh) (GWh) (GWh)<br />
Peak Day<br />
TX Power 96.8 <strong>11</strong>1.2 <strong>11</strong>9.7 126.4 134.3<br />
TX DM I/C 12.3 <strong>11</strong>.2 10.7 10.4 9.1<br />
DX DM I/C 10.8 10.8 <strong>11</strong>.2 <strong>11</strong>.0 <strong>11</strong>.7<br />
DX NDM 69.7 71.4 74.1 79.7 92.5<br />
Total ROI 189.6 <strong>20</strong>4.7 215.7 227.5 247.6<br />
0<br />
01 Oct 09<br />
01 Nov 09<br />
01 Dec 09<br />
01 Jan 10<br />
01 Feb 10<br />
01 Mar10<br />
01 Apr 10<br />
TX DM I/C<br />
01 May 10<br />
01 Jun 10<br />
01 Jul 10<br />
TX Power<br />
01 Aug 10<br />
01 Sep 10<br />
Annual<br />
TX Power 29,775 34,688 37,758 36,007 39,338<br />
TX DM I/C 4,004 4,029 3,793 3,518 3,701<br />
DX DM I/C 2,597 2,827 2,828 2,835 2,858<br />
DX NDM <strong>11</strong>,900 <strong>11</strong>,345 12,125 12,374 12,530<br />
Total ROI 48,276 52,890 56,505 54,734 58,427<br />
Fig. A2.2: His<strong>to</strong>rical daily demand of the<br />
distribution connected sites<br />
Table A2.2: His<strong>to</strong>rical Non-coincident peak-demands by sec<strong>to</strong>r<br />
Demand (GWh/d)<br />
1<strong>20</strong><br />
100<br />
80<br />
60<br />
40<br />
<strong>20</strong><br />
His<strong>to</strong>ric Distribution (DX) Demand<br />
<strong>20</strong>05/06 <strong>20</strong>06/07 <strong>20</strong>07/08 <strong>20</strong>08/09 <strong>20</strong>09/10<br />
(GWh) (GWh) (GWh) (GWh) (GWh) (GWh)<br />
Peak Day<br />
TX Power <strong>11</strong>0.2 123.1 129.3 135.7 134.3<br />
TX DM I/C 13.7 13.7 12.9 12.7 13.7<br />
DX DM I/C 10.8 <strong>11</strong>.3 <strong>11</strong>.3 <strong>11</strong>.2 <strong>11</strong>.8<br />
DX NDM 71.4 72.1 74.1 79.7 95.2<br />
Total ROI <strong>20</strong>6.1 2<strong>20</strong>.2 227.6 239.3 255.0<br />
0<br />
01 Oct 09<br />
01 Nov 09<br />
01 Dec 09<br />
01 Jan 10<br />
01 Feb 10<br />
01 Mar10<br />
01 Apr 10<br />
DX DM I/C<br />
01 May 10<br />
NDM<br />
01 Jun 10<br />
01 Jul 10<br />
01 Aug 10<br />
01 Sep 10<br />
Peak Day by Sec<strong>to</strong>r<br />
Power <strong>11</strong>0.2 123.1 129.3 135.7 134.3<br />
I/C 46.6 47.1 46.9 46.8 51.8<br />
RES 49.3 50.0 51.4 56.8 68.9<br />
Total ROI <strong>20</strong>6.1 2<strong>20</strong>.2 227.6 239.3 255.0<br />
58
Appendix 3: Energy Efficiency<br />
assumptions<br />
NETWORK DEVELOPMENT STATEMENT<br />
National Energy Efficiency Action Plan (NEEAP)<br />
The NEEAP for Ireland sets out the Government’s strategy for<br />
meeting the energy efficiency savings targets identified in the<br />
energy White Paper (<strong>20</strong>07) and the EU Energy Services Directive<br />
(ESD). These targets include:<br />
• The White Paper target of a <strong>20</strong>% reduction in ROI energy<br />
demand across the whole economy by <strong>20</strong><strong>20</strong>, with a higher<br />
33% target for the Public Sec<strong>to</strong>r.<br />
• The ESD target of a 9% reduction in energy demand by<br />
<strong>20</strong>16.<br />
Table A3.1: NEEAP Energy efficiency savings targets<br />
<strong><strong>20</strong>10</strong> <strong>20</strong>16 <strong>20</strong><strong>20</strong><br />
PEE target PEE target PEE target<br />
(GWh) (GWh) (GWh)<br />
Residential Sec<strong>to</strong>r<br />
Building Regulations <strong>20</strong>02 1,015 1,015 1,015<br />
Building Regulations <strong>20</strong>08 130 1,425 2,490<br />
Building Regulations <strong><strong>20</strong>10</strong> 0 570 1,100<br />
Low carbon homes 0 130 395<br />
SEI house of <strong>to</strong>morrow 30 30 30<br />
Warmer homes scheme <strong>11</strong>5 155 170<br />
Home Energy Savings programme 450 600 600<br />
Smart metering 0 650 690<br />
Greener Homes scheme 265 265 265<br />
Eco-design for energy appliances (lighting) <strong>20</strong>0 1,<strong>20</strong>0 1,<strong>20</strong>0<br />
More efficient Boiler Standard 400 1,600 2,400<br />
Total residential savings 2,605 7,640 10,355<br />
Business & Commercial sec<strong>to</strong>rs<br />
SEI public sec<strong>to</strong>r retrofit programme 140 140 140.0<br />
Building Regulations <strong>20</strong>05 185 370 560.0<br />
Building Regulations <strong><strong>20</strong>10</strong> 0 630 1,360.0<br />
SEI energy agreements (IS 393) 465 685 4,070.0<br />
SEI small business supports 160 330 565.0<br />
Existing ESB DSM programmes 380 410 435.0<br />
Renewable Heat Deployment programme 360 410 410.0<br />
ACA for energy efficient equipment 100 400 800.0<br />
Total business and commercial savings 1,790.0 3,375.0 8,340.0<br />
Other sec<strong>to</strong>rs<br />
Transport 775 3,105 4,670<br />
Energy Supply sec<strong>to</strong>r 275 300 365<br />
Total measures identified above 5,445 14,4<strong>20</strong> 23,730<br />
White Paper target (<strong>20</strong>% reduction by <strong>20</strong><strong>20</strong>) 31,925<br />
Additional measures yet <strong>to</strong> be identified 8,195<br />
59
Appendix 3: Energy Efficiency<br />
assumptions continued<br />
Impact on residential gas demand<br />
The proposed energy efficiency measures for the residential<br />
sec<strong>to</strong>r will clearly have a material impact on annual gas demand<br />
of the residential sec<strong>to</strong>r. The TDS forecast for the residential<br />
sec<strong>to</strong>r includes the following assumptions:<br />
• Incremental gas demand from new residential connections<br />
will continue <strong>to</strong> reduce due <strong>to</strong> tighter building regulations<br />
and will fall <strong>to</strong> 40% of <strong>20</strong>05/06 levels by <strong>20</strong>12/13.<br />
• Existing residential gas demand will also reduce due <strong>to</strong><br />
the introduction of more efficient boiler standards (e.g.<br />
condensing boilers), smart metering and the combined<br />
impact of the Low Carbon Homes, Warmer Homes & Home<br />
Energy Saving schemes.<br />
The average annual gas consumption of all new residential<br />
cus<strong>to</strong>mers connected during the <strong>20</strong>05/06 gas year was<br />
approximately 12.3 MWh/y. The TDS forecast assumes the<br />
average gas consumption of each new cus<strong>to</strong>mer connected by<br />
<strong>20</strong>12/13, will reduce by 60% <strong>to</strong> 4.9 MWh/y.<br />
The NEEAP assumes a <strong>to</strong>tal reduction of 4,255 GWh in<br />
residential energy demand, due <strong>to</strong> the introduction of more<br />
efficient boiler standards, smart metering and the combined<br />
impact of the Low Carbon Homes, Warmer Homes and Home<br />
Energy Saving schemes.<br />
In addition it also identifies the potential for a further energy<br />
efficiency reductions of 1,9<strong>20</strong> GWh from the retrofitting attic,<br />
cavity-wall and wall-lining insulation <strong>to</strong> existing houses (after<br />
adjusting for the impact of the Warmer Homes and Home<br />
Energy Savings schemes).The TDS forecast assumes that:<br />
• Total energy efficiency savings of 5,614 GWh in residential<br />
heat demand between <strong><strong>20</strong>10</strong>/<strong>11</strong> and <strong><strong>20</strong>19</strong>/<strong>20</strong> from the<br />
above measures (annual reduction of 561 GWh/y).<br />
• Approximately 27% of this target reduction will be<br />
achieved in gas-fired residential homes, based on the gas<br />
share of residential heat in <strong>20</strong>09, i.e. the gas share of <strong>to</strong>tal<br />
residential TFC after excluding the electricity and renewable<br />
components.<br />
• This would lead <strong>to</strong> a reduction of 152 GWh/y in residential<br />
annual gas demand, which is equivalent <strong>to</strong> 1.8% of the<br />
residential gas demand in <strong>20</strong>09/10.<br />
Impact on I/C gas demand<br />
The NEEAP assumes a <strong>to</strong>tal reduction of 3,375 GWh in I/C gas<br />
demand by <strong>20</strong>16, and a <strong>to</strong>tal reduction of 8,340 GWh by <strong>20</strong><strong>20</strong>.<br />
Some of this reduction may have already occurred since the<br />
<strong>20</strong>02-<strong>20</strong>05 baseline period. The TDS forecast assumes:<br />
• That the <strong>to</strong>tal I/C energy demand will reduce by 3,375 GWh<br />
by <strong>20</strong>16 and a further 4,965 GWh by <strong>20</strong><strong>20</strong> (per the NEEAP),<br />
an annual reduction of 338 GWh/y up <strong>to</strong> <strong>20</strong>16 and 1,174<br />
GWh/y up <strong>to</strong> <strong>20</strong><strong>20</strong>.<br />
• The gas share of these reductions is assumed <strong>to</strong> be 19.3%<br />
up <strong>to</strong> <strong>20</strong>16 and 21.4% up <strong>to</strong> <strong>20</strong><strong>20</strong>, based on gas share of<br />
<strong>to</strong>tal I/C TFC in <strong>20</strong>08 (of 23.0%) and adjustments <strong>to</strong> exclude<br />
initiatives which are specific <strong>to</strong> electricity (e.g. ESB demand<br />
reduction programmes).<br />
• This would lead <strong>to</strong> an annual reduction of 65.1 GWh/y in I/C<br />
annual gas demand up <strong>to</strong> <strong>20</strong>14/15, and 266 GWh/y from<br />
<strong>20</strong>15/16 onwards (which is equivalent <strong>to</strong> 0.6% and 2.6% of<br />
the <strong>20</strong>09/10 I/C annual demand respectively).<br />
60
Glossary<br />
NETWORK DEVELOPMENT STATEMENT<br />
AC<br />
ACER<br />
ACS<br />
AGI<br />
ANOP<br />
AQ<br />
Bar-g<br />
BGÉ<br />
BGN<br />
BGSI<br />
CAG<br />
CCGT<br />
CCTV<br />
CER<br />
CNG<br />
CP<br />
CSO<br />
DCENR<br />
DCVG<br />
DD<br />
DM<br />
DRI<br />
DX<br />
E/W<br />
EC<br />
ENTSOG<br />
ESB<br />
ESD<br />
ESRI<br />
ETS<br />
EU<br />
GATG<br />
GB<br />
GCS<br />
GCV<br />
GDP<br />
GEPT<br />
GERT<br />
GPRS<br />
GSMR<br />
GTMS<br />
GWh<br />
GWh/d<br />
HDD<br />
I/C<br />
IBP<br />
IC<br />
IOM<br />
IS<br />
JCS<br />
JGCS<br />
km<br />
LDM<br />
LDZ<br />
LF<br />
LNG<br />
LSFO<br />
m/s<br />
MCS<br />
MEA<br />
MJ/scm<br />
mm<br />
MOP<br />
- Alternating Current<br />
- Agency for the Co-operation of Energy Regula<strong>to</strong>rs<br />
- Average Cold Spell<br />
- Above Ground Installation<br />
- Anticipated Normal Offtake Pressure<br />
- Annual Quantity<br />
- Unit of gauge pressure<br />
- Bord Gais Éireann<br />
- Bord Gais <strong>Network</strong>s<br />
- Bord Gais Strategic Investments<br />
- Common Arrangements for Gas<br />
- Combined Cycle Gas Turbine<br />
- Closed Circuit Television<br />
- Commission for Energy Regulation<br />
- Compressed Natural Gas<br />
- Cathodic Protection<br />
- Central Statistics Office (ROI)<br />
- Dept of Communications, Energy and Natural Resources<br />
- Differential Current Voltage Gradient<br />
- Degree Day<br />
- Daily Metered<br />
- District Regulating Installations<br />
- Distribution System<br />
- East/West electricity interconnec<strong>to</strong>r<br />
- European Commission<br />
- European <strong>Network</strong> Transmission System Opera<strong>to</strong>rs in gas<br />
- Electricity Supply Board<br />
- Energy Services Directive<br />
- Economic and Social Research Institute<br />
- Emission Trading Scheme<br />
- European Union<br />
- Gas Advisory Task Group<br />
- Great Britain<br />
- Gas Capacity <strong>Statement</strong><br />
- Gross Calorific Value<br />
- Gross Domestic Product<br />
- Gas Emergency Planning Team<br />
- Gas Emergency Response Team<br />
- General Packet Radio Service<br />
- Gas Safety Management Regulations<br />
- Gas Transmission Management System<br />
- Giga-Watt hours<br />
- Giga-Watt hours per day<br />
- Horizontal Directional Drill<br />
- Industrial Commercial<br />
- Irish Balancing Point<br />
- Interconnec<strong>to</strong>r system<br />
- Isle of Man<br />
- Irish Standard<br />
- Joint Capacity <strong>Statement</strong><br />
- Joint Gas Capacity <strong>Statement</strong><br />
- Kilometre<br />
- Large daily metered<br />
- Local Distribution Zone<br />
- Load Fac<strong>to</strong>r<br />
- Liquefied Natural Gas<br />
- Low Sulphur Fuel Oil<br />
- Metres per second<br />
- Midle<strong>to</strong>n Compressor Station<br />
- Manx Electricity Authority<br />
- Mega Joules per standard cubic metres<br />
- Millimetre<br />
- Maximum Operating Pressure<br />
mscm<br />
mscm/d<br />
mscm/m<br />
MTR<br />
MW<br />
MWh/y<br />
N/W<br />
NBP<br />
NDM<br />
NDS<br />
NEC<br />
NEEAP<br />
NEM<br />
NG<br />
NGEM<br />
NGEP<br />
NGV<br />
NGVA<br />
NHA<br />
NI<br />
NIAUR<br />
NSAI<br />
NTS<br />
OCGT<br />
OFGEM<br />
OI<br />
P.A.<br />
PE<br />
PMA<br />
PSO<br />
PTL<br />
PTTW<br />
RES<br />
ROI<br />
RTU<br />
S/N<br />
SAC<br />
SCADA<br />
SDR<br />
SEI<br />
SEM<br />
SI<br />
SNIP<br />
SNP<br />
SONI<br />
SOS<br />
SPA<br />
SQL<br />
SRMC<br />
SWL<br />
SWSOS<br />
tCO2<br />
TDS<br />
TFC<br />
TFEP<br />
TPA<br />
TPER<br />
TSO<br />
TWh/y<br />
TX<br />
UK<br />
V<br />
yr<br />
- Millions of standard cubic meters<br />
- Millions of standard cubic meters per day<br />
- Millions of standard cubic meters per month<br />
- Medium Term Review<br />
- Mega Watts<br />
- Mega Watt Hours per year<br />
- North West Pipeline<br />
- National Balancing Point<br />
- Non - Daily Metered<br />
- <strong>Network</strong> <strong>Development</strong> <strong>Statement</strong><br />
- <strong>Network</strong> Emergency Coordina<strong>to</strong>r (in GB)<br />
- National Energy Efficiency Action Plan<br />
- <strong>Network</strong> Emergency Manager (in the ROI)<br />
- National Grid<br />
- Natural Gas Emergency Manager<br />
- National Gas Emergency Plan<br />
- Natural gas Vehicle<br />
- Natural and Bio-gas Vehicle Association (EU)<br />
- National Heritage Area<br />
- Northern Ireland<br />
- Northern Ireland Authority for Utility Regulation<br />
- National Standards Authority of Ireland<br />
- National Transmission System (in GB)<br />
- Open Cycle Gas Turbine<br />
- Office of the Gas and Electricity Markets (UK)<br />
- Odour Intensity<br />
- Per Annum<br />
- Polyethylene<br />
- Pressure Maintenance Agreement<br />
- Public Service Obligation<br />
- Premier Transmission Ltd<br />
- Pipeline <strong>to</strong> the West<br />
- Residential<br />
- Republic of Ireland<br />
- Remote terminal units<br />
- South / North Pipeline<br />
- Special Areas of Conservation<br />
- Supervisory Control and Data Acquisition<br />
- Standard Dimension Ratio<br />
- Sustainable Energy Ireland<br />
- Single Electricity Market<br />
- Statu<strong>to</strong>ry Instrument<br />
- Scotland Northern Ireland Pipeline<br />
- South North Pipeline<br />
- System Opera<strong>to</strong>rs Northern Ireland<br />
- Security of Supply<br />
- Special Protection Areas<br />
- Structured Query Language<br />
- Short Run Marginal Cost<br />
- South West Lobe<br />
- South West Scotland On Shore<br />
- Tonnes of carbon dioxide<br />
- Transmission <strong>Development</strong> <strong>Statement</strong><br />
- Total Final Consumption<br />
- Task Force on Emergency Procedures<br />
- Third Party Access<br />
- Total Primary Energy Requirement<br />
- Transmission System Opera<strong>to</strong>r<br />
- Terra Watt hours per year<br />
- Transmission System<br />
- United Kingdom<br />
- Voltage<br />
- Year<br />
61
Gasworks Road,<br />
Cork, Ireland<br />
Tel 021 500 6100<br />
Email info@gaslink.ie<br />
www.gaslink.ie<br />
62