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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

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