Fluxys Belgium SA Class D · EURONEXT:FLUX

Fluxys Belgium SA Class D — Corporate Update (November 2017)

49 slides from Fluxys Belgium SA Class D's corporate update, Nov 8, 2017

  1. Slide 1: Info Session 8 November 2017

    INFO SESSION Wednesday 8 November 2017 | 14:30 – 17:00 1 Fluxys Belgium - document for information purposes only

  2. Slide 2: Fluxys Belgium - document for information purposes only 8 November 2017

    2 Fluxys Belgium - document for information purposes only 8 November 2017

  3. Slide 3: Testing online solutions for info sessions

    TESTING ONLINE SOLUTIONS FOR INFO SESSIONS • On-line solution can offer − Presentation sharing − Audio sharing − Interactive chat-room − Tbc video sharing • Moderated by Fluxys people − Questions from the on-line audience are reported during the session through the moderator • Today in test for the

  4. Slide 4: Agenda

    Agenda 1. LNG Services – latest consultations and sales processes 2. Storage Services – calendar for 2018-2019 storage season 3. BELUX market area – recent developments 4. ZTP convergence – post-launch experience sharing Coffee break 5. VIPs – status developments with GRTgaz and GTS 6. Upcoming cons

  5. Slide 5: LNG Services – latest consultations and sales processes

    1. LNG Services – latest consultations and sales processes 2. Storage Services – calendar for 2018-2019 storage season 3. BELUX market area – recent developments 4. ZTP convergence – post-launch experience sharing Coffee break 5. VIPs – status developments with GRTgaz and GTS 6. Upcoming consultatio

  6. Slide 6: Consultation on LNG services & tariffs

    CONSULTATION ON LNG SERVICES & TARIFFS Proposal for services and tariffs are ready for submission at CREG Approval expected by year-end Consultation on LNG services was held between 3 October and 23 October 2017 on following topics • LNG transshipment services • 2nd LNG truck loading station • Updat

  7. Slide 7: 380 000 m³ LNG storage + 180 000 under construction

    380 000 m³ LNG storage + 180 000 under construction 7 Fluxys Belgium - document for information purposes only 8 November 2017

  8. Slide 8: World-wide regulation favours LNG

    WORLD-WIDE REGULATION FAVOURS LNG Max % sulphur in ship fuel 5,0 Global norm 4,0 SECA norm 3,0 2,0 1,0 - 2008 2010 2012 2014 2016 2018 2020 2022 2024 Alternative Fuels Directive Sulphur Emission Control Area adopted by the EU Parliament (2014)  CNG refuelling infrastructure Existing SECA area every

  9. Slide 9: Small scale LNG in Europe is growing, and has a huge potential for growth

    SMALL SCALE LNG IN EUROPE IS GROWING, AND HAS A HUGE POTENTIAL FOR GROWTH 430 mtpa market Heavy Fuel Oil 53 mtpa LPG Small-scale LNG: 1.7 mtpa 27 mtpa Diesel ≈ gasoil Ships 270 mtpa Gasoline Industry 80 mtpa Trucks, vans, cars 200 mtpa Cars Ships 7 mtpa Petrochemical Heating oil 63 mtpa Chem feed -

  10. Slide 10: Downstream small scale LNG supply from Zeebrugge: a closer look

    DOWNSTREAM SMALL SCALE LNG SUPPLY FROM ZEEBRUGGE: A CLOSER LOOK Loading of bunker barges Bunker vessel and feeder ships up to 7 000 m³ LNG Fluxys LNG terminal 380 000 m³ LNG Feeder ship Bunker vessel End user Intermediate storage up to 7 000 m³ LNG 15 000 m³ LNG 1000 to 100 000 m³ LNG/y Loading of L

  11. Slide 11: LNG truck loading in Zeebrugge

    LNG TRUCK LOADING IN ZEEBRUGGE  20 active truck loading companies  Capacity of 4 000 loadings/year  24/7, online day-ahead scheduling > Industrial sites without pipe gas >50% > LNG refuelling stations <40% > LNG as fuel for shipping <10%  Destinations: Belgium, UK, France, Germany, the Netherlan

  12. Slide 12: LNG as a fuel for industry, ships and trucks

    LNG AS A FUEL FOR INDUSTRY, SHIPS AND TRUCKS Loading of LNG trailers Fluxys 10% LNG terminal LNG trailer 50% Small ships propelled on LNG 40% Truck refuelling station - e.g. in Veurne, built by Fluxys Fuel for industry 12 Fluxys Belgium - document for information purposes only 8 November 2017

  13. Slide 13: LNG truck loading 2018: 2nd loading station

    LNG TRUCK LOADING 2018 : 2ND LOADING STATION • FID taken to construct 2nd truck loading station • Timing: in service mid 2018 • Capacity enhancement: +4 000 loadings/year • Creates redundancy, hence guarantying maximum availability of the truck loading services. • Trucks that are technically approve

  14. Slide 14: LNG truck loading subscription window

    LNG TRUCK LOADING SUBSCRIPTION WINDOW Subscription window for truck loading capacities is “on going” from 12 October until 16 November 2017 Request from interested parties can be addressed info.LNG@fluxys.com More information can be found on our website or you can contact your Key Account Manager 14

  15. Slide 15: Agenda: Storage Services

    1. LNG Services – latest consultations and sales processes 2. Storage Services – calendar for 2018-2019 storage season 3. BELUX market area – recent developments 4. ZTP convergence – post-launch experience sharing Coffee break 5. VIPs – status developments with GRTgaz and GTS 6. Upcoming consultatio

  16. Slide 16: Allocation calendar for storage services

    ALLOCATION CALENDAR FOR STORAGE SERVICES Fluxys Belgium plans to initiate its yearly “subscription window” for Storage Services (starting on 15/04/2018) from 21/11/17 to 08/12/17 Loenhout Storage Capacities • The offer will consist of 800 680 MCM 700 − 280 MCM in SBU’s for 1 – 10 years* 600 500 280

  17. Slide 17: Agenda: BELUX market area

    1. LNG Services – latest consultations and sales processes 2. Storage Services – calendar for 2018-2019 storage season 3. BELUX market area – recent developments 4. ZTP convergence – post-launch experience sharing Coffee break 5. VIPs – status developments with GRTgaz and GTS 6. Upcoming consultatio

  18. Slide 18: Info session 8 November 2017

    Info session 8 November 2017 BALANSYS BLAREGNIES POPPEL

  19. Slide 19: Balansys' activity and BeLux market integration

    Balansys’ activity and BeLux market integration • Balansys SA: Joint Venture created between Fluxys Belgium SA (50%) and Creos Luxembourg (50%) • Subject to Belgium and Luxemburg regulation (CREG and ILR respectively) 1. Phase 1: BeLux integrated market zone launched on 1/10/2015 − First cross borde

  20. Slide 20: Balansys documents

    Balansys documents • Compliance Programme (CP): − aiming at ensuring non-discrimination, • Advice of NRA’s received equal treatment of market participants as • Next step: submit to ACER for approval well as preserving the confidentiality of commercially sensitive data • Regulated documents: − Balanc

  21. Slide 21: Balancing tariffs for 2018

    BALANCING TARIFFS FOR 2018 • Balancing activity must be financially neutral (Art. 29 BAL NC) Evolution of Balancing Neutrality account • For 2017: Neutrality charge of 0,005€/MWh was 400,00 introduced in the balancing tariffs k€ 300,00 − Helped to compensate the neutrality account 200,00 − Winter 20

  22. Slide 22: Transfer of balancing activities from Fluxys Belgium to Balansys

    TRANSFER OF BALANCING ACTIVITIES FROM FLUXYS BELGIUM TO BALANCING OPERATOR BALANSYS • Phase 2 of BeLux market integration = Transfer of balancing activities from TSO Fluxys Belgium to balancing operator Balansys • Impacting Fluxys Belgium regulatory documents: − Balancing activity stripped from STA,

  23. Slide 23: Agenda: ZTP convergence

    1. LNG Services – latest consultations and sales processes 2. Storage Services – calendar for 2018-2019 storage season 3. BELUX market area – recent developments 4. ZTP convergence – post-launch experience sharing Coffee break 5. VIPs – status developments with GRTgaz and GTS 6. Upcoming consultatio

  24. Slide 24: ZTP convergence in a nutshell

    ZTP CONVERGENCE IN A NUTSHELL As from 1 October 2017, Fluxys Belgium successfully harmonized the underlying principles and operational rules for all ZTP Trading Services − Discontinuation of all Back-up, Offtake, Rounding Services − Lesser-of-rule principle and single-sided nomination for exchange-b

  25. Slide 25: Data and price transparency

    DATA AND PRICE TRANSPARENCY − Monitoring on a real-time basis of transferred quantities and implicit allocation − For past and future (forecasted) hours so that Grid user can avoid a potential future implicit capacity allocation by subscribing a WD/DA capacity https://gasdata.fluxys.com − Same level

  26. Slide 26: Can we improve the service?

    CAN WE IMPROVE THE SERVICE? − Since 1/10/2017 Fluxys Belgium allocated implicit capacity to 24 different Grid Users, both in Entry or Exit direction − Efficient solution to cope with mismatches on physical trading services − Several Grid Users received very small implicit allocations due to rounding

  27. Slide 27: Fluxys Belgium - document for information purposes only 8 November 2017

    27 Fluxys Belgium - document for information purposes only 8 November 2017

  28. Slide 28: Agenda: VIPs

    1. LNG Services – latest consultations and sales processes 2. Storage Services – calendar for 2018-2019 storage season 3. BELUX market area – recent developments 4. ZTP convergence – post-launch experience sharing Coffee break 5. VIPs – status developments with GRTgaz and GTS 6. Upcoming consultatio

  29. Slide 29: Update on Virtualys – launch on 01/12/'17

    UPDATE ON VIRTUALYS – LAUNCH ON 01/12/’17 MODEL − From 1 December 2017 onwards, all H-points linking ZTP-PEG-N , being Alveringem, Blaregnies Segeo and Blaregnies Troll will be grouped in an H-VIP, named Virtualys Alveringem − All market activities, such as capacity booking, nominations, allocations

  30. Slide 30: Model & product offer on VIP BE-NL – Q4/2018

    MODEL & PRODUCT OFFER ON VIP BE-NL – Q4/2018 MODEL Zandvliet H − All H-points linking ZTP - TTF will be grouped in a H-VIP. L-IP untouched. Zelzate 1 − New H-VIP point will replace Zelzate 1, Zandvliet H, ‘s Gravenvoeren. Existing IP’s will disappear. VIP BE-NL All existing contracts will be operate

  31. Slide 31: Tariff VIP BE-NL

    TARIFF VIP BE-NL (IN €/kWh/h/Y) * ENTRY FIRM INTERRUPTIBLE OCUC WHEELING (ZZ2) Zelzate 1 0,732 0,586 1,073 [IZT/ZBG] 0,333 Zandvliet 0,732 0,586 Current H-gas ‘s Gravenvoeren 0,732 0,586 0,469 [EYN] EXIT FIRM INTERRUPTIBLE OCUC WHEELING (ZZ2) Zelzate 1 1,903 1,523 1,073 [IZT/ZBG] 0,333 Zandvliet ‘s

  32. Slide 32: Agenda: Upcoming consultations

    1. LNG Services – latest consultations and sales processes 2. Storage Services – calendar for 2018-2019 storage season 3. BELUX market area – recent developments 4. ZTP convergence – post-launch experience sharing Coffee break 5. VIPs – status developments with GRTgaz and GTS 6. Upcoming consultatio

  33. Slide 33: Clear potential to streamlining booking process

    CLEAR POTENTIAL TO STREAMLINING BOOKING PROCESS Shippers prefer to buy capacity in standardized and predictable way  Moving products to PRISMA is positive as long as this does not reduce market windows or increases lead times  Making more products available on day ahead basis, reducing lead times

  34. Slide 34: Streamline channels and products on interconnection points

    STREAMLINE CHANNELS AND PRODUCTS ON INTERCONNECTION POINTS Already possible on PRISMA  proposal to be implemented in Q2/2018 • No change, all on PRISMA Y Q M D WD CAM IPs Auction Interconnection Point • Zeebrugge, ZPT, Zelzate 2 moved to PRISMA Non CAM • First-Come First-Served principle Y Q M D WD

  35. Slide 35: Additional simplifications

    ADDITIONAL SIMPLIFICATIONS Leadtime assignments via PRISMA from 4 to 2 Business Days Coherent utilization of Working Days and Business Days  All Business Days Manual booking remains possible for unbundled products as fallback for major PRISMA unavailability All forms transferred from ACT towards Fl

  36. Slide 36: Clear potential to optimize invoice & invoicing process

    CLEAR POTENTIAL TO OPTIMIZE INVOICE & INVOICING PROCESS Invoicing is top of mind when shippers are asked about Fluxys pain points  Invoices are overly complex – too many lines  Number of invoices sent is too high – regular invoices and corrections, Driver sometimes for very small amounts  PDF for

  37. Slide 37: Simplify invoicing cycle and back billings

    SIMPLIFY INVOICING CYCLE AND BACK BILLINGS As is invoicing cycle Proposed invoicing cycle 1 4 2 3 1• Streamlined invoice types (52) 4• Back billings (items outside regular cycle) − Group monthly back-bills into 2• Harmonizing through grouping addressed economic periods quarterly correction − Remove

  38. Slide 38: Ease treatment of invoices by shippers with user-friendly format

    EASE TREATMENT OF INVOICES BY SHIPPERS WITH USER-FRIENDLY FORMAT Initially, long appendix in PDF format, XML-format facilitates treatment difficult to handle for shippers and checks of invoicing data As Excel table As Pivot table for insights/checks Up to 500 pages of Appendix for some shippers 38 F

  39. Slide 39: Simplification of 'billable' services

    SIMPLIFICATION OF 'BILLABLE' SERVICES Type Service Proposal • Fee removed for non-compliant gas IUK compliancy • Selective constraint for Wobbe related issues included IP services in generic IP constraint rules (ACT Attach C1) Transfer of capacity • Remove admin tariff • Included as standard option

  40. Slide 40: Reshuffling 2018 - context

    RESHUFFLING 2018 - CONTEXT • Long term contracts were subscribed prior to the entry into force of the CAM network code in November 2015 − Several Grid Users have expressed an interest for a new window to reshuffle their capacity portfolio (current flexibility offered by capacity conversion or surren

  41. Slide 41: Reshuffling service description (1/2)

    RESHUFFLING SERVICE DESCRIPTION (1/2) • Conditions of eligibility 4 4,8 − Eligible capacities 2,5 3,1 2,8 » Entry and Exit unbundled capacity contracts » Firm and backhaul capacity types GY18 GY19 GY20 GY21 GY22 4 years option : Max volume reshuffled : 2,8 » 4 years option : Minimum booked capacity

  42. Slide 42: Reshuffling service description (2/2)

    RESHUFFLING SERVICE DESCRIPTION (2/2) • Conditions − Entry for Entry, Exit for Exit − H  L − Revenue neutral (based on applicable tariffs 2018 ; without taking into account premium of newly acquired capacities) − Flat profile(s) over period GY18GY22 and/or GY19GY22 IPC 0,3 4,8 IPA 4 GY18 GY19 GY

  43. Slide 43: Reshuffling timeline

    RESHUFFLING TIMELINE Reshuffling window to be organized prior to PRISMA yearly auctions of July 2018 May June July 2 weeks : 04/06/2018 : 02/07/2018 : Fluxys BE & Grid PRISMA PRISMA & Grid Users publication yearly Users Prior to May : Reshuffling capacities yearly auctions CREG Window 1 week : Decis

  44. Slide 44: L/H conversion – 2018 operations

    L/H CONVERSION – 2018 OPERATIONS • Physical L/H conversion • Domestic Exit capacity switch planned for both TSO and DSO − Full switch (TSO end users): end users in June 2018 » 100 % capacity switch L  H − Infrax and Resa: ~ 49.000 − Partial switch (only for GOS): clients » Pro rata the market share

  45. Slide 45: Agenda: Planning and closing remarks

    1. LNG Services – latest consultations and sales processes 2. Storage Services – calendar for 2018-2019 storage season 3. BELUX market area – recent developments 4. ZTP convergence – post-launch experience sharing Coffee break 5. VIPs – status developments with GRTgaz and GTS 6. Upcoming consultatio

  46. Slide 46: Key moments for end of year

    KEY MOMENTS FOR END OF YEAR Fix/Flex subscription window for 2018 capacities − As from Thursday 9 November 2017 until Friday 15 December 2017 cob − Service Request Form is available on our website − Calendar Day is possible but we aim – if not requested – at removing this unused option Yearly renewa

  47. Slide 47: Market consultations / service development

    MARKET CONSULTATIONS / SERVICE DEVELOPMENT 2017 2018 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Consult Feedback on rounding options CREG 23 &24 Quarterly ZTP CNOT Virtualys Tariffs Auctions Convergence 2018 IA Virtualys Finalize Sign Consult CREG 25 ILR BAL Tariffs BAL Tariffs 2018

  48. Slide 48: Sales activities

    SALES ACTIVITIES 2017 2018 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Fix-Flex (18/12) Reshuffling QC Yearly window window Auctions Renewal (15/12) (29/12) Domestic Exit SBU 1-10 year FCFS FCFS Add. Services 1 year SBU / Add Services 1Year Add. Services <1y Truck Loading Early Trans-shipment Su

  49. Slide 49: Thank you for your attention!

    THANK YOU FOR YOUR ATTENTION! 49 Fluxys Belgium - document for information purposes only 8 November 2017

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