First Hydrocarbon Allocation Forum

Held on 21 March 2007 at the Aberdeen Exhibition and Conference Centre

In a well attended first meeting of the Forum, Peter Mills-Baker delivered an excellent presentaion on the operation of the National Transmission System. The presentation is available here, but note that it is over five megabytes in size. He discussed:

  1. An overview of the landing sites for gas in the UK and their relative importance (strategically and in terms of volumes).
  2. How the gas is transported and an overview of the NTS.
  3. How the system is balanced on a daily basis and what software/hardware system(s) are used to monitor it.
  4. Nominations and how are they processed by the operator.
  5. How the system becomes long or short and how the operator establishes the state of the system and seeks to rebalance it.
  6. The nature of capacity auctions, who bids in them, and how often they are held.
  7. How the operator establishes whether gas shippers have met their contractual obligations or not, and deadlines for the submission of allocation statements to the operator.
  8. Whether users of the system can try to manipulate the state of the system to their advantage and if so, what is done about it.
  9. The nature of penalties attributable to system users.
  10. The role of Interconnector: what sort of volumes does it handle; who is responsible for it; what impact does it have on the UK gas market.
  11. The role of LNG in the future and the impact it will have on the UK gas market.
  12. The responsibilities of the grid operator and the role of the DTI and Ofgem in its operations.

Feedback from the forum attendees was universally positive, with 100% of attendees saying that they would attend subsequent meetings.

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