The binding phase of the Open Season procedure

Notice on the closing of the Open Season procedure (1.2.2019.)

Notice on extension of the deadline for the evaluation of the submitted bids and the implementation of the economic test (24.1.2019)
 
In coordination with LNG Croatia, Plinacro informs participants of the Open Season procedure about the extension of the deadline for the evaluation of the submitted bids and the implementation of the economic test. Plinacro will deliver a notice about the results of the Open Season procedure by 31 January 2019.


Notice on extension of the deadline for the evaluation of the submitted bids and the implementation of the economic test III (17.1.2019)
 
In coordination with LNG Croatia, Plinacro informs participants of the Open Season procedure about the extension of the deadline for the evaluation of the submitted bids and the implementation of the economic test III. Plinacro will deliver a notice about the results of the Open Season procedure by 25 January 2019.


Informations on the changes in the Rules for carrying out the binding phase of the Open Season procedure (19.12.2018.)

Plinacro would like to inform all potential applicants about the changes in the Rules for carrying out the binding phase of the Open Season procedure, related to the changes in indicative tariff items.

On 18.12.2018 HERA published the Final Consultations Document on the proposal of the methodology for determining the reference price of gas transmission services pursuant to article 26 of Commission Regulation (EU) 2017/460 (hereinafter the Final Consultations Document) (https://www.hera.hr/hr/docs/2018/savjetovanje-2018-16_02.pdf). The Final Consultations Document proposes the methodology for determining the reference price of transmission services for the period 2021-2026.

Taking into account that HERA in June 2018 adopted the Decision on determining indicative amounts of tariff items for gas transmission for the contracted firm capacity at an annual level for the entry into the transmission system from the terminal for liquefied natural gas and for the indicative amounts of tariff items for the contracted firm capacity at an annual level for the exit from the transmission system at an interconnection (class: 310-34/17-03/03, file no.: 371-01-18-66), containing indicative tariffs for the period 2021-2040, by the Final Consultations Document HERA proposes to use the possibility of fixed payable price approach as a motivating approach with the aim of enabling the long-term booking of capacities related to the project of gas delivery from the LNG terminal in the Open Season procedure.

In compliance with the mentioned, in relation to the Decision on indicative amounts of tariff items for gas transmission („Official Gazette “, no. 56/18) new indicative amounts of tariff items for gas transmission for scenario S1 are proposed, for the contracted firm capacity at an annual level for the entry into the transmission system from the terminal for liquefied natural gas and for the contracted firm capacity at an annual level for the exit from the transmission system at an interconnection, to the energy entity PLINACRO d.o.o., Savska cesta 88 A, Zagreb, for the purpose of the implementation of the binding phase of the Open Season procedure for the project of the terminal for the liquefied natural gas Krk. Consequently, indicative tariff items published in the Rules dtd 21 June 2018 do not apply.

Scenario S1 anticipates the following planned contracted capacities with gas transmission in the amount of 1.50 bcm/y: capacity booking at the Omišalj entry in the amount of 171,233 m3/h (1,644 MWh/h @NCV) and at the Dravaszerdahely interconnection in the amount of 114,155 m3/h (1,096 MWh/h @NCV), for the period 2021-2040.

In the Open Season procedure a fixed payable price approach is applied. The amounts of indicative tariff items and the associated capacities are stated in Table 4, expressed in HRK/kWh/day at net calorific value (NCV), while in tables 5a and 5b they are also expressed in EUR/MWh at gross calorific value (GCV) by applying the indicative exchange rate 1 EUR =7,5 HRK.

Year	Estimated amount of contracted capacity (kWh/day)		Indicative tariff Omišalj (kn/kWh/day)	Indicative tariff Dravaszerdahely (kn/kWh/day)
	Omišalj	Dravaszerdahely
2021	39 456 000	26 304 000	1,4252	1,1118
2022	39 456 000	26 304 000	1,4252	1,1118
2023	39 456 000	26 304 000	1,4252	1,1118
2024	39 456 000	26 304 000	1,4252	1,1118
2025	39 456 000	26 304 000	1,4252	1,1118
2026	39 456 000	26 304 000	1,4252	1,1118
2027	39 456 000	26 304 000	1,4252	1,1118
2028	39 456 000	26 304 000	1,4252	1,1118
2029	39 456 000	26 304 000	1,4252	1,1118
2030	39 456 000	26 304 000	1,4252	1,1118
2031	39 456 000	26 304 000	1,4252	1,1118
2032	39 456 000	26 304 000	1,4252	1,1118
2033	39 456 000	26 304 000	1,4252	1,1118
2034	39 456 000	26 304 000	1,4252	1,1118
2035	39 456 000	26 304 000	1,4252	1,1118
2036	39 456 000	26 304 000	1,4252	1,1118
2037	39 456 000	26 304 000	1,4252	1,1118
2038	39 456 000	26 304 000	1,4252	1,1118
2039	39 456 000	26 304 000	1,4252	1,1118
2040	39 456 000	26 304 000	1,4252	1,1118

Source: Final Consultations Document by HERA of 18.12.2018

Table 5a. - Indicative amounts of reference price (indicative amounts of tariff items for gas transmission or applicable reserve price) for the contracted for contracted firm capacity on an annual level for Omišalj entry for period 2021-2040 according to scenario S1 of gas transmission for the energy entity PLINACRO d.o.o., Savska cesta 88A, Zagreb
 

Capacity booking scenario	Unit	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030
S1	HRK/kWh/day (NCV)	1,4252	1,4252	1,4252	1,4252	1,4252	1,4252	1,4252	1,4252	1,4252	1,4252
	EUR/MWh       (GCV)	0,47	0,47	0,47	0,47	0,47	0,47	0,47	0,47	0,47	0,47
Capacity booking scenario	Unit	2031	2032	2033	2034	2035	2036	2037	2038	2039	2040
S1	HRK/kWh/day  (NCV)	1,4252	1,4252	1,4252	1,4252	1,4252	1,4252	1,4252	1,4252	1,4252	1,4252
	EUR/MWh            (GCV)	0,47	0,47	0,47	0,47	0,47	0,47	0,47	0,47	0,47	0,47

Source: Final Consultations Document by HERA of 18.12.2018.

Table 5b - Indicative amounts of reference price (indicative amounts of tariff items for gas transmission or applicable reserve price) for contracted firm capacity on an annual level for exit from the transmission system at the Dravaszerdahely interconnection for the period 2021-2040 according to the planned scenario S1 of gas transmission for the energy entity PLINACRO d.o.o., Savska cesta 88A, Zagreb
 

Capacity booking scenario	Unit	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030
S1	HRK/kWh/day (NCV)	1,1118	1,1118	1,1118	1,1118	1,1118	1,1118	1,1118	1,1118	1,1118	1,1118
	EUR/MWh       (GCV)	0,37	0,37	0,37	0,37	0,37	0,37	0,37	0,37	0,37	0,37
Capacity booking scenario	Unit	2031	2032	2033	2034	2035	2036	2037	2038	2039	2040
S1	HRK/kWh/day  (NCV)	1,1118	1,1118	1,1118	1,1118	1,1118	1,1118	1,1118	1,1118	1,1118	1,1118
	EUR/MWh            (GCV)	0,37	0,37	0,37	0,37	0,37	0,37	0,37	0,37	0,37	0,37

Source: Final Consultations Document by HERA of 18.12.2018

Fixed reference price shall be indexed pursuant to clause 3.6.2.2 of the Final consultations document by the application of the consumer price index in Croatia.

Taking into account that the LNG terminal project and the incremental capacity project have been defined as the project of common interest of the European Commission (PCI project) for which co-financing was approved within Connecting Europe Facility - ENERGY, HERA in the calculation of the fixed reference price does not propose applying risk premium within the scenario S1.

However, if one or more transmission system users, who had contracted transmission system capacity within the Open Season procedure on a long-term basis, carry out activities of commercial gas swap which are significantly changing the level of booking at the entries and/or exits of the Croatian transmission system, for the remaining years of the period for which the capacities had been contracted in the Open Season procedure, a new calculation of the fixed payable price will be applied, with includes risk premium, which reflects the mentioned influence of the commercial gas swap, in compliance with the resulting decrease of booking at the transmission system entries and/or exits.

In order to apply fixed reference price in compliance with indicative amounts stated in the Final Consultations Document, it is necessary to achieve at least the following total planned contracted capacities – the transmission of gas of 1.50 bcm/y, along with booking of the equivalent capacity at the entry of the LNG terminal in the amount of 171,233 m3/h (1,644 MWh/h @NCV) and at the exit at the Dravaszerdahely interconnection in the amount of 114,155 m3/h (1,096 MWh/h @NCV).

To take a decision on final amounts of tariff items, HERA will in their calculation use the total amount of the capacity from binding tenders of this Open Season procedure. In case of higher or lower capacity amount, HERA will decrease or increase the applicable reserve fixed prices accordingly, pursuant to the selected methodology (Source: Final Consultations Document, page 34).

The decision on the amount of applicable reserve price (fixed tariff) for the Open Season procedure, for the entry into the transmission system from the LNG terminal and for the exit from the transmission system at the Drávaszerdahely interconnection will be taken by HERA upon completion of the Final Consultations on the proposal of the methodology for determining the reference price of gas transmission services pursuant to article 26 of Commission Regulation (EU) 2017/460, no later than 31 May 2019, based on article 27 of Commission Regulation 2017/460.“

FGSZ is familiar with the changes in the Rules for carrying out the binding phase of the Open Season procedure, while due to the short deadline for amending these Rules, the approval of MEKH has not been obtained.

After it collects the answers and supplements to bids, Plinacro will carry out the Economic test III from 15.1.2019 to 17.1.2019.

The validity of the bank bid must be until 1. April 2019., and it is prepared and delivered in the manner prescribed by the OS Rules.

Planned start of operation of the LNG Terminal is envisaged for 1 January 2021; therefore, the annual capacity product for gas year 2020/2021, for entry Omišalj and Dravaszerdahely interconnection, will be available from 1 January 2021, and charged accordingly.

More information about OSP LNG Croatia can be found on the following link.

Files for download:

Rule for carrying out the binding phase of the Open Season procedure

Annex 1. - Rules for the allocation at Drávaszerdahely interconnection
Annex 2. - Contract Form Plinacro
Annex 3. - General terms and conditions of use of the transmission service (GTC)
Annex 4. - Contract Form FGSZ
Annex 5.   GTC FGSZ

Bid Form



Information on the extension of the deadlines for the implementation of the binding phase of the Open Season procedure (September 2018)

Plinacro would like to inform all potential applicants that the implementation of the binding phase of the Open Season procedure is extended until 18 January 2019.

The deadlines in the Time schedule for carrying out the Open Season procedure have been extended as follows:



The second call for the submission of bids was opened on 22 June 2018 and bid submission period was scheduled until 28 September 2018. Since LNG Croatia has received requests from interested terminal users for an additional extension of the bid submission period, with a perspective to a positive completion of the Open Season procedure, the period for submitting bids in the second round is extended until 20 December 2018, and when the bidding deadline ends in the second round of the Open Season LNG Croatia.
 
Accordingly, the period for economic test II is shifted. The economic test II results will be published on 7 January 2019 when, depending on the results, the participants will be invited to perform further activities (in case the relevant economic test is positive) or to accept new indicative tariffs or to deliver a supplement to the Bid (in case the relevant economic test is negative) in the period from 7.1.2019 to 14.1.2019.
 
Upon collection of answers and supplemented bids, economic test III will be carried out from 15.1.2019 to 17.1.2019 and the notice of the results will be delivered to participants on 18 January 2019.
 
Having this in mind, the participants have to submit bids in II round by 20 December 2018, 23:59 CET, at the latest, in a manner stipulated by the OS Rules.
 
Planned start of operation of the LNG Terminal is envisaged for 1 January 2021; therefore, the annual capacity product for gas year 2020/2021, for entry Omišalj and Dravaszerdahely interconnection, will be available from 1 January 2021, and charged accordingly.
 
All participants have to prepare and deliver the bank bid guarantee in a manner stipulated by the Rules and valid until 1 March 2019.
 
More information about OSP LNG Croatia can be found on the following link.


History:

Information on the extension of the deadlines for the implementation of the binding phase of the Open Season procedure (August 2018)


Plinacro would like to inform potential Bidders about the extension of the deadlines based on clauses 6.1 and 6.2 of the Rules for carrying out the binding phase of the Open Season procedure.
Implementation of the binding phase of the Open Season procedure is extended until 23 October 2018. The deadlines in the Time schedule for carrying out the Open Season procedure have been extended as follows:



The second call for the submission of bids was opened on 22 June 2018, so in the period until 28 September 2018, Bidders may submit supplemented or new bids.
After the Economic test II is carried out its results will be published on 9 October 2018, and the Bidders will be invited to perform further activities (in case the relevant economic test is positive) or to accept new indicative tariffs or to deliver a supplement to the Bid (in case the relevant economic test is negative) in the period from 9.10.2018 to 16.10.2018.
Upon collection of answers and supplemented bids, Plinacro will carry out the Economic test III from 16.10.2018 to 23.10.2018.
 
Having this in mind, the deadline for the registration and submission of bids is extended and the Bidders shall deliver the bids to Plinacro and FGSZ by 28 September 2018, 23:59 CET, at the latest, in a manner stipulated by the OS Rules.
The Bank Bid security shall be valid until 30 November 2018, and it shall be prepared and delivered in a manner stipulated by the OS Rules.
 
Planned start of operation of the LNG Terminal is envisaged for 1 January 2021; therefore, the annual capacity product for gas year 2020/2021, for entry Omišalj and Dravaszerdahely interconnection, will be available from 1 January 2021, and charged accordingly.
More information on the LNG Croatia Open Season procedure can be found on the following link.



The binding phase of the Open Season Procedure

Plinacro notifies potential bidders on the start of the second round of the binding phase of the Open Season procedure. 

Plinacro as a Transmission System Operator in the Republic of Croatia and FGSZ as a Transmission System Operator in Hungary are jointly carrying out the binding phase of the Open Season procedure.

Plinacro and FGSZ invite all potential applicants to take part in the Open Season procedure that will allow shippers to bid for capacity at the  entry point into transmission system (Omišalj) and Drávaszerdahely interconnection point in the direction from Croatia to Hungary.

Plinacro and LNG Croatia jointly wish to implement the LNG Project which includes the construction of the LNG terminal on the island of Krk and the gas pipeline for the delivery of gas from the LNG terminal.  Plinacro has harmonized the Open Season Procedure Rules and the time schedule of carrying out the relevant procedure with the Open Season procedure LNG Croatia; however, it is necessary to highlight that two separate Open Season procedures (Open Season procedure Plinacro/FGSZ and Open Season procedure LNG Croatia) will be carried out since Plinacro/FGSZ and LNG Croatia offer different products in their Open Season procedures. 

For more information about the LNG Croatia Open Season procedure please visit the following link 

The bindig phase of the Open Season Procedure will be caried out in accordance with the Open Season Procedure Rules. The rules aim is to provide the applicants with as many as possible informations on the LNG project, and especially informations on the offered capacities, manner of capacity allocation as well as the deadlines for the execution of individual phases of the relevant procedure.

The rules to be applied for the second round of the binding phase of the Open Season procedure can be found on the following link

Rule for carrying out the binding phase of the Open Season procedure

Annex 1. - Rules for the allocation at Drávaszerdahely interconnection
Annex 2. - Contract Form Plinacro
Annex 3. - General terms and conditions of use of the transmission service (GTC)
Annex 4. - Contract Form FGSZ
Annex 5.   GTC FGSZ

Bid Form

In the first part of the binding phase of the Open Season procedure Plinacro carried out consultations with the interested public independently. The aim of the concerned consultations with the interested public was:

Answers to the questions made during the Consultations with the Interested Public
 

 

The registration for the binding phase of the Open Season procedure