Fluxys LNG Terminal services Conditions Tariffs by nyl11041

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									Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




Fluxys LNG Terminal services
Conditions & Tariffs
Conditions & Tariffs applicable as from 1st April 2007




                                                         Page 1 of 17
Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




Table of contents
1. Introduction                                                               3
   1.1   A new business model for our expanded infrastructures                3
   1.2   Regulated tariffs                                                    3
   1.3   Code of Conduct                                                      4
2. Main characteristics of the terminalling services                          5
   2.1   Technical capacities of the LNG Terminal                             5
   2.2   Slot Service                                                         6
   2.3   Capacity Services                                                    7
   2.4   Available capacities                                                 9
   2.5   Truck Loading                                                        9
3. Terminalling services: tariffs                                            10
4. Examples of the application of tariffs for LNG Terminal services          12
   4.1   Example 1                                                           12
   4.2   Example 2                                                           14
5. Contact                                                                   17




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




1. Introduction

1.1 A    new    business                                model   for   our   expanded
    infrastructures

As a result of the open season launched in 2003 for the booking of capacities as from
1st April 2007, Fluxys LNG signed 3 long term capacity subscription agreements and
invested in doubling the LNG Terminal's throughput capacity.


Consequently, the single shipper business model was modified and a majority of the
services offered at the LNG Terminal is now of a complete new type. The current
business model, based on a multi-shipper environment, is primarily based on the
service of a Slot, as described hereafter.


The enhancement project for the LNG Terminal consists of building a fourth Storage
tank and an additional train for Send Out into the transmission grid. As the
commissioning of the additional infrastructures is foreseen by 2008, the available
capacities have been offered in two stages: first, limited capacities under the
“unexpanded regime”, before switching to the “expanded regime”.


Fluxys LNG provides an extensive description of all Services offered at the LNG
Terminal in its Indicative Terminalling Programme that is subject to the CREG’s
approval.



1.2 Regulated tariffs

All Services are offered at cost-based tariffs approved by the CREG. Accordingly, the
costs of Fluxys LNG are distributed on the basis of objective criteria over the various
Services offered by the company.


According to the Gas Act of 12th April 1965 and to the Royal Decree of 15th December
2003 1 , the CREG has approved on the 30th September 2004, the tariff proposal of
Fluxys LNG for the use of the capacity at the LNG Terminal for the next 20 years,
starting on 1st April 2007. Every four years, Fluxys LNG has to submit to the CREG its
updated budget for the following four years, which may lead to an adaptation of the
tariffs applicable for these next four years. However, except in case of exceptional
circumstances, the currently approved tariffs can be considered as maximum tariffs.



1
  Repealed as from 19th June 2007 by the Royal Decree of 8th June 2007 (specific
regulated regime for special projects)




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




1.3 Code of Conduct

The Royal Decree of 4th April 2003 on the Code of Conduct includes a set of
operational and administrative directives for natural gas transmission operators and
for the companies which call upon their Services.


In accordance with this Royal Decree, the CREG approved on 17th June 2004 the Main
Conditions for access to the Zeebrugge LNG Terminal submitted by Fluxys LNG. Since
then, these Main Conditions are applicable to any company wishing to access the LNG
Terminal. They contain a set of standardized rules related to various aspects such as
capacity allocation rules, the organization of the secondary market or the regime
applicable to liabilities and financial guarantees.


Also in accordance with the Code of Conduct, the CREG approved on 8th December
2006 the Network Code submitted by Fluxys LNG. This document contains the
arrangements for the use of the Services booked by the Terminal Users, such as gas
quality requirements, rules for the setting up of scheduling programmes or the ship
approval procedure.


The Main Conditions and the Network Code are available on www.fluxyslng.net. (>
LNG services > LNG Terminal services > Conditions & tariffs).




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




2. Main characteristics                                        of     the         terminalling
   services

2.1 Technical capacities of the LNG Terminal

In the unexpanded regime, the LNG Terminal has the following technical capacities:
      The       Total       Technical   Send   Out      Capacity   amounts   to   10,950   MWh/h     (≈
                        3
      950,000 m (n)/h), of which
            o     8,400 MWh/h is available for Slots
            o     805 MWh/h is available for Additional Send Out Capacity
            o     1,745 MWh/h is available 2 , on an interruptible basis only, for Fluxys LNG
                  and Fluxys NV for operational purposes
      The Total Technical Storage of the Terminal amounts to 240,000 m3 LNG, of which
            o     210,000 m3 LNG is available for Slots
            o     30,000 m3 LNG is available for Additional Storage (of which Fluxys NV has
                  booked 8,000 m3 LNG for operational purposes)


In the expanded regime, the LNG Terminal will have the following technical capacities:
      The       Total       Technical   Send   Out      Capacity   amounts   to   21,415   MWh/h     (≈
                            3
      1,850,000 m (n)/h), of which
            o     16,800 MWh/h is available for Slots
            o     2,870 MWh/h is available for Additional Send Out Capacity (of which Fluxys
                  NV has booked 1,163 MWh/h for operational purposes)
            o     1,745 MWh/h is available2, on an interruptible basis only, for Fluxys LNG
                  and Fluxys NV for operational purposes
      The Total Technical Storage of the Terminal amounts to 380,000 m3 LNG, of which
            o     350,000 m3 LNG is available for Slots
            o     30,000 m3 LNG is available for Additional Storage (of which Fluxys NV has
                  booked 6,000 m3 LNG for operational purposes)




    The availability of this send out capacity depends on the availability of the CHP
2




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




2.2 Slot Service

A Slot is a bundled service which consists of:
•   Receiving and unloading of an LNG Ship within a window of 3 consecutive high tides
    (HT)
•   Basic Storage, equal to 140,000 m3 LNG, linearly decreasing over 20 High Tides 3 4
•   Basic Send Out Capacity, equal to 4,200 MWh/h during 20 High Tides


Basic Storage and Basic Send Out Capacity can be illustrated as follows:
    (140,000 m3 LNG)
      Basic Storage




                         HT 0   HT 5             HT 10   HT 15        HT 20
    Capacity (4,200 MWh/h)
       Basic Send Out




                         HT 0   HT 5             HT 10   HT 15        HT 20


In the unexpanded regime, 66 Slots can be scheduled per year. Two subsequent Slots
must be scheduled at least 10 High Tides apart.


In the expanded regime, 110 Slots can be scheduled per year. Two subsequent Slots
must be scheduled at least 5 High Tides apart.




3
  20 High Tides ≈ 250 hours
4
  All capacities are calculated on an hourly basis. High Tides are rounded down to the
closest hour.




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




2.3 Capacity Services

The following capacity services are offered at the LNG Terminal:

•    Storage Capacity Services:

                     o          Basic Storage: part of a Slot 5 ;

                     o          Additional Storage: flexibility Storage that can be booked for a minimum
                                period of 1 day. Additional Storage services are allocated during an open-
                                season process.

                     o          Daily Storage: flexibility Storage that can be booked for a minimum period
                                of 1 hour. Daily Storage capacities are requested 1 month ahead and are
                                allocated day-ahead;

Basic Storage, Additional Storage and Daily Storage (in the expanded regime) are
illustrated as follows.


380,000
          Storage (m3 LNG)




                                                                                   available for
                                                                                  Daily Storage

                                                      Slot 3   Slot 4   Slot 5
170,000                                      Slot 2


                             Basic Storage

                                           Slot 1
30,000
                             Additional Storage

                         HT 0       HT 5       HT10    HT15     HT 20    HT 25   HT 30    HT 35    HT 40




•    Send Out Capacity Services:

                     o          Basic Send Out Capacity: part of a Slot 6 ;

                     o          Additional Send Out Capacity: flexibility Send Out that can be booked for a
                                minimum period of 1 day. Additional Send Out services are allocated
                                during an open-season process.

                     o          Daily Send Out Capacity: flexibility Send Out that can be booked for a
                                minimum period of 1 hour. Daily Send Out capacities are requested 1
                                month ahead and are allocated day-ahead




5
  Only available on the secondary market as from 10 days before the start date of a
Slot
6
  Only available on the secondary market as from 10 days before the start date of a
Slot




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




Basic Send Out Capacity, Additional Send Out Capacity and Daily Send Out Capacity
(in the expanded regime) are illustrated as follows
                                           available for
                                     Daily Send Out Capacity
   19,670
                                                                        Slot 4
    Send Out Capacity
        (MWh/h)




                                                               Slot 3


                                                   Slot 2


                        Basic Send Out
                                          Slot 1                                 Slot 5
                          Capacity
    2,870
                        Additional Send Out Capacity

                    HT 0      HT 5       HT10      HT15        HT 20    HT 25    HT 30    HT 35   HT 40




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




2.4 Available capacities

Capacities at the LNG Terminal are fully subscribed to under long-term contracts,
however


•    If the scheduling of the Slots under the long-term contracts allows Fluxys LNG to
     create an additional Slot, Fluxys LNG will post such Slot on its website; and
•    A new secondary market regime requires all shippers owning capacity to inform
     Fluxys LNG at least two months in advance of any Slots they do not intend to use.
     All Slots becoming available under this secondary market regime will also be
     posted on the website of Fluxys LNG.




2.5 Truck Loading

In addition to the Capacity Services described hereabove, an LNG Truck Loading
Service is offered.




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




3. Terminalling services: tariffs

Slot                                                    750,443 €/Slot
Receiving and unloading LNG Ship                        130,294 €
Basic Storage                                           313,682 €
Basic Send Out Capacity                                 306,467 €
Additional
Additional Storage                                      96.39 €/m³LNG/year
Additional Send Out Capacity                            1.95 €/(kWh/h)/year
Daily
Daily Storage                                           (96.39 *0.7) €/m³LNG/365 per day
Daily Send Out Capacity                                 1.95 €/(kWh/h)/365 per day
Rescheduling Fee (1)                                    5,000 €
Demurrage Rate (2)                                      75,000 $/day
Secondary Market Fee (3)                                3 % of the regulated tariff of the
                                                        assigned service
Truck loading (4)                                       512.2 € / loading
Fuel Gas Reimbursement Percentage                       1.30 %
(5)
Index (6)




      (1) In case an LNG Ship fails to arrive on time for a rescheduled Slot
      (2) In the event Shipper’s LNG Ship exceeds the allowed laytime, Shipper shall
          pay demurrage actually incurred for the next LNG Ship due to berth at the LNG
          Terminal at the Demurrage Rate (pro rata any portion of a day).
      (3) In case Fluxys LNG sells capacity on behalf of a Shipper
      (4) Tariff approved for 2007
      (5) If the actual monthly average aggregate of Shipper’s and Other Shippers’ Send
          Out in a given Month M is less than two decimal five three (2.53) GWh/h and is
          not due to Terminal Operator’s fault or due to Force Majeure, then the Fuel
          Gas Reimbursement Percentage shall be calculated as follows:


                Fuel Gas Reimbursement Percentage = 1.30% + 1.3%*(2.53 – actual
                monthly average aggregate of Shipper’s and Other Shippers’ Send Out (in
                GWh/h)), calculated to two significant digits. The Fuel Gas Reimbursement
                Percentage shall not exceed 3.40%.


          If Terminal Operator reasonably estimates that the actual Monthly average
          aggregate of Shipper’s and Other Shippers’ Send Out in a given Month M will




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




          be less than 2.53 GWh/h, Terminal Operator shall use reasonable endeavours
          to minimize the use of the CHP, in order to minimize the use of Fuel Gas.


          The difference between: (i) the quantity, expressed in kWh, resulting from
          applying the Fuel Gas Reimbursement Percentage, to the Natural Gas
          redelivered at the Redelivery Point by Terminal Operator, and (ii) the Actual
          Fuel Gas Consumption determined for the Month M, taking into account the
          Fuel Gas percentage, shall be credited or debited, as applicable, to Shipper’s
          and Other Shippers’ Gas In Storage pro rata the Natural Gas redelivered at the
          Redelivery Point by Terminal Operator to Shipper and Other Shippers during
          the Month M. Such credit or debit shall be applied after Shipper or Other
          Shipper has unloaded its first LNG Ship in Month M+2 or in any later Month.


      (6) All tariffs are expressed as values of July 2003, except for the Rescheduling
          Fee, which has no index. The monthly index, starting in August 2003, is
          calculated as follows:


             0.65 + 0.35 * Im-1 /Imo with


             Imo = CPI 7 on 1 July 2003 which is 112.59
             Im-1 = Im-2 * (CPI for Month M-1/CPI for Month M-2)
                    Subject to:
                               Im-1 not being greater than 1.03 times the Index used in the
                               most recent Month of August.
                               Im-1 for August 2003 being equal to 112.59
             Im-2 = the value of the Index used in the preceding Month




7
    The Belgian Consumer Price Index




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




4. Examples of the application of tariffs for LNG
   Terminal services

4.1 Example 1

A Shipper subscribes 1 Slot that is scheduled for 06/05/2007 – 16:46 (second high
tide of that day).


The Shipper receives the following Storage and Send Out Capacity Rights:
•    Storage Capacity:
          o    140,000 m3 LNG, starting on 06/05/2007 – 16:00, linearly decreasing over
               20 high tides and ending on 17/05/2007 – 2:00
•    Send Out Capacity:
          o    4,200 MWh/h, starting on 06/05/2007 – 16:00 during 20 high tides and
               ending on 17/05/2007 – 2:00


The window for the arrival of LNG Ship starts on 06/05/2007 – 16:46 and ends 2 high
tides later. This means that the LNG Ship is allowed to arrive at the jetty on
06/05/2007 – 16:46, on 07/05/2007 – 5:05 or on 07/05/2007 – 17:24.


The LNG Ship contains 125,000 m3 LNG with an energy quantity of 850,000 MWh.


The LNG Ship arrives on time and the unloading starts on 06/05/2007 – 16:00. The
unloading takes 12 hours.


The Shipper wishes to send out its natural gas at a constant flow over 250 hours.
Taking into account the Fuel Gas Reimbursement Percentage of 1.3%, an hourly
quantity of 3,355.8 MWh is sent out.




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




                                                                    Storage Rights
            Storage ( m3 LNG)
                                                                    Gas In Storage




                            HT 0   HT 5             HT 10   HT 15          HT 20
           06/05/2007 16:00                                               17/05/2007 2:00




                                                                                              Send O ut
                                                                                            Capacity Rights
            Send Out (MWh/h)




                                                                                               Send O ut




                            HT 0   HT 5             HT 10   HT 15          HT 20
          06/05/2007 16:00                                               17/05/2007 2:00




•    In May 2007, the Shipper will only be charged for the Slot


Total invoice for May: 750,443 € * (0.65 + 0.35 * 121.95/112.59) = 772,278.43 €


No other charges need to be paid.




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




4.2 Example 2

A Shipper subscribes the following services:
•    1 Slot
•    Additional Storage of 10,000 m3 LNG for 2007
•    Additional Send Out Capacity of 500 MWh/h for 2007


The Slot is scheduled on 06/05/2007 – 16:46 (second high tide of that day)


The Shipper receives the following Storage and Send Out Capacity Rights:
•    Storage Capacity:
          o    140,000 m3 LNG, starting on 06/05/2007 – 16:00, linearly decreasing over
               20 high tides and ending on 17/05/2007 – 2:00
          o    10,000 m3 LNG, starting on 01/01/2007 and ending on 31/12/2007
•    Send Out Capacity:
          o    4,200 MWh/h, starting on 06/05/2007 – 16:00, during 20 high tides and
               ending on 17/05/2007 – 2:00
          o    500 MWh/h, starting on 01/01/2007 and ending on 31/12/2007


The LNG Ship contains 150,000 m3 LNG with an energy quantity of 1,000,000 MWh.


The LNG Ship arrives on 07/05/2007 – 17:24 and the unloading starts on 07/05/2007
– 20:00. The unloading takes 16 hours.


The Shipper begins to send out its natural gas at a flow of 1,500 MWh/h. To avoid that
its Gas In Storage would exceed its Storage Rights, the Shipper books Daily Storage.


                                                        Booking Daily Storage
                                                              (m3 LNG)
                           08/05/2007                          30,000
                           09/05/2007                          50,000
                           10/05/2007                          50,000
                           11/05/2007                          60,000
                           12/05/2007                          50,000
                           13/05/2007                          50,000
                           14/05/2007                          50,000
                           15/05/2007                          50,000
                           16/05/2007                          30,000
                           17/05/2007                          20,000
                           Total                              440,000




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




As from May 11th, the Shipper increases the send out flow to 5,000 MWh/h. Therefore
the Shipper books Daily Send Out Capacity.


                                                              Book Daily Send Out
                                                                   (MWh/h)
                                             11/05/2007              1,000
                                             12/05/2007              1,000
                                             13/05/2007              1,000
                                             14/05/2007              1,000
                                             15/05/2007              1,000
                                             16/05/2007              5,000
                                             17/05/2007              5,000
                                             Total                  15,000


In the course of May 13th, Shipper decreases the send out flow for a few hours.


For every (hourly) nomination, a Fuel Gas Reimbursement Percentage of 1,3% will be
taken into account.




                                                                    booked
                                                                  Daily Storage
                                                                                               Storage Rights

                                                                                               G as In Storage
         Storage ( m3 LNG)




                                                                                                       Additional Storage




                         HT 0   07/05/2007 20:00   HT 5   HT 10             HT 15    HT 20
        06/05/2007 16:00                                                            17/05/2007 2:00




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




                                                                                                               Send Out
                                                                                                             Capacity Rights
                                                                  booked
                                                          Daily Send Out Capacity                               Send Out
       Send Out
       (MWh/h)




              HT 0    07/05/2007 20:00   HT 5     HT 10                HT 15         HT 20              Additional Send Out
          06/05/2007 16:00                                                          17/05/2007 2:00          Capacity

In May 2007, the Shipper will be charged for the following Services:


•     Slot: 1 Slot
•     Additional Storage 8 : 10,000 m3 LNG
•     Additional Send Out Capacity8: 500 MWh/h


Total for May:               [750,443 €
                             + (10,000 /12 * 96.39 €)
                             + (500*1,000 /12 * 1.95 €)]
                             * (0.65 + 0.35 * 121.95/112.59)
                             = 938,554.73 €


In June 2007, the Shipper will be charged for the following Services:


•     Additional Storage: 10,000 m3 LNG
•     Daily Storage 9 : 440,000 m3 LNG
•     Additional Send Out Capacity: 500 MWh/h
•     Daily Send Out9: 15,000 MWh/h


Total for June:              [(10,000 /12 * 96.39 €)
                             + (440,000 /365 * 0.7 * 96.39 €)
                             + (15,000 * 1,000 /365 * 1.95 €)
                             + (500 * 1,000 /12 * 1.95 €)]
                             * (0.65 + 0.35 * 121.81/112.59)
                             = 332,308.38 €


During the other months of 2007, only the Additional Storage and Additional Send Out
services will be charged.



8
    1/12 of the Additional services is charged on a monthly basis
9
    Daily services are charged in the next Month




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Fluxys LNG Terminal services
Conditions & Tariffs applicable as from 01 April 2007




5. Contact

For any further information, please do not hesitate to contact:


Ben De Waele:
Tel.: +32 (0)2 282 74 40
Fax: +32 (0)2 282 02 50
info.lng@fluxyslng.net




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