Q & A

Q & A

We have compiled some questions and answers related to the gas market opening and the new gas transmission system operator, which will start its operations at the beginning of 2020.

Can’t find an answer to your question? Would you like to know more? We will update our website regularly, so let us know if there is a topic you would like to know more about.

General

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Finnish Energy Authority has published comprehensive information package about REMIT reporting on their website.

The names of active shippers will be published on the TSO’s web-portal if shipper gives a permission for publishing it. Registration can be done here: https://portal.fintso.xyz/register.

TSOs are obliged to publish certain information regarding gas market on the ENTSOG Transparency Platform to increase transparency and facilitate the entrance of potential new market participants. From Transparency Platform you can find information about gas quantities transported through Imatra point. 

Trader has lighter requirements (e.g. collaterals) towards TSO, because trader do not take part to capacity market at all, but only to gas commodity trading, while shipper can take part to both. The market role of trader offers more possibilities to market participants to find a role or combination of roles which is the most suitable for the market participant.

When Finnish gas market is opened, the derogation of EU gas market legislation ends which means that Finland must use gross calorific value when converting gas volumes into energy units.

Process

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The timeline can be found behind the following link: Timeline for market opening. (Timeline for the rest of the year 2019 can be found setting the video to the moment of time 9:00 –>) 

  • EIC and/or GLN identification code (EIC for shippers and traders)
  • Company information (name of the company, address, business ID, phone number, e-mail)
  • Contact details of the party who is responsible of the contractual issues
  • Contact details of nomination responsible party
  • Contact details of the party who is responsible for operational issues and reachable 24/7
  • Contact details of the party who is responsible for invoicing.

Wholesale market

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  • Sign a Framework agreement which contains the Balancing Agreement. If the shipper/trader does not want to act as a shipper with balancing responsibility, it must sign an agreement with a shipper or trader with balancing responsibility. Shipper/trader may be part of one balancing group. Shipper (and trader) must have a valid EIC and be registered into the Register of Market Participants.
  • Creditworthiness and collaterals. TSO will require collaterals and sufficient creditworthiness described in the Framework agreement of shipper (trader).
  • Data exchange test of IT system. Shipper (or trader) must have IT system which is compatible with TSO’s system.
  • Importing or exporting gas through Balticconnector.
  • Buy/sell gas at the VTP.
  • Buy/sell gas at the gas exchange.
  • Decrease/increase the amount of gas injected or offtaken from/to the Finnish gas system.
  • Buy/sell balancing gas from TSO. Imbalance gas will be charged daily, but the invoice will be sent on a monthly basis.

The data exchange of wholesale market is centralized to the portal of TSO. Alternatively, shipper and trader may use electronic message for nominations and trade notifications (messages Edig@s XML version 5.1 and AS4 protocol).

The usage of e-mail messages from shipper or trader requires that they comply with the TSO’s standards (national application of Edig@s) and successfully pass the data exchange tests set by the TSO. The standards for trade notifications and nominations have been published and the relevant documents can be found here: Gas Market Code and Information Exchange Guidelines and Edig@s XML 5.1 guideline for Finland. TSO will open the Edig@s testing and instruct service in October 2019.

Shipper and trader must use the European Identification Code (EIC) as their party identifier (EIC-X). If the same taxation entity has acquired the EIC-X for the electricity market, the same EIC-X must also be used in the gas market. For example, the EIC is required for certain regulatory reporting. In Finland, the EICs are granted by Fingrid on the electricity market and by the Finnish TSO on the gas market.

A shipper has greater collateral limits than a trader, because shipper has capacity related responsibilities towards TSO.  Shippers or traders with balancing responsibility shall pay collaterals depending on the size of the balancing group. 

 

The more detailed collateral principle is described in the framework agreement of the shipper/trader.

No, there are no any fixed payments about registration.

TSO is planning to provide ‘notice board’ service in the TSO’s web portal in which shippers can inform other shippers about their willingness to sell or buy capacity on the secondary market. On the ‘notice board’, shippers may see the sales or purchasing offers. This is the practice used also in other European markets, like in Denmark and Baltic States. TSO needs the information about the ownership of capacity, but the price can be negotiated purely between shippers.

If you want to transport gas from Estonia to Finland by yourself, you must be registered as a market participant both to Finnish and Estonian gas markets meaning that you will have liabilities towards both TSOs. The market rules are quite similar in both countries, but there are certain differences in the market principles (e.g. the booking windows of capacity products). This means that shipper must orientate to follow Finnish market rules in Finland and common network rules in Estonian-Latvian market area. Estonia and Latvia will establish a common balancing zone from the beginning of 2020 which means that in these two countries also the network rules are harmonized.

Shipper operating only in one side of Balticconnector should keep in mind that the shipper doesn’t need to be registered to both market area in order to transport gas through Balticconnector due to the developed capacity allocation mechanism. In the mechanism shipper registered to one system can negotiate with shipper operating another side. Shippers submit nominations which are the request of the same amount of capacity (implicit capacity allocation).

Yes, you can define for which period you want to sell/buy capacity and what is the price for that. It is up to shippers to define these. TSO only checks that you have capacity which can be sold, you have necessary creditworthiness and to whom capacity is sold or purchased.

TSO will publish on the web-portal how much capacity is available for the market. In addition, TSO provides indicative information about the balance position of the transmission system. TSO has three zones to describe the balancing position of the network: green zone (target zone), yellow zone (imbalance) and red zone (critical imbalance). If the balancing position goes from green zone to yellow zone, TSO will purchase balancing gas to get the network in balance.

Gas infrastructure

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Yes, it is. Currently there are four biogas production plants in Finland which inject biogas to the transmission system. They are located in Espoo, Kouvola, Lahti and Riihimäki. In addition, one biogas production plant is connected to distribution system in Hamina. In the future, also synthetic gas (power-to-gas) can be transported in the transmission system.

TSO’s linepack is approximately 100-150 GWh depending on the status of the network which can be affected by weather conditions for instance.

Yes, it is bidirectional. The technical parameters are the following:

Technical transmission capacity:

  • Poland to Lithuania 27 TWh/year (74 GWh/day); (2.4 bcm/year)
  • Lithuania to Poland 21 TWh/year (58 GWh/day); (1.9 bcm/year)

Design pressure

  • in Poland 8.4 MPa (84 bar)
  • in Lithuania 5.4 MPa (54 bar)

Gas pipeline length

  • Total gas pipeline length both in Lithuania and Poland app. 508 km
    • Gas pipeline length in Poland ~343 km

Gas pipeline length in Lithuania ~165 km

Updated 21.10.2019

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