Participants Testimonials

The 6th edition of ERRA’s Natural Gas Training Course builds upon the previous similar training programs. It aims to give a general introduction into the gas value chain with special emphasis on upstream gas supplies. It is supposed to give a good understanding of the restructuring process of the gas industry and of wholesale markets. It puts special emphasis on regulators approaches of gas infrastructures, gas storage and security of supply issues.

Day 1 – Global Gas Market Developments: Demand & Supply

The first day deals with the gas value chain, global picture and players, geopolitical dimension. The issues of supply and upstream; supply and midstream are discussed. Industry facts and economics of gas industry are presented together with competition between LNG and gas by pipeline. The future of gas, regional demand perspectives, the factors affecting short and long term demand for natural gas are addressed, seasonality, factors influencing gas demand by consumer groups: residential, industrial, electricity generation, etc. interruptible consumption is discussed. An overview of the main current and prospective suppliers is given and commercial, political and upstream factors influencing their future positioning in the global gas market is discussed. Finally the day concludes with a simulation of energy policy.

Day 2 – Wholesale Gas Markets, Trade

The day starts with the role of LNG in creating a global gas market and how prices might be influenced by the new entrants to the LNG market. Deals with vertically integrated companies; regulatory issues at a vertically integrated industry: licensing and monitoring; end customer tariff setting; network connection and its costs; business conduct rules are discussed on the European restructuring and liberalization example. Investigates the role of competition and (EU) competition law; the EU Gas Directives, the Third package and the main institutions involved into the enforcement of EU law in the energy sector. Introduces the role of long-term contracts, take-or-pay, volumes, pricing & oil-indexation, flexibility, nominations, destination clauses, transits. Gas market designs: hubs, wholesale markets, price correlation; gas trading in practice.

Day 3 – Transportation, Access to Infrastructure and Tariffs

Deals with the principles of calculating the revenue requirement of regulated segments of the sector. Why there is space for regulatory intervention; Where and when should the regulator intervene with tariff regulation; What are the main regulatory models applied in cases of regulatory intervention; What are the main components of the revenue requirement and the principles of how these are calculated. Describes the European tariff setting and third party access rules to networks; and explains exit-entry tariff setting in an Excel based simulation exercise. Focuses on the TSO function: transmission, system operation and balancing; EU unbundling regimes. Practicalities of the Network Codes: introduces cross border trade, pipeline capacity allocation and congestion management, transit, new pipelines, quality issues. The day ends with practical information on capacity trading platforms.

Day 4 – Security of Supply and Flexibility

Deals with security of supply in terms of short-term and long-term policies and approaches, the external dimensions, strategic stocks, pipeline projects and exemptions from TPA rules. Gas storage regulation in a restructured gas sector is presented. Security of supply issues with regards new pipeline developments, reverse flow on existing pipelines and the diversification of supply routes are discussed. Financing of security of supply, incentives on infrastructure investment, social cost-benefit analysis of infrastructure, cross-border cost allocation are presented.

Day 5 – Retail Markets

The last day will focus on the consumers. The competition issues of the retail market, supplier switching process and consumer protection will be addressed. Monitoring and the role of the regulators in informing consumers about their rights, the role of transparency will be tackled. Special attention is given to non-payment and metering problems. Social issues related to energy prices and the tools to address the problems.

Group Assignment: Throughout the course a group assignment in form of a strategic game will be played. Participants present the results and the lessons learned on the last day.

Round table discussions: Every day selected hot topics – submitted by the participants – are discussed, possibly grouped thematically along the structure of the course.