Capacity products

Danish Offshore Gas Systems (the Operator) offers the following standard capacity products governed by Standard Terms and Conditions at standard tariffs and to be booked via the on-line booking platform.

Standard Capacity Products

Firm Bookable Capacity Products

Capacity product  Duration  Commencement of transportation1  Earliest booking time1 
 Day-ahead  1 day  At 06:00 At 08.00 hours one working day before
 Week-ahead  1 calendar week  At 06:00 hours on a Monday At 08.00 hours two working days before 
 Month  1 calendar month  At 06:00 hours on the first day in the month At 08.00 hours on the third Monday in the month before 
 Quarter  1 calendar quarter  At 06:00 hours on the first day in the quarter At 08.00 hours on the second Monday in the month before
 Gas year  1 Oct. to 30 Sept.  At 06:00 hours on 1 Oct At 08.00 hours on the first Monday in September 

 

1Stated time is with reference to Danish time (Central European (Summer) Time). Latest booking time is prior to 04:00 hours on the Gas Day before commencement of transportation.

Hour-ahead Capacity
The Operator offers to transport volumes of gas in excess of the booked firm capacities, during any single Hour of a day – an Hour-ahead capacity product. Shippers may request such product by submitting nominations with at least two (2) full hours' lead time.

Such request is subject to the Operator's approval, which will be considered approx. 1½ hour before the Hour in question.

Such approval will, however, be subject to availability of the technical capacities and subject to the Shipper having delivered sufficient volumes of gas at the Delivery Point. Once approved, the transportation will be guaranteed by the Operator and the Shipper will be informed of the result hereof by means of an Approved Nomination message.

The Shipper will only pay a tariff for approved Hour-ahead capacity (and not for the nominated (requested) Hour-ahead capacity) yielding a 100% utilization of the Hour-ahead capacity product.

Capacity product  Duration   Commencement of transportation Earliest booking time1 
 Hour-ahead  1 hour  At the beginning of any hour  By the 04:00 hours nomination round on the day before

 

1Stated time is with reference to Danish time (Central European (Summer) Time). The first confirmation of Hour-ahead nominations will be conducted at the nomination round at 04:00 hours on the preceding Gas Day. Latest booking time is the nomination round two (2) full hours before commencement of transportation.

Standard Tariffs

New Lower and Interim Tariffs from 1 April 2014 in accordance with authority decisions

DERA (Danish Energy Regulatory Authority) decided on 28 January 2014 that the tariff charged from Maersk Energy Marketing A/S for monthly transportation agreements booked in the period from July 2011 until October 2012 shall be set between 0.05 and 0.07 DKK per Nm3. The tariff shall cover both the capacity and volume tariffs.

DEBA (Danish Energy Board of Appeal) confirmed DERA's decision on 7 October 2013 with the addition that DERA shall decide on a specific tariff in the range between 0.05 and 0.07 DKK per Nm3.

DERA decided on 28 January 2014 and DEBA confirm DERA's decision on 19 June 2014 that the tariff charged from Maersk Energy Marketing A/S for monthly transportation agreements booked in the period from July 2011 until October 2012 shall be set at 0.0575 DKK per Nm3. The tariff shall cover both the capacity and volume tariffs.

The operator at that time (Ørsted Naturgas A/S) was in a dialogue with DERA on how to apply the above decisions and set the 2014 tariffs.

Based on that dialogue it was decided to suspend charging the Volume Tariff and only charge a Capacity Tariff, which will be further reduced by approx. 28% compared with applicable Capacity Tariffs prior to 1 April 2014.

2012 tariffs for a "Month" capacity product Charged tariffs DONG Naturgas' implementation of DERA's decision Reduction in percent
Volume Tariff, DKK/MWh  1.8706  0  
Conversion factor, kWh/Nm3  12.1  12.1  
Volume Tariff, DKK/Nm3   0.022634  0  100%
Capacity Tariff, DKK/Nm3  0.079699  0.0575  27.853%
 Total tariff, DKK/Nm3  0.102333  0.0575  App. 44%


Nm3 shall correspond to the volume of gas which at 0°C and an absolute pressure of 1.01325 bar and without water vapour occupies the volume of one cubic metre, i.e.normal cubic metre.

The Capacity Tariff will be indexed with inflation yielding an inflation factor of 1.03983 from year 2012 to year 2015.

Danish Naturgas A/S has instituted court proceeding against DEBA's decisions dated 7 October 2013 and 19 June 2014. Consequently and in exchange for granting immediate tariff reductions, the contractual framework includes a claw-back right corresponding to the interim tariff reductions, cf. Addendum 1 to the Standard Terms and Conditions.

New Tariffs for Standard Capacity Products
As a result of DONG Naturgas A/S’ dialogue with DERA (which has been adopted by Danish Offshore Gas Systems A/S) concerning the implementation of the 28 January 2014 decision with respect to 2014 tariffs, the Shippers’ payment per day for transportation will be set to the Regulated Capacity Tariff (cf 1 below) plus an on account Regulated Volume Tariff (cf 2 below) with effect from 1 April 2014.

(1) The Regulated Capacity Tariff ('ship or pay' tariff) is Capacity Tariff minus the Regulated Capacity Tariff Reduction. The Capacity Tariff is the summation of the Entry tariff and the Exit tariff stipulated in the table below.

Daily Capacity Tariffs   (2018)  DKK per Nm3/day 
 Delivery point Tyra East    South Arne    Harald 
Entry tariff       0

 

Daily Capacity Tariffs   (2018)             DKK per Nm3/day 
Redelivery point
Nybro
Capacity product Day-ahead Week-ahead Month Quarter Gas year
Relative exit tariff 120% 110% 100% 99,5% 99%
Exit tariff 0.10123 0.092798 0.084362 0.083940 0.083518
Capacity tariff 0.10123 0.092798 0.084362 0.083940 0.083518
Regulated capacity tariff reduction (in percent) 27.853% 27.853% 27.853% 27.853% 27.853%
Regulated capacity tariff reduction 0.028197 0.025847 0.023497 0.023380 0.023262
Regulated capacity tariff 0.073037 0.066951 0.060864 0.060560 0.060256

The Capacity Tariff is indexed every 1 January in accordance with the Danish consumer price index.

(2) The on account Regulated Volume Tariff is an on account Volume Tariff minus an on account Regulated Volume Tariff Reduction. All Volume Tariffs are paid per MWh redelivered at the Redelivery Point Nybro.

On account volume tariff  DKK per MWh 
Redelivery point  Nybro 
Volume tariff  2.65 
Regulated volume tariff reduction (in percent)  100% 
Regulated volume tariff reduction  2.65 
Regulated volume tariff  0.00 

The Volume Tariff is adjusted every 1 January based on the Operator's budget for operational and maintenance expenses divided by the forecast for transported volumes for the forthcoming year as an on account payment. By the end of the year upon closure of the books, the Operator will recalculate the exact Volume Tariff based on realized operational and maintenance expenses divided by realized transported volumes. Any over or under payment in relation hereto will be reimbursed by the Operator or invoiced to the Shipper. In the interim period until the outcome of the appeals is known, effectively no payments will be made as the Regulated Volume Tariff Reduction equals 100%.

The following table outlines the historic development:

Volume tariff,
DKK per MWh 
History              Current
Q4-2011  2012  2013 

2014

2015 2016 2017    2018
On-account volume tariff  1.6777  2.295 2.82  2.62  3.17  3.52   2.81 2.65
Final volume tariff  1.6777  1.8706  2.7658 2.5354 2.3623  2.6156   -  -  
Reimbursement of shippers  0.4244 0.0542 0.0846 0.8077 0.9044  -  -  

 

The Volume Tariff reimbursement for 2016 to all Shippers equals 25.7% of the on account paid Volume Tariff and reflects a combination of 7% savings on the budget for operational and maintenance expenses, and a 24% increase of volumes transported compared with forecast. Realised operational and maintenance expenses in 2016 sum up to 115.6 million DKK, and realised transported volumes sum up to 44.2 million MWh.

Tariffs for Hour-ahead Capacity
The Hour-ahead transportation product is treated on equal terms with the other bookable capacity products, i.e. the same regulated reduction in per cent will be deducted from the charged payments.

From 1 April 2014 Shippers’ payment per MWh for transportation will be set to the Regulated Hour-ahead Tariff (cf 1 below) plus an on account Regulated Volume Tariff (cf 2 below).

(1) The Regulated Hour-ahead Tariff is Hour-ahead Tariff minus the Regulated Hour-ahead Tariff Reduction stipulated in the following table:

Hour-ahead tariff  (2018) DKK per MWh 
Redelivery point  Nybro 
Hour-ahead tariff  9.7609 
Regulated hour-ahead tariff reduction (in percent)  27.853% 
Regulated hour-ahead tariff reduction  2.7187 
Regulated hour-ahead tariff  7.0422

 The Hour-ahead Tariff is indexed every 1 January in accordance with the Danish consumer price index.

(2) The on account Regulated Volume Tariff is the same as described above.

Conversion of Nm3 into kWh
Bookings are always made in energy unit (i.e. kWh per day) and nominations in kWh per Hour. The following conversion factors between Nm3 and kWh - reflecting the actual observed average gross calorific value at the Redelivery Point - shall apply. Conversion factors will, however, be subject to changes should the observed average gross calorific value change.

Conversions factors  kWh per Nm3 
Sub-redelivery point  Nybro 1 (Tyra East terminal)  Nybro 2 (South Arne terminal) 
Conversion factor  12.1  12.4 

 

Other prices
Prices related to Shipper’s delivery of off-spec gas:

Delivery of off-spec gas  (2018) DKK per MWh 
Off-spec gas fee  6.1447 

 

The Off-spec Gas Fee is indexed every 1 January in accordance with the Danish consumer price index.

Price reduction related to Shipper’s sale of unbalance gas:

Sale of unbalance gas  (2018) DKK per MWh 
Trading fee  22.783 

 The Trading Fee is indexed every 1 January in accordance with the Danish consumer price index.

Invoicing
Shippers are invoiced during beginning of a calendar month for transportation services rendered during the previous calendar month. Due date for payment will be end of the month of invoicing.

Nominal and Technical Capacities

Bookable transportation capacities (Nominal Capacities) are shown in the table below:

Nominal capacities  All categories in million kWh/hour 
Delivery point  Tyra East  South Arne and Harald 
Sub-redelivery point  Nybro 1 (Tyra East terminal)  Nybro 2 (South Arne terminal) 
Nominal capacity  12.60  0.30 

 

Technical Capacities are shown in the following table:

Technical capacities  All capacities in million kWh/hour 
Delivery point  Tyra East  South Arne and Harald 
Sub-redelivery point  Nybro 1 (Tyra East terminal)  Nybro 2 (South Arne terminal) 
Technical capacity  12.60  3.441 
Reduced technical capacity in an emergency situation  5.25  0.30 

1) The Technical Capacity can be expanded to approx. 6.7 million kWh per hour by expanding the receiving facilities at sub-redelivery point Nybro 2.

Shippers book capacity products separately at the two sub-redelivery points. Both sub-redelivery points deliver natural gas to the Danish transmission system at its entry Nybro and are collectively denoted Redelivery Point Nybro.

Standard Terms and Conditions
The Standard Terms and Conditions including its Addendum 1 and Appendices A to C are available as files to be downloaded via links on the Booking Procedure page.