Emart'ppt 1

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STREAMLINING GAS BUSINESS PROCESSESEMARTM
ILAN21.11.2001Henri Cattoor
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STREAMLINING GAS BUSINESS PROCESSES

• Why the need ?
• The US example
• The European project

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WHY THE NEED ?
Before liberalisation
Few participants, stable and long lasting
relationships
After liberalisation
Many players, short lived and fast changing
relationships Need to standardise transactional
processes
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BUNDLED BUSINESS MODEL
Producer
Gas Merchant
LDC
End user
physical
contractual
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GENERIC CORE BUSINESS MODEL
commodity
commodity
Producer
Trader
shipping
Title transfer
hand over
capacity
tittle transfer
capacity
Transporter
Shipper
commodity
hand over
shipping
title transfer
commodity
End user
supply base management
Supplier
physical
contractual
notional
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INDICATIVE VOLUME CHAIN
0-300
0-300
Ship/Trans
Traders
Producers
50
100
100
50
Suppliers
Storage
End Users Large accounts
50
10-20
Ship/Trans
Suppliers
50
End Users Res. Dom.
50
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THE US EXAMPLE Gas Industry Standards
Board GISB
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THE US EXAMPLE Gas Industry Standards Board
created in 1994 with a mission to
develop and promote standards to simplify and
expand electronic communications and to simplify
and streamline business practices that will lead
to a seamless market place for natural gas
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THE US EXAMPLE GISB structure

• segments
  members
• producers
  12
• pipelines
  44
• distributors
  28
• end users
  17
• services (incl. marketers) 49
• Total 150
• government (observer) 1
  

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AMERICAN (GISB) BUSINESS MODEL
Producer
Marketers other services
Pipelines
LDC
End user
physical
contractual
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THE US EXAMPLE GISB structure

• Board of Directors
• Advisory Committee
• Executive Committee
• - Working groups
• 3 staff

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THE US EXAMPLE GISB General Policies

• balanced voting rules that
• - protect minorities
• - promote consensus
• open to all
• partnership with government
• driven by volunteers

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THE US EXAMPLE GISB achievements

• 7 years of existence
• 400 business practices established
• 40 transactions standardised
• 5 model agreements
• Transforming to include power

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THE EUROPEAN PROJECT

• Promoted by GTE and Edig_at_s
• Task Force

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THE EUROPEAN PROJECT
Promoted by GTE and Edig_at_s (1)

• joint visit to GISB in May 2001
• recommendation in GTE interoperability report
• proposed to Madrid Forum by GTE
• well accepted by the participants to the Forum
• supported by EU CEER
• OGP, EFET and Eurogas invited to Task Force
• (1) Centrica, Distrigas, Gasunie, Gaz de France,
  Gazprom, Ruhrgas, SNAM, Statoil

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THE EUROPEAN PROJECT
Task Force participants
EFET OGP Eurogas GTE Edig_at_s
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THE EUROPEAN PROJECT
Task Force remit

• Defining the principles
• Setting up the organisation
• Adapt US example to liberalised European gas
• scene
• Defining relationship with other organisations
• Started October 2001
• Target April 2002

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THE EUROPEAN PROJECT
Proposed name
European Association for Streamlining
of Energy Exchange - gas
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THE EUROPEAN PROJECT
EASEE-gas
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THE EUROPEAN PROJECT
EASEE-gas mission statement

• To develop and promote common practices to
• simplify and streamline business processes
• that will lead to an efficient and effective
• European Gas Market

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THE EUROPEAN PROJECT
EASEE-gas basic principles

• Open, independent organisation
• Company based membership by segment
• Driven by volunteers
• Financed through membership fees

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THE EUROPEAN PROJECT
Examples of gas business practices

• IT / Communication standards
• Procedures for noms, renoms, matching
• Generic agreements, eg trading, OBAs
• Harmonisation of units
• Gas industry players codification for IT use
• Glossary of gas industry terminology

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