Nominations & allocations

Nominations & allocations

A shipper will indicate to the grid operator how much gas he intends to transport at an entry point or exit point at any given hour of the gas day by submitting nominations. Nominations are required at entry and exit points wherever the grid owner needs nominations for technical transport reasons or for the purpose of calculation of the assignment of interruptible capacity. Nominations are also obligatory at points where they are needed to determine allocations.

Nominations need to be submitted to the grid operator on the gas day preceding the gas day on which the gas will flow. In principle renominations are allowed at the latest up to 2 hours before the hour to which the renomination refers.

Nominations on the TTF are governed by the “lesser rule” principle. This means that if there is a difference between the nominated volumes of the two shippers or traders who report a gas trade, the lesser volume will be confirmed to both parties by the grid operator. (Re)nominations at TTF points can be made at the latest up to 30 minutes before the hour to which the nomination refers.

The grid opearot will check the (re)nominations of the shippers. The matching procedure involves:

  • Checking the (re)nomination to the conditions of the relevant contract (check whether capacity will be exceeded);
  • Matching the (re)nomination to the (re)nominations of other shippers or to information received from neighbouring network operators.

As soon as the matching procedure has been completed, the grid operator will send a confirmation to the shipper. If the nominated capacity exceeds the booked capacity, and no (re)nomination is made within the limits of the booked capacity, the grid operator will confirm zero. If the check shows that the volume of nominated gas is allowed (sufficient capacity) and possible (no transport bottlenecks), the confirmation will be identical to the nomination. In all other cases, the confirmation will be different from the nomination. Interruptions of interruptible transport capacity must take place in time stamp sequence. Interruptions of interruptible quality conversion capacity will be effected on a pro rata basis.

Confirmation at TTF points will be given after matching the nominated volumes of the two parties transferring gas to one another, in accordance with the “lesser rule” principle. Both parties will receive a confirmation with the status ‘settled’ in case the nominations match. A (re) nomination by one of the parties will not lead to an adjustment of the confirmation with the status ‘settled’. Not until both parties send new matching nominations, will a new confirmation with the status ‘settled’ follow for the new matching volume.

Allocation & Reconciliation

The use of the gas transmission grid is allocated to shippers on the basis of allocations for each hour for each entry and exit point. For exit points connected to a local distribution grid, the allocation data are determined by LDCs and sent to the grid operator and the shippers. For all other national exit points (industry), the allocations are determined by the grid operator. This is on the basis of the ‘allocation roles’. With regard to the remaining points, the shippers are to send the allocations (or have them sent) to the grid operator, for instance by the producer or the foreign network operator.

For each relevant entry or exit point a shipper is assigned an allocation role. The main roles are the proportional role and the balancing role. A shipper with a proportional role will in principle be allocated the confirmed volume. A shipper with a balancing role will have the volume allocated that equals the difference between the measured volume and the sum of the confirmations to the shippers that have a proportional role. A further role - the max balancing role – was introduced on 1 January 2007. The max balancing role is a special form of the balancing role. With the max balancing role a shipper will have the difference between the measured volume and the sum of the confirmations to the shippers with a proportional role, up to a certain maximum allocated. The confirmed quantities on the TTF are always the same as the allocations on the TTF.

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  • Gerard Veenstra | Enerxis We deliver high quality consultancy services in the energy business. Our experience and in depth industry knowledge enable us to understand the oil and gas business supply chain. We are a specialist in how to manage data in oil and gas, to control your business.

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