DTe Wishes to Improve Operation of Gas Storage Market

The Office for Energy Regulation (DTe) today published a consultation document through which DTe wishes to acquire insight into the causes of the poor operation of the gas storage market in the Netherlands. Later this year, DTe will determine new rules which gas storage companies (NAM and the Bergen Concessionaries) have to take into account in offering potential customers standard agreements. The rules will be set out in the Guidelines for Gas Storage for the Year 2003 [Richtlijnen Gasopslag voor het jaar 2003].

Gas storage is of particular interest to gas traders (shippers) and end users, such as power stations. They can use gas storage to increase their flexibility (seasonal arbitrage, flexibility services).

Last year DTe determined the Guidelines for Gas Storage for the Year 2002. These guidelines have resulted in the partial opening of existing gas storage installations in the Netherlands. Up until 1 January 2002, these installations were not accessible to third parties. To date, however, the opening of these installations has not resulted in agreements with parties for the de facto use of these installations. DTe considers it to be disappointing that the market for gas storage has not yet developed. It is unclear whether the cause lies on the demand or the supply side of the gas storage market. In the document published today DTe has requested market players to provide input for the new guidelines.