Infrastructure is Key A Measure of Our Confidence in the Future. - PowerPoint PPT Presentation

Infrastructure is Key A Measure of Our Confidence in the Future. John Barry - Bord Gáis Networks

Gas Industry Development 1976 - Bord Gáis Éireann - State Gas Development Agency  1978 - First Natural Gas deliveries to Ireland  1994 - Interconnector to Scotland  1995 - Third Party Access  Introduced for sites consuming >264GWh (70% of the market volume)  - Market opening for 250 gas sites – 2 nd Interconnector to Scotland 2002  2002 - CER appointed to regulate the natural gas sector  2007 - full market opening – competition available in all sectors  - Gaslink ( Independent System Operator) – EU 2 nd Directive 2008  - EU 3 rd Directive - creation of the Independent Transmission Operator (ITO) 2009  2011 - Common Arrangements for Gas (CAG)  2

BGE , under the 3 rd Directive ,w ill establish an independent subsidiary to ow n and operate the transmission and distribution netw orks. BGÉ under ITO  Essentially the amalgamation of Gaslink BGÉBoard & Bord Gáis Networks as an independent ITO Supervisory Body subsidiary of BGÉ. CEO  As required by the Directive, the ITO ITO/ Networks Board would be supported by its own Corporate, IT, Finance and HR functions, creating a ITO M D Group Functions completely stand alone and independent subsidiary. Corporate Support Functions Services  ITO will combine the Transmission system ownership and Transmission Networks & Gaslink Businesses Energy Business System Operation along with Distribution (T & D) System Ownership and Operation  GB and NI networks businesses (excluding firmus distribution) will be incorporate into the single ITO ITO Legal Structure  100% owned subsidiary of BGÉ, legally  Achieving compliance requires a major unbundled change in the day to day operations of Bord Gais as currently constituted  Limited liability company  Transfer of assets to ITO 3

The Natural Gas Grid

circa 1979 Cork Area Pipelines 5

circa 1982 Cork to Dublin Pipeline 6

circa 1985 Dublin Area Pipelines 7

circa 1986 Limerick Pipelines Waterford Pipelines 8

circa 1992 North Eastern Pipelines 9

Scottish Pipeline circa 1995 Interconnector 1 Pipeline 10

circa 2000 Navan Pipeline Ballyraggert Pipeline Westcork Pipeline 11

circa 2002 Interconnector 2 Isle of Man Pipeline Pipeline Gas to the West Pipeline 12

circa 2005 North West Pipeline Galway City Pipeline Tynagh Pipeline 13

circa 2006 Mayo Galway Pipeline 14

circa 2007 South North Pipeline 15

16

The number of tow ns w ith a gas distribution system has grow n, including in Northern Ireland …  Currently have 10,500km of Distribution Network.  100% PE @ Q4 2009  C.€160m 2004 -2009  2300km Transmission Network  X2 in period 2002 - 2007  Natural Gas available in  over 140 population centres  18 counties in Ireland  over 610,000 gas users  Firmus energy, BGÉ subsidiary  licensed to supply gas to ten towns in NI  construction roll-out started in 2005 with c. 2,800 customers now connected 17

BGN Netw ork System Demand / Performance during the Severe Weather Period in December 2010

ROI Gas Demand During December 2010  December 2010 was the coldest December since records began in 1947 with a corresponding coldest record day at Dublin Airport on 24 th December 2010, where the average temperature over 24 hours was - 8.6 degrees C (23.6 Degree day).  The BGN Gas Network experienced near record levels of daily system demand of 248 GWh on 8 th December 2010 compared with a previous record level of 250 GWh on 7/8 th January 2010.  A domestic / small I/C non daily metered (NDM) peak day demand of 94.9 GWh occurred on 21 st December 2010 compared with a record figure of 95.2 on 8 th January 2010. NDM demand reached 92.6 GWh on 24 th December 2010.  The total Republic of Ireland (ROI) demand for December 2010 was 17% higher than December 2009 with NDM demand up approximately 32% over the same period in 2009. 19

Overall System Gas Supply/ Demand – 8 th December 2010 Moffat Supply Gas supplies from Great Britain and Inch were  303.9 GWh stable throughout December 2010. NI Demand Own Use ~74.6 10.0 GWh A record flow of 20.6 mscm/d was delivered  through the Subsea Interconnectors on 8 th GWh/d December 2010: The first subsea interconnector (IC1) design  IOM Demand capacity of 17.0 mscm/d was exceeded on 4.9 GWh 22 occasions during December 2010. ROI Demand ~248.1 Flow Summary Loss of Inch supply on 8/21 st December 2010  GWh/d (mscm/d) would have increased the Interconnector System throughput requirement close to its current design Total Demand 30.4 operating limit. Total Supply Approximately 95GWh of additional gas was used  30.4 to increase Subsea and On Shore pipeline stock • Inch to mitigate against any potential within day supply/ 3.2 compressor interruption during December 2010. • Beattock 27.2 • ICs 20.6 Inch Supply • SNIP 6.6 33.7 GWh 20

Comparison of Gas Demand – January/December 2010 and 2009 J anuary and December 2010 Daily Demand by Sector 270.0 J anuary & December 2009 ROI Demand 240.0 210.0 180.0 Demand (GWh/d) 150.0 120.0 90.0 60.0 30.0 0.0 01-Jan-10 03-Jan-10 05-Jan-10 07-Jan-10 09-Jan-10 11-Jan-10 13-Jan-10 15-Jan-10 17-Jan-10 19-Jan-10 21-Jan-10 23-Jan-10 25-Jan-10 27-Jan-10 29-Jan-10 31-Jan-10 02-Feb-10 22-Nov-10 24-Nov-10 26-Nov-10 28-Nov-10 30-Nov-10 02-Dec-10 04-Dec-10 06-Dec-10 08-Dec-10 10-Dec-10 12-Dec-10 14-Dec-10 16-Dec-10 18-Dec-10 20-Dec-10 22-Dec-10 24-Dec-10 26-Dec-10 28-Dec-10 30-Dec-10 1. Power 2. Tx DM I/ C 3. Dx DM I/ C 4. NDM 5. Shrinkage J an & Dec '09 Demand 21

31/ 12/ 2010 30/ 12/ 2010 29/ 12/ 2010 28/ 12/ 2010 27/ 12/ 2010 26/ 12/ 2010 25/ 12/ 2010 24/ 12/ 2010 November & December 2010 Gas Supplies - M offat and Inch 23/ 12/ 2010 Beattock Capacity 22/ 12/ 2010 21/ 12/ 2010 20/ 12/ 2010 19/ 12/ 2010 18/ 12/ 2010 17/ 12/ 2010 16/ 12/ 2010 15/ 12/ 2010 M offat NI 14/ 12/ 2010 13/ 12/ 2010 12/ 12/ 2010 11/ 12/ 2010 10/ 12/ 2010 09/ 12/ 2010 M offat (ROI & IOM ) 08/ 12/ 2010 07/ 12/ 2010 06/ 12/ 2010 05/ 12/ 2010 04/ 12/ 2010 03/ 12/ 2010 02/ 12/ 2010 01/ 12/ 2010 30/ 11/ 2010 Inch 29/ 11/ 2010 28/ 11/ 2010 27/ 11/ 2010 26/ 11/ 2010 25/ 11/ 2010 24/ 11/ 2010 23/ 11/ 2010 22/ 11/ 2010 360.0 330.0 300.0 270.0 240.0 210.0 180.0 150.0 120.0 90.0 60.0 30.0 0.0 22 Daily Gas Supply (GW h/ d)

Power Gen Gas Demand , Electricity System Demand and Wind Generation 160.0 100.00 Forced outages at two C CGTs from Electricity System Demand & Wind Generation (GWh/ d) 21st December 90.00 140.0 resulted in a fall- off in power gen gas demand 80.00 Power Gen Gas Demand (GWh/ d) 120.0 70.00 100.0 60.00 80.0 50.00 40.00 60.0 30.00 40.0 20.00 20.0 10.00 0.0 0.00 22/ 11/ 2010 24/ 11/ 2010 26/ 11/ 2010 28/ 11/ 2010 30/ 11/ 2010 02/ 12/ 2010 04/ 12/ 2010 06/ 12/ 2010 08/ 12/ 2010 10/ 12/ 2010 12/ 12/ 2010 14/ 12/ 2010 16/ 12/ 2010 18/ 12/ 2010 20/ 12/ 2010 22/ 12/ 2010 24/ 12/ 2010 26/ 12/ 2010 28/ 12/ 2010 30/ 12/ 2010 Power Gen Gas Demand Wind Gen (Right Axis) Electricity System Demand (Right Axis) 23

Distribution Netw ork Performance December 2010  The Bord Gáis Distribution Network coped with the record demands during the severe weather period with minor interruptions in a small number of housing estates due to freezing equipment .  There was an increase of approximately 32% in the number of Public Reported Escapes (PRE’s) & 68% in “No-gas” calls received by Bord Gais compared with December 2009.  Very difficult driving conditions in December resulted in 5% (152) of PRE response calls falling outside the one hour criteria despite an increase in response resources on the ground from 40 to 60 people and the use of four wheel drive vehicles. No related incidents were recorded. 2009 2009 2010 2010 Nov Dec Nov Dec PREs 2,106 2,320 2,034 3,078 Outside Criteria 3 5 12 152 No Gas Total 1,263 1,380 1,510 2,317 24

Natural Gas as a Transport Fuel

Natural Gas Vehicles (NGV)  Provides a real alternative to petrol and diesel  Two main types of NGV’s:  ‘Dedicated’ - run on Natural Gas only  ‘Bi-Fuel’ vehicles operate on Natural Gas while retaining the ability to use petrol as a reserve ‘Normal’ refuel process fuel  Proven vehicles & technology  Over 13million NGVs worldwide  Vehicle manufacturers have proven options available  Purpose built - directly off the production line Purpose built –> under floor  Natural Gas stored in concealed cylinders cylinder storage retains full space  No payload restrictions 26

Benefits  Improve air quality and health benefits  Reduced emissions of Nitrogen Oxide, Particulate Matter and Sulphur Oxide  Reduce greenhouse gas emissions  Lower fuel costs / Affordability  Enhance competitiveness  Increase Security of Supply by providing transport fuel diversity  Reduce noise  Pathway to a renewable fuel source – Biomethane  Proven technology (13million NGVs) Approx Vehicle Cost (3.5t van) Diesel NGV Electric  Cost Competitive vs Alternative (Equivalent 4.6t) €22,000 €25,000 €85,000 27