NTS starts its first Open Season for incremental capacity with a Market Consultation
At this stage, shippers may express an interest in the gas transport capacity at some point in the gas network
On 22 March 2021, NTS starts its first Open Season for incremental capacity with a Market Consultation. At this stage, shippers may express an interest in the gas transport capacity at some point in the network - even if it is not available. Shippers may also request the construction of new sections that meet their demands.
“This step is non-binding and shippers can indicate your needs without obligation. The binding step happens later, when we enter the capacity reserve phase. It is at this point that the participating shippers submit guaranteed proposals, which result in the signing of transport contracts ”, explains Mauricio Lopes, Commercial and New Business Manager at NTS.
What is Incremental Capacity Auction
An Open Season for incremental capacity aims at identifying potential demand for transport capacity at existing or new entry or exit points/zones which cannot be served by the available capacity of the gas network and which requests an expansion of NTS’ existing gas infrastructure. Market consultation is only the first step in the process. Subsequently, the proposal for an incremental capacity project will come to the end of the Incremental Capacity Auction itself.
As a consequence of the identified demand and subsequent conclusion of incremental capacity contracts, the result of the Open Season will be the construction of an expansion of NTS’ existing gas infrastructure.
For Mauricio Lopes, the relevance of the Incremental Capacity Auction is associated with the fact that shippers can express their needs without having to worry about whether there is already infrastructure to serve them. “And for the carrier, this process can result in investments, such as expansions, increased capacity and reduced bottlenecks.”, he concludes.