The Open Season for incremental capacity is supported by the Brazilian Law 11.909/2009 (Lei do Gás), by the decree 7.382/2010, as well as by the Resolution ANP 37/2013, which deals with enhancement of transport capacity, by the Resolution ANP 11/2016 about the access to gas transport and by the Resolution ANP 15/2014, which deals with tariff calculation methodologies.
This Market Consultation for Incremental Capacity Auction was closed on May 21st.
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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.
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.
The Open Season process for incremental capacity is divided in 3 stages:
The objective of the first stage is to identify the market demand for transport capacity in NTS’ gas network. This will be done by provision of the “Capacity Request”-Form which shall be completed and submitted to NTS by the interested market players. Each demand for transport capacity requested at this stage is still non-binding.
The interested parties shall indicate their demand for transport capacity for the period between 2022 and 2028 in accordance with the following two capacity types offered for NTS gas network:
The market consultation will open on 22 March 2021 and will close on 21 May 2021. During this period the interested parties can submit their completed “Capacity Request”-Form to NTS by using the email firstname.lastname@example.org.
After the closure of the market consultation NTS will evaluate if the requests for transport capacity can be attended by the existing capacity of its gas network or if the requests require the creation of incremental capacity by expansion of NTS network.
In case the requested capacity cannot be attended by the existing capacity of NTS’ gas network, NTS will start the second stage with the objective to determine incremental capacity projects that will allow NTS to attend the incremental capacity demand.
An incremental capacity project is related to an expansion of NTS’ existing gas network and can have one or more of the following criteria:
At the end of this second stage, NTS will elaborate one or several project proposals for incremental capacity projects which shall include the following elements: (i) technical concept (including projected capacity), (ii) commercial concept (including tariff estimation) and (iii) a preliminary schedule for the implementation and construction of the project.
Each project proposal for incremental capacity shall be approved by ANP before entering the final stage of the Incremental Capacity Auction.
The third stage of the Open Season includes the execution of the Incremental Capacity Auction for each of incremental capacity projects that have been approved by ANP.
The Incremental Capacity Auction is divided in 6 stages:
If the demand for incremental capacity during the stage “expression of interest” is higher or lower than the projected amount of incremental capacity of the corresponding project, NTS will evaluate the necessity to adjust the project proposal. In this case the Incremental Capacity Auction will be closed (without entering the bidding rounds) and a new Incremental Capacity Auction will be started after a possible adjustment of the project proposal.
Please note that an Incremental Capacity Auction is open for participation to any interested party, not restricting the participation to those who initially requested this incremental capacity during the market consultation stage.
The Market Consultation process is open to any player in the natural gas market which intends to book transport capacity on NTS´ gas network between 2022 and 2028, such as:
When completing this form, the interested party shall consider its total projected demand for capacity for the period between 2022 and 2028.
In case there are any doubts when completing the form, please contact NTS by e-mail: email@example.com. NTS will guarantee participant confidentiality and may reply asking for clarification or additional information about any requested projects.
Comments regarding the treatment of data and personal information:
Comments about the capacity request to be entered in the form:
Will my company´s information be disclosed in any way?
No. NTS will not disclose any individual information and will treat all provided data confidentially. If signing a non-disclosure agreement between your company and NTS is necessary, please let us know by sending us an e-mail: firstname.lastname@example.org.
What is the deadline for meeting the demands being requested in the Market Consultation process?
During the market consultation phase, all interested agents shall signal demand estimates and the desired periods for meeting these demands. The idea is to develop infrastructure expansion projects with startup dates between 2022 and 2028, depending on the complexity of such projects and the actual signed contracts by the end of the Open Season for incremental capacity. On each of the Open Season´s minute notices NTS shall declare the forecasted start of operation of the incremental capacity being offered.
What is the time frame for the first phase of the market consultation process? Until when can my company submit the request form?
Companies will have 30 (thirty) days, extendable for another 30, for completing and submitting the request forms, starting as of the date of their publishing on NTS´ website on 22 March 2021.