|REMIT reporting - LNG delivery|
|REMIT Reporting Database|
According to Article 9(3) and (5) of the REMIT Implementing Regulation (EU) No 1348/2014 LNG system operators (LSO) as defined in Article 2(12) of Directive 2009/73/EC musi report to the ACER for each LNG facility the following information:
a) the technical, contracted and available capacity of the LNG facility in daily resolution;
b) send-out and inventory of the LNG facility in a daily resolution,
c) planned and unplanned unavailability announcements of the LNG facility including the time of announcement and the capacities concerned.
Article 9(5) of the REMIT Implementing Regulation stipulates that market participants or LNG system operators on their behalf are required to report to the ACER for each LNG facility the following information:
a) in relation to unloading and reloading of cargoes:
In case of the importation or offloading of liquefied natural gas in any LNG facility (including flanges that connect the LNG vessel to the LNG terminal) as far as the delivery of the product takes place in the European Union:
- both parties to the contract are required to register for REMIT purposes with the relevant EU National Regulatory Authority.
Reload-contracts at a regasification terminal or at a vessel where the delivery of the product is not the European Union are not reportable.
Manual of Procedures on transaction data, fundamental data and inside information reporting (MoP on data reporting, point 6.2.5) indicates that the ACER currently understands each LSO will provide the Agency with its own data converted in "Mm3(n)/day" in the meaning that each LSO will indicate to the Agency its definition and conversion method.
Article 2(12) of Directive 2009/73/EC defines ‘LNG system operator’ as a natural or legal person who carries out the function of liquefaction of natural gas, or the importation, offloading, and re-gasification of LNG and is responsible for operating a LNG facility.
In turn, Article 2(11) of Directive 2009/73/EC defines ‘LNG facility’ as a terminal, which is used for the liquefaction of natural gas or the importation, offloading, and re-gasification of LNG, and includes ancillary services and temporary storage necessary for the re-gasification process and subsequent delivery to the transmission system, but does not include any part of LNG terminals used for storage.
The list of LNG facilities and operators that fulfil the above definitions and, consequently, must report the LNG data about the facilities according to Article 9(3) and 9(5) of the REMIT Implementing Regulation (EU) No 1348/2014, is available on the ACER’s website.
The said List of Liquefied Natural Gas (LNG) facilities subject to reporting according to the REMIT Implementing Regulation has been included in the Annex IX to the fifth edition of the Manual of Procedures (MoP) on data reporting published by the ACER on 12 July 2018.
In the REMIT Quarterly Issue No. 14 / Q3 2018 ACER explained that the Agency had conducted quality analyses on the LNG REMIT data reported in accordance with Article 9(3) and 9(5) of the REMIT Implementing Regulation (EU) No 1348/2014.
The findings have demonstrated that a number of existing LNG facilities in the EU do not report LNG data to the Agency.
The Agency believes that the issue might be related to an incorrect understanding of the definition of LNG facility and LNG system operator under Directive 2009/73/ EC (‘the Gas Directive’), and has therefore provided a List of LNG facilities and their operators that, in the Agency’s view, fit the definitions stated in the Gas Directive.
In addition, the List provides an overview of EIC that shall be used for the identification of LNG facilities and their operators when reporting data according to Articles 9(3) and 9(5) of Implementing Regulation (EU) No 1348/2014.
ACER’s Second Open Letter of 19 July 2018 on REMIT data quality (ACER-VZ-MS-tl-2018-389) lists the following examples of non-compliance with the rules on REMIT LNG data reporting:
1. Inaccurate Gas day duration reporting
Variety of gas day duration (date + time) reporting are encountered when LSOs/MPs report events in gas day resolution causing difficulties to uniquely interpret the time period to which reported data refers to.
Reporting parties are not respecting gas day definition and/or are applying different offsets (+) in regard to the same time zone for summer/winter period.
‘Gas day’ means the period from 5.00 to 5.00 UTC the following day for winter time and from 4.00 to 4.00 UTC the following day when daylight saving is applied.
The reported gas day shall be the gas day of the country where the facility is located.
Thus, if a MP is located in e.g. Spain and reports LNG data about a facility located in Portugal the gas day of Portugal shall be used.
2. Noncompliance of gas day resolution reporting
LSOs/MPs report events not respecting a daily resolution of reported events that has been defined in the MoP on data reporting and are reporting a status of a facility or its planned usage for a period of several gas days within one record.
3. Duplication of reported LNG data records
It was noticed that the same record content has been reported several times.
Once reported the record should be re-submitted only if there was an error reported in the original record or other changes occurred (such as for example modification/cancelation of unavailability announcement or change of the available capacity and similar).
4. Frequency of providing LNG reports is not compliant with REMIT Implementing Regulation (EU) No 1348/2014
The Agency is observing that frequency i.e. number of records expected and submitted is not in line with provision from Implementing Regulation.
The Agency expects reports from all LNG facilities for each gas day.
5. Wrong codes used for “lngFacilityIdentifier”
For lngFacilityIdentifier EIC W and Z codes are the only acceptable (i.e. compliant with MoP on data reporting) codes. The Agency has noticed that however also other types of codes have been reported, i.e. EIC X, Y and ACER codes. EIC Z codes shall be used only in lngUnavailabilityReport when reporting unavailability of a connection point and not the facility. The Agency has prepared a List of LNG facilities and operators to be used for the LNG REMIT reporting.
6. Inconsistent notifications of LNG unavailability publicly available and reported to the Agency
The Agency is observing inconsistent notifications of LNG facility unavailability published at publicly available web sites (for example LSOs’ webpage) and provided through REMIT reporting.
Details of LNG facility unavailability reported under REMIT and publicly available have to be the same.
This is a major data quality issue resulting in the fact that the Agency has a completely different picture about the same event compared to public and mainly those using publicly available data to make their trading decisions.
7. Timeliness of providing LNG reports not compliant with REMIT Implementing Regulation provisions
The Agency is observing timeliness issue of reporting LNG data. The information referred to the LNG reporting is not made available following working day.
As regards REMIT reporting ACER also explained (answer to a Question 3.1.51, Frequently Asked Questions (FAQs) on REMIT transaction reporting - see below) that a contract for the LNG delivery for gasification purposes or emergency delivery should be classified as a contract for the supply of gas for a period of maintenance, and not for a balancing service.
Hence, such a contract, as opposite to contracts for balancing services, must be reported under REMIT (contracts for balancing services, unless concluded on organised market places, are reportable only upon reasoned request of the ACER and on an ad-hoc basis).
Commission Implementing Regulation (EU) No 1348/2014, Article 3(1)
ACER's Questions and Answers on REMIT, Question III.3.36
Frequently Asked Questions (FAQs) on REMIT transaction reporting, Question 3.1.48, 3.1.49, 3.1.51
|Last Updated on Sunday, 11 November 2018 15:48|