1. Developing capacity & connection processes: A long term non firm capacity product?
27th June 2012

2. Why a new product?
Allow new connections and existing site expansions access to the NTS ahead of agreed timescales for firm incremental capacity delivery
Optimise the system prior to delivery of the firm capacity
Could help mitigate uncertainty & delays for customers
Where customer has significantly progressed their project and NTS connection is ready, but firm capacity lead time is longer
In response to industry request to address concerns above
Product would aim to cover the “gap” between customer gas flow date and NTS delivery date

3. Possible options Assumption:
Covers period from customer’s gas flow date up to firm incremental capacity delivery date (where different), therefore non-firm
Should the release be limited to the PCA/PARCA signatory / nominated party?
Option A: Non-obligated capacity, with a buyback option that NG can call upon
Utilises existing non-obligated capacity mechanisms
Buyback option contract attached
A number of possible buyback pricing options
Option B: Long term off-peak/interruptible capacity
Introduces new capacity product
Sold through auctions - could be adhoc or fixed?
Option C: Any other ideas/suggestions?

4. How might the options work?

5. Pros and Cons

6. What do you think…?
What might work best – a version of one of these options, or something completely different?
What works, what doesn’t?
If viable, how could these options work better?
Customer priorities/issues?
Scope?
Anything else….