Gas Transportation Tariffs - Shippers with Customers Off-taking NG at High Pressure (wef 1 Apr 2023).pdfhttps://www.spgroup.com.sg/dam/jcr:600f24a3-8991-4c52-8d31-c357761b0cb2/%20Gas%20Transportation%20Tariffs%20-%20Shippers%20with%20Customers%20Off-taking%20NG%20at%20High%20Pressure%20(wef%201%20Apr%202023).pdfGAS TRANSPORTATION TARIFFS (for Shippers with customers off-taking natural gas at high pressure) (W.E.F. 1 Apr 24) 1 Introduction 1.1 Under the Gas Network Code, PowerGas is the Gas Transporter and is responsible for maintaining the reliability and safety of the gas transportation network in Singapore. PowerGas’ transportation business is regulated by the Energy Market Authority (EMA). The transportation tariffs levied by PowerGas are approved by the EMA. 1.2 PowerGas charges transportation tariffs for the transport of gas through its network. PowerGas’ transportation tariffs are levied on Shippers and not the end-users. End-users’ transportation charges imposed by Shippers are commercial arrangements between both parties. 2 Natural Gas Transmission Tariffs 2.1 There are two gas transmission networks, namely Transmission Network 1 and Transmission Network 2. Transmission Network 1 refers to the natural gas transmission network conveying both piped natural gas and regasified LNG from West Natuna (Indonesia) and the LNG Terminal. Transmission Network 2 is the natural gas transmission network conveying both piped natural gas and regasified LNG from South Sumatra (Indonesia), Attap Valley (Malaysia) and the LNG Terminal. 2.2 Transmission tariffs consist of capacity and usage charges (refer to Section 3 below for details). These charges are applicable to Shippers off-taking gas at high pressure. The same charging structure also applies to Shippers with Small Transmission Customers (i.e. with load less than or equal to 5 bbtud). 3 Transmission Charging Structure 3.1 Shippers book capacity with PowerGas to transport gas from designated injection points to off-take points. Shippers pay entry and exit charges based on their respective booked capacity. In addition, a usage charge is levied on the volume of gas transported. 3.2 Arising from EMA’s notification to the industry dated 21 March 2024, a GSC of 20 cents/mmBtu for PNG Injection Points or GSC of 2 cents/mmBtu for LNG Injection Points is imposed on PNG and LNG gas users respectively with effect from 1 Apr 24 to recover the cost associated with Strategic Capacity (as defined in EMA's Policy Paper issued to the industry dated 30 Sep 2019). The Transporter will collect the GSC from all Shippers as an agent for and on behalf of SLNG. The GSC will be reviewed from time to time as directed by EMA and will be included as an uplift in the usage charge. Details of the transmission charges are shown in Table 1 of the Appendix. 3.3 These transmission charges do not include specific cost items which need to be determined on a case-by-case basis for inclusion into the final transmission charges. 3.4 For Shippers with Small Transmission Customers (i.e. requiring gas at high pressure, but with load of less than or equal to 5 bbtud), the transportation charges as shown in Table 2 of the appendix shall apply. 3.5 Shippers will have to pay Overrun Charges in the event they off-take gas above their booked capacity. These Overrun Charges are necessary to encourage the efficient use of the gas network. There are two types of Overrun Charges: • Authorised Capacity Overrun Charge: If a Shipper applies for additional capacity above the booked capacity (i.e. capacity overrun), the Authorised Capacity Overrun Charge, equivalent to 1.25 times the Transmission Capacity Charge rate, shall be applied on that additional capacity. 2 • Unauthorised Capacity Overrun Charge: If a Shipper does not apply for Authorised Capacity Overrun for utilisation of additional capacity above the booked capacity, it will pay 2 times the Transmission Capacity Charge rate for that additional capacity utilised. 4 Appendix – Table of Charges Transmission Network 1 (locational) Transmission Network 2 (locational) Table 1: Transmission Charges (Exclusive of GST) Entry Capacity Charge per annum ($/MMBtu/hr) Exit Capacity Charge per annum ($/MMBtu/hr/km) Transmission Usage Charge ($/MMBtu) 729.81 47.41 0.0071 1,375.68 (Attap Valley Injection Point) 1,000.54 (Sakra Injection Point) 39.40 0.0121 New Pipeline – utilised 246.96 246.96* 0.0030 New Pipeline – excess 240.38 240.38* 0.0037 GSC for PNG Injection Point N.A N.A 0.2000 GSC for LNG Injection Point N.A N.A 0.0200 * in $/MMBtu/hr per annum Transmission Network 1 (locational) Transmission Network 2 (locational) Table 1a: Transmission Charges (Inclusive of 9% GST) + Entry Capacity Charge per annum ($/MMBtu/hr) Exit Capacity Charge per annum ($/MMBtu/hr/km) Transmission Usage Charge ($/MMBtu) 795.49 51.68 0.0078 1,499.50 (Attap Valley Injection Point) 1,090.59 (Sakra Injection Point) 42.95 0.0132 New Pipeline – utilised 269.19 269.19* 0.0033 New Pipeline – excess 262.02 262.02* 0.0040 GSC for PNG Injection Point N.A. N.A. 0.2180 GSC for LNG Injection Point N.A. N.A. 0.0218 * in $/MMBtu/hr per annum 3 Table 2: Transmission Charges for Shippers with Small Transmission Customers (Exclusive of GST) Transmission Network 1 (West Natuna) Transmission Network 1 (SLNG) Transmission Network 2 (Attap Valley) Transmission Network 2 (Sakra) Transmission Network 2 (SLNG) Entry Capacity Charge per annum ($/MMBtu/hr) Exit Capacity Charge per annum ($/MMBtu/hr) Transmission Usage Charge (comprising non- GSC and GSC) ($/MMBtu) 970.19 5,008.60 0.0149 ($/MMBtu) + 0.2000 1,165.26 5,307.46 0.0179 + 0.0200 1,616.07 4,362.73 0.0149 + 0.2000 1,240.93 4,737.86 0.0149 + 0.2000 1,185.71 5,287.01 0.0179 + 0.0200 Table 2a: Transmission Charges for Shippers with Small Transmission Customers (Inclusive of 9% GST) + Transmission Network 1 (West Natuna) Transmission Network 1 (SLNG) Transmission Network 2 (Attap Valley) Transmission Network 2 (Sakra) Transmission Network 2 (SLNG) Entry Capacity Charge per annum ($/MMBtu/hr) + Note: Figures may not reflect the full GST effect due to rounding. Exit Capacity Charge per annum ($/MMBtu/hr) Transmission Usage Charge (comprising non- GSC and GSC) ($/MMBtu) 1,057.51 5,459.37 0.0162 ($/MMBtu) + 0.2180 1,270.13 5,785.13 0.0195 + 0.0218 1,761.52 4,755.38 0.0162 + 0.2180 1,352.61 5,164.27 0.0162 + 0.2180 1,292.42 5,762.84 0.0195 + 0.0218 4