allocation procedure at entry points connected to - Snam Rete Gas

Allocation procedure at Entry Points connected to foreignimportations (Termal Year 2012-2013)(This document is translated in English only for consultation, please refer to Italian versionas the official one)With reference to dispositions provided in the paragraph 3.4.1 of the Chapter “Balancing” of theSnam Rete Gas Network Code, this procedure has the objective to point out how Snam Rete Gas makesthe allocation at Entry Points connected to foreign importation pipelines.In application to provisions of paragraph 3 of the Chapter “Operational coordination with thirdparties” of the Network Code, Snam Rete Gas defines, with interconnected transport companies,agreements about allocation gas information.Snam Rete Gas receives the delivered quantities to National Entry Points from interconnectedtransport companies. The quantities described above are daily detailed and are communicated at thebeginning of following month related to the allocation ; Snam Rete Gas provides to apply the allocationrules (gas transfers/ acquisitions) that Shippers define, properly countersigned, according to timingindicated into the Network Code.The results of the allocation process are published on the portal Entry Allocation and madeavailable to registered users, in compliance as defined by the Network Code.1. Trading RulesThe Shippers are requested to communicate the information useful to the allocation process,using the Trading Forms available at the following link:http://www.snamretegas.it/en/services/General_procedures/Allocation_Procedure/index.htmlIf any rules will be communicate to Snam Rete Gas by the deadlines defined, Snam Rete Gas willmanage the nominations as defined in par. 6.5 of the Chapter 8 of the Network Code.Starting from the Termal Year 2012-2013, Shippers can subscribe Trading Rules on the EntryAllocation Portal.Rules determine all the acquisitions/transfers that will be compared in the relative gas summaryreport mentioned below; trading rules communicated by Shippers will be in force only if Snam Rete Gascan verify all the documentation related to the sequence of trading rules, starting from the DeliveringShipper who is on the Interconnected Network, up till Snam Rete Gas customer, who has capacity at theEntry Point.Forms, countersigned by Delivering Shipper and Receiving Shipper, must be sent by fax to (+39)02.3703.9223, according to timing indicated above (at least 3 working days prior to the requestedeffective date of said rules).

These forms consist in:1.1 Gries Pass and Tarvisio1.1.1. Entry Point Gas Trading Form: Delivering Shipper, interconnected network’s customer, transfersto Receiving Shipper the quantity settled by the “lesser rule” principle and communicated by theInterconnected Foreign Operator. Until it will defined a Balance Agreement between Snam ReteGas S.p.A. and the Interconnected Foreign Operator, in case of any imbalance created by adifference between the metered quantities and the confirmed nominations, the allocated quantitieswill be calculated with relation to rules applied by the Interconnected Foreign Operator;1.1.2. Exit Point Gas Trading Form: Delivering Shipper transfers to Receiving Shipper, interconnectednetwork’s customer, the quantity settled by the “lesser rule” principle. Allocated quantities will becalculated in application of principle “Nomination=Allocation”.1.1.3. Entry Point Gas Trading Form – Day Ahead: Delivering Shipper, interconnected network’scustomer, transfers to Receiving Shipper the quantity settled by the “lesser rule” principle andcommunicated by the Interconnected Foreign Operator. Until it will defined a Balance Agreementbetween Snam Rete Gas S.p.A. and the Interconnected Foreign Operator, in case of any imbalancecreated by a difference between the metered quantities and the confirmed nominations, theallocated quantities will be calculated with relation to rules applied by the Interconnected ForeignOperator.Day Ahead Trading forms must be sent by 10:00 AM of the working day prior to the requestedeffective date of said rules;1.1.4. Exit Point Gas Trading Form – Day Ahead: Delivering Shipper transfers to Receiving Shipper,interconnected network’s customer, the quantity settled by the “lesser rule” principle. Allocatedquantities will be calculated in application of principle “Nomination=Allocation”.Day Ahead Trading forms must be sent by 10:00 AM of the working day prior to the requestedeffective date of said rules;1.2 Gorizia1.2.1. Exit Point Gas Trading Form: Delivering Shipper transfers to Receiving Shipper, interconnectednetwork’s customer, the quantity settled by the “lesser rule” principle. Until it will defined aBalance Agreement between Snam Rete Gas S.p.A. and the Interconnected Foreign Operator, incase of any imbalance created by a difference between the metered quantities and the confirmednominations, the allocated quantities will be calculated with relation to rules applied by Snam ReteGas S.p.A.;1.2.2. Entry Point Gas Trading Form: Delivering Shipper, interconnected network’s customer, transfersto Receiving Shipper the quantity settled by the “lesser rule” principle. Allocated quantities will becalculated in application of principle “Nomination=Allocation”.1.3 Other Entry Points1.3.1. Gas Trading Form BASIC: Delivering Shipper, interconnected network’s customer, transfers toReceiving Shipper the basic quantity allocated to it by the Interconnected Foreign Operator;

1.3.2. Gas Trading Form FULL: Delivering Shipper transfers to a Receiving Shipper its all allotmentquantity, net to further transfers/acquisitions, i.e. the algebrical sum among basic (if any, i.e. thequantity allocated to it by the Interconnected Foreign Operator) and other transfers/acquisitionsowned by the Delivering one;1.3.3. Gas Trading Form FULL (Single Shipper): This form must be communicated to Snam Rete Gas ifthe Shipper doesn’t signed any trading rules; in this case the Shipper takes charge of the gasquantities notified by the Interconnected Foreign Operator;1.3.4. Gas Trading Form VALUE: Delivering Shipper defines a transfer in Scm/day or in GJ/daytowards a Receiving Shipper. The missed delivery of the scheduled gas quantities from theDelivering Shipper will determine the relative reduction to the Receiving one (if this situationinvolves more Receiving Shippers, the reduction will be proportionally calculated starting from thescheduled information);1.3.5. Gas Trading Form PERCENTAGE: Delivering Shipper transfers to a Receiving Shipper apercentage on a referred quantity that has to be communicated. The form shows also a summary ofall the percentage transfers on the basis of the same referred quantity;1.3.6. Gas Trading Form RANK: Delivering Shipper defines rank level and superior limit of a transferin Scm/day or in GJ/day towards a Receiving Shipper. Firstly the transfer with lesser rank level issatisfied, then the other rank transfers are satisfied in increasing order of rank level. HoweverDelivering Shipper can define superior limit and rank level of a transfer also for itself, filling in thepage “RANK level of Delivering Shipper for transfer at entry Point”. For the rule is valid, oneamong the company specified in the gas trading forms will serve as a "compensator" and thereforeshould not indicate the maximum limit;If the Delivering Shipper is only an interconnected network’s customer, it must sign a FULLtrading rule to validate the VALUE or PERCENTAGE ones.If the quantities, which are acquired by someone who is neither an interconnected network’scustomer nor a Snam Rete Gas’s shipper, differs from the quantities transferred with the value rules, and,at the same time, this customer doesn’t undersign a FULL trading rule, then for allocation aim, thequantities defined in the value trading rules will be proportionally modified.2. Trading Rule AdjustmentsTo communicate any gas transfer adjustment, shippers can use the update functionality availableon Entry Allocation web system (the adjustment is permitted only for VALUE, PERCENTAGE andRANK gas trading rules); corrections sent through the Entry Allocation Portal are allowed by 12:00 thegas day preceding the date of entry into force of the adjustments.Otherwise Shippers can send to Snam Rete Gas transfer adjustment using the following forms:It is pointed out that modification to a rule means only adjustments of its values (usingopportune form indicated below) and not its replacement with another rule.

1. Gas Trading Form ADJUSTMENT RANK: with this form Delivering Shipper can adjustsuperior limit transfer to a Receiving Shipper, while it’s not possible to change rank level;2. Gas Trading Form ADJUSTMENT PERCENTAGE: with this form Delivering Shipper canadjust percentage transfer value to a Receiving Shipper, while it’s not possible to change referredquantity;3. Gas Trading Form ADJUSTMENT VALUE: with this form Delivering Shipper can adjusttransfer quantity to a Receiving Shipper.These forms must be sent according to timing indicated into paragraph 3.4.1 of Chapter 9 of theSnam Rete Gas Network Code; transfer adjustments communicated by fax, are allowed until 3 workingdays before the required start date of the modification.Snam Rete Gas, with reference to possible reductions of quantities supplied by foreign Shippersinvolved in the gas trading, which don’t occur within communication deadline, allows to modify onlyquantities of “value” trading rules. The request will be accepted only if after the Interconnected ForeignOperator confirms the supply reduction with a communication. This communication must be sentwithin the working day after the supply reduction.3. Excel ProspectTo check “matching of nominations” and the related allocated gas passing, Snam Rete Gas invitesits Shippers to use, during the Thermal Year, prospects excel "Alloc_Masera_english","Alloc_Tarvisio_english", "Alloc_Mazara_english", "Alloc_Gorizia_english", "Alloc_Gela_english",available on Snam Rete Gas web site in the section "Network Code- Forms".These excel prospects must be sent by email to the following address:opcom.entryallocation@snamretegas.itThe excel prospect formatted consists of three (3) sheets:1. “Upstream” sheet: in this sheet Shipper fills its nominations to the Interconnected ForeignOperator;2. “Custom” sheet: this sheet is to acknowledge the daily transactions before the customdeclaration. The shippers shall fill the columns “Transfer” and “Acquisition” concerning to theircommercial agreements about gas transfers. In other terms, the shipper must compile this sheet onlywith the trading rules where it takes responsibility for the custom declaration. A summary table iscompiled automatically according to the Upstream gas flows plus/minus the Transfer/Acquisitionallocation rules in custom.3. “Downstream” sheet: this sheet is to acknowledge the daily transactions after the customdeclaration. The shippers shall fill the columns “Transfer in Italy” and “Acquisition in Italy” concerningto their commercial agreements about gas transfers. In this sheet the shipper must insert only theinformation related to trading rules where it doesn’t take responsibility for the custom declaration.

The summary table “Total Downstream” is compiled automatically according to the Upstreamgas flows plus/minus the Transfer/Acquisition allocation rules in custom and in downstream andrepresents the daily expected quantities to be transported in Italy.By checking “Total Downstream” with “Monthly Nomination Program”, i.e. the transportationprogram on Italian side, might be useful for the Users in order to asses if their nominations are correct ornot on the bases of the rules submitted.