Transporter Requirements

National Grid purchase its Operating Margins requirements for LNG services, at previously determined regulated prices. These prices are set out in Special Condition C3 of the Gas Transporter licence and are detailed in Fixed LNG Storage Charges.

In addition National Grid are obliged to publish an annual Operating Margins Statement.

Scotia Gas Networks are required under licence to support the Scottish Independent Networks (SIN) and purchase their requirements at previously determined regulated prices.  These prices are set out in Special Condition C3 of the Gas Transporter licence and are detailed in Fixed LNG Storage Charges.

SIN are four towns in Scotland supplied with natural gas but are not connected to the National Transmission System. Instead road tanker takes LNG from an LNG Storage facility to satellite LNG stations from which the towns are supplied.

Constrained LNG Facilities are situated on the parts of the NTS most remote from the beach terminals. On days of high demand some of the gas required at the extremity of the network may come from the local LNG site. This means that pipelines feeding that locality do not have to provide gas for the full demand on a peak day. The required capacity of the pipeline has therefore been reduced and investment saved. The use of LNG storage to save on pipeline investment is known as transmission support.

Users, who book the Constrained Service from LNG Storage, agree to provide transmission support gas to National Grid on days of very high demand. They also agree to retain a Minimum Inventory level of gas in store so that transmission support gas is available all winter.  In recognition of these transmission support obligations, customers of the Constrained Service receive a transportation credit from National Grid, which reflects the saved investment in the pipeline system.

The details associated with Transmission Support are detailed in a Constrained Storage Statement.