Gas Transportation Tariffs - Shippers with NG Distribution Customers (1 Apr 25).pdfhttps://www.spgroup.com.sg/dam/jcr:6e49e4f8-4caf-40f7-92df-8b70f8babc95/Gas%20Transportation%20Tariffs%20-%20Shippers%20with%20NG%20Distribution%20Customers%20(1%20Apr%2025).pdfGAS TRANSPORTATION TARIFFS (for Shippers with Natural Gas Distribution customers) (W.E.F. 1 Apr 26) 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 The transportation tariffs are levied on Shippers. Shippers pay transmission as well as distribution charges as part of the distribution tariff for transportation of natural gas to distribution-level end-users. This is to reflect the cost of transporting gas through both the transmission and distribution networks. 1.3 End-user transportation charges imposed by Shippers are commercial arrangements between the Shippers and their end-users. 2 Natural Gas Distribution Tariffs 2.1 Arising from EMA’s notification to the industry dated 21 March 2024, a GSC of 23 cents/mmBtu for PNG Injection Points or GSC of 4 cents/mmBtu for LNG Injection Points is imposed on PNG and LNG gas users respectively with effect from 1 Apr 26 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 transmission usage charge. 2.2 The Distribution tariff is made up of two components (i.e. a Transmission Charge component and a Distribution Charge component). 3 Transmission Charging Structure 3.1 Transmission charges consist of capacity and usage charges. 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, uniform usage charge is levied on the volume of gas transported. Details of the transmission charge components are shown in Table 1 of the Appendix. 3.2 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. • 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 Distribution Charging Structure The Distribution Charge component is a usage-based charge in $/MMBtu. The Distribution Network is segregated into two service areas as follows: • The Jurong Island, Jurong and Tuas (“JIT”) area 2 • Outside the JIT area As the cost to serve the area outside JIT is higher than the JIT area, this results in a higher usage charge for the former. The Distribution Charges are shown in Table 2 of the Appendix. 5 Appendix – Table of Charges Table 1: Transmission Charges for Shippers with Natural Gas Distribution Customers (Exclusive of GST) Entry capacity charge ($/MMBtu/hr) Per Annum (a) Exit capacity charge ($/MMBtu/hr) Per Annum (b) Transmission capacity charge ($/MMBtu/hr) Per Annum (a) + (b) Transmission usage charge (comprising non-GSC and GSC) (¢/MMBtu) a) PNG source Transmission Network 1 537.20 2,432.36 2,969.56 1.59 + 23.0 Transmission Network 2 * 2,158.83 810.73 2,969.56 1.59 + 23.0 Transmission Network 2^ 1,637.32 1,332.24 2,969.56 1.59 + 23.0 b) LNG source Transmission Network 1 769.89 2,706.41 3,476.30 1.90 + 4.00 Transmission Network 2 1,470.60 2,005.70 3,476.30 1.90 + 4.00 Table 1a: Transmission Charges for Shippers with Natural Gas Distribution Customers (Inclusive of 9% GST) + Entry capacity charge ($/MMBtu/hr) Per Annum (a) Exit capacity charge ($/MMBtu/hr) Per Annum (b) Transmission capacity charge ($/MMBtu/hr) Per Annum (a) + (b) Transmission usage charge (comprising non-GSC and GSC) (¢/MMBtu) a) PNG source Transmission Network 1 585.55 2,651.27 3,236.82 1.73 + 25.1 Transmission Network 2 * 2,353.12 883.70 3,236.82 1.73 + 25.1 Transmission Network 2^ 1,784.68 1,452.14 3,236.82 1.73 + 25.1 b) LNG source Transmission Network 1 839.18 2,949.99 3,789.17 2.07 + 4.36 Transmission Network 2 1,602.95 2,186.21 3,789.17 2.07 + 4.36 Notes: 1) Transmission Network 1 refers to the natural gas transmission network conveying both piped natural gas and regasified LNG from West Natuna (Indonesia) and the LNG Terminal. Transmission Network 2 is the natural gas transmission network conveying both piped natural gas and regasified LNG from South Sumatra (Indonesia), Attap Valley (Malaysia) and the LNG Terminal. 2) * For gas injection at Attap Valley. 3) ^ For gas injection at Sakra. 3 Table 2: Distribution Charges (Exclusive of GST) Tariff Category Distribution charge ($/MMBtu) Natural gas distribution in JIT 1.228 Natural gas distribution outside JIT 3.413 Table 2a: Distribution Charges (Inclusive of 9% GST) + Tariff Category Distribution charge ($/MMBtu) Natural gas distribution in JIT 1.339 Natural gas distribution outside JIT 3.720 + Note: Figures may not reflect the full GST effect due to rounding. 4