Update on physical reverse flow and Call for Evidence by Ofgem

BBL Company (BBLC) launched physical reverse flow products on 18th July 2019 making it possible for interested shippers to book up to 7 GWh/h (~ 170GWh/d, ~15 million cubic metres/day) of transport capacity from the UK directly into the TTF market area.

The reverse flow products offered by BBLC at the IP Bacton exit point are firm but unbundled. This means that shippers also need to separately book IP Bacton exit capacity with National Grid Gas (NGG). NGG is currently only offering matching IP Bacton exit capacity on an interruptible basis and this capacity is also unbundled.

Shippers therefore need to book reverse flow capacity in two steps and at both sides of the IP Bacton if they want to transport gas from the UK to the TTF market area. This means interruptible unbundled exit capacity with NGG and firm unbundled entry capacity with BBLC.

Ofgem released a Call for Evidence on 26th July 2019. The document asks for information from the market on whether there is a wish for competing auctions to be put place at IP Bacton exit which would make it possible for BBLC and NGG to offer bundled NGG/BBLC firm IP Bacton exit capacity to shippers. This would remove the need for the two stage capacity booking process described above and the related uncertainty of accessing firm NGG exit capacity.

BBLC will approach its shippers in due course with more information related to the Ofgem Call for Evidence.