Naftogaz of Ukraine Presentation of the Gas Transmission System - - PowerPoint PPT Presentation

▶
naftogaz of ukraine
SMART_READER_LITE
LIVE PREVIEW

Naftogaz of Ukraine Presentation of the Gas Transmission System - - PowerPoint PPT Presentation

Dec 24, 2023 214 likes •368 views

Advisory Naftogaz of Ukraine Presentation of the Gas Transmission System Operator Unbundling Roadmap 2018-2020 19 September 2018 For the past one and a half year, Naftogaz of Ukraine has been conducting numerous projects supporting unbundling

slide-1
SLIDE 1

Advisory

Naftogaz of Ukraine

19 September 2018

Presentation of the Gas Transmission System Operator Unbundling Roadmap 2018-2020

slide-2
SLIDE 2

PwC 19 September 2018 Input to the presentation

Name Advisor Time Scope Key outcome

1 Naftogaz

Unbundling Project Management 06.2017 – 02.2018 T

  • facilitate the efficient and timely unbundling
  • f gas transmission activity of Naftogaz of

Ukraine ✔ Branch TSO created in 11.2017

2 Ukrainian Gas

TSO Target Operating Model 08.2017 – 07.2018 T

  • prepare a business and structural plan and

a target operating model based on European best practices ✔ Preparation of TOM for the future TSO of Ukrainian GTS

3 Comprehensive

study of Underground Gas Storage Facilities in Ukraine 07.2017 –

  • ngoing

T

  • run independent technical review of

existing assets and define optimal storages portfolio together with implementation roadmap ✔ Comprehensive study on UGS facilities in Ukraine

4 Support in

unbundling process implementation 07.2018 –

  • ngoing

T

  • support NAK in unbundling process

implementation through pilot function

  • ptimization and strategic business plan

Development of the action plan for TSO extension and separation. ✔ Strategic Business Plan, investment planning function transferred to TSO Branch; ✔ Action plan for TSO extension and separation

2

For the past one and a half year, Naftogaz of Ukraine has been conducting numerous projects supporting unbundling process

List of projects

Naftogaz of Ukraine

EU- funded EU- funded

slide-3
SLIDE 3

PwC 19 September 2018 3

Unbundling action plan is divided into 3 stages which will allow to reach a final goal – formal legal unbundling

Unbundling roadmap

Naftogaz of Ukraine

Storage Branch separation TSO Branch extension and optimization Legal unbundling

1 2 3

Organizational separation at all levels Cost and process

  • ptimization

Formal legal unbundling Adjustment to comply with EU standards

slide-4
SLIDE 4

PwC 19 September 2018 KharkivTG aparat

(3-4 FTEs)

LvivTG aparat (~220 FTEs) Regional branches 4

Separation of Storage Branch is planned to be based on Lvivtransgaz regional branch and includes also flattening of management structure

Storage Branch separation plan

Naftogaz of Ukraine

As-is To-be

7 units under regional branches

UTG HQ

Services/

  • ther

TSO Branch Storage Production Units (SPUs) 1st tier 3rd tier Cherkasytransgaz Kyivtransgaz Prykarpattransgaz Kharkivtransgaz Lvivtransgaz 2nd tier

Storage Branch – based on Lvivtransgaz

Proletar- ske SPU Mryn SPU Dashava SPU Opary SPU Stryi SPU Bogorod

  • chany

SPU Uhersko RSS 1st tier 2nd tier – SPUs

From those branches

  • nly LPUs

related to storages Main base for Storage Branch

✔

UTG aparat

(15-20 FTEs)

PrikarpatTG aparat

(3-4 FTEs)

KyivTG aparat aparat

(3-4 FTEs)

Flattening structure from 3- levels to 2- levels

1 Storage Branch separation 2 TSO Branch extension and optimization Legal unbundling 3

slide-5
SLIDE 5

PwC 19 September 2018

Full separation of transmission and storage functions within UTG is planned to be performed till beginning of 2019

2018 2019 2020 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec H1 H2

  • I. Storage Branch separation plan
  • 1. Formal decision about

Storage Branch creation

  • 2. Selection and transfer of

assets, people, procedures, updating IT systems

  • 3. Construction / reconstruction
  • f measurement points for all

storages

  • 4. Creation of necessary

Storage Branch functions currently not present in UTG

  • 5. Storage SCADA development

and implementation

  • 6. Optimization and

effectiveness improvement Storage Branch creation finished – 1.01.2019

5 Naftogaz of Ukraine

Schedule of Storage Branch separation plan (main tasks)

1 Storage Branch separation 2 TSO Branch extension and optimization Legal unbundling 3

slide-6
SLIDE 6

PwC 19 September 2018

Target structure of Storage Branch could be achieved at the beginning of 2019

6 Naftogaz of Ukraine

Storage Branch

Commercial dispatching Commercial relations, contracts and customer service, international relations Strategy and development Relationship with the Regulator Technical dis- patching HR department Legal services Security Materials and technical resources Procurement Property and land Administra- tive and household support Finance and Accounting Fuel and energy resources, energy saving, ecology Metrology (gas measurem ent) Planning and

  • rdering of

maintenance and repairs, supervision Technical docu- mentation Auto- transport, machine tools, load- lifting equipment Information technology, automation and commu- nication Labour protection Capital construc- tion Secret paperwork and mobilization training

Support functions Financial functions

Lvivtransgaz Branch

Proletarske UGSS Mryn UGSS Dashava UGSS Opary UGSS Stryi UGSS Bogorodchany UGSS Uhersko RSS SPUs (all storage SPU’s will be transferred to Lvivtransgaz)

Concept of storage system operator org structure (Storage Branch)

Technical and operational functions

Commercial and business dev.

1 Storage Branch separation 2 TSO Branch extension and optimization Legal unbundling 3

Initial concept of UTG

slide-7
SLIDE 7

PwC 19 September 2018 1st tier

Regional branches merged with Branch TSO

2nd tier –

LPUs manage technical processe s only

1st tier 3rd tier 2nd tier 35 units under regional branches 7

Extension plan foresees merger of TSO Branch with Regional Branches as well as flattening of the management structure from 3 to 2 levels

Key assumptions of TSO Branch extension plan

Naftogaz of Ukraine Regional branches

As-is

UTG HQ

Services/

  • ther

TSO Branch Linear Production Units (LPUs) Kyivtransgaz Prykarpattransgaz Cherkasytransgaz Lvivtransgaz

TSO Branch LPUs LPUs LPUs LPUs

Base for Storage Branch

Kharkivtran

  • sgaz

Prykarpat- transgaz Kyivtran- sgaz Kharkivtransgaz

✘

Flattening structure from 3- levels to 2- levels Reduction in number

  • f LPUs

from 35 to 10-12 Cherkasy- transgaz

1 Storage Branch separation 2 TSO Branch extension and optimization Legal unbundling 3

~ 137 FTEs transferred to TSO Branch in October 2018 (pilot project) ~ 5 200 FTEs transferred to TSO Branch in June 2019 ~ 7 200 FTEs shall stay in UTG and should act as external service

To-be

slide-8
SLIDE 8

PwC 19 September 2018

Pilot Project assumes creation of the new Network Development and Planning Department in Branch TSO and transfer of the function in October 2018

8 Naftogaz of Ukraine

Network Development employees transfer

As-Is location of employees involving in network development function Transfer to Branch TSO

Branch TSO

Transfer before 18.Oct 2018

  • The final number of FTEs that will be transferred will

be clarified after confirmation of design of to-be processes

UTG HQ 16 FTEs Regional Branches 140 FTEs LPUs 232 FTEs

Capital Construction Sub- Department Investment Project Sub- Department

UTG HQ’s departments that are subject to analysis in terms

  • f FTE’s

transferring to branch TSO

Regional Branches

Departments that are subject to analysis for FTE’s transferring

1 2 3 1 2

Department

  • f

compressor stations

  • peration

Department

  • f gas

pipeline

  • peration

Regional Branches' departments that are subject to analysis in terms of FTE’s transferring to branch TSO Capital construction Department Budget

  • ffice (excl.

Kharkiv)

Transferred at a later stage

~16 FTEs ~121 FTEs

NA

1 Storage Branch separation 2 TSO Branch extension and optimization Legal unbundling 3

~137 FTEs

slide-9
SLIDE 9

PwC 19 September 2018

2018 2019 2020 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec H1 H2

  • III. TSO separation plan
  • 1. Formal decision about TSO extension
  • 2. Assets (low value assets, land)

2.1. Selection of assets related to transmission not yet transferred to TSO and subsequent transfer 2.2. Identification and resolving of land plot issues

  • 3. Organizational structure & people

3.1. Analysis, approval and development of Extended TSO 2-level org structure 3.2. Selection and transferring of people, merger of RBs with Branch TSO and merger of LPUs

  • 4. Preparation and/or updating of internal processes

and procedures

  • 5. SLAs & internal agreements preparation,

acceptance and signing by all sides

  • 6. Selection and transferring of existing contracts to

Extended TSO

  • 7. IT systems - selection and transferring of IT

related assets to TSO together with Identification of required changes to IT system and implementation

  • 8. Headcount outsourcing – SLA with UTG
  • 9. Project Management activities execution

Creation of fully functional and certifiable extended TSO based on Branch TSO and Regional Branches is planned to be finished in mid 2019

9 Naftogaz of Ukraine TSO extension kick-off - 1.10.2018 TSO extension finished - 1.06.2019

1 Storage Branch separation 2 TSO Branch extension and optimization Legal unbundling 3

Schedule of TSO extension plan (main tasks)

TSO ready for conditional certification – mid 2019

slide-10
SLIDE 10

PwC 19 September 2018

A new optimized TSO structure will be developed and equipped with all needed functions prior to legal unbundling in 2020

10 Naftogaz of Ukraine TSO HQ*

Unbundled TSO structure

Regional service centers Regional service centers Regional service centers Regional service centers RSCs (not filias) based

  • n reduced number of

LPUs Regional branches within TSO HQ All critical functions within TSO HQ (centralized)

Target TSO structure assumes that:

✔ All decisions will be made at TSO ✔ FTEs will be mostly optimized ✔ Follows EU recommendations on TOM (WECOM) ✔ 2 level structure will be developed ✔ All critical functions will be transferred or created

within TSO HQ

1 Storage Branch separation 2 TSO Branch extension and optimization Legal unbundling 3

Concept of target TSO structure

slide-11
SLIDE 11

PwC 19 September 2018

Unbundled TSO structure will centralize functions, so far scattered, improving operational efficiency of the entity

11 Naftogaz of Ukraine C Commercial

C2 Strategy, business development and internat. relations C3 Network development and Invest. planning C4 Contracting and customer relations C5 Allocation and commercial balancing

TM Transport management

TM2 Metering data management TM 3 Dispatching execution

IT

IT 2 IT operations and projects

F Finance

F 2 Financial accounting F 3 Management accounting budgeting F4 Economic and financial analysis

CS Corporate services

CS 2 Legal services CS 3 Procurement CS 4 Facility and fleet management CS 5 Cyber security

AM Asset management

C1 Regulatory management TM 1 Dispatching IT 1 IT policy & strategy F 1 Treasury and cash management CS 1 HR AM 1 Strategic asset management AM 3 Project management AM 4 Inspection and maintenance AM 5 Right of way AM 6 Technical documentation AM 2 Engineering

Supervisory board Executive body (executive board or CEO)

Compliance officer* Corporate secretary* HSEQ Officer Risk management* Internal audit* Corporate communication

Target TSO organizational structure according to WECOM’s TOM – HQ

* Reporting either to the supervisory board or the executive body

1 Storage Branch separation 2 TSO Branch extension and optimization Legal unbundling 3

EU- funded

slide-12
SLIDE 12

PwC 19 September 2018

2018 2019 2020 Sep Oct Nov Dec H1 H2 H1 H2

  • III. TSO legal unbundling
  • 1. Creation of the new company

under UTG (NewCo TSO)

  • 2. Transfer of TSO employees to

the NewCo TSO

  • 3. International partner

involvement

  • 4. Application for conditional

certification

  • 5. Change of ownership of

NewCo TSO

  • 6. Transmission assets to

NewCo TSO

  • 7. Implementation of conditional

certification decision

TSO legal unbundling plan assumes TSO readiness for certification in mid-2019, while conditional certification is expected in H1 2020

12 Naftogaz of Ukraine

Schedule of TSO legal unbundling (main tasks)

High-level roadmap – work in progress

1 Storage Branch separation 2 TSO Branch extension and optimization Legal unbundling 3

NewCo TSO operational - 1.06.2019 (aligned with TSO extension) NewCo TSO applies for conditional certification – mid 2019 Conditional certification H1 2020

slide-13
SLIDE 13

PwC

19 September 2018

Thank you!

12

Thank you!