St Fergus and Wormington Compressor Site Re-opener Direction

Decision
Publication date
Industry sector
Distribution Network
Licence type
Gas Transporter Licence

National Gas Transmission plc
Date: 27 August 2024

Direction under Special Condition (SpC) 3.11 of the gas transporter licence held by National Gas Transmission plc (the Licensee) to direct a re-opener application window in which the Licensee can apply for a direction amending the outputs, delivery dates or allowances in Appendix 2 of SpC 3.11

1. National Gas Transmission plc (the Licensee) is the holder of a gas transporter licence granted or treated as granted under section 7 of the Gas Act 1986.

2. Part D of SpC 3.11 (Compressor Re-opener and Price Control Deliverable CEPt and CEPREt) of the licence provides that the Licensee must apply to the Authority for a direction amending the outputs, delivery dates or allowances in Appendix 2 of SpC 3.11.

3. The Licensee may only apply for such a direction during the periods set out in Appendix 2 of SpC 3.11 or “during such other periods as the Authority directs”.

4. The reason for this direction is because the current Re-opener windows specified in Appendix 2 of SpC 3.11 for Wormington (November 2024) and St Fergus (June 2025) are no longer appropriate. The Licensee has advised us that in both cases the Re-opener applications can not be fully developed until after 1 September 2025. A revised Re-opener window will allow the funding request to be based on more robust cost data derived from competitive tender processes. This will permit the Authority to make a more informed funding decision.

5. Based on the above and pursuant to SpC 3.11.11, the Authority directs a Re-opener application window for both Wormington and St Fergus between 1 October 2025 and 31 December 2025. This will enable the Licensee to apply to the Authority for a direction amending the outputs, delivery dates or allowances in Appendix 2 of SpC 3.11.

6. This decision constitutes notice of our reasons for the purposes of section 38A of the Gas Act 1986.