Energinet.dk’s emergency preparedness planning covers measures to manage a number of many very different situations such as storm, extremely cold weather, technical failure and breakdown, and is described in the national Preventive Action Plan and the Emergency Plan prepared in accordance with the Regulation (EU) no. 994/2010 concerning measures to safeguard security of gas supply.
Who will supply gas in an emergency situation?
If the gas supply from the North Sea to Denmark fails, gas will be delivered to the Danish gas market from the two national gas storage facilities and from Germany.
Moreover, Energinet.dk will aim to reduce the consumption of gas from the system by interrupting the supply to those major gas consumers who have concluded a commercial interruptibility agreement with Energinet.dk.
When will an emergency situation be declared?
Only incidents with very extensive impact on the gas system will lead to an emergency supply situation. Technical failure or breakdown on one of the off-shore pipelines or the gas storage facilities or production failure at the Tyra platform could cause an impact on the gas system that would make it necessary for Energinet.dk to declare an emergency situation.
Similarly, a gas crisis abroad causing an interruption of the gas supply from Germany could in some situations set off an emergency supply situation in the Danish gas system.
A stressed market situation with very high prices or rumours of unstable gas supply will not necessarily lead to an emergency supply situation and the interruption of big gas consumers. Being the Danish gas TSO, Energinet.dk will aim to continue operating the system at the alert level (i.e. pre-emergency), thereby emphasising the continued use of market-based balancing measures.
Read more about emergency supply in the Danish gas system in Rules for Gas Transport, chapters 19 and 20.
How often do emergency supply situations occur?
Historically, emergency situations have occurred very rarely in the Danish gas system, and it is difficult to estimate the probability and severity of a future supply crisis. Energinet.dk has performed a risk assessment of the Danish gas system, in which all national factors such as Danish gas flow, production and storage capacity were taken into consideration in a number of different scenarios based on exceptionally high gas demand and supply disruption. The risk assessment is available in Danish.
How should shippers act?
In a crisis situation, the market players must act in a way that allows the gas market to manage the crisis on its own for as long as possible. Market-based mechanisms such as increased incentive-based balancing charges and commercial interruptibility will be introduced to support this market behaviour.
In the event that all relevant market measures have been implemented, but the supply of gas remains insufficient to meet the market demand, Energinet.dk will declare an emergency supply situation in order to safeguard the supply of gas to the protected customers.