ENTSOG TYNDP 2017 - Annex A2 - Project Details

Current TYNDP : TYNDP 2017 - Annex A

Page 143 of 620

Delay Since Last TYNDP

1 year

Delay Explanation

Expected Gas Sourcing

Algeria, LNG ()

Benefits

Main Driver

Others

This project was part of the "Iberian-French corridor-Eastern Axis-Midcat Project" which was included in the PCI list adopted by the European Commission the 18th of November 2015. This project will clearly improve the integration of the Iberian Peninsula with the rest of EU reducing its isolation from the EU gas markets, and helping to the price convergence of Iberian and EU gas markets. According to the conclusions of the study developed by Ramboll, requested by the European Commission within the High Level Group on Interconnections for South-West Europe, MidCat is justified as it will integrate the Iberian gas market with the rest of the EU. In this study, it is also concluded that a stepwise implementation of the interconnector is possible, when accepting that mostly interrumptible capacity will be available after the first stage. ,Q (QDJiV 7,*) DQG *57JD] FDUULHG RXW DQ 26 WR DVN IRU ELQGLQJ FRPPLWPHQWV IRU FDSDFLWLHV SURYLGHG E\ 0LG&DW DQG RU ,U~Q %LULDWRX DQG *57JD] North-South link. Concerning MidCat, none of the three proposed infrastructure scenarios received enough bids to be triggered. This OS is currently the latest call made to the market regarding MidCat.However, MidCat has demonstrated benefits in terms of market integration (price convergence), security of supply and diversification of supply.Taking into account that the OS2015 was carried out in a context of economic prosperity in comparison with the current situation jointly with the new endency in contracting capacity (from long term to short term) well as the decrease in gas consumption, it is not foreseen that network users would make enough long-term commitments in order to fully cover the investment. Besides, recent changes in the Spanish regulatory framework would not contribute to have an appropriate rate of return of the investments Barriers Description

Main Driver Explanation

Benefit Description

Barrier Type

Regulatory

Market

In the Open Season launched in 2010 between Spain and France MidCat didn't obtain enough market support .

Regulatory

Low rate of return

Market

Lack of market support

Intergovernmental Agreements

Agreement

Agreement Description

Is Signed Agreement Signature Date

Commission, France, Portugal and Spain sign High Level Group agreement to break energy barriers

Madrid Declaration

Yes

04/03/2015

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