ENTSOG TYNDP 2017 - Annex A2 - Project Details

Current TYNDP : TYNDP 2017 - Annex A

Page 170 of 620

Delay Since Last TYNDP Delay Explanation

Expected Gas Sourcing

Algeria, LNG ()

Benefits

Main Driver

Others

The "Iberian French corridor - Eastern Axis Midcat" was included in the list of Projects of Common Interest PCI 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 Europe reducing its isolation from the European gas markets, and helping to the price convergence of Iberian and European gas markets. Due to the lack of enough interconnection capacity, there is a price differential between Spain and France. This price differential has been steadily maintained since recent years, preventing the Spanish consumers, both domestic and industrial, to access to energy under the same conditions as their European counterparts, causing a loss of competitiveness for the Spanish economy.

Main Driver Explanation

Benefit Description

Barriers

Barrier Type

Description

,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 tendency 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 investment

Regulatory

Market Market

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

Lack of market support

Regulatory

Low rate of return

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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