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Expected Gas Sourcing
Algeria, LNG ()
Benefits
Main Driver
Others
Main Driver Explanation
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.
Benefit Description
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.
Delay Since Last TYNDP
1 year
Delay Explanation
Barriers
Barrier Type
Description
Regulatory
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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
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
Madrid Declaration
Commission, France, Portugal and Spain sign High Level Group agreement to break energy
barriers
Yes
04/03/2015
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Page 143 of 620
Current TYNDP : TYNDP 2017 - Annex A