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Expected Gas Sourcing
Algeria, LNG ()
Benefits
Main Driver
Others
Main Driver Explanation
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.
Benefit Description
Delay Since Last TYNDP
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 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
Market
In the Open Season launched in 2010 between Spain and France MidCat didn't obtain enough market support .
Market
Lack of market support
Regulatory
Low rate of return
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 170 of 620
Current TYNDP : TYNDP 2017 - Annex A