928-929 / 1248
Expected Gas Sourcing
Norway, Russia, LNG ()
Benefits
Main Driver
Market Demand
Main Driver Explanation
Despite the mentioned start up dates of both the third and the fourth phases of the 3rd interconnection between Portugal and Spain, it should be noticed
their planning shall be adjusted according to the real evolution of gas demand and market development in the Iberian Peninsula.
Benefit Description
This PCI will contribute to the implementation of the internal energy market and it will also bring other benefits, particularly: increase NG market liquidity
between Portugal and Spain systems, by providing new infrastructure access alternatives to market players in the Iberian Peninsula; Reinforce the security
of supply in case of failure in any one of the two gas systems, given the total reversibility of the new interconnection; Allow operational integration
EHWZHHQ WKH XQGHUJURXQG VWRUDJH IDFLOLWLHV RI &DUULoR 3RUWXJDO DQG <HOD 6SDLQ E\ LQFUHDVLQJ VWRUDJH FDSDFLW\ DFFHVVLELOLW\ EHWZHHQ ERWK JDV V\VWHPV
Increase the flexibility and support of gas infrastructure to gas fired power generation in both countries; Step towards the integration of the European gas
infrastructures in the context of the Gas Regional Initiative ² South, by providing increased interconnection capacity and diversification of supply sources
on an Internal Gas Market perspective.
Delay Since Last TYNDP
2 years
Delay Explanation
Demand forecasts decrease due to the economic and financial context in Portugal and in the EU, with especial relevance to the decrease on the
CCGTs demand observed in the lasts years, due to greater renewable power production and lower coal prices. In the Madrid Declaration from
March 2015, "The 3rd Portugal-Spain interconnection should be developed in accordance" with the MIDCAT project. As a consequence the
delay in the MIDCAT project has also introduced a delay in the 3RD IP between Portugal and Spain project.
Barriers
Barrier Type
Description
Regulatory
In simple terms and according to the current Portuguese regulation, the revenue stream respecting the part of the project allocated to Portuguese
consumers (after the CBCA decision by the regulators of Portugal and Spain) will be obtained by the remuneration of the net invested capital of the
project plus the amortization recovery and the opex cost recovery (subject to a mix of price cap and revenue cap regimes). Nevertheless, it ·s important to
notice that it is not possible to predict if, when and to what extent any changes to this model may occur.
Market
Regarding the market survey, the 3rd interconnection between the gas systems of Portugal and Spain is regarded as commercially non-viable as has been
demonstrated by the responses of the stakeholders to the public consultation process on the gas sector TYNDP for Portugal held in 2015 in what concerns
this specific project, meaning that its potential users are not willing to make any prior commitments in terms of capacity booking.
Generated by ENTSOG PDWS on 10/10/2016 05:00:19 PM
Page 461 of 620
Current TYNDP : TYNDP 2017 - Annex A