ENTSOG GRIP South - Main Report

4.2 Pipeline Imports

100 %

Thepipelinegasportfolio is composedof four different origins, Norway, Algeria, Netherlands (internal pro- duction) and Russia, as seen below. There are three countries supplying France, two supplying Spain and just one supplying Portugal. It is evident that pipeline supply is an area that could benefit a lot fromdiversification.As it standsat themo- ment, it would be beneficial to increase diversification of supply throughout the Southern Region by extend- ing the supply of Russian gas southward towards Spain and by extending the supply of Algerian gas northwards towards the rest of Europe. The reserves held by each of these countries could haveaneffect on their ability tosupply.Gasproduction in theNetherlands is set to decrease over the next ten years; henceL-gas imports in theNorthEast of France will decrease accordingly. As seen in Figure 4.5, Russian supply is significantly vaster compared to the reservesof theother countries, however, Russia is a very vast country itself, so not all this supply is available for Europe. This becomes important, especially when we compare much closer sources such as Norway and Algeria, as a much larger percentage of their reserves will be actually available to the SouthRegion. Norwegian gas production activity is mature, with significant infrastructure in areas of the North Sea where the geology is oftenwell known, therefore large new discoveries are less likely than before in these ar- eas. It is alsowell integratedwith theEuropeanmarket hence the availability of supply from Norway is very high. The supply potential fromNorway is set to remain fair- ly constant over the coming years, according to ENTSOG, and so it should be expected that South Region imports of Norwegian gas will remain fairly constant over the next ten years accordingly.

17

7

2

10

91

80

18

130 33

60

40

9

107

20

2

0

France

Portugal

Spain

Europe

Netherlands National production

Norway

Russia

Algeria

other

Figure 4.3: Origins of gas imported via pipeline to the South Region in 2012 (values in bcm) (Source: BP 2013)

19

24

Netherlands Norway Russia Algeria

%

15

40

Figure 4.4: Breakdown of pipeline supply to the South Region in 2012 (Source: BP 2013)

30,1

545,2

13,7

50,4

Netherlands

Norway

Russia

Algeria

Figure 4.5: Proven reserves of each pipeline supply country, with the relative areas of the bubbles representing total reserves in 2012, 10 3 TWh

ENTSOG–GRIPSouth 2013–2022 |

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