ENTSOG GRIP South - Main Report

ExecutiveSummary

Major efforts areneeded tomodernizeandexpand Europe’s gas infrastructureand to interconnect network across borders to increase competitiveness, sustainabil- ity and security of supply into theUnion creating the European Internal GasMarket. The achievement of the desired level of these 3 Energy policy pillars is enabled through the achievement of the desired level of market integration which can be measured at commercial and physical level. This GRIP gives for the South Region a detailed assessment, in terms of level of physical market integration of the gas system for the next ten years. The 2nd edition of the Gas Regional Investment Plan of the South Region (GRIP South) which covers France, Portugal and Spain, in closer consistency with EU- wide and national TYNDPs, provides complementary analysis of the gas system focus on Transmission, UGS and LNG Terminals projects. Compared to the Euro­ pean TYNDP, this GRIP provides, at regional level, updated forecasts on demand andprojects, additional analysis and simulations of the gas system and of the infra- structures which remedy the various issues in the region. The GRIP South describes the current gas market into the Region, showing the strong differences in both seasonal and daily gas demandmodulation among the countries, stressing themain roleplayedby LNGTerminals andUGS, andhighlight- ing thepotential of theSouthRegionwhich couldbecome a valuable source of sup- ply for the rest of Europe, thanks to its LNG Terminals and its proximity to Algerian gas. The assessment of the Network identifies the lack of ability of the existing and FID transmissionprojects in theRegion to face verydifferent supplymixes and tocreate price convergence as themain issues for the gas system in the SouthRegion. Main results of the analysis are the identification of the principal projects currently planned to remedy these issues: theprojectsof thenewcorridor, “Bidirectional flows between Portugal, Spain, France andGermany”, as well as other FID transmission projects currently on going. The report also shows how these projects have a positive impact on the network flexibility, enhancing as a result competitiveness for the industry and the rest of the end consumers of the gas system. The investments needed in the South Region for achieving these goals are signifi- cant. A clear visibility over futuremarket trends, themitigation of the climate of un- certainty in Europewith a clear Energy Policy on the role of the natural gas on long termbasis, aswell as the support of the competent authorities, are needed in order to secure the cost-effectiveness of these investments. Transmission SystemOperator of the SouthRegion, having extended experience in working together since 2006, wish that theGRIPSouthprovides useful information to all stakeholders andwill support fruitful discussionswhen assessing the ability of investments to answer regional market needs.

ENTSOG–GRIPSouth 2013–2022 |

5