ENTSOG GRIP South - Main Report

6.2.3 Hubpricesanalysis

The prices divergence into the South Region has been highlighted by the CRE in a press release on 20th February 2013, citing peak differentials higher than 5€/MWh. Figure 6.15 shows this effect. Prices in the southern area of the South Region, Iberian Peninsula and South of France, are higher than in the North of France. So, there is a strong divergence on prices into the SouthRegion.

54 59 €/MWh

52.8€/MWh

49 44 34 39 24 29

30.5€/MWh

28.4€/MWh

26.5€/MWh

28.4€/MWh

19

1 Jan 2011

1May 2011

1 Sep 2011

1 Jan 2012

1May 2012

1Sep 2012

1 Jan 2013

Import price LNG/Japan

Spain AOC (M+1)

PEGNorth (M+1)

PEG South (M+1)

Figure 6.15: Gas price in the South Region Source: Bloomberg, ICIS Heren, analysis by CRE

6.2.4 KeyConclusions

Key conclusions obtained in the Supply Source Dependence assessment for the SouthRegion are: \\ The South of France (GRTgaz South and TIGF zones) and the Iberian Peninsulahave currently ahigh annual dependence on LNG source. Themain consequence of this LNG sourcedependence is also the LNG-prices ligature in the area causing strong price peak differentials into the Region and also with the rest of central Europe. \\ Annual dependence on LNG source in the SouthRegionwill diminishdevelop- ing the main n-FID transmission projects identified in the South Region, the new corridor betweenPortugal, Spain, France and rest of Europe. \\ This corridor is therefore crucial, eliminating the divergence of prices into the SouthRegion andwith the rest of central Europe.

66 |

ENTSOG–GRIPSouth 2013–2022