ENTSOG GRIP South - Main Report

Therefore, due to their dependency on the abovementioned factors, these tailored solutions can complement the flexibility of the network, but they will never replace the development of transmission infrastructures and cross-border interconnections necessary for truemarket integration.

6.3.3 SouthRegion infrastructure’sability to faceverydifferentsupplymixes

One of themain results obtained in the TYNDP 2013–2022 indicate “the limited ability to decrease LNG to IberianPeninsula andSouth of France due to the lack of interconnection with Northern Europe (merger of GRTgaz North and South Zone and MidCat by 2022 will partially mitigate the issue for Portugal, Spain and TIGF Zones)” . One of the most important consequences of this fact is the occurrence of price spread between the Iberian Peninsula, the South of France and theNorth of France and the rest of Europe.

This report goes further in the analysis of this result: Maximum flows fromNorth to South.

The objective of this analysis is to detect the congestions in the network to reduce theLNGSendOut in theTerminals located in the southernareaof theSouthRegion. For this purpose, the gas flow fromNorth to Southhas beenmaximized limiting the entries toGRTgazNorth by the current IPs capacity. Based on the LNGpotential supplies included in theENTSOGTYNDP2013–2022, it hasbeencalculated the rangeof LNGpotential for the southernarea 1) of theSouth Region. 2) Figure 6.24 shows the relevant effect of developing MidCat, andmerging GRTgaz NorthandSouth zonesprovidingnetworkadaptability to reduce theannual depend- enceonLNG in the southernpart of theSouthRegion. Theareabetween yellowand red lines indicates thedifferent levels of LNG supply required, or in other words, the flexibility provides by transmission projects to reduce LNG supply dependence and to allow gas flows from theNorth of France to the Ibe- rianPeninsula and South of France.

The adaptability of thenetwork contributes to the opti- mization of shippers’ supply portfolios. Through the new network flexibility, shippers will compensate the variations among cost of supplies source by the lesser or greater utilizationof someof them. Thecompetitive- ness in the gas market minimizing the prices diver- genceswith adjacent areaswill also result on compet- itiveness improvement for the industry and the rest of the end consumers of the gas system having a clear positive impact in theeconomyof the respectivecoun- tries.

Network flexibility to face LNGdependency

maximum

minimum

2014 2015 2016 2017 2018 2019 2020 2021 2022

2013

LNG potential supply Minimum LNG supply required in the area developingMidCat and mergingGRTgaz North& South Minimum LNG supply required in the areawith FID IPs Figure 6.24: LNG supply dependence vs. the development of n-FID Transmission projects –maximum gas flowNorth to South

1) The southern area of the South Region comprises TIGF, GRTgaz South, Spain and Portugal market zones. 2) For this estimation, the LNG potential supply for Europe has been proportionally distributed to each LNG Terminal in the area according to respectively Send Out capacity.

ENTSOG–GRIPSouth 2013–2022 |

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