ENTSOG GRIP South - Main Report

Moreover, these new infrastructures projects contribute to improve the competitive- ness for the industry and the rest of the end consumers of the gas system in the SouthRegion. The competitive in the gas market minimizing the divergences in prices with adjacent areas also result on improving of the competitiveness for the industry and the rest of theendconsumersof thegas systemhavingaclear positive impact in the economy of the respective countries.

7.2.2 Remedyto lackofSouthRegion infrastructure’sabilityto face verydifferentsupplymixes

Whatever gas flows will be in the future, the experience of the last years highlights theneed for a transmissionnetworkdesign solid enough to reach amore integrated market. Network flexibility provided by properly developing transmission infrastruc- tures is necessary for true market integration. Complementary, market responses developed as tailored solutions for concrete events which could also help improve flexibility for shippers, but theynever replace thedevelopment of transmission infra- structures and cross-border interconnections. The development of themain n-FID transmissionprojects in theRegion: \\ 3rd IPPortugal-Spain, \\ MidCat Project, \\ the core network reinforcement in France linked with the merge of GRTgaz North and South zones and, \\ the creation of bidirectional flow fromFrance toGermany, i.e., thenewcorridor, “Bidirectional flowsbetweenPortugal, Spain, FranceandGer- many”, contribute to the strategic concept of the North-South Corridor inWestern Europe, i.e., to better interconnect theMediterranean area and thus supplies from Africa and theNorthern supply Corridor, with supplies fromNorway andRussia. The development of these projects have been identified as main n-FID projects in the South Region providing flexible capacity in the network to face very different supplymixes from short-term/ long-term trends. After developingMidCat project, merging the GRTgaz North and South zones and thecreationof gas flow fromFrance toGermany, Algeriangascould reach theNorth of France, Switzerland andGermany. Therefore, thedevelopments of theseprojects provideanew source toCentral Europe increasing thediversificationof sources and consequently the security of supply. The development of these main projects could also integrate the existing and comingLNGTerminalsprojects in thearea, increasing their utilization,whether from important needs of gas incentral Europeor due toany other interest of the shippers operating in themarket. After merging the GRTgaz North and South zones, the MidCat project and the 3rd IPPortugal-Spain, theRussian gas which currently reaches France, could also flow to the Iberian Peninsula reaching Portugal. The effect in the market creating liquidity could be very important. It opens possibilities of arbitrage between the dif- ferent European gas sources, making the transmission system a powerful contri­ butor to the price convergence in the area. Through thenewcorridor, “Bidirectional flowsbetweenPortugal, Spain, Franceand Germany”, the Northern supply Corridor with supplies from Norway and Russia will be better interconnectedwith the southern part of the SouthRegion increasing liquidity in the market which could favour to the shippers as well as the end consumers. The adaptability of the network contributes to the optimization of shippers’ supply portfolios. The competitive in the gas market minimizing the divergences in prices

ENTSOG–GRIPSouth 2013–2022 |

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