ENTSOG GRIP South - Main Report

As explained in theTYNDP, theachievement of thede- sired level of Competition, Security of Supply andSus- tainability (theEnergy policy pillars) is enabled through theachievement of thedesired level ofmarket integra- tionwhich canbemeasuredat two levels, commercially andphysically. ThisGRIPgives for theSouthRegiona detailedassessment, in terms of level of physicalmar- ket integrationof thegas system for thenext ten years. Many inputs have been used in the elaboration of this GRIP South in order to im- prove the previous edition published in November 2011. Among these inputs, we have to underline the European TYNDP 2013–2022, TSOs’ TYNDP, feedbacks re- ceived on these reports, and exchanges organizedwith stakeholders through SGRI andENTSOG platforms. Themain results of this report are the following: \\ Demand: The economic crisis in Europe and the competition on Energies at word level (i.e. high gas demand in Asia and excess of coal supply in USA) result, for short/medium terms, indecrease of the use of gas inEurope,main- ly due to decline of the gas for power generation. \\ Supply: Nevertheless, the forecast for new gas imports in Europe remain high for the2020–2030periodowing to thedrop indomesticproduction. TheSouth Regioncouldbecomea valuable sourceof supply for the rest of Europe, thanks to its LNG Terminals and its proximity to Algerian gas. On the other hand, the high dependence on LNG, could be improved if Russian and Norwegian gas could reach more significantly the Iberian and South of France gas markets. These two goals would need the development of the North-South corridor be- tweenAlgeria andGermany, through the IberianPeninsula andFrance. \\ Projects: A great number of projects have been identified in the SouthRegion, needed for interconnection developments and/or additional infrastructures, suchas LNGTerminals or storages. Someof thoseprojects alreadydecidedare going to increase significantly thecapacityof the interconnections,withincoun- tries of the SouthRegion and from the SouthRegion to the rest of Europe, and therefore the integration of the gasmarket. \\ The Assessment of theNetwork identifies the lack of ability of the existing and FID transmissionprojects in theRegion to face very different supplymixes and to create price convergence as themain issues for the gas system in the South Region. However, the analysis also detects themainprojects currently planned to remedy these issues: theprojectsof thenewcorridor, “Bidirectional flowsbe- tweenPortugal, Spain, France andGermany” aswell as other FID transmission projects currently on going. Network flexibility provided after these develop- ments enhances competitiveness for the industry and the rest of the end con- sumers of the gas system having a clear positive impact in the economy of the respective countries. \\ The investments needed for achieving an upper level of market integration is significant. In the Region the range of costs of all the PCI projects (“Bi­ directional flows between Portugal, Spain, France and Germany”) is about 2BillionEuros  1) , and theseenvelop is far higher if we take intoaccount all iden- tified projects.

1) Estimated value in 2009

ENTSOG–GRIPSouth 2013–2022 |

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