Fluxys Belgium, GRTgaz launch virtual interconnection point
Fluxys Belgium and GRTgaz plan to unveil a single virtual interconnection point between the Belgian ZTP and French PEG Nord gas trading places to facilitate cross-border trading.
The introduction of virtual interconnection points is one of the provisions in the European Network Code for Capacity Allocation Mechanisms, the two companies said in a joint statement.
With a view to facilitating cross-border trading, the Network Code requires transmission system operators by November 1, 2018, at the latest to establish virtual interconnection points for marketing available capacity between adjacent markets instead of using multiple physical interconnection points.
The rationale is that virtual interconnection points will make it easier to flow gas flexibly across the European Union following price signals, hence enhancing competition and gas-to-gas price formation.
The virtual interconnection point dubbed Virtualys will combine all physical interconnection points for high calorific gas between France and Belgium: Alveringem, Blaregnies Troll and Blaregnies Segeo for Fluxys and Alveringem and Taisnières H for GRTgaz.
Instead of booking and nominating capacity on one or more of these points, shippers can manage their flows by simply booking and nominating on Virtualys, with all underlying logistic complexity handled by Fluxys Belgium and GRTgaz.
The two companies noted that tariffs and capacity on offer remain the same and no changes to existing contracts are required.