Fluxys, GRTgaz Plan Additional Transmission Capacity from France to Belgium

Fluxys and GRTgaz plan to create transmission capacity from France to Belgium by building a new interconnection between their networks.

The project would significantly contribute to security of supply and market integration as it is to increase transfer possibilities between the PEG Nord and Zeebrugge trading points. Interested shippers are invited to submit their binding requests for firm long-term capacity in the pipeline by 29 February 2012.

Strengthening security of supply, market liquidity and market integration

Currently the interconnection between the networks of GRTgaz and Fluxys only provides firm transmission capacity from Belgium to France. The project that both transmission system operators propose to the market would significantly contribute to security of supply as it offers system users firm capacity of up to 12 billion cubic metres (134 TWh) per year for moving natural gas from France to Belgium. To put these figures in perspective: last year natural gas consumption in France was at 522 TWh and in Belgium at 215 TWh. Market integration and market liquidity would be boosted through the project as well since it also includes capacity for moving gas from the PEG Nord trading point to the Zeebrugge area with the Zeebrugge trading point.

Binding capacity requests by 29 February 2012

The joint Fluxys/GRTgaz project for creating capacity from France to Belgium was set up in the wake of the project to build an LNG terminal in Dunkirk, a venture by EDF, Fluxys’ parent company Fluxys G and Total. In close coordination with the Belgian and French energy regulators CREG and CRE, Fluxys and GRTgaz initiated in 2010 a joint open season to assess the level of interest from the market. The open season now enters into its binding phase, with shippers being invited to submit their binding requests for firm long-term capacity from France to Belgium by 29 February 2012.

4 capacity products for system users to choose from

• Capacity from the PEG Nord trading point to the Zeebrugge trading point;
• Capacity from the PEG Nord trading point to the Interconnector Zeebrugge Terminal;
• Capacity from the Dunkirk LNG terminal to the Zeebrugge trading point;
• Capacity from the Dunkirk LNG terminal to the Interconnector Zeebrugge Terminal.

 Optimum destination flexibility

The Fluxys/GRTgaz project offers shippers optimum destination flexibility for their gas flows from

• the Dunkirk LNG terminal,
• the GRTgaz North Area virtual point: PEG Nord,
• all adjacent grids of GRTgaz and the South region of Europe (Italy, Spain, GRTgaz South Area.

Through the Fluxys system they can carry their flows to any destination they wish:

• to Belgium for supply into the market or trading, with Zeebrugge to develop into a virtual trading point as well,
• to the United Kingdom, via the Interconnector subsea pipeline at Zeebrugge,
• to the Netherlands, via the Zelzate interconnection points,
• to Germany, via the Eynatten interconnection points.

Supplementary Information Memorandum available and shippers’ meeting on 15 December

Fluxys and GRTgaz have informed a wide range of companies active in the energy sector about the binding phase of the open season and a Supplementary Information Memorandum detailing the capacity on offer can be downloaded from both operators’ websites. Interested parties are also invited to attend the shippers’ meeting regarding the Fluxys/GRTgaz project on 15 December 2011 in Paris (Maison de la Recherche – 54, rue de Varenne – 75007 Paris – from 2:45 pm till 4:00pm).

100 km pipeline and new interconnection point in Alveringem near Veurne

In order to make the proposed capacity available GRTgaz plans to lay a 26 km pipeline from the Pitgam compressor station to the French-Belgian border at the new interconnection point in Alveringem near Veurne. Fluxys, in turn, envisages to build a 72 km pipeline from Alveringem to Maldegem.

Target commissioning date: late 2015

Following the binding phase of the open season, Fluxys and GRTgaz will evaluate whether the market shows sufficient commitment through long-term contracts for making their investments on a sound economic basis. If so, both TSOs aim to commission the new capacity in line with the commissioning date of the Dunkirk LNG terminal in late 2015.

Belgium: particular advantages for the province of West Flanders

Apart from the overall benefit to the gas market in terms of security of supply and market liquidity, the project also has particular advantages for the province of West Flanders in Belgium. As it goes, the main Alveringem-Maldegem pipeline offers the opportunity to increase capacity for supplying local distribution networks in the Ypres and Lichtervelde regions. To this end Fluxys envisages laying a pipeline to Langemark-Poelkapelle and extending the exisiting infrastructure in Lichtervelde.

By the end of December 2011 Fluxys will have organised information sessions regarding the project with both the local residents and the local authorities of all municipalities to be involved in building the new infrastructure. The sessions explain among other things how a pipeline route is identified, how a working site looks like when laying a pipeline and what is done to restore the sites to their original states. The aim is to provide an open communication from the very onset of the project and taking local feedback as much as possible into consideration before starting the formal permitting processes.

[mappress]

LNG World News Staff, December 13, 2011