IUK, Fluxys Belgium to enter post 2018 capacity sales binding phase
Interconnector (UK) Limited and Fluxys Belgium in their aligned sales process for post 2018 capacity will proceed to the binding phase from early April.
The deadline for binding bids has been extended to 20 May in response to feedback from participating customers, companies said in a joint statement.
At the close of the non-binding phase several companies expressed interest in securing IUK capacity across several different products, with interest in capacity products in both flow directions. Indicative bids were received for various periods ranging from a single year through to ten years of capacity commencing from 1 October 2018. Customer interest for Fluxys Belgium products was also keen but in contrast revealed a strong preference for booking capacity on a shorter-term basis instead of taking longer term commitments.
IUK’s Commercial Director, Darren Reeve, said that the companies are proceeding to the binding phase. The interest shown to date underlines the ongoing value of bi-directional interconnection capacity beyond the expiry of the original long-term contracts, he added.
Fluxys Belgium’s Director Commercial Regulated, Huberte Bettonville, said “The aligned capacity sales process has given great insight in our customers’ capacity needs and preferences. The outcome of the non-binding phase already provides a certain visibility on the long-term outlook and we are ready to match any shorter-term demand for flowing gas to or from the UK.”