ENTSOG GRIP SNC 2014-2023

Gas flows dynamics are expected to become increasingly unpredictable and multi-directional: flow reversals and shifts in flow patterns will be likely in the future, following price spreads signals, to which a truly interconnected European gas grid will be able to promptly react. Current trends in Europe show decreasing internal gas production and Regional oversupplies, particularly relevant in those areas profiting from a high degree of flex- ibility in terms of import, LNG and storage capacities, that can help to fill demand gaps. Italy in particular, with a further increase of import diversification expected when Azeri gas reaches the country via TAP, will see materialized additional demand-supply margins. The level of flexibility resources then available represents the pre-condition to play the role of the Southern European balance hub, flowing gas towards Northern gas markets when needed.

Reverse Flow Project   

Under construction   

Planned or announced

Figure 6.2: South-North Corridor project in the context of other major planned or under construction transmission infrastructure

This trend can already be detected looking at the spread in gas prices between Italy and Northern Europe, strongly reduced over the last few years, down to a level of transport and transaction costs. The full completion of the South-North Corridor will make it possible to exploit also seasonal or just temporary supply-demand equilibria gaps providing the opportunities to ship gas in a bidirectional way from Northern and Southern Europe and vice versa. Currently, along the gas transmission route between the UK and Italy, only the UK Interconnector pipeline and the network in Belgium can flow gas in both directions. The TENP and Transitgas systems in Germany and Switzerland can move physical flows from north to south only, and also the Italian network to date can offer small amounts of commercial capacity (backhaul) in an exit direction along the Corridor. To exploit the full “South-North Corridor” potential of and unleash the above depicted benefits, the projects described in the following section have therefore to be imple- mented. Further considerations supporting the above project rationales can be found in Chapter 8 “Network Modelling”.

South-North Corridor GRIP 2014–2023 |

61

Made with