ENTSOG GRIP SNC 2014-2023

6.4 PCI Status

In 2013 several projects that allow for the opening of the South-North Corridor have attained PCI status, confirm- ing their importance for the cross-border security of supply and supply diversification of Europe.

The table below lists these projects on the backbone of the South-North Corridor.

SOUTH-NORTH CORRIDOR PROJECTS WITH PCI STATUS 5.9 PCI Reverse flow interconnection between Switzerland and France 5.10 PCI Reverse flow interconnection on TENP Pipeline in Germany 5.11

PCI Reverse flow interconnection between Italy and Switzerland at Passo Gries interconnection point

5.12

PCI Reverse flow interconnection on TENP Pipeline to Eynatten interconnection point (Germany)

Table 6.1: South-North Corridor projects with PCI Status; Source: Section “Bi-directional flows between Italy, Switzerland, Germany and Belgium /France” of Chapter 5 “Priority corridor North-South gas interconnections in Western Europe ('NSI West Gas')” Annex B of Commission Delegated Regulation 1391/2013 The South-North Corridor projects are particularly important for the European Internal Gas Market completion, also because they all share the key-feature of reverse flow infrastructure. This infrastructure bidirectionality has been recognised as bringing peculiar benefits according to Regulation EC 347/2013, so that having a reverse flow nature is a criterion directly fulfilling the admissibility rule for entering in the PCI selection list. Reverse flow projects provide additional benefits to the ones generated by mono-directional pipelines replicating their functions, with relation to the all four criteria considered essential by the Regulation to evaluate gas projects: \\ Market integration and competition. Bi-directional pipelines allow for greater price convergence compared to mono-directional pipelines having the same function in connecting markets. In fact, if the choice is between a new pipeline and the reverse flow of an existing infrastructure, this second solution permits to better follow spot price dynamics between hubs, permitting a deeper market integration and making possible the functioning of a competitive European internal gas market. This is highly likely unless comparatively low load factors are accepted for those mono- directional pipes replicating the reverse flow function. \\ Interoperability and flexibility of the system. The same operator normally manages reverse flow infrastructure in both directions. This situation is far less granted in case of multiple mono-directional pipes replicating reverse flow functions. In fact, the underlying physical and geographical separation of the pipelines not only increases their costs but also the probability that the number of subjects operating the assets will increase. First of all, from a physical point of view, a single operator optimises dispatch- ing avoiding that gas flows in opposite directions (sub-optimal effect in case of meshed and evolved entry-exit systems are connected). Secondly, from a commercial perspective, having the same counterparts when marketing, using and managing capacity rights represents a clear advantage both for shippers and TSOs. In conclusion, reverse flow benefits materialise both in physical and in commer- cial terms, increasing interoperability, flexibility and the overall efficiency of the system.

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South-North Corridor GRIP 2014–2023