ENTSOG Gas Regional Investment Plan South 2017 - Main Report

4.1 Regional Overview

With domestic gas production practically non-existent in Spain and Portugal, as well as in France since the shutdown of the Lacq gas field in 2013, the South Region imports nearly all of its natural gas consumption. In 2015, 74% of the natural gas imports in the South Region were delivered through pipelines, while the remaining 26% were imported as LNG (see figure 4.1). While low compared to past averages (LNG represented 49% of South Region gas imports in 2010), the share of LNG imports in the region remains higher than the European average (12%, or 20% for countries with LNG terminal). Furthermore, this distribu- tion varies significantly from country to country: LNG accounts for 40% of Spanish supply, 31% of Portuguese supply and 16% of French supply (see figure 4.2), with a differentiated importance between the two French hubs: LNG is currently essential to the supply of TRS (39% of supply), and marginal in PEG Nord (3%). The South Region gas sources are primarily non-European countries. This will become even truer in the coming years given the projected decline of EU indigenous production.

100%

Qatar 5% Other 3%

90%

Nigeria 7%

80%

Algeria 11%

70%

Norway 29%

60%

50%

40%

Algeria 17%

30%

Russia 13%

20%

Other Europe 8%

10%

Netherlands 7%

0%

LNG

Pipe

Figure 4.1: Breakdown of supply to the South Region in 2015 (Source: BP Statisti- cal Review 2016)

400 350 300 250 450 TWh 200 150 100 50

Share of LNG in the South Region

69

26

LNG Pipe

120

%

352

74

181

31 14

0

France

Portugal

Spain

Share of LNG in EU-28

LNG

Pipe

15

LNG Pipe

%

85

Figure 4.2: Share between pipeline and LNG in the South Region in 2014 in TWh (Source: Eurogas 2015 Report, 30 March 2016)

Gas Regional Investment Plan of the South Region 2017 | 43