ENTSOG South-North Corridor GRIP 2017 - Main Report

Looking at LNG imports, the share of gas volumes coming from this source to all terminals in the Region combined, showed a slight decrease from 9% in 2012 to 7.6% in the period 2014–2015. This reduction is mainly related to a decrease of LNG deliveries in Western Italy (Panigaglia and Livorno terminals) and Western France (Montoir de Bretagne terminal). The supply share distribution depicted above gives an interesting view of the supply dynamics for the SNC Region over the observed period of 2014 to 2015. Whether this picture will remain the same will depend on elements like the evolution of market signals, infrastructure developments, source reserves and external events, which could realistically change over the next few years. Some specific topics worth mentioning that could have an impact on the future supply composition of the Region are: \\ Declining indigenous production in the Netherlands and the United Kingdom, requiring replacement by alternative sources. \\ Project developments related to the connection of the Region with new supply sources like Azerbaijan, the Black Sea and the Middle East, enabling South- North Corridor/Southern Corridor flows. \\ The Nord Stream 2 project as a potential doubling of the direct supply capacity from Russia to Germany (although probably as a replacement of the Ukrainian route). \\ Evolutions in the global LNG market, specifically related to the United States becoming a net exporter of gas and, in general, to the new liquefaction capacity going to be commissioned in other producing countries, causing a potential wave of cheap LNG for the whole of Europe.

Image courtesy of Fluxys

18 |

South-North Corridor GRIP 2017