ENTSOG South-North Corridor GRIP 2017 - Main Report

European L-gas market

NETHERLANDS TWh

GERMANY

TWh

Production

240

Production

73

5 TSO 161 DSO

≈ 300

L-gas Consumption

230

H adapted to L

1 TSO 7 DSO

Share of total consumption

L-gas Consumption

270

30%

Share of total consumption

60%

Number of customers

4.9 M

Number of customers

6.8 M

BELGIUM

TWh

Production

0

1 TSO 5 DSO

L-gas Consumption

50

Share of total consumption

30%

Number of customers

1.6 M

FRANCE

TWh

Production

0

1 TSO 3 DSO

L-gas Consumption

44

≈14.5 millions of customers ≈ 600 TWh / year

Share of total consumption

10%

Number of customers

1.3 M

Figure 5.5: The European L-gas market (Source: NW GRIP TSOs)

As reported in Figure 5.5, the current amount of L-gas consumed in North-West Europe is about 600 TWh/y (~55bcm/y), with the share of Belgium, France and Germany that needs to be converted to H-gas with priority totaling around 330TWh/y (~30bcm/y). In the South-North Corridor context, a special role for accommodating the supply needs just highlighted is played by the new gas flows destined to reach Europe via the Southern Gas Corridor (Caspian, Middle East and East-Mediterranean sources)  4) . In fact, if the supply gap generated by the decline of the European indigenous pro- duction could be covered using already established flow patterns – through existing and/or new infrastructure – it is undeniable that this scenario would see an increase of the traditional sources weight, with a potential loss of benefits evaluated under all the energy policy dimensions as described in the first section of this Chapter. A lower sources diversification is indeed likely to affect market competition and, at the same time, would not improve security of supply levels, at least in terms of dependence from a relatively low number of supplies. New gas sources are expected to flow from the Southern Corridor to Europe through TAP (Trans Adriatic Pipeline), an onshore and offshore pipeline of around 870km in length crossing Greece (550km), Albania (215km), the Adriatic Sea (105km) and finally reaching Italy   5) . The first gas to be delivered from Azerbaijan into the European gas grid is planned for 2020.

 4) For a better description of the Southern Corridor Region, including infrastructure and flows potential, please refer to the Southern Corridor GRIP, available at the following webpage: http://www.entsog.eu/publications/gas-regional-invest- ment-plan-grips.  5) See section 8.4.1 as reference for the project “TAP Interconnection” in Italy.

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South-North Corridor GRIP 2017