1. 2nd SG Meeting South Gas Regional Initiative TSOs’ report 2010/11 – Main Findings
Madrid, 6th February 2007

2. Presentation Introduction Map of the area Gas market fundamentals
Market players and liberalization status
The TIGF/GRTgaz interface
The Larrau interconnection point
The Biriatou interconnection point
Conclusion

3. 1. Introduction
In the context of market opening, interconnections are aimed at:
Increasing security of supply
Fostering competition
For years, TSO have worked together in order to promote interconnection capacity development between France and Spain.
TSOs have evaluated development possibilities of interconnections capacities between France and Spain market through analysis of:
gas market fundamentals and market players
possible interconnection capacity developments

4. 2. Map of the area
Castillon
Biriatou
Larrau
Cruzy

5. 3. Gas market fundamentals
Infrastructure use rate
Spain
Southern France
Yearly
73% 54%
80% 67%
Winter season
78% 51%
75% 59%
Summer season
70% 57%
87% 72%
Winter peak
82% 83%
53% 31%
Summer peak
78% 77%
100% 89%
International Flow Potential
++ from Spain
+ from France
++, both directions
++ from Spain
low from France
low from Spain
+++ from France
+ from Spain
low from France
International flows development has a high potential except from France to Spain in summer and from Spain to France during winter peak

6. 4. Market players and liberalization status : the context supports interconnections development
About 25 shippers are active in Spain and in France but only few of them are currently active on interconnections (~ 5)
Liberalization is entering in its latest stages both in Spain and in France
2006
% market opening
(since)
100%
(2003)
% consumption TPA / tariff customers
86% /14%
Top 3 suppliers’ share (%)
74,2% (*)
Principal supplier share (%)
47% (*)
Number of suppliers with more of 5% share 4
Spain
2006
% market opening
(since)
100%
(July 1st 2007)
% consumption market prices / regulated tariff customers
52% / 48% (I&C volumes)
Number of suppliers with more of 5% share 2
France
(*): TPA market share

7. 5. The TIGF/GRTgaz interface
TIGF -> GRTgaz capacity developments
GRTgaz -> TIGF capacity
GWh/d
Summer
Winter
2007- Current status 10 15
Guyenne phase 1 30
2010 (*) - Guyenne phase 2
125 95
2011 (*) - Guyenne phase 3
265
270
Artère de Guyenne
(Western axis)
Under development
Artère du Rhône
(Eastern axis)
GWh/d
Summer
Winter
2007- Current status
275 90
Guyenne phase 1
370
330
2010 (*) - Guyenne phase 2
460
2011 (*) - Guyenne phase 3
565
395
TIGF network
GRTgaz network
Full potential of artère de Guyenne : 150 to 180 GWh/d, limit to Spain/France interconnections development before French eastern axis development (> year 2013)
(*) Under study, not yet decided

8. 6. The Larrau interconnection point
(1) Minimum value of interconnection capacity of both sides of the border

9. 7. The Biriatou interconnection point
(1) Minimum value of interconnection capacity of both sides of the border

10. 8. Conclusion LARRAU : France to Spain direction:
Potential for a common capacity : +85 GWh/d
French side:
20 GWh/d already decided (operational 2009)
Additional 65 GWh/d if investments are decided
Spanish side : Infrastructures required yet decided
LARRAU : Spain to France direction:
Potential for a common capacity : +165 GWh/d
French side :
100 GWh/d to TIGF area already decided (operational 2009)
Corresponding capacity at TIGF/GRTgaz interface if investments are decided
Spanish side: Infrastructures required yet decided
IRÚN/BIRIATOU :
Potential for a common capacity : +50 GWh/d France to Spain and +30 GWh/d Spain to France depending on operational conditions and if investments are decided
French side : Priority has been put on Larrau that creates much more capacities with much less constraints and investments. Development potential on western axis being limited once Larrau’s potential is reached, such development will be considered in the context of the development of the eastern axis (Artère du Rhône).
TSO’s are going to produce a further report covering possible developments by 2015