1. GAS Regional Group / NSI West FRANCE industrial consumers view
Claude CONRARD, Oil & Gas WP Chairman
November 8th, 2016

2. Purpose of the market liberalization : to decrease prices !
Industrial consumers need
Sustainable competitiveness
Stability (sustainable delivery conditions in the location that was chosen for a site)
Collective investment in a new interconnection = last resort after
Liquid hub(s)
Regulatory measures (CMP, …)
Open seasons (« market » projects)
A new interconnection can generate congestions up / downstream, according to the situation
« Crossroad » country
or « Corridor » country  Risk of congestion
or Gas « island »

3. Recurrent CONGESTION in France -- high spread between our 2 Hubs --
Quite impacting for ~ 50% of France industry…
19/04/2019

4. Still recently a new tension… A major explanation = transit to Spain
SPREAD
+3€/MWh
= +20%
Like in 2013, 2014,…
TRANSIT France  Spain

5. FRANCE own initiative / Congestion management
Huge investment decided by french gas actors
Decision pushed by UNIDEN (Industrial Gas Consumers)
~850 M€ starting in November 2018
Investment taken in charge by french consumers
NB : will indeed benefit spanish / portugese consumers
Nevertheless residual congestions => Tools currently in study
Storage swaps, flow commitments, remunerated interruptibility, …
Necessity to distinguish transit and delivery capacities
Additional cost to be included in the future french TSO tariff
19/04/2019

6. France Industrial Consumers CONCLUSIONS
Gas consumption in Europe is announced TO DECREASE (Madrid)
Then please limit strictly the new investments
Essentially Eastern Europe still needs some new infrastructures
Global economic situation calls for savings / really optimized investments
Only collective pertinence & robust scenario projects can be pushed
Europe industry competitiveness is to be protected !
Don’t disturb negatively the gas market in a corridor country
Destroyed jobs in existing industry …will not be replaced by renewables ones !
NB: next « Regional Solidarity » should be a profitable agora
for mutualization of flexibility tools (storage, interruptibility, …)

7. QUESTIONS ?
19/04/2019