Implementation of France-Germany gas flow still subject to deadlines: GRTgaz

The start of gas flows from France to Germany via the Obergailbach interconnection point was still subject to a number of deadlines, French grid operator GRTgaz said Oct. 11.

It was initially scheduled for some 100 GWh/d (9 million cu m/d) of capacity at Obergailbach to be available from the week starting Oct. 10 to enable flows in the France-Germany direction.

"The operational implementation remains subject to other deadlines," a GRTgaz spokesperson said Oct. 11, without specifying the nature of the deadlines.

"GRTgaz will inform when sending the first physical flows," the spokesperson said.

The reversal of capacity at Obergailbach followed a solidarity agreement between France and Germany announced Sept. 5 by French President Emmanuel Macron.

EU solidarity agreements allow neighboring countries to supply gas to each other in the event of shortages.

The Obergailbach point was originally designed to operate in the Germany-France direction, but with Germany particularly hard hit by the reduction in gas deliveries from Russia, it was agreed to reverse the flow.

Russian gas supplies to Germany via the major Nord Stream pipeline were suspended completely Aug. 31 having already been curtailed since mid-June, helping keep gas prices at sustained highs.

Platts, part of S&P Global Commodity Insights, assessed the Dutch TTF month-ahead price at an all-time high of Eur319.98/MWh ($311/MWh) on Aug. 26. It was last assessed Oct. 10 at Eur157.45/MWh.

Meanwhile, Platts assessed the French November contract at Eur118/MWh on Oct. 10, after it had narrowed its sizable discount to TTF by Eur5.45/MWh day on day amid speculation that physical reverse flow would be commissioned before the month-ahead delivery period.

Germany's THE market, into which Obergailbach reverse flows would be delivered, was assessed at Eur158.80/MWh.

In a recent webinar presented to industry stakeholders, GRTGaz said "spot gas prices in France and Germany [were] reflecting tensions on the markets", while also citing a "progressive reduction of Russian gas supplies" at part of its evolution.

The same webinar also said a successful technical test of reverse flows had been performed at Obergailbach on Sept. 7, and that GRTGaz and Germany's Open Grid Europe were working on a bundled-capacity offering on the reverse route.

It would be offered alongside the traditional backhaul, virtual-reverse flow rights, with daily-capacity offerings being contingent on conditions elsewhere in the French network, and on the South-North route in particular.

LNG-rich market

France is well positioned to help supply gas to Germany this winter given its large LNG import capacity of almost 26 million mt/year (36 Bcm/year) and full storage stocks.

It has been able to fill its gas storage sites more quickly than elsewhere in Europe, with energy transition minister Agnes Pannier-Runacher saying Oct. 5 gas stocks had been filled to capacity.

By enabling reverse flow at Obergailbach, France gives itself a new outlet for any surplus gas it may have now that storage sites are full.

France's energy regulator, CRE, last month launched a public consultation on the commercial offer proposed by GRTgaz concerning capacity at Obergailbach as well as its usage tariff.

On Oct. 7, CRE said 14 players had responded to the public consultation. "The majority of them welcomed the changes proposed by CRE. The Higher Energy Council then ruled favorably on the usage tariff proposed by CRE," it said.

CRE said its decisions would enable GRTgaz to market the capacities "in the coming days."

"The actual start-up date will be set by GRTgaz and its German counterparts according to their technical constraints, after the signature of the inter-operator agreement allowing the reception of odorized gas on the network of German gas transport," CRE said.