France begins physical gas flows to Germany at Obergailbach: GRTgaz

France has begun physical gas deliveries to Germany at the Obergailbach interconnection point, with some 31 GWh (3 million cu m) expected to flow Oct. 13, grid operator GRTgaz said.

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

"As of Oct. 13, GRTgaz makes it possible to transport gas to Germany at the Obergailbach interconnection point," it said in a statement.

"The marketing of the first physical flows of odorized gas took place at 31 GWh/d. The level of capacity, to be assessed daily according to network conditions, will be a maximum of 100 GWh/d," it added.

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.

"In an unprecedented energy context linked to the war in Ukraine, France is in solidarity with its German neighbor by sending gas directly to it," GRTgaz said.

It said it was able to commission the reverse flow following a public consultation held by regulator CRE.

"GRTgaz, in collaboration with the German carriers OGE and GRTgaz Deutschland, made the necessary technical adaptations in order to be able to reverse the direction of operation of the interconnection and make the flow from France to Germany effective," it said.

"It should be noted that the capacity marketed remains reversible in the Germany to France direction."

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 European 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 on Aug. 26. It was last assessed Oct. 12 at Eur159.95/MWh.

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 also 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.