The Southern Gas Regional Initiative (S-GRI), actively involving regulators and companies in the gas sector from Spain, France and Portugal, identified as a priority the need to increase connection capacity between Spain and France.
Against this background, Enagás, GRTgaz, Naturgas Energía Transportista and TIGF, the main transmission operators in Spain and France, jointly undertook an Open Season process. The aim of this process is to identify the demand which will define the new interconnection capacity between the two countries, and the coordinated allocation of this among the agents involved.
Open Seasons are typically held in Europe as the preliminary step prior to development of interconnections between two adjacent transmission operators, although this is the first time that four TSOs (Transmission System Operators) have coordinated to offer interconnection capacity between four zones, one in Spain and three in France, in one single process.
From 15 to 30 September those commercial operators with an interest submitted their capacity applications for expansions to Larrou, Biriatou and the interconnection between GRTgaz South and TIGF, at full performance from 2013 onwards.
The possibility was also presented of expressing a non-binding interest in signing up to future capacity available from December 2015 onwards (binding applications for this period will take place in February 2010). This capacity includes a new interconnection in Perthus (Midcat) and the development of the GRTgaz North – GRTgaz South interconnection.
On 30 October the capacity allocations were published in accordance with the stated allocation rules, and by 30 November the capacity contracts had been signed by the parties. The applications process was a resounding success, with 12 applications submitted by 8 different companies.
Following conclusion of the first Open Season phase it was decided to implement the Larrau infrastructure (5.5 bcm in 2013) and not to construct the Biriatrou interconnection as it did not meet the minimum required capacity allocation by 1 GWh/day.
Given the enormous interest shown by the Spanish gas sector, along with the desire of the European Commission to develop the interconnection with France, it was decided to include Biriatou in a second phase of the Open Season in 2015.
Enagás was by common consent among the four transmission operators involved appointed as the leader of the Open Season process, and set up a Joint Allocation Office to administer and coordinate subscription and allocation of capacity.
The final decision as to the development of the expansions considered for 2013 will not take place until January 2010. It will not be until January 2011, meanwhile, that the process for capacities in 2015 will end.
