The consumption of natural gas monitored on GRTgaz’s network during the 1st half of 2010 amounted to 284 TWh (25,3 Gm3), marking a 11,3 % increase compared to the 1st half of 2009. This positive evolution is linked to a recovery of industrial consumptions, and also to cooler temperatures recorded during the second quarter of 2010 (14,4°C on average versus 15,5°C over the same period in 2009).

At the half-year stage, the consumption of industrial customers directly connected to GRTgaz’s network (870 facilities all in all) amounts to 89,8 TWh, an increase of 21,7% versus the first half of 2009. Centralized electricity generation gives a significant contribution to this growth. The use of natural gas for electricity generation represents about 40% of generation in French fossil-fired power plants, constantly rising with the gradual starting of new combined-cycle power plants. Ten of these facilities will be in service by the end of 2010 for a total amount of 4800 MW electric generation capacity, twice more than 12 months ago.

Excluding electricity generation, the half-yearly gas consumption of GRTgaz’s other direct customers has increased by 12,6% compared to the 1st half of 2009, without recovering its 2008 level (-4,2% compared to 2008). During the same time, deliveries to the distribution networks amounts to 194 TWh, 7.2% more than in 2009.

Abundant and competitive, natural gas is an energy which is adapted to the growing flexibility demand, both for domestic and industrial purposes. Natural gas can be transported and stored easily, thus guaranteeing our security of supply. Its low carbon footprint makes it a major player in the implementation of the Energy-Climate policy.

Press contact :

Christophe FEUILLET
tel : +33 (1)1 47 54 23 68
christophe.feuillet@grtgaz.com

GRTgaz has just launched a secure internet portal, TRANS@ctions, which allows all the customers natural gas shippers to proceed their transmission capacity requests directly online. This new tool simplifies our business relationship and integrates classic features of the e-commerce websites : consultation of the booked capacities and marketed services, online keyboarding and sending of reservation requests, confirmation of capacity allocations with electronic alerts, follow up of requests.

Trans@ctions will allow a simplified and safer trading process, thus strengthening the attractiveness of the French wholesale gas market. In 2009, 255 TWh of gas were traded on GRTgaz’s network, which represents an increase of 47% compared to 2008. On June 1st, 2010, 66 gas shippers were holding transmission contracts with GRTgaz, twice more than in 2007.

From the very beginning of the design phase, GRTgaz associated his customers to this project within a working group dedicated to the development of its information system. With the TRANS@ctions portal, the whole of GRTgaz’s transmission services are now dematerialized and web-based : electronic contract signature, capacities and services booking, invoice publication.

The launching of this booking portal represents the first stage in the reshaping of GRTgaz’s customer information system. This process aims to update, by the end of 2011, all tools put at our customers’ disposal, whether they are shippers or end customers.

Press contact :

Christophe FEUILLET
tel : +33 (1)1 47 54 23 68
christophe.feuillet@grtgaz.com

Financial results:
In 2009, GRTgaz recorded net revenues of €1,479 million, a slight, €15 million increase on the 2008 level. This figure essentially breaks down as follows:

• Transmission income (ATR, €1,324 million), representing 90% of the total. Since January 1, 2009, the introduction of the new tariff for access to the natural gas transmission system, applicable over a four-year period, has offered the market players more medium-term clarity on the economic conditions governing their interventions. By confirming the reduction to two tariff zones instead of four, it has significantly simplified the contractual terms for access to the natural gas transmission system.
• Income of €39 million from connections of industrial customers and city gate stations.
• An amount of €61 million for technical, engineering and pipeline rerouting works, €31 million for connections of combined-cycle gas turbine power stations and €24 million for gas sold to shippers under the balancing service.

The fall in end use of energy in 2009 had little impact on GRTgaz’s revenues, which in the short term do not depend on final gas consumption but reflect shippers’ subscriptions for access rights to the transmission system, most of which entail long-term reservation.

• EBITDA stands at €724 million, down by 1.3% (€9 million) on 2008. This slight fall essentially reflects the costs of energy used to operate the compressors and metering discrepancies over the year. Net income (€110 million) is thus down €25 million, including €12 million for depreciation and exceptional items.
• In 2009, GRTgaz took out a five-year loan for €140 million, which increases its net financial debt to €2,173 million at the end of 2009, i.e. 63% of its equity capital.

Press contact :

Christophe FEUILLET
tel : +33 (1)1 47 54 23 68
christophe.feuillet@grtgaz.com

GRTgaz is set to invest almost €100 million to build a compressor station (3 X 12 MW) at Chazelles (Charentes) in order to develop interconnection capacity between France and Spain. This investment, which reinforces security of supply for both countries, has received the backing of the European Union under the European Recovery Plan.

From April 1, 2013, the operation of the new Chazelles compressor station will have a direct impact on the capacity at the interconnection with the TIGF transmission system in the South West:

• 255 GWh per day from South to North (220% greater than current capacity);
• 375 GWh per day from North to South (15% greater than current capacity).

This investment is a response to the needs expressed by natural gas suppliers in September 2009 in the consultation (France Spain Open Season) conducted jointly with TIGF, Enagas and Naturgas Energia Transporte, under the supervision of the French (CRE) and Spanish (CNE) regulatory authorities. The results confirmed market demand for more capacity, with market players committing to reservations of longterm capacity.

This new compressor station is a first step in the reinforcement of the interconnections between France and Spain. In 2010, there will be a further market consultation to confirm the need for capacity in 2015, firstly on the link between GRTgaz’s North and South zones, and secondly on the interface between France and Spain.

In 2009, GRTgaz invested €658 million in its transmission system, more than 40% of which went into the development of new capacity.

Press contact :

Christophe FEUILLET
tel : +33 (1)1 47 54 23 68
christophe.feuillet@grtgaz.com

Reach the Powernext's press release

From December 1, 2009, GRTgaz will use the Powernext Gas exchange to cover part of the transmission system’s balancing needs. The purpose of these transactions is to promote liquidity on the gas exchange and to improve the quality and transparency of the reference prices used to balance the transmission system.

This change allows all members of Powernext Gas Spot to contribute to the development of a reference price on the French market, while simplifying the way that price is determined. From now on, the prices applied in settlement of any shippers’ imbalances on the system will be based on the prices of GRTgaz’s transactions on Powernext Gas Spot, as defined in the rules published on www.grtgaz.com.

As early as September 2007, GRTgaz offered a balancing price reference based on transactions carried out on "Balancing GRTgaz"? electronic platform. Following the launch of Powernext Gas in November 2008, discussions with market players resulted in the convergence of the Powernext Gas and "Balancing GRTgaz"? platforms. The consensus reached under the "Concertation Gaz"? consultation process was approved by an Energy Regulatory Commission ruling on October 8, 2009.
On GRTgaz’s transmission system, shippers are required to balance their purchases and sales of gas on a daily basis. On top of this, GRTgaz covers the remaining differences in order to maintain the overall physical balance of the system. Interventions on Powernext Gas Spot represent one of the ways of balancing the system.

Since its creation on November 26, 2008, 23 shippers have become members of Powernext Gas Spot, representing average trading volumes of 270 GWh a month. By becoming a member of Powernext Gas Spot to cover part of its balancing needs, GRTgaz is confirming its wish to improve the transmission balancing system to support the development of the French market. On May 19, 2008 GRTgaz acquired 5% stake of Powernext.

Press contact :

Christophe FEUILLET
tel : +33 (1)1 47 54 23 68
christophe.feuillet@grtgaz.com

Download the presentation to the press

Download the press release

The statement confirms the momentum of transmission infrastructure development and the attractiveness of the French natural gas market.

The fourth Development Statement, covering the development of GRTgaz’s transmission system over the period 2009-2018, reflects the sustained demand for new transmission capacity.

If the connection projects (LNG terminals, combined-cycle gas turbine power stations, etc.) are confirmed, GRTgaz will pursue the expansion of its transmission infrastructures (1,600 km of additional pipelines, upgrading of the compressor fleet) and, in the long run, increase its entry and exit capacity by more than 65%.

These investments will contribute to the opening up of the natural gas market, encouraged by the European Commission and already reinforced by the undertakings made to facilitate access to the French natural gas market.

By providing tailored solutions and commercial tools, GRTgaz is making natural gas trading more fluid and enabling suppliers to improve their supplies for the benefit of consumers.

Over the first six months of 2009, the number of wholesale market transactions in GRTgaz’s North zone grew by more than 40% and the volumes traded by 70%, compared with the levels recorded over the same period in 2008.

Since 2008, GRTgaz has seen a rise in demand for additional capacity on its transmission system, despite the slowdown in economic activity.

The likelihood of projects being implemented in GRTgaz’s North zone rose in 2009. A consultation of market players at the end of 2008 revealed very significant need for the development of interconnection capacity between France and Belgium.

GRTgaz’s South zone is experiencing a similar trend, also stimulated by plans for new LNG terminals and for the reinforcement of the interconnection between France and Spain.

At the time of the publication of the Multi-Year Indicative Plan (PIP) for the gas sector in 2009, the Government emphasised the need to increase investment in the major national infrastructures, in particular to enhance safety and fluidity in the main gas transmission pipeline network.

Located at the hub of Europe’s Northern and Southern markets and of the new flows of liquefied natural gas (LNG), France is well positioned to contribute effectively to the strengthening of security of supply encouraged by the European institutions.

The Development Statement (2009-2018) is a framework document. It is the outcome of a continuous dialogue with the market players and institutional representatives, and seeks to clarify the issues around these developments.

Published annually by GRTgaz in the last four years on a voluntary basis, it anticipates the 10-year development plans that transmission operators will in the future be required to produce in application of the 3rd European Directive.

Press Contact

Christophe FEUILLET

Executive management - Corporate communication

Tel : +33 1 47 54 23 68

christophe.feuillet@grtgaz.com

Download the results of the 2009 shippers satisfaction survey (PDF, 1.4 Mo)

Compare with 2008 results (PDF, 484 Ko)

Download the presentation to the press - in French (PDF, 683 Ko)

Consult the 2008 annual report - in French  

The year 2008 was a milestone in the development of GRTgaz for the benefit of shippers and industrial customers:

• Financial conditions for accessing the transmission system fixed for a 4-year period.
  In 2008, negotiations were concluded with the French Energy Regulatory Commission (CRE) on a new ATRT4 tariff structure applicable on 1 January 2009. The new tariff structure reduces the number of tariff zones from four to two, and covers a period of four years, offering greater visibility to both GRTgaz and the various market players, helping to promote activity.
• A significant increase in the number of active shippers on the market:
  Activity in 2008 was characterised by an increase in the number of shippers present on GRTgaz's transmission system from 37 to 50 between 1 January and 31 December, and also a 6% increase in revenue compared to 2007.
• Investment growth to promote the fluidity of the transmission system and the security of supplies.
  GRTgaz investments reached a record total of €600 million, a rise of more than 61% on the previous year. Infrastructures enabling the creation of new capacity accounted for 39%. A large share (22%) was also devoted to investments linked to the environment and security. The remaining 39% is mainly geared towards connection work, the repair of facilities or public service obligations.

Financial results:

• Revenue for 2008 stood at €1.464 billion, an increase of €84 million on 2007, of which €34 million was revenue from the connection of new combined-cycle gas turbines and €18 million for transportation. Revenue from transmission came to €1.261 billion, or 86% of total revenue.   
• EBITDA was stable compared to 2007, totalling €733 million (+0.4%). Net income (€135 million) fell by €10 million, of which €5 million was for non-operating revenues and expenses due to the rise in cost of variable rate debt and the reduction in available cash and cash equivalents, and €5 million for depreciation and extraordinary profit or loss.
• Available cash or cash equivalents were €177 million on 31 December 2008, down by €207 million compared with 1 January, against the background of a rapidly developing investment programme, without additional borrowings.

Outlook for 2009:

• GRTgaz will allocate 10% of its €650 million construction programme in 2009 to the nationwide economic stimulus plan, which is a public authorities-led initiative. Following the completion of upgrading work carried out over the year, several compressor stations will become operational: Courthézon (84), Nozay (44), Auvers-le-Hamon (72), Evry-Grégy (77) and Dierrey (10).
• GRTgaz also intends to adopt an even more European stance by developing new ties with adjacent operators. The projects to enhance interconnections with Belgium and Spain are also eligible for subsidies, earmarked as part of a large-scale European economic stimulus programme by the European Commission of some €1.4 billion.

Press contact:

Christophe Feuillet
Executive management - Corporate Communications
Tél : +33 (0)1.47.54.23.68
christophe.feuillet@grtgaz.com

This document sets out the procedures for obtaining such qualification.

The document is divided into two parts:

• Part I: Qualification procedure
• Part II: Templates of documents exchanged between Bidders and GRTgaz
  B.1 – Evidence of status
  B.2 – Letter of undertaking to comply with the consultation rules and standard contract
  B.3 – Parent company guarantee
  B.4 – Undertaking to submit a First Demand Bank Guarantee
  B.5 – First Demand Bank Guarantee
  B.6 – Standard contract

A tender is planned for April 2009. Suppliers wishing to apply must have submitted their qualification application to GRTgaz by Friday, March 13, 2009 at the latest.

For any further information, please contact:

Exceeding the previous peak, established on January 26, 2007 (135,000 MW), GRTgaz today registered a new record for peak consumption on its transmission system.

At the same time, GRTgaz is facing a near-disruption of natural gas supplies at Obergailbach, the entry point into its transmission system for gas coming from Russia.

In these circumstances, GRTgaz is harnessing all its available resources, in particular placing maximum demand on storage facilities, to maintain normal natural gas deliveries.

Press contact

Christophe Feuillet
Direction générale - Pôle communication
Tél : +33 (0)1.47.54.23.68
christophe.feuillet@grtgaz.com

On January 6, 2009, GRTgaz noticed a significant drop in volumes of natural gas arriving at Obergailbach, the entry point into its transmission system for gas coming from Russia.

Under its terms of reference, GRTgaz is required to adjust consumption balances at all times and to carry natural gas from its different supply sources to the delivery stations supplying public distribution networks and industrial customers.

GRTgaz is working actively with all the gas suppliers in France to cover customers’ consumption needs and maintain normal supplies of natural gas in France, despite the fall in Russian deliveries.

Press contact 

Christophe Feuillet
Executive management - Corporate Communications
Tel : +33 (0)1.47.54.23.68
christophe.feuillet@grtgaz.com

Philippe Boucly has been appointed Director of GRTgaz by the Board of Administration for a term of 4 years. He will take on his new position on January 1, 2009.

An engineer from the Ecole Polytechnique and Ecole des Mines de Paris, Philippe Boucly (56 years old) started his career joining the Research Division of Gaz de France where he carried out studies about the behaviour of underground storage facilities. In 1982, he joined the Transmission Division of Gaz de France where he was involved in studies developed in connection with natural gas transmission for the French market.

From 1987 to 1994, he took on duties as a operational manager, first in Paris, then as Head of the Centre-Atlantique region within the Transmission Division of Gaz de France. From 1994 to 1999, within the International Division of Gaz de France he was in charge of the cooperation with Gazprom and the development of projects in Eastern Europe and in the C.I.S. (Commonwealth of Independent States). He was appointed Chairman of the Board of Ecogaz, a subsidiary he created in Russia in order to develop projects for energy savings and efficient utilisation of natural gas.

From 1999 to 2002, he was Chairman of the Board of Fragaz, a joint venture between Gaz de France and Gazprom in charge of trading natural gas and gas equipments between both companies. From 2002 to 2008, he was successively member and Chairman of the Board of SPP, the Slovak gas company jointly controlled by GDF SUEZ and E.ON.

Press contact

Christophe FEUILLET

Executive management - Corporate communication

Tel : +33 1 47 54 23 68

christophe.feuillet@grtgaz.com

In October, GRTgaz has signed the fiftieth transmission contract for transporting natural gas on its system. The number of shippers present on the market has thus doubled in the last 18 months. As a strong signal of the attractiveness of the French natural gas market, this result will prompt GRTgaz to further support the opening up and development of the natural gas market.

This trend goes hand in hand with a significant globalisation process. Besides, GRTgaz has contacts with a large number of potential customers, so that a similar trend can be anticipated for 2009. The profiles of the market players are also quite diversified: alongside traditional gas operators, market players also include alternative suppliers, electricity firms, banks and, more recently, large natural gas consumers from the industry, which supply themselves directly on the title transfer points (PEGs). Thanks to the richness of its offer, GRTgaz meets the needs of all these segments.

On January 1, 2009, with the new transmission tariff coming into force, shippers will have access to GRTgaz’s great North zone (280 bn kWh/year), which alone will represent 60% of France’s domestic consumption. The diversity of supply solutions and underground storage access points will further reinforce the attractiveness of this new market place. Quality of information is another strength currently developed by GRTgaz in order to further enhance service to shippers.

Since its creation in 2005, GRTgaz has fulfilled its role as a market facilitator. By the end of the year, GRTgaz will further reinforce coordination with other operators: implementation of a web-based platform for trading on the secondary capacity market (capsquare) in cooperation with FLUXYS, expected to come into operation in December, launch of the Powernext Gas Exchange in November, harmonisation of offers at interconnection points and coordinated capacity development, etc.
 
On Monday, October 20, 114 participants representing 52 European firms attended the information meeting organised by GRTgaz in Paris to introduce the new services associated with the new transmission tariff due to come into force on January 1, 2009.

Press contact

Christophe FEUILLET

Executive management - Corporate communication

Tel: +33 1 47 54 23 68

christophe.feuillet@grtgaz.com

Download the capsquare presentation brochure (PDF, 530 KB)

Reach capsquare's website

GRTgaz and Fluxys will launch their joint secondary market capacity trading platform early December 2008. Through this platform, branded capsquare, the two transmission operators are creating a dedicated space for matching supply and demand. Shippers wishing to take advantage of the services as soon as they are launched can join capsquare now.

capsquare members will be able to offer and trade capacity in the transmission systems operated by Fluxys and GRTgaz. This new service meets market demand and is to foster liquidity in the capacity market.

The goal of capsquare is to provide a wide range of products while ensuring maximum integration in the business environment of the shippers.

• capsquare is directly connected to the flow management systems of Fluxys and GRTgaz. TSOs automatically check the transactions on capsquare and ajust capacity portfolios accordingly.
• The services cover standard periods (Day, Weekend, Weekdays Next Week, Month, Year) and a large number of interconnection points (GRTgaz) and transit routes (Fluxys).
• capsquare distinguishes itself through its technology (Trayport GlobalVision interface) and the extended opening hours. These characteristics allow full matching between gas trading and capacity trading transactions.
• In collaboration with Fluxys and GRTgaz, EFET (European Federation of Energy Traders) will publish a Trading Agreement for the secondary capacity market on the Belgian and French transmission systems. This standard contract will facilitate the financial settlement of capacity trades between capsquare members.

For shippers who currently use the Fluxys platform for trading transit capacity on the secondary market, the existing products will be integrated into capsquare.

Fluxys and GRTgaz plan to gradually broaden the services available on capsquare. Through this joint project Fluxys and GRTgaz show their determination to provide both capacities and associated services in order to support development of a European natural gas market in the spirit of the Gas Regional Initiatives (GRI).

A presentation brochure and the capsquare membership application documents are available below:

Download the presentation brochure - in English (PDF, 530 KB)

Download the presentation brochure - in French (PDF, 532 KB) 

Download the standard contract (PDF, 291 KB)

These documents are also available on Fluxys' website http://www.fluxys.com/.

Reach capsquare's website

Press contacts

GRTgaz and Fluxys have decided to finalise the open season conducted to assess the need for additional long-term transmission capacity from Zeebrugge (Belgium) to GRTgaz’s North Zone (France) and from the east of Belgium (Dutch-Belgian border and German-Belgian border) to GRTgaz’s North Zone. The coordinated sale of this new capacity will contribute to the growth of the European natural gas market.

This new binding phase in the process will enable GRTgaz and Fluxys to determine the investment needed in Belgium and France. It will end on December 12, under the following coordinated timetable:

• November 7 – GRTgaz receives binding requests for entry capacity into the North Zone from Belgium on GRTgaz’s transmission system.
• November 21 – GRTgaz notifies shippers of the results of the capacity allocation process.
• December 3 – Fluxys receives binding requests for North-South capacity on the Fluxys transmission system.
• December 12 – Fluxys notifies shippers of the results.

The process also coincides with the conclusion of the open season conducted by GTS, the Dutch transmission system operator.

The first phase of the open season, which began in April 2007, received a strong market response: by July 31, 2007, almost 40 transmission system shippers had submitted non-binding requests for substantial long-term capacity, which would entail significant infrastructure investment by both operators, GRTgaz and Fluxys.

This capacity, which will become available at the end of 2013, is commercialised under the supervision of the energy regulators of both countries, CREG in Belgium and CRE in France.

This coordinated open season procedure designed to prepare new investment and to assign new capacity, is fully in line with the Guidelines for Good Practice on Open Season Procedures (GGPOS) published by ERGEG on May 21, 2007.

Press Contact

Christophe FEUILLET

tel : +33 1 47 54 23 68
christophe.feuillet@grtgaz.com

Download the CRE tariff proposal (PDF, 274 Ko)

The Energy Ministry today announced the new tariff proposed by the Energy Regulatory Commission ("CRE") for access to the natural gas transmission system ("ATRT 4") to be introduced on January 1, 2009.

The main points in this proposal are:

• Transmission tariff set for a 4-year period from January 1, 2009 to December 31, 2012
• A 6% increase in average transmission tariff from January 1, 2009
• Annual review of OPEX from April 1, 2010 adjusted to 1.1% above inflation (French consumer price index excluding tobacco)
• No change in the method of calculating the regulated asset base (forecast €5,934 million at January 1, 2009) and rate of return on assets maintained at 7.25 % (real rate before tax)
• Bonus of 300 base points during a 10-year period for capital expenditure that creates additional capacity on the main transmission system. This bonus scheme replaces the current two-bonus rate system of 125 base points with no time limit and, respectively, of 425 base points over a 5 or 10-year period (assessed by the CRE on a case-by-case basis). The decisions already made on the bonus allocations under the current incentive scheme are maintained.
• Rate of return on fixed assets under construction reduced from 7.25% to 4.6%
• Annual update for subscriptions from April 1, 2010
• Simplification of the tariff structure by reduction from 4 balancing zones to 2 balancing zones (North zone and South zone)
• Extension of the Compte de Régularisation des Charges et Produits ("CRCP" or "Income and Expense Equalization Account") to cover:
  • investment variance (differences between actual and forecast investment will be fully offset);
  • cost variance on energy purchase (except balancing) and CO2 emissions (80% of variance will be offset);
  • cost variance arising from the inter-operator agreement between GRTgaz and TIGF (differences will be fully offset);
  • variance in subscription revenues (differences in exit subscriptions on the main system and on the feeder system will be fully offset; 50% of differences in entry subscriptions on the main system will be offset up to a maximum of 10% of forecast revenues; above this threshold, differences will be fully offset);
  • variance in revenues from connecting combined-cycle power plants (differences will be fully offset);
  • penalties and bonuses associated with quality of service.
• Reconciliation of the income and expense equalization account on April 1, 2011, then under the next transmission tariff
• For information, the balance of the income and expense equalization account for the current tariff period (2007-2008) is €72.5 million (to the advantage of the market). This amount will be balanced over the next tariff period by reducing the annual charges for collection by €23.1 million.
• After the period 2009/2012, 50% of any productivity gains above the productivity target included in the tariff will be retained by GRTgaz, the balance being returned to users of GRTgaz's transmission system over the next tariff period.

This proposal has been submitted by the CRE for approval by the Government, which has begun consultations with stakeholders. GDF SUEZ and GRTgaz will both submit their views in the Government consultation process.

The Government will make its ruling by September 18, 2008.

Press contacts

To consult the annual report, click here

To download the annual report (PDF, 3.2 Mo), click here

GRTgaz – a subsidiary of Gaz de France – has just signed a contract worth approximately €180 million with SNC-Lavalin in Europe, an engineering and construction company. The contract provides for turnkey construction of two natural gas compressor and interconnection stations located in Fontenay-Mauvoisin (Yvelines) and Saint-Avit (Drôme).

GRTgaz has been modernizing and renovating its compressor resources since 2007 as part of its program of compressor station optimization and network adaptation.

Work begins immediately and will be completed in 2010.

This program has a threefold objective:

• To enhance gas transport capacities in order to meet customer needs;
  
• To comply with new environmental requirements, in particular by reducing CO2 and nitrogen oxide (NOx) emissions;
  
• To replace obsolete equipment.

The Fontenay-Mauvoisin and Saint-Avit stations each include two 10-MW electrical motor-driven compressors. The new generation stations will contribute to reducing greenhouse gas emissions, especially CO2 and nitrogen oxides (NOx).

The compressor stations are located at regular intervals (every 120 to 150 km) along gas pipelines to compensate for pressure losses due to the flow of natural gas through the pipelines, and thus enabling the natural gas transport network to function under the best technical and economic conditions.

According to Jacques Laurelut, General Manager of GRTgaz: « Choosing SNC-Lavalin, one of the world leaders in engineering, shows our will to call on international experiences. The crossover of practices contributes to the constant improvement of the quality and costs of GRTgaz’s investments. »

Jean Claude Pingat, President of SNC-Lavalin in Europe, is openly enthusiastic about the contract: « We are very proud to work with GRTgaz. This project will benefit from SNC-Lavalin’s considerable expertise and experience in the energy sector, where we are a recognized world leader. »

Press contacts

Fluxys and GRTgaz have signed a Memorandum of Understanding on developing a shared electronic platform for trading capacity in both operators’ networks. Through this multi operator approach shippers will find it easier to optimize cross-border flows.

The shared Fluxys/GRTgaz capacity trading platform should be operational by the fourth quarter of 2008. Shippers will then be able to offer on the shared platform any pockets of capacity in the Fluxys or GRTgaz networks they have booked but do not intend to use. Through these offers other shippers will have the opportunity to secure additional capacities on a short term basis, which should also result in a more efficient use of the infrastructure by the market parties.

The shared Fluxys/GRTgaz platform will be developed starting from the current Fluxys platform, based on the Trayport GlobalVision interface and used for trading transit capacity in the Fluxys network. Both the technology used by the shared platform, transaction lead times and opening hours will properly fit in with the business environment and will be compatible with the tools used in the commodity market. As a result, it will be easy to match transactions in the capacity market with transactions in the commodity market.

Once the shared electronic platform is launched, Fluxys and GRTgaz will look into the possibilities to enlarge the geographical scope of the shared platform as well as the variety of products on offer and so create new opportunities to meet market demand.

Press contacts

At the end of a European tender offer, GRTgaz, a subsidiary of Gaz de France, has just signed a contract of more than 55 million euros with a consortium composed of Litwin, as principal, and its partners, Friedlander and Cegelec. This contract is for the building of a natural gas compressor station at Saint Victor in the Allier department, central France.

Since 2007, GRTgaz has undertaken the upgrading and renovation of its natural gas compression capacity, within the frame of its OSCAR (Compressor Station Optimisation and Network Adaptation) program.

The work on the site of Saint Victor will be carried out between 2008 and 2010 and is one of the batches of the second part of the GRTgaz compressor stations upgrading. The first part of the OSCAR program had been awarded to the same consortium in December 2006.

The objective of the OSCAR program is threefold:

• Increase the gas transportation capacity to meet the customers’ needs,
• Comply with the new environmental requirements, more particularly by reducing the CO2 and nitrogen oxides (NOx),
• Replace the obsolete equipment.

The new station, located very near the existing Saint Victor station equipped with gas turbines, will include two 5 MW compressors driven by motors. This new generation station will contribute to reduction of greenhouse gas emissions, mainly CO2 and nitrogen oxides (NOx).

The compressor stations are located at regular intervals (every 120 to 150 km) on the gas pipes to compensate the pressure losses caused by the natural gas travel within the pipes. These stations allow the natural gas transport network to be used in the best technical and economical conditions.

Press contacts 

Download the 10-year development statement - in English (PDF, 6.4 Mo)

 

Download the 10-year development statement - in French (PDF, 6.5 Mo)

 

Download the press conference's synthesis (PDF, 70 Ko)

 

Download the press conference's presentation (ZIP, 1.2 Mo)

Gaz de France and its transmission subsidiary GRTgaz just became shareholders of Powernext, through respectively a 6.6% and a 5% stake. Each will have a seat on the Board of Directors.

Gaz de France’s initiative aims to enhance its involvement in the development of the French gas market. The Group supports the project to create a gas exchange in France that will facilitate trades between operators and improve the quality of price references. The gas exchange will thus foster liquidity on the French gas market.

GRTgaz has been working alongside Powernext since 2007 with the creation of the "Balancing GRTgaz" platform which addresses its needs to balance the network. The daily participation of the transmission operator on this platform improves market efficiency. GRTgaz is now going to adapt its system to allow balancing transactions to go through the new exchange.

As the leading French gas operator, Gaz de France will commit to promote this organised gas market, specifically through its subsidiary Gaselys, already active on Powernext power exchange and on the "Balancing GRTgaz" platform.

About Gaz de France :
The Gaz de France group is a major player in the European energy market. Ranked first for the
distribution of natural gas in Europe, Gaz de France employs close to 50.000 people and, in 2007
generated €27 billion in sales. The group boasts a portfolio of around 14 million customers, 11 million
of whom are based in France. Listed on the Paris stock exchange, Gaz de France is part of the
CAC40 and Dow Jones Stoxx 600.
Formed in 2001, Gaselys is the Group's energy trading subsidiary. It covers the whole range of energy
underlyings - natural gas, power, oil and refined products, coal and carbon emissions - and ranks
among the leaders of Europe's gas traded markets.

About GRTgaz :
GRTgaz is responsible for operating, maintaining and developing a natural gas transmission system in
France more than 31,700 km long. GRTgaz is a Gaz de France subsidiary.
In a changing European market, GRTgaz has a dual role:
- to transport natural gas to customers at optimum cost and in maximum safety
- to support the opening up of the French natural gas market by making the transmission system
and the associated services available to all licensed operators, without discrimination.
 

Press contacts 

Download the presentation - in French (PDF, 4.7 Mo)

Download the press release (PDF, 83 Ko)

In the last 18 months, GRTgaz, operator of Europe's longest natural gas transmission system (31,717 km), has made every effort to promote the opening up of the natural gas market in France by developing its services and the way it works with the market . In combination with its investment programmes, the services offered by GRTgaz help to enhance system fluidity, to optimise the use of existing capacity and to create a more dynamic wholesale market for natural gas in France.

As of today, 44 shippers operate on the wholesale market in France (as compared with 26 at the end of 2006) and 120 bn kWh (40,000 transactions) were traded on the gas title transfer points (PEGs) in 2007, a marked increase on 2006 levels. These figures clearly demonstrate the new openness of the French natural gas market and its role as a crossroads for gas supplies from the world's different production zones. In addition, gas-fired (combined cycle cogeneration) power station projects represent a real source of growth for the use of natural gas in France from 2009 onwards.

In 2007, GRTgaz added significantly to its offering with the introduction of new services:

- a balancing platform which is fostering the emergence of a reference price for the natural gas wholesale market in France;
- unique in Europe, a mechanism for redistributing so-called "releasable" multiannual capacity, which facilitates access to the market for new entrants;
- the launch of "open seasons" to assess the need for new long-term capacity;
- the harmonisation of rules at interfaces with other infrastructure operators.

The option now open to industrial customers to obtain supplies on the wholesale market from several suppliers simultaneously, will enable these users to take advantage of increased competition. This measure should also increase dynamism (volumes, number of market players) on these PEGs, to the benefit of all consumers. In the coming months, given the rapid rise in the number of combined-cycle cogeneration plants (CCGTs) under planning, GRTgaz expects an increase in the rate of requests for connections and design projects, and will need to anticipate the impact of this change on its management of the natural gas transmission system. In addition, in the wholesale market, competition on the Southern zone can be expected to grow from 2009, since 21 shippers now have capacity on the North-South link. 

GRTgaz is determined to continue its efforts to foster the development of the natural gas market in France in a spirit of transparency and consultation.

Press contact

Christophe FEUILLET

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

GRTgaz opens a new area on its website www.grtgaz.com.

This new "Key Transmission Figures" section provides access directly from the homepage to the collected figures that GRTgaz publishes for use by the market.

The system is very easy to understand: all the facts and figures about GRTgaz’s transmission system are now available, broken down into daily, weekly, monthly and annual data and presented in graphic form. They are accompanied by definitions and documents such as maps, to make the specific concepts associated with natural gas transmission easier to understand.

These data can also be downloaded in the form of Excel and CSV spreadsheets containing the day-to-day figures for the user’s chosen period.

The "Key Figures" section provides the following historical data on GRTgaz’s transmission zones:

- consumption, either broken down into balancing zones or for all zones combined, accompanied by the reference temperatures,

- the quantities of gas traded and the number of transactions on the PEGs (Title Transfer Points),

- Contractual flows on each interconnection point and each link,

- The price of the natural gas arising out of balancing market operations in GRTgaz’s zones.

The introduction of this online service represents a first step towards the creation of the online information agency that GRTgaz wishes to build, in its quest to offer greater transparency to all involved in the European gas market.

Press contact 

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

GRTgaz is preparing to carry out the redistribution of the capacity overrun penalties charged in 2007. The amount to be redistributed is valued at €13 million and will go to shippers supplying industrial customers.

Under the current natural gas transmission tariff, shippers that subscribe insufficient daily and hourly capacity on their delivery point are penalised by being charged an additional amount on the daily and hourly subscription price.
The aim is to encourage shippers to subscribe the level of capacity that matches consumption on the sites they supply, which is essential to enable the transmission operators to design their transmission systems and to distribute costs fairly between market players.
Over the year, to avoid capacity overrun penalties, shippers have the possibility of adjusting their capacity subscriptions quickly when an overrun occurs.

The penalty mechanism, which only applies to those shippers that supply end customers, is nevertheless designed to be financially neutral for the transmission system operator. That is why the current tariff provides for the redistribution of the penalties charged to shippers. The system operator conducts this redistribution process once a year, on the basis of the amounts charged in the previous year. The distribution between shippers is proportional to the quantities delivered to customers connected to the transmission system.

The penalty unit amount redistributed to shippers for 2007 is therefore €0.0876 per MWh delivered over the year.

 Press contacts
CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

2007: overall, a warmer year than 2006, but with a cold spell in December.
As regards climate, 2007 was a year of contrasts :

• much warmer than 2006 at the beginning of the year (on average +3.1°C in the first 6 months)
• colder than 2006 in the second half (on average -1.2 °C in the last six months)

Since natural gas consumption is highly temperature-sensitive, especially between November and March, GRTgaz recorded a fall in gross consumption of natural gas in the area it supplies*) in 2007 compared with 2006: 456.9 bn kWh as against 468.7 bn kWh in 2006, i.e. a fall of 2.5%.
There was a cold snap in December 2007, resulting in an exceptional consumption figure on December 19 of 2.89 bn kWh in a single day, i.e. 2.3 times average daily consumption for the year, a figure close to the sharpest spike in consumption ever recorded in France – 2.99 bn kWh on January 9, 2003.

Changes in consumption excluding the impact of climate

In order to compare two years with different weather conditions, GRTgaz adjusts gross consumption figures for climate: adjusted consumption is calculated by reference to a standard climate model established over the period 1974-2003. Once adjusted for climate effects, consumption in 2007 was approximately 11% higher than in 2006. Most of this rise came from increased use of natural gas as a feedstock (+3.4 bn kWh) and in the refining industry (+2.5 bn kWh). Consumption by refineries, in particular, has been rising steadily for several years, since the use of natural gas helps refineries meet the environmental rules applicable to their activity.

667 bn kWh carried in 2007 by GRTgaz

GRTgaz does not only carry natural gas that is consumed on its own territory, but also gas for adjacent transmission system operators (TIGF in the South-West and transmission system operators in countries bordering France) and gas intended for storage (on 14 storage sites). In 2007, GRTgaz transported 667 bn kWh, 69% of which was for consumption, 18% for adjacent operators and 13% for storage facilities.

* GRTgaz operates the national gas transmission system in France, with the exception of the South-West.

Press contact 

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

GRTgaz and TIGF have just agreed their first co-ordinated sale of gas transmission capacity between GRTgaz’s Southern zone and the TIGF zone.

As a result of the agreement between GRTgaz and TIGF, shippers have had simplified access to a single, combined offering of GRTgaz and TIGF capacity. The two transmission system operators have organised an “Open Subscription Period‿ during which shippers could submit their requests for interconnection capacity indifferently either to GRTgaz or TIGF.

The sale related to uniform capacity beginning on April 1, 2009 and running for a period of 2, 3 or 4 years. The volumes on offer were more than 73 GWh per day in the direction GRTgaz South to TIGF, and 19 GWh per day in the opposite direction. In total, requests were received for almost all the available multiannual capacity to be allocated.

The coordination between GRTgaz and TIGF will continue in 2008 with the sale of capacity available between January 1, 2009 and March 31, 2009, and seasonal capacity for the gas summer of 2009 (April to October) and the gas winter of 2009/2010 (November 2009 to March 2010).
GRTgaz and TIGF are also working with the Spanish transmission system operator Enagas under ERGEG’s (European Regulators’ Group for Electricity and Gas) Southern initiative to develop interconnection capacity between France and Spain.

Press contacts 

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

TIGF : SEBASTIEN DEMEZ
sebastien.demez@tigf.fr
tel : +33 (0)5 59 02 16 81

In the context of the future merger of its three East-West-North balancing zones into a single zone, GRTgaz has made the proposal to all shippers to sell capacity on the link between the new North zone and the South zone from 2009, for a period of 2, 3 or 4 years.

The creation of the new North zone entails the elimination of the existing North-West and North-East, West-South and East-South links. These links will be replaced from January 1, 2009 by a single North zone-South zone link.

Available capacity in the North-South direction, which represents approximately 50% of that link's existing total firm capacity, is fully subscribed. 21 shippers took part in this "Open Subscription Period" and obtained capacity, which doubles the number of shippers able to access GRTgaz's South zone from the North of France. This should reinforce the liquidity of the French natural gas market and stimulate demand on GRTgaz's South zone.

In addition, since demand in the North-South direction considerably exceeded available capacity, GRTgaz plans to conduct a market consultation in 2008. This "Open Season" will be used to analyse requirements and to examine the possibility of increasing available capacity from the North zone to the South zone, and to propose methods of reserving longer-term capacity.

This strong market interest in the North-South link is notably the outcome of system development undertaken by GRTgaz (development of capacity at Obergailbach, Open Season at Taisnières, development of exit capacity from the LNG terminals, etc.), which allows more players to participate in the French natural gas market.

Press contact 

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

Fluxys and GRTgaz signed a Memorandum of Understanding on the development and commercialisation of additional cross-border capacity between France and Belgium. This co-operation agreement comes in the wake of the market consultation launched by the Belgian and French natural gas transmission operators on April 26, 2007.

The consultation attracted keen market interest: as of July 31, almost 40 system users had submitted non-binding requests for high levels of total long-term capacity, which would require significant infrastructure investment by the two operators, Fluxys and GRTgaz.

Through this Memorandum, GRTgaz and Fluxys agree to coordinate each phase of the process leading up to the completion of the necessary investment on both sides of the border: shipper reservation undertakings, decision-making, approval by the Regulatory Authorities, provision of capacity. Fluxys and GRTgaz undertake to share information on engineering, administrative permits and the roll-out of construction works. This close collaboration will make additional capacity available through streamlined offerings by Fluxys and GRTgaz.

Given the administrative requirements and the investment needed, the new capacity is expected to become available at the end of 2012.

The draft 3rd Directive proposed by the European Commission stresses the importance of cooperation between transmission operators to enhance gas flows and trading levels. The Memorandum between Fluxys and GRTgaz is a concrete example of the way in which two system operators can work together to the benefit of natural gas shippers. In similar vein, last November Fluxys and GRTgaz signed an interconnection contract to allow transmission system users to concentrate fully on their trading activities, without worrying about day-to-day questions relating to cross-border transmission.

Press contacts
CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : 01 47 54 23 68

Fluxys : Bérénice CRABS
berenice.crabs@fluxys.net
tél : +32 2 282 72 30

On the occasion of the annual conference of the Gas Infrastructure Europe (GIE) association, GRTgaz has just signed two interconnection contracts, one with the Belgian natural gas transmission system operator Fluxys and the other with the German transmission operators Eon Gastransport and Gaz de France Deutschland Transport.

The aim of these interconnection agreements is to simplify border crossings, by ensuring that the change in transmission operators is completely "invisible" to the shipper. The goal is to remove the technical and commercial barriers that up to now have sometimes complicated cross-border gas trade.

GRTgaz hopes that an even more structured and effective alliance with its Belgian and German counterparts will be established, for the benefit of natural gas shippers. Such alliances are crucial: 60% of natural gas transported through Europe crosses a border, which means that it moves from a transmission system run by one operator to a second system run by another operator. Within this process, the Franco-German and Franco-Belgian borders are strategic: large quantities of gas transit through these exchange points linking northern and southern Europe.

These agreements guarantee for users, except major technical incidents, that the quantities of gas delivered at a border will correspond to the quantities they requested. They also include an offset mechanism, transparent to the users, directly managed by operators if differences between volumes requested and actual delivery levels are noted.

They also set the nature of the information to be exchanged between transmission operators, the tolerances for the main technical parameters (pressure, flow, gas quality etc.), the metering rules and the procedures for coordinating maintenance operations. All this information is essential for exchanges of natural gas between two countries to take place.

In accordance with the recommendations of the European association Easee-gas*, these agreements reflect a real commitment by transmission operators to facilitate cross-border gas trade and thereby the establishment of an internal energy market.

"The draft Third European Directive promotes enhanced co-operation between transmission operators. We believe that, under the impetus of the transmission operators, major progress can be made in simplifying and harmonising the rules of the European market. These agreements are a fine example of this process", said Jacques Laurelut, CEO of GRTgaz.

*Easee-gas :
Independent voluntary organisation made up of representatives of European gas transmission operators, dedicated to finding technical solutions and joint procedures to simplify and streamline the physical transfer and trading of gas in Europe.
GRTgaz is a member of Easee-gas.
http://www.easee-gas.org/

Press contact

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

In order to increase potential levels of natural gas transmission from Northern Europe, GRTgaz has built a new compressor station on its natural gas transmission system, at the intersection of the Hauts-de-France pipeline from Dunkirk, and the Nord I and II pipelines from Taisnières-sur-Hon at the Franco-Belgian border. This structure is the first stage in a program to debottleneck the transmission system, due to be completed in 2009, which will reduce the number of balancing zones within GRTgaz's area of operations from four to two. This project, which cost €47 million and took more than 200,000 working hours, has been completed in 2 years with input from 41 different companies.

The Cuvilly station is one of the primary nodes on Northern France's natural gas system, since it connects the pipelines bringing gas from Dunkirk and Taisnières with the feeder systems into the Paris region and with the Plateau-du-Vexin pipeline to the West, which supplies the big storage sites of Beynes, St-Illiers and St-Clair. Almost 35% of the country's natural gas consumption flows through Cuvilly.

After the long journey from Dunkirk and Taisnières, the gas has lost pressure by the time it arrives at Cuvilly. The two new compressors (7 MW each) will boost gas pressure to 68 bars with a flow rate of 2,900,000 cubic metres per hour.

This means that they will allow maximum use of capacity at the two entry points at Dunkirk and Taisnières respectively 570 GWh/d and 590 GWh/d, and will increase link capacity between the North, West and East zones.

The two electric motors were selected following a technical and economic study, on the grounds of their relatively small size and low CO2 and nitrogen oxide emissions. The machines are made up of an asynchronous electric motor combined with an electromagnetic system. The use of natural gas as a coolant and of electromagnetism restricts waste by eliminating oil as a cooling and lubrication medium.

The compressor station has been in operation since June 2007.

This project is part of an investment plan designed to increase fluidity on the system in 2009 by merging the North-East-West balancing zones into a single North zone. Within this context, the French Energy Regulatory Commission has decided to increase the 10-year rate of return on this investment by 3 points compared with the rate of return on new investments.

Press contact

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

Paris, September 17, 2007. After the first phase of the open season launched on April 26 this year, 37 companies have stated their requirements for natural gas transmission capacity from Belgium into France. A dozen of these companies are not yet shippers on the GRTgaz transmission system.

The total volume of provisional applications received by GRTgaz confirms market interest in the development of transmission capacity into France from Belgium.

Most of these applications are for capacity from 2011 onwards and 85% of applicants wish to reserve capacity for 10 years or more.

The applications recorded by GRTgaz are consistent both in duration and volume with those received by Fluxys.

In order to meet the needs of the market, Fluxys and GRTgaz are already working on a joint plan to develop capacity between Belgium and France.

At the beginning of October, GRTgaz will be holding a meeting in Paris to explain the rules governing the allocation of capacity to shippers once they formulate binding applications, and the procedures for making this capacity available.

To recap, on April 26 this year, GRTgaz, in coordination with Fluxys, launched an open season relating to the need for natural gas transmission capacity from Belgium into France beyond 2011.

The two operators, Fluxys et GRTgaz, coordinated their approaches to shippers by launching two simultaneous consultations on transmission capacity :

• Fluxys focused on transit capacity in Belgium on the different gas routes running up to the border between Belgium and France ;
• GRTgaz focused on transmission capacity into France from Belgium.

The first phase of this open season ended on July 31, 2007, with shippers submitting provisional bids. Binding applications for capacity must be submitted before November 30, 2007.

These consultations are being monitored by the two countries' energy regulators, CREG in Belgium and CRE in France.

Press contact

DOMINIQUE SANTONI

SALES DIVISION - Transportation Department

dominique.santoni@grtgaz.com

tel : +33 (0)1 47 54 31 64

From August 31, the price generated by the balancing platform developed with Powernext to cover daily physical balancing needs on GRTgaz’s transmission system, will be used to settle a proportion of natural-gas shippers’ imbalances.

Since April 2007, GRTgaz has modified its daily balancing system and introduced market-oriented mechanisms into its method of handling its daily physical balancing needs on the natural gas transmission system.

GRTgaz’s daily balancing system is now based on:

• trading of gas by GRTgaz on the Title Transfer Points (PEGs) to cover the need for daily physical balancing of the system.
  At the beginning of April 2007, GRTgaz acquired an electronic trading platform managed by Powernext to carry out this process.
  Since then, 11 companies have signed contracts to access the platform and a maximum of 9 GWh are traded on it every day.
  
  
• An optional tolerance offering introduced in July 2007, to replace the Daily Balancing Service previously provided by Gaz de France’s Major Infrastructures Division.
  
  
• The use of the balancing price for France generated by trading on the platform when billing shippers for a proportion of their imbalances on GRTgaz’s transmission system.
  

This platform is the culmination of a consultation process between GRTgaz and the shippers, encouraged by the CRE (French Energy Regulatory Commission). These consultations have enabled market operators to exchange experience and express needs, and together to put together the principles and tools of the future balancing system.

GRTgaz and the shippers will continue to consult on this project, particularly regarding the use of the balancing price for France when billing shippers for a more and more important proportion of their imbalances on GRTgaz’s transmission system.

Press contact

DOMINIQUE SANTONI
SALES DIVISION – Transportation Department
dominique.santoni@grtgaz.com
tel : +33 (0)1 47 54 31 64

At its June 15 meeting, Grtgaz's Board of Directors deliberated on the indicative development ten-year plan for the French transmission system. The objective of this plan is to offer new natural gas transmission capacity in order to support the planned development of entry points into France and to respond to the growth in gas consumption.

This development plan is a primary vehicule through which GRTgaz can communicate with the natural gas market players. In an open market, the medium- and long-term development of the system should take into account two main aspects: on the one hand, the change in the European gas system, and the needs expressed by the fast growing number of operators on the other hand. For GRTgaz it is therefore crucial to share its vision of future investments with all those involved.

This plan is "indicative" by nature, which means that it reflects GRTgaz's vision at the date of publication, and represents a tool to clarify the future developments in the natural gas market.

The plan incorporates several scenarios depending on the major infrastructure projects known at the present time :

• Building or extension of LNG terminals in Dunkerque, Antifer (Le Havre), Montoir, Le Verdon, Fos ;
• Development of interconnections with Belgium to the north, and with Spain to the south.

The plan presents the major projects planned on GRTgaz's system depending on market demand for gas transmission capacity :

• Pipeline looping: North-East pipeline, Hauts-de-France pipeline, Normandy pipeline, Rhône pipeline, Maine pipeline ;
• Reinforcement or construction of compressor stations to debottleneck the core transmission system.

This plan is based on the following growth assumptions :

• +1,8% per year (average volumes for the period 2007-2016), of which 1%/year for traditional gas uses (residential, commercial, industry) ;
• The trebling of natural gas consumption for use in electricity, hydrogen and biofuel production, over the period.

In the end, the total amount of the investments will depend on the demand from the operators which are active on the French market, especially on the number of LNG terminal projects which will have been realised during the period under review.

The main system development required to meet the market needs should amount to between 1.42 and 3.37 billion euros, plus 2.28 billion euros for other investment expenditures, of which 580 million euros for the feeder system development, 550 million euros for the improvement of the environment, and 480 million euros for reinforcing the safety of the transmission facilities.

As a result, the total amount of investments for the said period should be between 3.70 and 5.65 billion euros depending on market demand levels. In the light of the elements available today, GRTgaz anticipates a potential investment amount of approximately 5 billion euros. For information: the investments already undertaken over the period 2007-2008 amount to 903 million euros.

In tune with the publication in March 2006 of a Green Paper by the European Commission, which raises the issue of the urgency of investments in European natural gas infrastructures, this plan expresses GRTgaz's ambition to realise the necessary investment projects in France in order to guaranty security of supply and the development of an open market.

The entire document can be downloaded from http://www.grtgaz.com/.

Download the Indicative ten-year investment plan (PDF, 4.15 Mo)

Press contact 

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

The French natural gas transmission operators GRTgaz and TIGF have announced a joint action plan to enhance gas transportation and exchanges in Southern France, in line with the recommendations of the CRE (the French Energy Regulatory Commission) of March 21, 2007.

In response to the different needs of the market - in terms of available capacity and harmonised offerings and also fluidity of gas exchanges in Southern France - the two transmission operators have devised a program which will be discussed shortly as part of a public consultation process initiated by the CRE.

The proposed improvements include :

• Creating a single solution for interface capacity between the GRTgaz Sud and TIGF zones, which would simplify the offering and optimise available capacity ;
• Commercialising and allocating this capacity to a timetable that would ensure that the offer of capacity is transparent and predictable ;
• The planned establishment of marketplaces in the GRTgaz Sud and TIGF zones and the implementation of a coupling mechanism between these marketplaces, which would bring them closer whilst optimising the use of the interface capacity between them.

The proposals put forward by the two transmission operators could be implemented as part of the next Ministerial Order on tariffs, due on January, 1, 2009. Some measures, however, could be implemented earlier: in particular, a multiannual capacity booking window (opening in 2009) could be agreed upon by the end of 2007, in order to allow shippers to prepare effectively for their market positioning.

The two operators' program for a co-ordinated upgrade in their service offerings forms part of the joint development plan for their respective infrastructures, which will result in a 50% increase in entry capacity in Southern France.

Download the action plan (PDF, 379 Ko)

Press contacts 

GRTgaz : DOMINIQUE SANTONI
SALES DIVISION – Transportation Department
dominique.santoni@grtgaz.com
tel : +33 (0)1 47 54 31 64

TIGF : SEBASTIEN DEMEZ
sebastien.demez@tigf.fr

GRTgaz, in coordination with Fluxys, is launching an open season regarding the requirements for transmission capacity into France from the Franco-Belgian border.

The emergence of major gas import projects in northern Europe raises questions about the need to develop new transmission capacity, in particular into the French market. This increase in gas transmission capacity towards France affects the interconnections both between the Zeebrugge zone and GRTgaz's future North-East-West zone, and between the TTF and GRTgaz's future North-East-West zone.

Against this background, the two operators - Fluxys and GRTgaz - are keen to encourage market growth and have decided to enter into parallel, coordinated consultations with shippers on transmission capacities :

• the consultation conducted by Fluxys focuses on transit capacity in Belgium on the different gas routes running up to the border between Belgium and France ;
• GRTgaz's consultation focuses on transmission capacity into France from the Franco-Belgian border.

These consultations relate to capacity requirements after 2011. According to the expressed requests , Fluxys and GRTgaz will define the needed investments in Belgium and in France. These consultations are being conducted in liaison with both countries' energy regulators, the CREG in Belgium and the CRE in France.

You can view both operators' information memorandums on their respective websites :

www.fluxys.be
www.grtgaz.com

GRTgaz will organise an information meeting in the near future in Paris, in which Fluxys will participe.

Press contact 

DOMINIQUE SANTONI
SALES DIVISION – Transportation Department
dominique.santoni@grtgaz.com
tel : +33 (0)1 47 54 31 64

• the consultation conducted by Fluxys focuses on transit capacity in Belgium on the different gas routes running up to the border between Belgium and France ;
• GRTgaz's consultation focuses on transmission capacity into France from the Franco-Belgian border.

These consultations relate to capacity requirements after 2011. According to the expressed requests , Fluxys and GRTgaz will define the needed investments in Belgium and in France. These consultations are being conducted in liaison with both countries' energy regulators, the CREG in Belgium and the CRE in France.

GRTgaz will organise an information meeting in the near future in Paris, in which Fluxys will participe.

Download GRTgaz's presentation of the project (Zip, 6.1 Mo)

Useful documents :

Download the memorandum (PDF, 1.57 Mo)

Download the agreement of confidentiality - in French (PDF, 81 Ko)

Download the non-bonding card - in French (DOC, 62 Ko)

For any question about the Open season for capacities from Belgium to France, write us at this e-mail address : consultation-belgique-france-2011@grtgaz.com.

er

This week, GRTgaz launches its balancing market platform, a mechanism for buying and selling gas to cover its daily need for a physical balance between inputs and outputs on its system.

From April 12 this year, GRTgaz will be able to smooth out part of the daily imbalances on its gas transmission system by buying or selling gas on a dedicated platform operated by Powernext.

The firms signed in at the platform launch are Altergaz, Gas Natural Commercialisation France, Gaselys, Poweo and Total Gas & Power Ltd. Other corporate customers of GRTgaz plan to join this new balancing market in the coming days.

GRTgaz will be offering four balancing products with this platform: Within-Day products (North and South) will be available in the morning, and Day-Ahead products (North and South) in late afternoon.

In the future, the balancing market price based on transactions on the platform will be used to bill shippers for a proportion of their own day-to-day imbalances. These consist of the end-of-day differences between the gas they have delivered at the system exit point and the gas they have put into the system.

The introduction of this project is part of a consultation process between GRTgaz and shippers, encouraged by the French Energy Regulatory Commission.

GRTgaz's objective with this initiative is to promote the emergence of a benchmark price for French gas, reflecting the physical costs of operating the system on French territory, as the first stage in the development of a genuine organised gas market in France.

Press contact

DOMINIQUE SANTONI
SALES DIVISION – Transportation Department

dominique.santoni@grtgaz.com
tel : +33 (0)1 47 54 31 64

GRTgaz and TIGF* are working in consultation with the French Energy Regulatory Commission (CRE) on preparation for new transmission regime to apply from January 1, 2009.

This change in the transmission system will include GRTgaz's commitment to reduce its number of balancing zones from four to two. This means that GRTgaz's future northern balancing zone will incorporate the existing northern, eastern and western zones.

In its communication of March 26, 2007, the CRE asked TIGF and GRTgaz to set up a working program to facilitate transportation operations on the balancing zones managed by GRTgaz and TIGF in the South of France by January 1, 2009.

The purpose of this joint effort is to facilitate gas transmission and exchanges in southern France, by looking at the possibility of increasing marketable capacities between the balancing zones operated by TIGF and GRTgaz by 2009, and harmonising the rules and operational conditions for access to the two operators' systems. Within this framework, the balancing system will continue being managed by each Transmission System Operator on its own zone.

In addition, the format of the offer of capacity between the future GRTgaz northern zone and the GRTgaz southern zone, as well as the procedures for allocating this capacity, need to be established as quickly as possible so that shippers can organise their activity beyond January 1, 2009.

That is why, by the end of May 2007 , will be submit to the CRE,

• By TIGF and GRTgaz : proposals for the interface between GRTgaz south and TIGF,
• by GRTgaz : proposals for the interface between GRTgaz north and GRTgaz south.

and will also propose to the CRE that shippers should be able to reserve capacities on these interfaces from the end of 2007.

Pending a ruling on this request, commercialisation of capacities beyond January 1, 2009 (including releasable capacities) at the Herault and Dordogne interconnection points, is suspended from today.

Commercialisation of link capacities between GRTgaz's existing northern, eastern, western and southern zones is already suspended beyond January 1, 2009.

During May, GRTgaz and TIGF will organise a workshop with users to discuss the changes and prepare their report to the CRE.

Those works will be engaged in respect of the rights and duties of the two operators which result from their contractual obligations and regulations.

Moreover, GRTgaz and TIGF continue (with the coordination required) their own investment program. The development of capacities scheduled by the two operators are essential for the improvement of the fluidity on the french market.

* TIGF is part of Total

Press contacts

GRTgaz : DOMINIQUE SANTONI
SALES DIVISION – Transportation Department
dominique.santoni@grtgaz.com
tel : +33 (0)1 47 54 31 64

TIGF : SEBASTIEN DEMEZ
sebastien.demez@tigf.fr

All the releasable capacities commercialised by GRTgaz as part of an "Open Subscription Period" at the Obergailbach entry point, have been sold. The 12 shippers taking part in the process were able to take advantage of the new subscription options and purchase capacities over 2, 3 or 4 years, for use from October 1, 2007. The volume offered was 50,285.001 MWh per day, sold in thirds over 2, 3 and 4 years. Approximately 25% of the demand was met.

Dunkerque, the other entry point concerned, also attracted lively interest from shippers, especially for the longest subscription period, where only 84% of demand could be met.

Releasable capacities refer to the obligation on a shipper who holds more than 20% of the total annual firm capacity on an interconnection point or on a link, to make 15% of the annual firm capacity above this 20% available to GRTgaz for use by new entrants to the market.

The procedures for commercialising these capacities were established in working groups made up of market players and GRTgaz. They were approved by the French regulator.

This kind of Open Subscription Period will now be repeated every month.

This mechanism for "redistributing" capacity employed by GRTgaz, is exclusive to Europe. It facilitates the access of new entrants to the French gas market.

Press contact 

DOMINIQUE SANTONI

SALES DIVISION – Transportation Department

dominique.santoni@grtgaz.com

tel : +33 (0)1 47 54 31 64

Following its consultations with the shippers in January 2007 and the CRE/French Energy Regulatory Commission's approval of the solutions that emerged from these consultations, GRTgaz will begin selling the multiannual releasable capacities specified in the new 2007 rates, during an "Open Subscription Period" that runs from March 1 to March 15 this year.

Releasable capacities refer to the obligation on a shipper who holds more than 20% of the total annual firm capacity on an interconnection point or on a link, to make 15% of the annual firm capacity above this 20% available to GRTgaz for use by new entrants to the market.

The 2007 rates include an increase (from 15% to 20%) in the releasable rate at certain points on the GRTgaz transmission system, plus the possibility for the shipper using the releasable capacity to subscribe for a longer period (two, three or four years). The previous rates restricted the subscription period to one year.

The points on the system affected by at least one of these changes are as follows: Obergailbach, Dunkerque, Taisnières B, Hérault and Dordogne, plus the links between the balancing zones.

The consultation process between GRTgaz and the shippers established procedures for distributing these capacities which would best meet the needs of market operators.

The first "Open Subscription Period", when the multiannual releasable capacities will be allocated, will run from March 1 to March 15 for annual capacities starting on October 1, 2007. This kind of "Open Subscription Period" will then be repeated every month.

This mechanism of capacity "redistribution" practised by GRTgaz makes it easier for new entrants to enter the French gas market. There is no equivalent in the European Union.

Press contact

DOMINIQUE SANTONI
SALES DIVISION – Transportation Department
dominique.santoni@grtgaz.com
tel : +33 (0)1 47 54 31 64

GRTgaz, the main company responsible for natural gas transmission in France, has published the consumption figures for its area of coverage* for the period 2000-2006.

Natural gas continues its penetration and growth in France

Over a seven year period between 2000 and 2006, natural gas total gross consumption has increased by an average of 2.1% per year. Gross consumption of natural gas delivered to the public distribution systems, encompassing the residential, commercial and light industrial sectors, grew by slightly over 2.2% in the same period. For large companies directly connected to the transmission system, natural gas consumption grew by an average of 1.8% a year over the period.

The trends in natural gas consumption are the result of changes in the economic cycle, notably those linked with climatic factors or prices on the energy markets, as well as underlying trends, such as fluctuations in economic activity or energy-saving measures supported by governments and key players in the sector. In France, people are increasingly behaving in ways that favour sustainable development. Housing insulation and boiler performance are improving. A survey by the CEREN (Centre for Economic Studies and Research on Energy) shows that new houses with gas heating consume between 11% and 15% less than those built in the 1990s.

According to the Ministry of Industry's Energy Observatory, the role of natural gas in primary energy consumption in France is growing steadily: in 2005, it stood at 14.8%, compared with 13.9% in 2000 and 11.5% in 1990.

The warm weather in 2006 reduced consumption

Gas consumption is highly temperature-sensitive. In warm autumns, households and heating managers switch on boilers later, reducing gas consumption accordingly. Conversely, cold autumns increase consumption. Autumn 2006 was the warmest since 1950, whereas the autumn of 2005 was colder than average. That is the main reason why natural gas consumption fell in 2006 compared with 2005: 3.1% down in gross terms, whilst the fall was only 0.9% when adjusted for climate.

The consumption of natural gas delivered to the public distribution systems, the residential, commercial and light industry sectors, is particularly sensitive to climatic factors, and grew by 0.9% in 2006 after adjustment for climate, as compared with a fall of 2.4% in the unadjusted figure.

Consumption by heavy industry fell by 4.4% in 2006 over its 2005 levels.

Quantities of natural gas transported

GRTgaz transports natural gas for consumption by the residential, commercial and light industry sectors (approximately 20% of total gas transported) and by heavy industry (approximately 45%), but also gas for storage (around 15%) and gas in transit across the country (around 20%).

Between 2000 and 2006, the quantities carried grew by an average of 3.9%. Between 2005 and 2006, the quantity of natural gas carried by GRTgaz fell by 3.3%. It should be noted that this fall will not be reflected in GRTgaz's 2006 results. Indeed, the quantities booked on its system remained stable between 2005 and 2006.


* GRTgaz is responsible for natural gas transmission in 80% of the French territory, excluding mainly the South West region.

Press contact

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : + 33 (0)1 47 54 23 68

Gazonor and GRTgaz have started on a 4-year partnership to recover mine gas from the Nord-Pas-de-Calais coalfield for processing and injection into GRTgaz's natural gas transmission system. For GRTgaz, this injection-mixing process represents a new sales offering. It opens up new prospects for France's methane production sites, whether from mining operations or biomass processing. The Gazonor - GRTgaz contract comes into force on March 1, 2007.

Gas recovered from mines has half the calorific value of natural gas, but it saves on the use of other fossil resources and prevents uncontrolled release into the atmosphere, which would significantly add to the greenhouse effect.
So by recycling mine gas, Gazonor and GRTgaz are together contributing to a sustainable development dynamic.

GAZONOR :
Gazonor's function is to continue gas operations in the Nord-Pas-de Calais coalfield following the winding up of the Méthamine Economic Interest Group formed by Gaz de France and Charbonnages de France.

Press contacts

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

GAZNOR : PHILIPPE BERNARD
philippe.bernard.gazonor@groupecharbonnages.fr
tel : +33 (0)3 21 69 20 71

GRTgaz introduces shippers to the platform chosen for gas buying and selling transactions intended to cover the day-to-day balancing needs of the grid.

GRTgaz has chosen to allocate the development and management of this transactional balancing platform to an acknowledged specialist in the field: Powernext. This choice guarantees that the new balancing market will be effectively introduced.

It means that from April onwards, GRTgaz will be able to operate on the PEGs, by buying and selling gas to shippers who will gradually reap the benefit of the new balancing rules. Eventually, the balancing price based on transactions on the platform will be used instead of the Zeebrugge reference when billing shippers for part of the differences.

This platform is the culmination of a consultation process between GRTgaz and the shippers, encouraged by the ERC. Since the summer of 2006, there have been more than 20 meetings where market operators have been able to exchange experience and express needs, together putting together the principles and tools of the future balancing system.

GRTgaz will continue consulting with the shippers on the Balancing project, until the new system is fully implemented.

Press contact 

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

• Any shipper that has booked regasification capacity in a LNG terminal will automatically have the corresponding capacity available for injection into the transmission system, provided that the system has sufficient capacity. This approach will contribute to the growth of the LNG spot market.
• The introduction of a seasonal offering at the interface points with TIGF* will help harmonize provision from France's two transmission operators.
• From January 1, 2008, the new package proposes a single exit rate on the main transmission system, whatever the exit zone. This arrangement will simplify and stabilize transportation rates.
• A new offering, particularly suited to the needs of combined cycle gas turbine power stations, will be available to large new facilities near system entry points.
• In addition, the opening up of the market in the part of the system supplied with L gas, in the North of France, will be boosted by GRTgaz's provision of a new service to convert H gas into L gas.
• These new rates will apply to the period 2007-2008. These new rates, which maintain the existing five balancing zones (four GRTgaz zones plus the TIGF zone), will enable GRTgaz to pursue its goal of making the transmission system more fluid to foster competition on the gas market.

The new rates will help GRTgaz, in consultation with its customers, to prepare for the reduction in the number of balancing zones from four to two, which is set for 2009, when the next rate changes will be due.

* TIGF is part of Total

Press contacts

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

Press contact 

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

Download the 10-year development plan 2006-2015 (PDF, 2.1 Mo)

GRTgaz invites all authorized gas suppliers (under the decree 2004-250) to enter this qualification process.

Consult Open season results - in French (PDF, 335 Ko)

Consult Open season results - in English (PDF, 335 Ko)

• blue, the color of our industrial identity, and often associated with natural gas
• green, symbolic of life and the environment
• the Gaz de France typeface, maintaining our link with the Group
• the Frutiger typeface, in capitals, to express our solidity, our uprightness, and our respect for regulations and technical expertise.

 Press contacts

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

Presse contacts

CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS
tel : +33 (0)1 47 54 23 68

 Press contacts

GRTgaz
Région Val de Seine
26, rue de Calais - 75 436 Paris Cedex 09
CORPORATE COMMUNICATIONS
Nadine LAMBINET
Tel : +33 (0)1 40 23 38 94 - 06 14 02 95 46
Fax : +33 (0)1 40 23 35 60
E-mail : nadine.lambinet@grtgaz.com