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Wholesale natural gas market dynamics

100 customers are now shippers on the GRTgaz network. How it works:

With the opening of the gas market, GRTgaz has upgraded its network and simplified its service offerings to facilitate access to the wholesale market, and facilitate the match between gas supply and demand. Since 2005, exchanges at GEPs (Gas Exchange Points) have steadily increased. The dynamism of the wholesale market in France is important to the competitiveness of gas energy and of our industry.

Quantity traded illustration

The wholesale market, a competitiveness factor for industrial companies

An increasing number of industrial companies are choosing the possibility given to them to get more involved in the supply of their sites. There are now 25 of them, representing half of the consumption of industrial companies linked to the GRTgaz transport network.

Distribution of GRTgaz industrial customers and Allocation of industrial consumption in 2012

 

Interview with Guy Fasanino, GRTgaz sales director. "Industrial customers can customize their supply”:

"Today, the industrial customers that have chosen our "active" and "solo" supply solutions appreciate the freedom and optimisation offered to them. In concrete terms, an industrial customer can at any moment, and for any length of time, compare several dozens of suppliers at once to supply their plants. By choosing to diversify their supply, they benefit simultaneously from the best offer from several suppliers.

When industrial customers aggregate their different purchases on the wholesale market themselves, they are able to optimize their global supply so that it is less costly than if they had given the supply of their site to one single supplier. We can draw the comparison to a restaurant owner who purchases his vegetables at the wholesale market, and who chooses not to buy his carrots and his potatoes from the same place, but at any given moment decides to select wholesalers based on the quality and prices that they offer.

Are there other advantages?

The prices observed on the main French marketplace (PEG Nord) are consistently lower than the prices of long-term contracts, which are the main contracts that the traditional large suppliers use to supply themselves. Several industrial consumers have told us they've saved more than 2 euros per MWh, which can mean annual savings of more than €1 million, contributing significantly to the competitiveness of the site in question.

Does one need to be a specialist in the gas market?

"I think that above all one must be a good professional buyer. It is important to observe and understand the mechanisms of price changes to be an effective player on the market. That said, during a call for tender when industrial customers are in discussions with suppliers who will deliver to their site, they also need to have a good knowledge of what they are buying in order to be able to negotiate effectively.

I would say that buying "multi-supplier and multi-time interval" on the wholesale market is of the same nature, while certainly one step further in the mastery of gas market operations. In any case, the sales teams of GRTgaz are available to customers who have questions and would like assistance."

Natural gas presents many advantages for industrial customers

Thanks to natural gas, industrial companies have a competitive energy source with low CO2 emissions, and which ensures continual supply. This is due to the presence of a vast, organized market and also to the characteristics of the transmission network, which is underground and therefore very robust.

Each year, supply interruptions affect 5 to 10 customer delivery points, out of more than 5000, and these interruptions last only a few hours. The maintenance schedule has been revised to better take into account the needs of industrial customers.

GRTgaz offers its industrial customers several solutions tailored to their specific needs, such as 12-month adjustable contracts for new sites who don't yet know their exact consumption levels, and daily capacity subscriptions for additional one-off needs or for operating tests.