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La revue soGaz #5

Launch of the single gas market area in France!

On 1 November, GRTgaz and Teréga, the 2 managers of the gas transmission networks in France, are launching the single gas market area, the Trading Region France (TRF).

  • A single gas price on the French wholesale market
  • A French market that is more fluid, more competitive and better integrated into the European market
  • France’s security of supply strengthened

On 1 November, GRTgaz and Teréga, the two operators of gas transmission network in France, launched the single gas market area, the Trading Region France (TRF)1. As of this date, the PEG (gas exchange point) will be the single point of reference for the wholesale gas market price in France, with no distinction between the North and the South2. The TRF is the culmination of major investment in gas infrastructure and the establishment of new offerings, co-constructed with market actors and the Energy Regulatory Commission (CRE).

In total, 872 million euros (€m) of investment has been made to construct and adapt the infrastructure required for the TRF. GRTgaz has invested €720m, mainly in the Val de Saône programme. Combined with the commissioning of the Gascogne Midi Strengthening project by Teréga for an investment cost of €152m, these developments provide the transmission capacity needed for the creation of the TRF and an increase of 42% in gas flows from the North to the South.

GRTgaz and Teréga have created the TRF on the basis of the following essential principles: permanent co-construction with the market actors and the desire to deliver the required service at the best cost. Specific mechanisms, used only in the event of residual congestion on the network, will ensure the smooth functioning of the market. Merger of the areas has resulted in a corpus of common rules being established based on consultations open to all the gas shippers and with the approval of the CRE. Around a dozen consultation meetings have taken place to help everyone gain a good understanding of the new market tools.

The TRF will facilitate access to the most competitive gas sources for all consumers, industrial players in particular. With the TRF, the entire French market is now interconnected to the European market place. The attractiveness of the French market will thus be strengthened over the long term and price volatility will be minimised. With the strengthening of the French gas transmission network and the creation of a single market area, the risk of congestion between the North and the South is reduced, thus strengthening the security of supply.


1 France had 8 areas in 2003, 5 in 2005, 3 in 2009 and 2 in 2015.

2 In the past, consumers in the South (in particular industrial customers) were penalised by prices which could be a lot higher than those in the North, mainly during periods of high demand during the winter.