By Doris Leblond
OGJ Correspondent
PARIS, Apr. 26 -- France's Energy Regulation Commission (CRE) has asked Gaz de France and Total SA to help open the southern France gas market by releasing portions of long-term gas contracts so that other producers can obtain spot gas contracts.
The new contracts are slated to become effective Jan. 1, 2005, and will be for terms of 1-3 years. They are to be arranged by mutual agreement between the companies involved or by an auction process. In addition, CRE will determine the volume that a producer will be allowed to take. GDF and Total will not be allowed to participate in these new spot gas contracts.
Although France opened its gas market 2 years ago, only the northern part of the country has been supplied with spot gas. BP PLC has lobbied to improve flexibility in third-party access to the gas pipeline grid, LNG terminals, and gas storage facilities (OGJ Online, Apr. 12, 2004).
Frank Tiravy, BP vice-president Northern Europe & Power, told OGJ, "The good will of Gaz de France will be measured by the sales price of the gas released from their long-term contracts and by the flexibility introduced, namely as relates to storage facilities."
Meanwhile, GDF has said it will open its gas storage facilities on May 1 to "natural gas suppliers who wished to have access to flexibility instruments to satisfy the modulation needs of their clients."
Gas competition will build in southern France because GDF and Total are slated to bring on stream a second LNG terminal on the Mediterranean Sea, at Fos Cavaou, in 2007. New gas import facilities and upgrades call for the construction of a gas pipeline from Bilbao, Spain, to Lussagnet, France, and for increased capacity through the Lacal-Calahorra gas pipeline.
