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First gas sent via U.K.-Belgium line

Oct. 12, 1998

The Interconnector pipeline linking Bacton terminal in the U.K. to Zeebrugge terminal in Belgium delivered first gas as scheduled Oct. 1. The 150-mile, 40-in. Interconnector was built for £430 million ($725 million) and has capacity to deliver 700 bcf/year of gas to Europe (OGJ, Nov. 25, 1996, p. 34). Belgium's Distrigaz expanded its gas pipeline grid to enable Interconnector gas to be delivered to other European countries through four border delivery points (OGJ, Feb. 10, 1997, p. 40).

The Interconnector pipeline linking Bacton terminal in the U.K. to Zeebrugge terminal in Belgium delivered first gas as scheduled Oct. 1.

The 150-mile, 40-in. Interconnector was built for £430 million ($725 million) and has capacity to deliver 700 bcf/year of gas to Europe (OGJ, Nov. 25, 1996, p. 34). Belgium's Distrigaz expanded its gas pipeline grid to enable Interconnector gas to be delivered to other European countries through four border delivery points (OGJ, Feb. 10, 1997, p. 40).

At the time of start-up, U.K. gas suppliers had announced contracts amounting to only 280 bcf/year with European customers. U.K. shippers are believed to be negotiating further contracts in Europe.

Almost half the gas is going to German distributors, with three industrial projects taking a combined 87.5 bcf/ year, and to Dutch state distributor Gasunie taking 35 bcf/year beginning in April 1999. Start-up of the Interconnector is expected to lead to lower gas prices in continental Europe.

Following U.K. gas market liberalization, spot market gas in Britain has been pegged at 30% cheaper than typical European gas supplies under long-term contracts (OGJ, June 2, 1997, p. 38).