Insight

Pegged apart: French gas prices, a north-south divide

20 February 2014

This report is currently unavailable

Contact us

Submit your details to receive further information about this report.

First name
Last name
Job Title
Company
Email
Telephone

Region

Message

Consent

Please keep me informed by email about Wood Mackenzie products, services and events.

For details on how your data is used and stored, see our Privacy Notice.

- Available as part of a subscription
- FAQ's about online orders

20 February 2014

Pegged apart: French gas prices, a north-south divide

Report summary

In recent years, there has been a disconnect in French gas prices, with with prices in the south of the country trading at a premium. The key driver for this lack of North-South transmission capacity, which leaves the south more exposed to global LNG dynamics and subject to influence from the Spanish market. There are plans to upgrade capacity and introduce other measures to create a single French gas market to ease this problem, but these are not expected before 2018.

Executive Summary
Why does PEG Sud trade at a premium?
Why were prices so high in December 2013?
- Upgrading North-South physical capacity will ease situation from 2018
- Regulatory measures implemented to manage situation
- Spanish demand volatility and LNG availability continue to provide upside price risk
Conclusion