Denmark, Sweden Target Joint Balancing by 2019
Danish and Swedish gas transmission operators Energinet and Swedegas said May 17 they have reached agreement to invest in integrating both gas markets, in line with EU gas markets harmonisation.
They said the conditions for joint balancing and trade have been analysed in detail during the past year with the industry and that the aim now is for the joint balancing zone to be operational by April 2019.
Market integration offers several benefits, said both operators, including improved security of supply, and more gas traders on the combined market delivering increased competition that benefits end-users.
Swedegas CEO Johan Zettergren said: “The aim is for the joint balancing zone to be operational by April 2019. Discussions are taking place with market organisations to determine which adaptations and adjustments to IT systems and routines will be required as part of the preparatory process."
Energinet's director of its gas system operation Jeppe Dano concurred: "A joint balancing zone will make the Danish/Swedish gas market more interesting. We will now begin to develop the solution in collaboration with the market bodies concerned in order to optimise the value." Energinet told NGW that the market integration project "does not have any ownership implications" as each company would retain ownership of its own gas grid.
Neither market is large: Denmark consumed around 3.4bn m3 in 2017 while Sweden is estimated to have consumed about 1bn m3 (mainly Danish piped gas, but also some minor LNG imports).
The project has its own website which can be accessed here. Both operators announced their market integration intentions in September 2017. Energinet is owned by the Danish state. Swedegas since 2015 has been owned 50-50% by two European gas grid operators, Spain's Enagas and Belgium's Fluxys.