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    Dutch TTF-BBL Merger Scheme Delayed

Summary

A plan by Gasunie to extend the Dutch TTF balancing zone to the English coast is still awaiting a decision by regulator Ofgem.

by: Mark Smedley

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Natural Gas & LNG News, Europe, Corporate, Import/Export, Political, Regulation, TSO, Market News, , News By Country, Netherlands, United Kingdom

Dutch TTF-BBL Merger Scheme Delayed

A plan by Gasunie subsidiaries GTS and BBL to extend the Dutch TTF balancing zone to the English coast is still awaiting a decision by British regulator Ofgem. The companies had expected a final decision last month. However they have not withdrawn their proposal.

Dutch gas grid operator GTS, wholly owned by Gasunie and the latter's 60%-owned BBL Company announced in May a joint proposal to extend the Dutch TTF balancing area out to Bacton, England via the 235-km Balgzand-Bacton Line.

GTS – which manages the TTF, Europe’s largest gas trading hub – told NGW September 15 that BBL Company is still awaiting Ofgem’s decision.  

A number of responses to a GTS/BBL consultation about the scheme were critical of certain aspects.

It’s possible too that Ofgem might have concerns that TTF, Europe’s largest gas trading hub, might negatively impact liquidity at NBP, the second biggest hub in Europe, if it has a direct interface at Bacton.      

An indication that the proposal was delayed was given when GTS published its 2018 tariff proposal on September 6, in which GTS said it had “decided to continue the realisation of the integration of the BBL interconnector in the TTF market area, including the removal of the IP [Julianadorp] and redistribution of the tariff,” but added “whether this planned market integration will be effective from January 1 2018 also depends on whether the British regulator Ofgem gives its approval.”

 

 

Mark Smedley