Fluxys, Gasunie Could Join Forces

Gasunie and Fluxys could join their gas networks, Gasunie's chief executive has said, following an agreement to examine cross-border cooperation between the two companies.

In an interview with Belgian newspaper De Tijd, Paul van Gelder said the merging of the two networks could help to ensure lower prices to both Belgium's and the Netherlands' gas customers.

"If the Belgian and Dutch gas markets are merged, it becomes a big magnet that draws everything to itself," Reuters reports the executive as saying. "If we can attract more gas, that is good for gas traders in our region and, ultimately, for the consumer, who can count on lower prices and better security of supply."

In April this year, Mr. van Gelder signed an agreement with CEO of Fluxys Walter Peeraer to examine the possibility of creating cross-border opportunities for gas supply and services. In a statement released at that time, Gasunie said cooperation was vital to ensuring the security of supply in both countries as well as to developing new routes for gas.

"Cooperation between the two gas infrastructure companies will provide a good opportunity for both countries to strengthen their current favourable positions in the globalising energy market and to take advantage of changes to gas flows," the statement said.

"In order to meet declining European production with supplies from other sources, investments in new infrastructure are necessary in areas such as North West Europe to keep security of supply and market operations at suitable levels."

Related Reading: Natural Gas Europe feature interviews with Paul van Gelder (HERE) and Walter Peeraer (HERE)