2019 Gas Review
The large-scale return of liquefied natural gas (LNG) to France and Europe is the highlight of the past year. This phenomenon has led to a major shift in gas flows on the continent. France recorded an 87% increase in LNG inflows to 219 TWh - the highest level of imports over the last decade.
As a result, 2019 was a record year for gas transits to neighbouring countries, with 115 TWh exported (compared to 67 TWh in 2018) and a 75% increase in outflows to Spain and Switzerland compared to 2018.
This unprecedented configuration of flows has led to both a diversification of gas sources in Western Europe and the increased competitiveness of gas prices on the French wholesale market, which now benefits all customers in north and south alike.
A fluid market and attractive French gas prices benefitting from a large-scale influx of LNG
Gas consumed on the GRTgaz network in 2019 totalled 451 TWh - a gross increase of 2% compared to 2018. This change was mainly due to high demand from the 13 French sites producing electricity from gas, with 39% more consumption than the previous year. Public distribution consumption remained stable with data adjusted for climate effects, while the industrial sector fell slightly (2%) compared to 2018 due to technical shutdowns by certain consumers scheduled for Q4 2019.
Given the cyclical decline in hydraulic and nuclear electricity generation in 2019, gas has consolidated its role as a flexible production source that can be mobilised quickly, produces lower CO2 emissions, and which is more competitive than other thermal power generation methods (coal and heavy fuel-oil). The price of gas on the wholesale market fell sharply during the first operating year of France’s single marketplace (Trading Region France). In 2019, the average gas price was €13.6/MWh compared with €23.2/MWh in 2018, even falling below €8/MWh in September.
Gas infrastructure in step with the energy transition
The increase in the production of electricity from natural gas in France, Spain, Italy and Germany, replacing production from coal, has prevented the emission of more than 28 million tonnes of CO2 in these four countries - an amount equivalent to the annual emissions of nearly 17 million vehicles1.
To support green gas production in the regions, the networks are changing and adapting their operations to new customer demands. In November 2019, GRTgaz commissioned the first pilot “reverse” facility to reverse the flows between the gas distribution and transmission networks. This innovative technical solution optimises the injection of renewable gas into the networks, while offering an additional outlet and access to storage facilities for times when biogas production exceeds local consumption. At the end of 2019, there were 123 biomethane sites injecting gas into the networks. More than 1,000 projects are also included in the capacity register, which is equivalent to 5% of gas consumption in France.
1 Calculation based on an average fleet for 2020. Emissions for new vehicles sold in 2010 were 130g CO2/km (source ADEME), travelling 13,000 km/year.