Pipelines, Storage & Power

EU markets boost competition, but concerns remain

Europe’s gas markets are becoming more competitive and interconnected, but the underuse of pipelines means assets could become stranded Europe’s gas markets are becoming more competitive and interconnected, but the underuse of pipelines means assets could become stranded.
By Andreas Walstad 9 October 2018 0 32833
A gas compressor station in Baumgarten. (OMV)

Hub prices and import costs are showing further signs of convergence across Europe, but many pipelines remain underused despite a steady increase in gas demand.

The maximum difference between EU member states for supply costs has fallen to below €3.5/MWh ($1.2/MMBtu) and in most cases is below €1.0/MWh, the Agency for the Cooperation of Energy Regulators (ACER) said in its annual market monitoring report published last week. Two years ago, spreads of €5.0/MWh were common, ACER noted.

Further implementation of the EU’s network codes...