Overview

France is the EU’s fourth-largest gas user and imported nearly all of the 42.8 billion cubic metres it consumed in 2013. Lacking oil and gas resources of its own, the country has achieved a high level of energy security through major investment in nuclear power. France is the second-largest generator of nuclear power in the world after the United States, although the French government has pledged to reduce nuclear’s share of the generation mix to 50% by 2025 (from around 75% today).

Domestic production of gas is minimal and declining, but surveys suggest France boasts large unconventional resources. Shale development has been stymied to date, however, by a moratorium on fracking brought in by former President Nicolas Sarkozy’s government in 2011. Despite pressure to overturn the ban – not least from the European Commission’s Günther Oettinger – movement on the issue remains unlikely at least until after France’s next general election, scheduled for April and May 2017. Prime Minister Manuel Valls has recently reshuffled his cabinet to include the pro-shale Arnaud Montebourg as minister for the economy, but President Francois Hollande has repeatedly stated the shale ban will remain in place for the remainder of his term in office.

France is relatively secure in its gas supplies – with access to piped imports from Norway, the Netherlands and Russia, as well as LNG. The country is set to increase its connectivity still further with a new pipeline in northern France that will link Dunkirk LNG – due to start up in November 2015 – to the German gas market.

France’s demand for gas is expected to remain stable until 2020. The forecasts are reliant on effective energy efficiency policies reducing consumption in the residential and tertiary sectors. One potential area for demand growth, however, is in the transport sector. French grid operator GRTgaz has predicted NGV demand will amount to 40 TWh by 2030, which equates to roughly 10% of the country’s current energy demand from the transport market.

Page updated: 07/08/2014