BANDEAU PROFIL

Major commercial success for Storengy storage auction promotes French security of supply

Date :
31 March 2018

Bois-Colombes, March 30 2018

In connection with the storage reform implemented this year by the French government, the first natural gas storage capacity auction campaign ran from March 5 to March 26, 2018 in France. The Storengy’s campaign was very succesfull despite the rather difficult market context.

The auction was a big success, involving some 40 gas suppliers, traders and shippers from France, the UK, Germany, Luxembourg, Italy and Denmark on the MyStorengy platform (www.mystorengy.fr). In the end, some 30 customers, a third of which are new, won storage capacity totalling 95.3 TWh of the 100 TWh on offer, i.e. 95.3% of capacity offered by Storengy under the authority of the Energy Regulation Commission.

For France as a whole, 128.4 TWh (i.e. 2134 GWh/day of peak flow) was sold for 2018/2019, not including reserve stocks created by transmission system operators. These subscriptions exceed the minimum level of 1990 GWh/day required by the Energy Minister and therefore guarantee security of supply for next winter.

The average sales price of capacity reflects market conditions, which have deteriorated greatly economically. These conditions can be explained by the rise in summer gas prices due to late cold snaps and low stock levels. The huge one-off sale in March of 90% of storage capacity in France for the launch of storage reform and the zone merger mechanism that will be implemented during the storage year (November 1, 2018) also put downward pressure on the valuation of storage products.

Underground storage facilities are an essential infrastructure for the smooth operation of the French energy system, crucial for ensuring security of supply for French consumers in the event of climate uncertainty and geopolitical risks. Gas storages also contribute to optimise the sizing of adjacent energy infrastructures.

As part of the review of the Multiannual Energy Programme (PPE) currently underway, maintaining storage facilities is critical. This involves the long-term survival of existing industrial assets, which are strategically important in the energy transition and correctly designed to ensure the long-term security of supply of gas in France. The use of this infrastructure is also likely to increase in view of the major recomposition of the French energy mix, which is increasingly decarbonised but also more intermittent.

The solid 2018/2019 commercial campaign confirms the need to have and maintain the current storage facilities.

About Storengy

Storengy, a subsidiary of ENGIE, is one of Europe's leading operators of natural gas storage facilities. With 60 years' experience, it designs, develops and operates all types of storage facilities and provides its customers with innovative products based on its extensive experience in many different markets and their respective environments.

Storengy operates in Europe (France, Germany and the United Kingdom) and has gradually expanded its operations around the world. It owns 21 natural gas storage sites with a total capacity of 12.2 billion m3. As an active player in the energy transition, Storengy offers its technical expertise to numerous partners around the world with a view to developing geothermal projects (heat and power production) and innovative energy storage solutions.

www.storengy.com

Press contact:

Agnieszka Urbaniec +33 1 46 52 31 44

This email address is being protected from spambots. You need JavaScript enabled to view it.

 
 

ENGIE storengy ENDOS GB solid BLUE RGB

Energy is our future, save it!