BBL to Finalise Integration with Dutch TTF Area, Jan.1
The Dutch operator of the Netherlands-UK subsea gas interconnector, BBL Company, and the operator of the Dutch onshore gas grid, Gasunie Transport Services (GTS), have confirmed that the Interconnection Point (IP) between their two systems at Julianadorp will be removed January 1 2018.
Both companies said removal of IP Julianadorp will fully integrate BBL into the TTF market area that is run by GTS, and that GTS and BBL will have a joint entry/exit system, although each would continue to operate as independent transmission system operators (TSOs). The integration follows the announcement two months ago by British energy regulator Ofgem that it had approved the integration.
"This integration will create a direct connection between Europe’s two largest gas trading platforms [or hubs]: the Dutch TTF and the British National Balancing Point (NBP)," said BBL.
In May 2017 BBL and GTS announced they were investigating the feasibility of this integration. Since then market consultations took place and both TSOs discussed the proposal with the regulators, Ofgem and Dutch competition and markets regulator ACM. "The conclusion is that the announced market integration can start January 1, 2018," noted BBL.
GTS managing director Bart Jan Hoevers said: “This collaboration contributes to the further development of the EU’s internal energy market and fits in with the ambitions of Acer’s [EU Agency for Co-operation among Energy Regulators] Gas Target Model. The integration may contribute to a further expansion of TTF as the most liquid gas trading platform in Europe. It becomes easier for shippers to access the expanded TTF market place as acknowledgement of shippers will take place via one counter. By making part of its buffer available, BBL Company helps GTS balance the network, resulting in yearly cost savings for shippers.”
BBL managing director Luuk Feenstra added: “A direct connection between the two market areas would allow shippers to anticipate on tariff differences between TTF and NBP more easily and more efficiently. Improved arbitrage opportunities should also lead to fewer price differences and fluctuations between the two trading places.” BBL is 60% owned by Gasunie (which owns 100% of GTS), with 20% interests held by German energy supplier Uniper and Belgian TSO Fluxys.