Bloomberg: France’s Plan to Give Factories Cheaper Gas Will Start in South

French plans to provide cheaper natural gas to factories to help them stay competitive will start with industrial users in the south.

“It’s a first step to try to solve the problem,” Benjamin Gallezot, an official at the Industry Ministry, said at an energy conference in Paris today.

France yesterday said heavy users that face international competition will be given special status in its regulated gas market. Prices in the south have been higher than in the north due in part to a diversion of imports from Europe to Asia, where prices are higher, as well as what the regulator has called “structurally” tighter supply.

The pricing measure should also help balance differences between gas in the U.S. and Europe, Gallezot said.  MORE