Ofgem May Decide on TTF Expansion 'Within Days'

British energy regulator Ofgem has said it has until early October to take a decision on Gasunie’s planned extension of the Dutch TTF balancing zone up to the English coast. The Gasunie plan may, for the first time, create a direct interface between Europe’s two largest gas trading hubs, TTF and Britain’s NBP.

Ofgem told NGW September 18 that its “statutory deadline is early October but we are aiming to publish a decision around September 20.”

Gasunie announced its plan in May and had hoped to get an approval from Ofgem last month. The plan, by Gasunie subsidiaries GTS and BBL, is to extend the Dutch TTF balancing zone via the 235-km Balgzand-Bacton gas pipeline right up to the English coast at Bacton. Ofgem did not respond to an NGW question about why Ofgem has taken longer to respond than Gasunie had expected.

A number of responses to a GTS/BBL consultation about the scheme were critical of certain aspects.  It’s also possible that Ofgem may have concerns that TTF, Europe’s largest gas trading hub, may negatively impact liquidity at NBP, the No.2 hub in Europe, if it has a direct interface at Bacton.

Gasunie said September 6 that, in the meantime, it would continue preparations towards implementing its plan, but that “whether this planned market integration will be effective from January 1 2018 also depends on whether the British regulator Ofgem gives its approval.”

Mark Smedley