French utility GRTgaz outlines changing West-East role of pipeline gas system in EU underpinned by rising LNG imports

With five liquefied natural gas import terminals in operation, France has now assumed the role of a leading regasified LNG supplier to the European Union , especially Germany and other neighbours, as gas from Russia’s Gazprom has been easily replaced with increasing gas flows from West to East in the EU.

GRTgaz , the French network gas operator with 32,618 kilometres (20,265 miles) of pipelines, is now a leading EU supplier as France’s own gas demand has plummeted to 1996 levels as industrial shutdowns have hit the nation and the gas customer base.

The company noted in its annual review that gas consumption in France fell by 11.4 percent in 2023 to just under the level of 400 terawatt hours.

GRTGaz asserted that this was because people were adopting “a more conscious approach” to the way in which they use gas, rather than the fact that it was too expensive amid a cost-of-living crisis in the country, while French economic stagnation has affected gas demand from industry.

Consumption by industrial clients connected to GRTgaz's network was down by 7.4 percent in 2023 and stood at 103.8 TWh, which was also 18.2 percent lower than in 2021.

“After 2022, when gas power plants generated 10 percent of France's electricity mix to make up for high levels of unavailability across the country's nuclear facilities and low hydro-electric power production, gas consumption at electricity power plants in 2023 fell back to 2021 levels of 36 TWh, down by more than 40 percent,” said GRTGaz.

“However, the gas system continues to serve as an insurance policy, ensuring equilibrium across the system thanks to its flexibility. This way, it is able to offset the uncertainties associated with other sources of electricity generation,” the company explained.

GRTGaz added that the “inversion of flows” from West to East was now firmly established and France has consolidated its key role as a point of entry for LNG in Europe, accounting for 22 percent of all European imports.

LNG network

A GRTgaz subsidiary, Elengy - Groupe ENGIE , is the operator of three of France’s regulated LNG terminals at Montoir-de-Bretagne on the Atlantic coast and at the Fos Cavaou and Fos Tonkin facilities, located west of Marseille on the Mediterranean coast.

Two other LNG import terminals are located at the northern ports of Le Havre and Dunkirk and are controlled respectively by TotalEnergies and Belgium’s Fluxys .

As an operator of “LNG gateways” to Europe, GRTGaz noted that its LNG terminals provide the full range of services, including energy security.

Another GRTGaz subsidiary is GRTgaz Deutschland, operator of the MEGAL gas transmission network in Germany.

The name of the pipeline comes from the German Mittel-Europ?ische-Gasleitung (MEGAL).

GRTgaz Deutschland operates the MEGAL pipeline, which extends GRTgaz’s German natural gas transmission network into the Czech Republic and Austria.

This high-capacity pipeline has the dual function of transporting natural gas in Southern Germany and also routing it to France.

“The large volumes transported contribute to securing both countries’ energy supply,” said the GRTGaz review.

GRTgaz Deutschland is also one of the companies working “with other German transport network managers to build a transport infrastructure focused on hydrogen” and green gases.

EU supplies

The French company added that in Europe in 2023, gas supplies fell by 14 percent - as a result of a fall in demand and lower injection requirements in gas storage.

“However, LNG accounts for 41 percent of European supplies. With five terminals, including the floating LNG port that was set up in Le Havre last year, France has confirmed its role as a major point of entry for LNG in Europe,” the report said.

“The flexibility and resilience of European gas infrastructure were further bolstered in 2023 with the commissioning of six floating LNG terminals,” it added.