In close collaboration with Luxembourg’s regulatory authority (ILR) and Belgium’s Regulatory Commission for Electricity and Gas (CREG), Creos Luxembourg and Fluxys Belgium have signed a cooperation agreement aimed at integrating the two countries’ gas markets.
Melchior Wathelet, Secretary of State for the Environment, Energy, Mobility and Institutional Reforms, said: “The establishment of a borderless gas market covering the two countries will be the first market integration of this kind between two EU Member States. Moreover, it will enhance security of supply in both countries and constitute a first step towards a European single market. The experience gained by Fluxys Belgium and Creos Luxembourg may also prove useful when seeking to build a regional market beyond these two countries’ borders.”
Merging the Belgian and Luxembourg gas markets will strengthen security of supply in Luxembourg and improve market functioning. The rules between the two countries will be harmonized, facilitating the task of suppliers active in both countries.
Serving a market of almost 20 billion cubic metres per year, the Zeebrugge Trading Point (ZTP), which already converges strongly with the trading points TTF in the Netherlands, Peg Nord in France and NCG/Gaspool in Germany, will see its liquidity and price marker role strengthened.
The aim of Creos Luxembourg and Fluxys Belgium is to merge the two countries’ national gas markets in 2015, provided that their respective regulatory authorities approve the proposed approach to arrive at the Belux gas market. The approach includes the establishment of a joint venture to manage the rules and mechanisms for commercial balancing of the integrated market.
Press Release, May 22, 2014; Image: Fluxys