Shippers think Fluxys natural gas reverse flow project might collapse
German transmission system operator (TSO) Fluxys TENP has again extended the deadline for binding commitments in the open season for new reverse-flow gas transport capacity between Italy and Belgium via Germany, the company said in a statement on Tuesday.
Participants polled by ICIS said the second extension to the deadline is caused by a lack of market interest in the project, which many traders think to be too long term.
"No one wants to take the risk of a 15-year commitment", one dealer said.
"They've asked people to commit and the details are not clear, so nobody will commit as anything long-term (storage, transport, oil-index) proved to be a massive failure for buyers", another trader said (see ESGM 21 January 2013).
Fluxys TENP had already extended the deadline for sending in binding commitments from 7 to 14 February and has now extended it to 18 February. Fluxys TENP was not available for further comment on Tuesday.
"We'll see what happens, but I don't think the project will actually be realised", another trader said.
The official reason for the new deadline via Fluxys website was to give shippers more time to thoroughly analyse the project.
The pipeline project was designed by TSOs Fluxys Belgium, Fluxys TENP (Germany), FluxSwiss and Italian Snam Rete Gas.
The main aim is the creation of reverse flow from south to north and a diversification of supply routes between Germany and Italy.
Requests for capacity in the reverse direction will be used in Fluxys TENP's coordinated market process to create additional capacities on a route starting from Italy at the Gries Pass interconnection point to Switzerland. The route will pass through Wallbach to Germany and the Eynatten interconnection point to Belgium.
In line with capacity expansions at Wallbach and Eynatten, Fluxys TENP might also create a new interconnection between the two German market areas NCG and GASPOOL. Maria Haensch
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