By Forrest Crellin
PARIS (Reuters) – France has enough gas to handle an extremely cold winter, helped by imports from other European countries, though demand saving measures are still recommended for residential consumers, gas grid operators GRTgaz and Terega said on Wednesday.
Warmer than average winters and demand reduction measures helped France to withstand the worst effects of soaring energy prices in the two years since Russia’s invasion of Ukraine in 2022, but questions lingered over resilience in the face of extreme temperatures.
The possible halt to Russian gas supplies to Europe via Ukraine in January 2025 could be problematic for eastern Europe but is not expected to have significant impact this winter thanks to good storage levels, the groups said in their report.
Gas storage is currently 95% full, though filling levels need to be maintained in case of a late cold snap, they said.
With regular restocking of gas supplies from Norway, the Netherlands and Spain, as well as from liquefied natural gas (LNG), storage is sufficient for extremely cold winter scenarios for the French grid, they said.
By the end of the year, regasification capacity for LNG in Europe is expected to increase by 13% from 2023, GRTgaz and Terega data showed.
In the case of a very cold winter, stock will need to be preserved during the first part of winter and demand reduction efforts will be needed in residential heating, similar to the previous two winters, they said.
But even with a very cold winter, France can rely on regular gas transit to Belgium, Germany and Switzerland, the groups said.
Wholesale gas prices are around 40 euros per megawatt hour (MWh) in both spot and futures markets, with price volatility reduced significantly, reflecting more confidence in European gas supply, they said.
There has also been a greater correlation between markets, signalling a return to normality between interconnections, they added.
(Reporting by Forrest Crellin; Editing by David Goodman)
