BBL Company is to make gas transportation possible through the BBL pipeline in both directions from the autumn of 2019. This will further strengthen trade between the two most liquid market areas in Europe, the Netherlands-based Title Transfer Facility (TTF) and the British National Balancing Point (NBP). Currently, gas can only physically be transported through the BBL from the Netherlands to the United Kingdom. Through modifications to the pipeline network at the compressor station at Anna Paulowna and the gas terminal at Bacton, it will be possible to transport gas from the UK to the Netherlands from the autumn of 2019.
Luuk Feenstra, managing director of BBL Company, says: “We want to develop services for our customers that strengthen the trade between TTF and NBP and also improve the functioning of the markets. Making transportation possible in both directions is an exciting new step towards this goal and one that fits in with the recently announced integration of the TTF and BBL market areas as of 1 January 2018. Both the Netherlands and the UK have very liquid and smoothly functioning gas markets, but they do not have the same supply and demand dynamic. With only a limited investment, we can bring those markets closer together so that they can make better use of the existing infrastructure, such as storage facilities, LNG terminals and supply pipelines in both countries.”
“We have noticed a demand for pipeline capacity to transport gas from the UK to the European continent, particularly during summer. At the moment, in the summer months, more gas is being collectively produced in and supplied to the UK (via Norwegian pipelines, from the North Sea fields and in the form of LNG) than is being sold. Seasonal storage facilities in the UK have insufficient capacity to store this surplus gas, partly due to the decommissioning of the Rough storage, which used to be Britain’s largest gas storage facility. The Netherlands and Germany have much more storage capacity than the UK. It is therefore expected that, during the summer months, there will be more demand for gas transportation capacity from the UK to the Netherlands, and in the opposite direction during the winter.”
BBL’s Interconnection Point at Bacton on the PRISMA auction platform is expected to be very relevant in the future. It links the two biggest and most liquid gas markets, in two directions across only one interconnection point, i.e., BBL Bacton.