The Netherlands, Great Britain and Belgium to evaluate their mutual gas trade

The Dutch, Belgian and British energy regulators will jointly review the arrangements on gas trade between these countries. The purpose of this review is to find out whether gas pipelines between Great Britain and the continent can be utilized more efficiently in order to create a more integrated European wholesale market for natural gas.

Gas flows between Britain and Belgium and the Netherlands should respond to wholesale prices, meaning that gas should flow to the country where wholesale price are highest. Otherwise, countries would be exporting natural gas when they should be importing it or vice versa. In addition, on average, less than 50 percent of pipeline capacity is actually utilized. More efficient utilization of these pipelines between the Netherlands and Belgium and Great Britain will help realize a better functioning gas market, which, in turn, will be reflected in the energy bills of consumers. There may be various reasons for why pipelines are underutilized, for example, because of gas transmission rules on the connections themselves, or because of gas transmission rules in individual countries. These rules may be right for the national markets, but taken together they might distort gas trade between markets.

Publication Nederland, Groot-Brittanië en België gaan hun onderlinge gashandel onderzoeken (in Dutch)