NMa assesses investment proposal GTS for expanding national gas network

Judging on the basis of an investment proposal put forward by GTS with a view to expanding the network for high caloric value gas, the Office of Energy Regulation (DTe) - housed under the Netherlands Competition Authority - concludes that an investment of EUR 740 million is required to safeguard supply security. This is outlined in a written informal point of view issued by the regulator in the energy market. First and foremost, the assessment takes into account the opportunity for Dutch consumers to profit from the expansion, as a result of lower gas prices and an increased level of supply security for example.

DTe establishes that the current transport capacity on the high caloric network insufficiently safeguards future supply security. This is due to expected demand for (additional) transport capacity and diminishing gas supplies from abroad. On the basis of data presented in the investment proposal, the regulator indicates that an investment of EUR 740 million is justified. This investment will safeguard future supply security and meet ambitions for the Netherlands to function as a 'gas-roundabout' internationally.

In total, GTS's investment proposal amounts to approximately EUR 1.3 billion. According to DTe, it is not yet possible to assess the complete investment proposal, as the effectiveness of public costs and possible effects on prosperity in the Netherlands have not yet been sufficiently substantiated. DTe offers GTS the possibility of submitting a more thoroughly developed proposal. The regulator will subsequently assess whether or not remaining investment costs may also be included in tariff calculations.

The assessment of the investment proposal has been published as a written informal opinion on the NMa website. An English version will be available as soon as possible.