EU Eastern Gas Axis ideas unlikely to be viable

Subject

Plans for more gas and electricity interconnectors between Iberia and France, and a possible Eastern Gas Axis with Algeria.

Significance

EU concerns about dependence on Russian gas supplies have led to proposals to increase gas interconnections between Spain and France, and possibly create a new gas transit corridor through the Iberian peninsula using Algerian gas. However, the European Commission, France, Portugal and Spain are deploying gas security arguments to pursue infrastructure plans designed primarily to further the integration of EU energy markets.

Impacts

• Links with Spain will open France's electricity markets to variable renewable energy flows as it is expanding its own renewables capacity.
• France-Spain electricity links should yield more efficient renewables capacity use; power flow effects are hard to predict.
• Environmental and local community challenges are likely to delay construction of trans-Pyrenees infrastructure links.
• The construction of a new 7 bcm natural gas pipeline across the Pyrenees will have little impact on gas security elsewhere in the EU.