First ever physical gas flows from Italy into Switzerland on 14 March 2018

On Wednesday 14 March 2018 nominations at Passo Gries for the first time ever resulted in physical net imports of gas from Italy into Switzerland (physical deliveries in the same direction have continued unabated until Monday 19 March 2018), highlighting the strategic importance of the Reverse Flow project.

Against a backdrop of a well-supplied market in Italy and cold weather in Germany and Switzerland prompting higher demand, gas prices at the NetConnect Germany (NCG) trading place were at a premium to the Italian PSV for the period under consideration. In line with market players’ needs, this positive spread towards Germany triggered for the first time ever south to north physical flows at the Passo Gries interconnection point. In the same period, physical flows at Wallbach remained in the direction north to south (from Germany to Switzerland).

This flow configuration allowed Transitgas to successfully test the Ruswil compressor station in reverse flow mode, an important technical achievement in the framework of the broader Reverse Flow project.

The Transitgas pipeline currently accommodates north to south flows from Germany and France into Switzerland and Italy. The Reverse Flow project, led by Fluxys group in strong collaboration with Transitgas, Swissgas, Snam, GRTgaz and OGE, has as main goal to create physical transmission capacity from Italy through Switzerland to Germany and France. By unlocking south to north flows the project creates a better interconnected and more flexible European gas market with increased security of supply through a greater diversification of sources. South to north flows will also help foster liquidity and price convergence between the Italian PSV, the French PEGs and German NetConnect Germany (NCG) gas trading places.