Linking the gas markets of the UK and continental Europe
Interconnector Limited operates the Interconnector pipeline, which runs from Bacton in the United Kingdom to Zeebrugge in Belgium. The pipeline is a vital connection in the supply chain across Europe for the import and export of gas, bringing significant benefits to consumers. This includes providing access to existing continental storage facilities for seasonal and quarterly bookings, as well as for short term opportunities. The Interconnector pipeline is highly flexible and can change direction in just a few hours, enabling shippers to respond quickly to changing demand and market signals. As well as flexibility, we have demonstrated reliability and have historically met 99.8% of nominations over a 20 year period.
By operating two Interconnection Points (IPs), one in the UK, IBT, and one in Belgium, IZT, shippers are able to use the flexibility of the pipeline to act as a buffer between the two different regimes in the UK and Belgium. Under this arrangement both Interconnector entry and Interconnector exit capacity need to be purchased in order to travel the length of the pipe.
To complete the full route, capacity needs to be purchased in the adjacent transmission systems of National Grid and Fluxys Belgium. In the UK, shippers may source or deliver gas direct from the NBP or for example, from an LNG terminal or delivery point (i.e. UKCS delivery into Bacton). In Belgium, shippers may source or deliver gas from ZTP, or sign up to the Zeeplatform service and enter/exit at Zeebrugge IP.
Our shareholders and equity interest
The company is part of the Fluxys Group and SNAM, who own an equity interest of 76.32% and 23.68% respectively.
The finance supporting a successful company
Interconnector initially operated under twenty year agreements until 2018 to transport gas through the pipeline. The tariffs charged by Interconnector are based on the final construction cost of the Interconnector facilities, plus operating costs.
Interconnector offers both long and short-term access to transportation services via the CAM NC Auctions on PRISMA and Implicit Allocation. The reserve price is determined in accordance with our transporter licence obligations and published in our Charging Methodology.
The £460 million cost of the original project was financed by shareholder equity, shareholder loans and a lease facility.