OSLO (Reuters) - Dutch Gasunie Transport Services (GTS) and BBL Company (BBLC) will integrate their transport systems by January next year, creating a direct connection between Dutch and British gas trading hubs, BBLC said on Tuesday.
The so-called Dutch Title Transfer Facility (TTF) and the British National Balancing Point (NBP) are Europe’s two largest gas-trading platforms.
The integration of the transport systems will allow the BBL gas interconnector pipeline between Britain and the Netherlands to become part of the TTF market area, BBLC said in a statement.
Gas flows will remain unchanged, said GTS spokesman Gerben van Dijk.
“The flows will be still from the Netherlands to the United Kingdom. It’s just that there will be only one booking point, making the system quicker and easier,” he said.
The two companies will have a joint entry and exit system but can continue to operate as independent transmission system operators.
“The integration may contribute to a further expansion of TTF as the most liquid gas trading platform in Europe ... resulting in yearly cost savings for (gas) shippers,” said Bart Jan Hoevers, managing director of GTS.
BBLC managing director Luuk Feenstra added: “Improved arbitrage opportunities should also lead to fewer price differences and fluctuations between the two trading places.”
Reducing the interconnection points from two to one will entail IT work costing 1.1 million euros (£975,052), which GTS and BBLC will cover jointly, the GTS spokesman said.
Editing by Louise Heavens and David Goodman