Gas Market in Southern France Faces Major Tension

Southern France needs a central intervention as prices in the region rose to a record over a dearth of liquefied natural gas (LNG) deliveries, regulator Commission de Regulation de l’Energie (CRE) wrote in a statement.

‘The gas market in southern France is facing major tension at the start of winter,’ CRE wrote on the note released on Thursday, explaining that France needs LNG imports as soon as possible.

Last month, France announced its plans to grant special treatment to energy-intensive factories located in the South, in an attempt to offset higher gas prices that local users pay compared to industries in the north.

Prices in the south have been higher than in the north due to diversion of imports from Europe to Asia and to “structurally” tighter supply. Cold weather and low stocks at the southern French hub of Marseille added further pressure.