Wednesday, May 11, 2016

Shale gas: Ségolène Royal wants to block the import – The Point

While EDF and Engie want to buy US gas, part of which will result from shale deposits, Segolene Royal, Minister of Energy and Environment, said Tuesday wanting to “examine legally” how ban import of shale gas in France. “I will examine how legally we can ban the import of shale gas and, in any event, these companies (EDF and Engie, Ed) will have to move to other markets to import only gas of conventional origin, “said the minister during question time in the national Assembly.

EDF, where the government holds about 85% stake, and Engie (ex-GDF Suez ), which France also has a height of about 33%, have signed in recent years, commercial agreements to import liquefied natural gas (LNG) American. EDF has signed an agreement with a subsidiary of the American Chenière in 2014 for the supply of 770,000 tonnes of LNG a year, for at least twenty years. Upon signing the contract, the first deliveries were scheduled for 2019. Meanwhile, Engie signed in October 2015 a contract with Chenière also for the supply of up to 12 cargoes of LNG per year from 2018.

“There are, it is true, in these contracts, I looked closely (…), 40% of shale gas origin,” said Segolene Royal . “Since France banned hydraulic fracturing for environmental protection reasons, I interviewed these two companies on the reasons why they had not been vigilant” in the award of these contracts, the Minister added . With the boom in shale gas, the US in particular have embarked on an export strategy. The first LNG cargoes are already parties to South America and Europe.

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