Natural gas from Algeria and Nigeria is experiencing decrease in supply as natural gas prices in southern France rose to almost 20 percent above those in the north of the country.
According to the regulator liquefied natural gas costs have also increased adding that prices have repeatedly climbed above 32 euros ($42.79) a megawatt-hour while those on PEG Nord were relatively stable at 27 euros.
The regulator also stated the findings are part of a probe started by the regulator in July that concluded gas transport links between the northern and southern French markets are saturated; making the latter more exposed to LNG price increases in Asia,.
Supply restrictions from Algeria, which is limiting exports, and canceled LNG deliveries from Nigeria have also contributed to the rising prices in southern France, it said.
The regulator further said that in the broader context of its investigation, examination is been carried out on the behavior of individual participants in the market and the use of infrastructure
According to assessments by World Gas Intelligence, LNG for delivery to northeast Asia rose to a record $19.40 a million British thermal units on Feb. 4.
Royal Dutch Shell Plc, the biggest provider of natural gas to Nigeria LNG, declared a force majeure on supplies as of Feb. 5 after a leak on a pipeline serving two processing plants, it said Feb. 8.
According to the EIA Nigeria and Algeria are in discussions over the possibility of constructing a Trans-Saharan Gas Pipeline (TSGP). The 2,500-mile pipeline would carry natural gas from oil fields in Nigeria's Delta region via Niger to Algeria's Beni Saf export terminal on the Mediterranean. It is estimated that construction of the $7 billion project would take six years.