French Energy System Disrupted by Strikes Over Pension Plan

French energy infrastructure from natural gas import terminals to oil refineries and power plants were disrupted on Tuesday by protests against government plans to increase the retirement age.

(Bloomberg) — French energy infrastructure from natural gas import terminals to oil refineries and power plants were disrupted on Tuesday by protests against government plans to increase the retirement age.

The labor protests are putting additional pressure on French energy supplies, which have been hit by prolonged outages at some nuclear reactors and reduced gas flows from Russia. A cold snap in the UK — which trades electricity with France — is temporarily adding strain to the region’s power grid.

Read more: French Unions Bet on Protest Surge Against Macron Pension Plan

Walkouts curbed Electricite de France SA’s hydropower capacity by 7.6 gigawatts Tuesday afternoon, according to a filing of the country’s power grid operator. They also reduced several gigawatts of output from nuclear and gas-fired power plants.

French intraday power prices are trading at about a 50% premium to the German market on the Epex Spot SE energy exchange. Still, the market has fallen from extreme summer highs.

Shipments from TotalEnergies SE’s refineries were halted Tuesday morning because of the strikes, a representative for the French oil major said. Stockpiles at the group’s depots and service stations are high, the person said.

Deliveries from Exxon Mobil Corp.’s refinery in southern France were stopped from last night for 48 hours, while shipments from its refinery in Normandy were halted from this morning for 24 hours, a spokeswoman for the US oil company said.

The Ineos refinery in southern France is also blocked, according to the CGT union. Weeks-long strikes over pay created fuel shortages across the country last October.

Meanwhile, France’s four liquefied natural gas import terminals are blocked, the CGT union said. Operations at three terminals operated by Elengy, which is controlled by French utility Engie SA, were halted yesterday afternoon, and may not resume before unionists vote on the future course of the strike March 14, a spokeswoman for the company said Tuesday.

The strike is curtailing operations at Dunkerque LNG for 48 hours, according to the company’s website. A spokesperson for the LNG terminal couldn’t immediately be reached for comment.

–With assistance from Todd Gillespie, Elena Mazneva and Rachel Graham.

(Updates with strike impact on power production in third paragraph, Ineos refinery in seventh, Elengy terminals in eighth.)

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