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PEGAS: EEX to launch quality-specific natural gas products for Germany

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logo_headIn the framework of the PEGAS co-operation with its partner Powernext, the European Energy Exchange (EEX) is pleased to announce the introduction of quality-specific products for the German gas market areas on 1 October 2013, to coincide with the start of the new gas year. This step will further simplify trading in control energy on the exchange gas market. The products will be listed on the PEGAS trading platform.

Contracts for the German GASPOOL and NetConnect Germany (NCG) market areas, as well as for the Dutch TTF market area, can already be traded 24/7 on the EEX Spot Market. Currently, only high-calorific gas (H-gas) is traded through the exchange at the virtual trading points (VTP) of the German market areas. In addition, H-gas traded under the existing products can be converted into gas with a lower calorific value (Lgas) by the market area operators, which attracts a conversion fee.

Subject to approval by the Exchange Council, EEX intends to launch quality-specific Spot Market products for the German market areas, making exchange trading and delivery of both H-gas and L-gas around the clock possible for the first time. In this context, the traders of quality-specific products have to ensure that natural gas of the quality traded is fed into or withdrawn from the system, using the corresponding balancing groups.

“With the introduction of quality-specific products we ensure that H- and L-gas volumes can be traded directly on the exchange, which helps to further increase liquidity and transparency. In addition to the market area operators, all trading participants benefit from these products since they support the target model for the control energy market in Germany,” said EEX Chief Executive Officer Peter Reitz.

As the quality of the gas to be delivered or to be received is specified before a deal is executed it makes it
easier to plan the physical effects on the grids. As a result, control energy can be traded by a bigger group of trading participants.

“With the implementation of the target model for the control energy market from the new gas year onwards, the market area operators GASPOOL and NCG will increasingly make use of the products offered by the exchange for trading control energy,” said GASPOOL Managing Director Stefan Müller-Reinisch and NetConnect Germany Managing Director Torsten Frank.

The launch of quality-specific gas products for the German market areas follows the launch of Within-day products at EEX, the extension of the Spot Market to 24/7 trading and the introduction of Spot products on the Dutch TTF hub, and contributes to moving further control energy trading volumes to the organized exchange market.

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At present, all Powernext Natural Gas products and all EEX Natural Gas Derivatives Market products can be traded on PEGAS. The EEX Spot Market Products will be activated for trading on PEGAS on 28 August 2013.

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