gas regional initiative region north-west secondary markets betsy annen, cre
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Gas Regional Initiative Region North-West Secondary Markets Betsy Annen, CRE Bernhard Schaefer, E.ON Ruhrgas. Introduction & status quo. Purpose of secondary markets. Primary transport capacity is mainly booked long-term - but often underused - PowerPoint PPT PresentationTRANSCRIPT
6th Stakeholder Group meeting Stockholm – 26 November 2009
Gas Regional InitiativeRegion North-West
Secondary Markets
Betsy Annen, CREBernhard Schaefer, E.ON Ruhrgas
2 6th Stakeholder Group meetingStockholm – 26 November 2009
Introduction & status quo
3 6th Stakeholder Group meetingStockholm – 26 November 2009
Purpose of secondary markets
● Primary transport capacity is mainly booked long-term
- but often underused
Shippers should offer unused capacity back to the market to the largest extent possible
time
booking
nominations
time
booking
nominations
4 6th Stakeholder Group meetingStockholm – 26 November 2009
Relevance of secondary markets
● Flexible secondary trading is essential for optimizing the usage of primary capacity …
● … it thus helps improving shippers’ access to capacity
In particular secondary trading of cross-border capacities supports regional integration
5 6th Stakeholder Group meetingStockholm – 26 November 2009
The start: „day-ahead capacity pilot“
Bunde / Oude Statenzijl (NL/D)
Ellund (DK/D)
● Project initially suggested by EFET
● Aim: firm day-ahead capacity marketing (auctions) to improve capacity situation
● Pilot at cross-border points BOS and Ellund
● Voluntary, intensive work of TSOs and platforms (trac-x, APX)
● Participation of regulators (NL, D, DK) and EFET
Significant achievements already in the first phase of the project
6 6th Stakeholder Group meetingStockholm – 26 November 2009
Day-ahead pilot focused on ”capacity transfer“
TSO
Shipper 2
Shipper 1
Capacity
Capacity
Payment
PaymentNomination
Standardisedcontract
available
PlatformTSO
Shipper 2
Shipper 1
Capacity
Capacity
Payment
PaymentNomination
Standardisedcontract
available
Platform
7 6th Stakeholder Group meetingStockholm – 26 November 2009
Secondary trading platforms are little used
● (Day-ahead) trading implemented at a number of interconnection points
● Currently 3 platforms offer secondary capacity trading in the North-West region
The problem is:
● Very few transactions on these platforms (in spite of their sophisticated design)
● Hence the liquidity of the secondary market is still very low and has not improved the access to capacity
8 6th Stakeholder Group meetingStockholm – 26 November 2009
Now the GRI project has been extended
Regional project now covers secondary marketing in general
PlatformsPlatforms TSOsTSOs UsersUsers NRAsNRAs
BPGasTerraStatoil
DongEnergyBDEW
ExxonMobilE.ON Ruhrgas
9 6th Stakeholder Group meetingStockholm – 26 November 2009
Discussion
10 6th Stakeholder Group meetingStockholm – 26 November 2009
What do YOU think?
● Does the product range need improvement?
● Is the choice of IPs wrong?
● Are processes too complicated?
● Does day-ahead trading mean too much effort?
● Is coordination with spot markets not optimal?
● …
11 6th Stakeholder Group meetingStockholm – 26 November 2009
Way forward
12 6th Stakeholder Group meetingStockholm – 26 November 2009
Way forward
● We aim at improving situation for network users● Need to first understand the barriers to trade!
Detailed questionnaire to come● address active and “inactive” shippers● supplemented by analysis of trading data● confidentiality
● Results will serve as a basis to● further improve products and/or processes?● include additional booking points?● standardize platforms?● …
Your input is essential to ensure that problems are solved and changes are market driven!