Spot gas market acquires from the beginning of 2022 and our country. It will be the first market organization of its kind in SE Europe, which is open, in addition to domestic players, to participants from neighboring countries.
The procedures for its start-up Natural Gas Exchange, or another, Gas Trading Pedestal, are in their final phase. The trading platform has already been created by the Hellenic Energy Exchange (ERA), which will be responsible for its operation and what remains or approval by the RAE of the necessary texts proposed to the ERA. Two Regulations, for the Pedestal and the Clearing of Transactions, as well as the relevant decisions that are necessary for the implementation of the new framework.
According to information from Euro2day.gr, their approval by the Regulator has within January. The ERA will then take about a month and a half to launch the new market. Thus, if RAE gives the “ok” in mid-January, the Gas Exchange will be operational at the end of February, otherwise it will be postponed to March.
For about a month now, the ERA has been informing domestic market players, traders, suppliers and generators, who have the opportunity to log in and make virtual transactions, in order to become familiar.
The Gas Exchange will be a physical market that will function in addition to the purchase of bilateral contracts. This means that:
- It will provide price signals. A “Report Price” will be set daily for gas, depending on supply and demand, which does not exist today. In other words, the wholesale price of imported gas is partly formed at the Node and is not entirely Greek by international prices.
- It will provide more flexibility to market players to manage their gas portfolio. Thus, it is estimated that they will be protected from price fluctuations. In fact, any player can become both a seller and a buyer. If, for example, a gas consumer does not use all the gas he will buy, he can put it on the Gas Exchange, which will thus become another management tool.
- Greece will become a kind of gas hub (although not all the conditions are met for it to be called that) in the area of NA. Europe, which does not have a similar organized market. Afterwards, participating players from neighboring countries, who have the appropriate connections, will be given the opportunity to participate. Mainly from Bulgaria it is of great interest.
- With the Gas Exchange will be the first step in creating a Derivatives Market, which is considered the most important hedging tool. At this stage, however, the establishment of such a Market is not planned, it is estimated that with the gradual maturation of the Gas Trading Basin will follow as a reasonable request of the energy market.
Sources who spoke to Euro2day.gr expressed skepticism on how much the operation of the Gas Exchange will directly contribute to a possible de-escalation of the wholesale electricity prices, which are currently triggered by the expensive natural gas. The reasons cited are complex:
- A prospect is directly related to the volume of gas that will be traded.
- It will be a spot market, for the extra quantities that will be traded, in addition to the “locked” contracts with the day.
In any case, it is estimated that the maturity of this market will depend on correspondence of the participants, so that it gradually evolves into a real gas hub.