Developments at EEX and new initiatives - European Energy ...
Developments at EEX and new initiatives - European Energy ...
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<strong>Developments</strong> <strong>at</strong> <strong>EEX</strong> <strong>and</strong> <strong>new</strong> initi<strong>at</strong>ives<br />
Inform<strong>at</strong>ion event for gas trading companies, 29 th of March 2011<br />
Sirko Beid<strong>at</strong>sch, <strong>EEX</strong> AG<br />
© <strong>European</strong> <strong>Energy</strong> Exchange AG
Agenda<br />
Review: <strong>Developments</strong> of the gas market <strong>at</strong> <strong>EEX</strong><br />
Control energy trading <strong>and</strong> gas exchange<br />
Introduction of 24/7 trading <strong>at</strong> <strong>EEX</strong><br />
Exchange market area TTF: Gas trading via <strong>EEX</strong><br />
EGIX – Reference price for the <strong>European</strong> gas economy<br />
2
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
as of March 2011<br />
37<br />
Number of gas member <strong>at</strong> <strong>EEX</strong><br />
Increase of trading participants <strong>at</strong> the <strong>EEX</strong> gas market<br />
New members<br />
Existing members<br />
18<br />
37<br />
2007 2008 2009 2010 2011<br />
21<br />
55<br />
21<br />
76<br />
∑ 98<br />
1<br />
97<br />
APX UK (79)<br />
ICE UK (72)<br />
Endex NL (46)<br />
Powernext (39)<br />
APX NL (28)<br />
CEGH (20)<br />
Nordpool Gas (17)<br />
APX Zee (14)<br />
3
<strong>EEX</strong> member for n<strong>at</strong>ural gas trading<br />
NetConnect Germany NCG + GASPOOL GASPOOL<br />
advanced energy trading GmbH<br />
Barclays Bank PLC<br />
BG Intern<strong>at</strong>ional Limited<br />
CEZ a.s.<br />
DREWAG Stadtwerke Dresden GmbH<br />
Edison S.P.A.<br />
Energie AG Oberösterreich Trading GmbH<br />
ENOVOS Luxembourg S.A.<br />
Gas N<strong>at</strong>ural SDG S.A.<br />
KORLEA INVEST, a.s.<br />
Lumius spol s.r.o.<br />
NetConnect Germany GmbH & Co. KG<br />
Nomura <strong>Energy</strong> Marketing Limited<br />
Salzburg AG für Energie, Verkehr &<br />
Telekommunik<strong>at</strong>ion<br />
Sinergie Italiane SRL<br />
Stadtwerke Flensburg GmbH<br />
Stadtwerke Karlsruhe GmbH<br />
Stadtwerke München GmbH<br />
∑ 18<br />
as of March 2011<br />
24/7 Trading GmbH<br />
Alpiq Suisse S.A.<br />
Bayerngas <strong>Energy</strong> Trading GmbH<br />
BKW FMB Energie AG<br />
Braunschweiger Versorgungs-AG<br />
Centrica Energie GmbH<br />
Danske Commodities A/S<br />
DB Energie GmbH<br />
Deutsche Bank AG<br />
DONG <strong>Energy</strong> Germany AG<br />
DONG N<strong>at</strong>urgas A/S<br />
e&t Energie H<strong>and</strong>elsgesellschaft m.b.H.<br />
E.ON <strong>Energy</strong> Trading AG<br />
EconGas GmbH<br />
EDF Trading Limited<br />
EHA Energie-H<strong>and</strong>elsgesellschaft<br />
Electrabel S.A.<br />
EnBW Trading GmbH<br />
Energi Danmark A/S<br />
EnergieFinanz GmbH<br />
Energieh<strong>and</strong>elsgesellschaft West mbH<br />
Energieunion AG<br />
<strong>Energy</strong> & More Energiebroker<br />
ENOI S.p.A.<br />
ENLOGS <strong>Energy</strong> Logistics & Services<br />
GmbH<br />
Enovos Deutschl<strong>and</strong> AG<br />
ENSO Energie Sachsen Ost AG<br />
envia Mitteldeutsche Energie AG<br />
EWE AG<br />
Gasag Berliner Gaswerke AG<br />
Gaselys S.A.<br />
Gazprom Marketing & Trading Limited<br />
Getec Energie AG<br />
GFI Securities Limited<br />
Gunvor Intern<strong>at</strong>ional B.V.<br />
ICAP <strong>Energy</strong> A/S<br />
J.P. Morgan Securities Ltd.<br />
KES Kommunale Energie- dienstleistungsgesellschaft<br />
KOM Solution GmbH<br />
LichtBlick AG<br />
Louis Dreyfus <strong>Energy</strong> Services<br />
Macquarie Bank Limited<br />
Mercuria <strong>Energy</strong> Trading S.A.<br />
Morgan Stanley & Co. Intern<strong>at</strong>ional Limited<br />
n<strong>at</strong>GAS Aktiengesellschaft<br />
Noble Clean Fuels Ltd.<br />
Optimiz<strong>at</strong>ion Engineers GmbH<br />
Österreichische Elektrizitätswirtschafts-AG<br />
PCC Energie GmbH<br />
Pfalzwerke AG<br />
PGNiG ENERGIA SA<br />
RheinEnergie Trading GmbH<br />
RWE Supply & Trading GmbH<br />
RWEST Switzerl<strong>and</strong> S.A.<br />
Shell <strong>Energy</strong> Europe Limited<br />
Spectron <strong>Energy</strong> Services<br />
Stadtwerke Hannover AG<br />
Stadtwerke Leipzig GmbH<br />
Stadtwerke Viernheim GmbH<br />
St<strong>at</strong>kraft Energi AS<br />
St<strong>at</strong>kraft Markets GmbH<br />
Südwestdeutsche Stromh<strong>and</strong>els GmbH<br />
SYNECO Trading GmbH<br />
Technische Werke Ludwigshafen am Rhein AG<br />
The Royal Bank of Scotl<strong>and</strong> plc.<br />
Total Gas & Power Limited<br />
Trianel <strong>European</strong> <strong>Energy</strong> Trading<br />
Tullet Prebon (Securities) Limited<br />
UBS AG<br />
V<strong>at</strong>tenfall <strong>Energy</strong> Trading Netherl<strong>and</strong>s N.V.<br />
V<strong>at</strong>tenfall Trading Services<br />
VEMEX s.r.o.<br />
Vitol S.A.<br />
VNG Verbundnetz Gas AG<br />
WINGAS GmbH<br />
∑ 75<br />
Becomac GmbH<br />
GASPOOL Balancing Services<br />
GmbH<br />
Innov<strong>at</strong>ive <strong>Energy</strong> GmbH<br />
Stadtwerke Uelzen GmbH<br />
SWB Vertrieb Bremen GmbH<br />
∑ 5<br />
4
9.000<br />
8.000<br />
7.000<br />
6.000<br />
5.000<br />
4.000<br />
3.000<br />
2.000<br />
1.000<br />
as of 27th March 2011<br />
Trading volume in GWh<br />
0<br />
Aug<br />
09<br />
Sep<br />
09<br />
Deriv<strong>at</strong>ives market gas – potential to grow !<br />
<strong>Developments</strong> in the deriv<strong>at</strong>ives market gas<br />
Oct<br />
09<br />
NetConnect Germany<br />
GASPOOL<br />
Nov<br />
09<br />
Dec<br />
09<br />
Jan<br />
10<br />
Feb<br />
10<br />
Mar<br />
10<br />
Apr<br />
10<br />
� Trading volume are small with strong fluctu<strong>at</strong>ion all the year<br />
May<br />
10<br />
Jun<br />
10<br />
Jul<br />
10<br />
Aug<br />
10<br />
� Market area GASPOOL was traded sporadic<br />
Sep<br />
10<br />
Oct<br />
10<br />
Nov<br />
10<br />
Dec<br />
10<br />
Jan<br />
11<br />
Feb<br />
11<br />
Mar<br />
11<br />
37<br />
34<br />
31<br />
28<br />
25<br />
22<br />
19<br />
16<br />
13<br />
10<br />
Number of active members<br />
5
Trading volume in GWh<br />
3.000<br />
2.500<br />
2.000<br />
1.500<br />
1.000<br />
500<br />
as of 27th March 2011<br />
0<br />
Aug<br />
09<br />
Sep<br />
09<br />
Spot market gas – physics hits market !<br />
<strong>Developments</strong> in the spot market gas<br />
NetConnect Germany<br />
GASPOOL<br />
Oct<br />
09<br />
Nov<br />
09<br />
Dec<br />
09<br />
Jan<br />
10<br />
Feb<br />
10<br />
Mar<br />
10<br />
Apr<br />
10<br />
May<br />
10<br />
Jun<br />
10<br />
Jul<br />
10<br />
Aug<br />
10<br />
Sep<br />
10<br />
� Fast-growing number of active <strong>EEX</strong> members<br />
� Traded volumes <strong>at</strong> GASPOOL c<strong>at</strong>ch up quickly<br />
Oct<br />
10<br />
Nov<br />
10<br />
Dec<br />
10<br />
Jan<br />
11<br />
Feb<br />
11<br />
Mar<br />
11<br />
54<br />
48<br />
42<br />
36<br />
30<br />
24<br />
18<br />
12<br />
Number of actice members<br />
6
Trading activities <strong>at</strong> GASPOOL <strong>and</strong> NCG<br />
GASPOOL<br />
NCG<br />
7
Agenda<br />
Review: <strong>Developments</strong> of the gas market <strong>at</strong> <strong>EEX</strong><br />
Control energy trading <strong>and</strong> gas exchange<br />
Introduction of 24/7 trading <strong>at</strong> <strong>EEX</strong><br />
Exchange market area TTF: Gas trading via <strong>EEX</strong><br />
EGIX – Reference price for the <strong>European</strong> gas economy<br />
8
Volume in GWh<br />
12.000<br />
10.000<br />
8.000<br />
6.000<br />
4.000<br />
2.000<br />
0<br />
Oct<br />
08<br />
Nov<br />
08<br />
Dec<br />
08<br />
as of 17th March 2011<br />
1.030<br />
5.984<br />
1.383<br />
6.233<br />
2.220<br />
5.923<br />
1.806<br />
6.258<br />
Jan<br />
09<br />
1.218<br />
4.581<br />
Feb<br />
09<br />
Traded control energy volume since Oct 08<br />
1.074<br />
4.713<br />
Usage of control energy by NCG und GASPOOL<br />
External control energy<br />
Internal control energy<br />
Mar<br />
09<br />
1.035<br />
3.731<br />
Apr<br />
09<br />
416<br />
3.982<br />
May<br />
09<br />
1.660<br />
4.352<br />
Jun<br />
09<br />
1.765<br />
4.303<br />
Jul<br />
09<br />
1.089<br />
3.803<br />
Aug<br />
09<br />
1.281<br />
4.571<br />
Sep<br />
09<br />
2.505<br />
6.172<br />
Oct<br />
09<br />
3.106<br />
6.215<br />
Nov<br />
09<br />
3.241<br />
5.957<br />
Dec<br />
09<br />
4.241<br />
5.923<br />
Jan<br />
10<br />
4.848<br />
5.163<br />
Feb<br />
10<br />
2.954<br />
4.822<br />
Mar<br />
10<br />
1.851<br />
4.479<br />
Apr<br />
10<br />
1.411<br />
4.958<br />
May<br />
10<br />
2.858<br />
4.707<br />
Jun<br />
10<br />
939<br />
3.738<br />
Jul<br />
10<br />
1.598<br />
4.398<br />
Aug<br />
10<br />
1.932<br />
5.574<br />
Sep<br />
10<br />
1.489<br />
6.303<br />
Oct<br />
10<br />
2.866<br />
3.199<br />
Nov<br />
10<br />
2.343<br />
8.479<br />
Dec<br />
10<br />
1.939<br />
6.637<br />
Jan<br />
11<br />
2.955<br />
5.555<br />
Feb<br />
11<br />
1.252<br />
2.409<br />
Mar<br />
11<br />
9
Day-Ahead prices in €/MWh<br />
Buy cont. energy<br />
Day-Ahead trading through GASPOOL<br />
Control <strong>and</strong> balancing energy prices for Day-Ahead trading GASPOOL<br />
since April 2010<br />
Balancing price floor Settlement prices <strong>EEX</strong> GASPOOL DA<br />
OTC Day-Ahead prices GASPOOL <strong>EEX</strong> Day-Ahead prices GASPOOL<br />
Sell cont. energy<br />
10
Within-Day prices in €/MWh<br />
36<br />
33<br />
30<br />
27<br />
24<br />
21<br />
18<br />
15<br />
12<br />
9<br />
6<br />
3<br />
0<br />
Buy cont. energy<br />
Intraday trading through NCG<br />
Control <strong>and</strong> balancing energy prices for intraday trading NCG summer 10<br />
Balancing price floor Settlement prices <strong>EEX</strong> NCG DA<br />
OTC Intraday prices NCG <strong>EEX</strong> Intraday prices NCG<br />
Sell cont. energy<br />
11
Volume <strong>at</strong> <strong>EEX</strong> in GWh<br />
800<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
6<br />
Importance of MAO GASPOOL for <strong>EEX</strong><br />
Trade volume by GASPOOL in the market area GASPOOL since July 2010<br />
H<strong>and</strong>elsvolumen im Spotmarkt GASPOOL seit Juli 2010<br />
1.030.229 MWh<br />
39%<br />
99<br />
1.630.788 MWh<br />
61%<br />
H<strong>and</strong>elsvolumina von GASPOOL H<strong>and</strong>elsvolumina <strong>and</strong>erer Marktteilnehmer<br />
Trading volume by other members<br />
Trading volume by GASPOOL<br />
120<br />
134<br />
Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11<br />
366<br />
85<br />
292<br />
529<br />
12
Volume <strong>at</strong> <strong>EEX</strong> in GWh<br />
1.600<br />
1.400<br />
1.200<br />
1.000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
609<br />
Importance of MAO NCG for <strong>EEX</strong><br />
Trade volume by NCG in the market area NCG since July 2010<br />
Trading volume by other members<br />
Trading volume by NCG<br />
763<br />
509<br />
326<br />
Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11<br />
755<br />
223<br />
H<strong>and</strong>elsvolumen im Spotmarkt NCG seit Juli 2010<br />
4.674.883<br />
333<br />
54%<br />
482<br />
4.000.537<br />
46%<br />
H<strong>and</strong>elsvolumina von NCG H<strong>and</strong>elsvolumina <strong>and</strong>erer Marktteilnehmer<br />
13
Trading volume in TWh<br />
13,5<br />
12,0<br />
10,5<br />
9,0<br />
7,5<br />
6,0<br />
4,5<br />
3,0<br />
1,5<br />
Excursus: View to the APX-OCM <strong>at</strong> NBP<br />
GWJ 99 GWJ 00 GWJ 01 GWJ 02 GWJ 03 GWJ 04<br />
GASPOOL + NCG GY 08 GY 09 GY 10 GY 11<br />
Start OCM in Okt. 1999 � Minimum lot size : 4.000 therm/d ca. 5 MWh/h<br />
# members for<br />
control energy<br />
trading <strong>at</strong> <strong>EEX</strong><br />
Buy Sell<br />
35 44<br />
Sources: http://www.ofgem.gov.uk/Markets/WhlMkts/Cust<strong>and</strong>Industry/DemSideWG/Documents1/11526-EnEx%20%20OCM%20Overview.pdf<br />
Ø Control energy<br />
volume <strong>at</strong> VTP NBP<br />
by APX-OCM<br />
External control<br />
energy traded by<br />
GASPOOL <strong>and</strong> NCG<br />
since October 2008<br />
14
Agenda<br />
Review: <strong>Developments</strong> of the gas market <strong>at</strong> <strong>EEX</strong><br />
Control energy trading <strong>and</strong> gas exchange<br />
Introduction of 24/7 trading <strong>at</strong> <strong>EEX</strong><br />
Exchange market area TTF: Gas trading via <strong>EEX</strong><br />
EGIX – Reference price for the <strong>European</strong> gas economy<br />
15
Trading hours for gas since January 2011<br />
7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00<br />
EPD<br />
Coal<br />
EPEX 24/7<br />
Gas Spot<br />
Gas Futures<br />
Emissions Spot<br />
Emissions Future<br />
16
Share of trades across the trading dayg<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
Trading activities across the day <strong>at</strong> <strong>EEX</strong> <strong>and</strong> in the OTC-market<br />
OTC <strong>EEX</strong><br />
8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18<br />
* Analysis of OTC <strong>and</strong> exchange spot trades for March<br />
Influence of extended trading hours in the<br />
spot market gas*<br />
since 2011 Trading time until end of 2010<br />
Trading hour<br />
17
Trading volume in GWh<br />
35.000<br />
30.000<br />
25.000<br />
20.000<br />
15.000<br />
10.000<br />
5.000<br />
-<br />
Liquidity for 24/7-trading gas 1/2<br />
External control energy volume zoned by trading periods in GY 09/10<br />
23%<br />
(7,21 TWh)<br />
<strong>EEX</strong><br />
Monday-Friday<br />
9.30-17.30<br />
49%<br />
(15,42 TWh)<br />
OTC or<br />
Monday-Friday<br />
17.30-9.30<br />
28%<br />
49%<br />
28%<br />
(8,85 TWh) 23%<br />
OTC <strong>at</strong> Weekend Appr. sum for<br />
24/7-trading <strong>at</strong> <strong>EEX</strong><br />
18
Trading volume in GWh<br />
14.000<br />
12.000<br />
10.000<br />
8.000<br />
6.000<br />
4.000<br />
2.000<br />
-<br />
Liquidity for 24/7-trading gas 2/2<br />
External control energy volume zoned by periods since October 2010<br />
31%<br />
(3,89 TWh)<br />
<strong>EEX</strong><br />
Monday-Friday<br />
9.30-17.30<br />
31%<br />
(3,96 TWh)<br />
OTC or<br />
Monday-Friday<br />
17.30-9.30<br />
Since Jan. 2011: 8.00-18.00 18.00-8.00<br />
38%<br />
31%<br />
38%<br />
(4,77 TWh) 31%<br />
OTC <strong>at</strong> Weekend Appr. sum for<br />
24/7-trading <strong>at</strong> <strong>EEX</strong><br />
19
Gas prices in €/MWh<br />
21,5<br />
21,0<br />
20,5<br />
20,0<br />
19,5<br />
Switch to Daily reference prices 1/2<br />
03.00 -17.00<br />
17.00 - 17.15<br />
17.15 - 03.00<br />
� Existing <strong>EEX</strong>-settlement prices gener<strong>at</strong>es only small reference in the market<br />
� Settlement prices for the next delivery day were calcul<strong>at</strong>ed to a time point in a<br />
settlement window between 17.00-17.15 <strong>at</strong> the end of trading day<br />
� Trading members criticise, th<strong>at</strong> settlement prices do not reflect the price<br />
development or trading behaviour across the whole trading day<br />
� Some trades <strong>at</strong> the end of the trading day could distort the settlement price<br />
Trade volume in MWh<br />
20
Gas prices in €/MWh<br />
21,5<br />
21,0<br />
20,5<br />
20,0<br />
19,5<br />
Switch to Daily reference prices 2/2<br />
03.00 - 03.00<br />
� New <strong>EEX</strong>-Daily reference price gener<strong>at</strong>es higher reference in the market<br />
� All trades regardless of trading time will be considered for the source based<br />
volume weighted determin<strong>at</strong>ion<br />
� Some trades <strong>at</strong> the of the trading could not distort the reference price<br />
� Price development <strong>and</strong> behaviour across the whole trading will be considered<br />
� Settlement of trades with customers with lower price risks then before<br />
� Support the gas business for continuous trading<br />
� Public<strong>at</strong>ion <strong>at</strong> approx. 10.00 am on the delivery day<br />
Daily<br />
reference price<br />
trades<br />
P<br />
trades<br />
V<br />
Trade volume in MWh<br />
V<br />
21
Agenda<br />
Review: <strong>Developments</strong> of the gas market <strong>at</strong> <strong>EEX</strong><br />
Control energy trading <strong>and</strong> gas exchange<br />
Introduction of 24/7 trading <strong>at</strong> <strong>EEX</strong><br />
Exchange market area TTF: Gas trading via <strong>EEX</strong><br />
EGIX – Reference price for the <strong>European</strong> gas economy<br />
22
Integr<strong>at</strong>ion of <strong>EEX</strong> in quality overlapping<br />
exchange market areas in Germany<br />
Exchange trading in spite of conversion fee<br />
Balancing account 1 Balancing account 2<br />
H-Gas<br />
Entry<br />
Sub balancing account<br />
H-Gas<br />
Sub balancing account<br />
L-Gas<br />
Virtual<br />
trading points<br />
VTP<br />
H-Gas<br />
<strong>EEX</strong><br />
VTP<br />
L-Gas<br />
Sub balancing account<br />
H-Gas<br />
Sub balancing account<br />
L-Gas<br />
* Source: Present<strong>at</strong>ion of Gasunie Deutschl<strong>and</strong> for integr<strong>at</strong>ion of H- und L-Gas market areas; modified by <strong>EEX</strong><br />
http://www.bundesnetzagentur.de/cae/servlet/contentblob/160482/public<strong>at</strong>ionFile/8692/Praesent<strong>at</strong>ion_GUD.pdf<br />
� Exchange trading in the sub balancing account for H-Gas<br />
<strong>EEX</strong>-trading<br />
possible for H-Gas<br />
� In principle exchange trading also possible for L-Gas market participants<br />
� L-Gas-trader has to pay a conversion fee (2 €/MWh) upon the exchange price<br />
� Without conversion fee or with introduction of a conversion socialis<strong>at</strong>ion, also L-<br />
Gas exchange trading will be possible � one market price for one market area<br />
H-Gas<br />
Exit<br />
L-Gas<br />
Entry<br />
without conversion fee<br />
L-Gas<br />
Exit<br />
with conversion fee (2 €/MWh)<br />
not possible<br />
23
TTF<br />
TTF-Shipper, also registered <strong>at</strong> <strong>EEX</strong><br />
<strong>EEX</strong> + TTF registered<br />
(not member <strong>at</strong> APX Gas NL)<br />
24/7 Trading GmbH Macquarie Bank Limited<br />
Accord energy Limited Mercuria <strong>Energy</strong> Trading S.A.<br />
Alpiq Ltd.<br />
Morgan Stanley & Co. Intern<strong>at</strong>ional<br />
Limited<br />
Barclays Bank PLC n<strong>at</strong>GAS Aktiengesellschaft<br />
BG Intern<strong>at</strong>ional Limited Noble Clean Fuels Ltd.<br />
BNP Paribas Poweo SA<br />
Braunschweiger Versorgungs-AG<br />
RWE Supply & Trading GmbH<br />
& CO. KG<br />
Citygroup Global Markets Limited Stadtwerke Hannover AG<br />
Crédit Agricole Corpor<strong>at</strong>e <strong>and</strong><br />
Stadtwerke Leipzig GmbH<br />
Investment Bank, London Branch<br />
Credit Suisse Intern<strong>at</strong>ional St<strong>at</strong>kraft Markets GmbH<br />
EconGas GmbH The Royal Bank of Scotl<strong>and</strong> plc.<br />
EGL AG Total Gas & Power Limited<br />
Enel Trade S.p.A. Trianel GmbH<br />
EnBW Trading GmbH V<strong>at</strong>tenfall Trading Services GmbH<br />
ENOI S.p.A. VNG Verbundnetz Gas AG<br />
Hess <strong>Energy</strong> Power & Gas<br />
Company (UK) Ltd.<br />
J.P. Morgan Securities Ltd.<br />
WINGAS GmbH<br />
as of November 2010<br />
Σ 33<br />
<strong>EEX</strong> + APX Gas NL<br />
(member <strong>at</strong> <strong>EEX</strong> <strong>and</strong> APX Gas NL)<br />
Alpiq Suisse S.A.<br />
BP Gas Marketing Ltd<br />
ConocoPhillips UK Ltd<br />
Danske Commodities A/S<br />
Delta <strong>Energy</strong> BV<br />
DONG N<strong>at</strong>urgas A/S<br />
E.ON <strong>Energy</strong> Trading AG<br />
EDF Trading Limited<br />
Electrabel S.A.<br />
Eneco <strong>Energy</strong> Trade BV<br />
Gaselys S.A.<br />
Gazprom Marketing & Trading Limited<br />
Gunvor Intern<strong>at</strong>ional B.V., Geneva Branch<br />
KI <strong>Energy</strong> Trading GmbH<br />
Merrill Lynch Commodities<br />
(Europe) Ltd<br />
RheinEnergie Trading GmbH<br />
RWEST Switzerl<strong>and</strong> S.A.<br />
RWE Supply & Trading<br />
Netherl<strong>and</strong>s BV<br />
V<strong>at</strong>tenfall <strong>Energy</strong> Trading Netherl<strong>and</strong>s N.V.<br />
Vitol S.A.<br />
Σ 20<br />
APX Gas NL+ TTF registered<br />
(not member <strong>at</strong> <strong>EEX</strong> )<br />
Eni UK Ltd<br />
Exxon Mobil Gas Marketing Europe Ltd<br />
Gas Transport Services BV<br />
GasTerra BV<br />
Lampiris S.A<br />
St<strong>at</strong>oil ASA<br />
Σ 6<br />
TTF registered<br />
(not member <strong>at</strong> <strong>EEX</strong> or APX Gas NL)<br />
A.P. Moller - Maersk A/S<br />
Cargill Intern<strong>at</strong>ional SA<br />
CE Gas Marketing & Trading GmbH<br />
Constell<strong>at</strong>ion energy Commodities Group, Inc.<br />
Distrigas N.V.<br />
E.ON Benelux<br />
E.ON Ruhrgas AG<br />
ENI SpA<br />
Gaz de France<br />
Glencore <strong>Energy</strong> UK Ltd.<br />
Goldgas GmbH<br />
HNG Midt-Nord H<strong>and</strong>el A/S<br />
J Aron & Co<br />
RWE <strong>Energy</strong> Nederl<strong>and</strong> N.V.<br />
Scottish & Southern <strong>Energy</strong> Supply Limited<br />
St<strong>at</strong>oil Gas Trading Ltd.<br />
Σ 16<br />
24
Trading TTF via <strong>EEX</strong>-GV Screen<br />
25
Exchange market areas with TTF<br />
Connections between <strong>EEX</strong> market areas<br />
TTF<br />
Elten<br />
Tegelen<br />
Haanrade<br />
Vreden<br />
Oude<br />
St<strong>at</strong>enzijl<br />
NCG<br />
*<br />
TTF Transport versus conversion fee<br />
Load hour per year<br />
* Source: Dr. Andreas Schmitt, RheinEnergie Trading GmbH, Köln<br />
GASPOOL<br />
Conversion fee in €/MWh<br />
26
Oper<strong>at</strong>ive processes for TTF trading <strong>EEX</strong><br />
1<br />
Gas<br />
<strong>EEX</strong> / TTF<br />
Gas<br />
1. Trading for <strong>EEX</strong>-member <strong>at</strong> VTP TTF<br />
L-Gas<br />
(Aequamus)<br />
<strong>EEX</strong> / GASPOOL<br />
H-Gas<br />
L-Gas<br />
<strong>EEX</strong> / NCG<br />
H-Gas<br />
� Anonymous trade to market prices with many companies without discrimin<strong>at</strong>ion<br />
2. Exchange member transports gas via GTS to dedic<strong>at</strong>ed cross border point between NL-D<br />
3. Nomin<strong>at</strong>ion of exit capacities <strong>at</strong> GTS with naming of wanted gas quality (L-Gas or H-Gas)<br />
4. Nomin<strong>at</strong>ion of entry capacities in the German market areas<br />
2<br />
3 4<br />
2 €/MWh<br />
27
Within-Day prices in €/MWh<br />
36<br />
33<br />
30<br />
27<br />
24<br />
21<br />
18<br />
15<br />
12<br />
9<br />
6<br />
3<br />
0<br />
Control <strong>and</strong> balancing energy prices for intraday trading NCG L-Gas since April 2010<br />
Buy cont. energy<br />
Option: Intraday trading L-Gas for NCG<br />
Balancing floor Settlement prices TTF DA<br />
OTC Intraday prices NCG L-Gas <strong>EEX</strong> Intraday prices <strong>at</strong> VTP TTF<br />
Sell cont. energy<br />
Δ 15 €/MWh<br />
28
Example: Control energy trading L-Gas<br />
Prospects in the existing L-Gas control energy market - Gas traders view<br />
Sell control energy by<br />
NCG on 20 th Nov. 2010<br />
Volume<br />
Price in<br />
€/MWh<br />
Sell by NCG 51.300 MWh 4,5 €/MWh<br />
Buy through gas trader 51.300 MWh 4,5 €/MWh<br />
Sell <strong>at</strong> VTP TTF by gas<br />
trader<br />
Transport costs<br />
(NCG�TTF)<br />
51.300 MWh 19,46 €/MWh 2 €/MWh<br />
Profit for gas trader<br />
51.300x(19,46-4,5-2)<br />
= 664.848 €<br />
Prospects in the existing L-Gas control energy market - Market oper<strong>at</strong>ors view (NCG)<br />
Sell control energy by<br />
NCG on 20 th Nov. 2010<br />
Volume<br />
Price in<br />
€/MWh<br />
Sell by NCG 51.300 MWh 4,5 €/MWh<br />
Buy due to GABi Gas 51.300 MWh 17,56 €/MWh<br />
Transport costs<br />
(NCG�TTF)<br />
Increase of control<br />
energy account<br />
51.300x(17,56-4,5)<br />
= 669.978 €<br />
29
Releases for TTF trading <strong>at</strong> <strong>EEX</strong><br />
http://www.eex.com/de/document/84525/20101207%20<strong>EEX</strong>%20Gas%20Market.pdf http://www.net-connect-germany.de/cps/rde/xbcr/SID-87152EB9-8A320D01/ncg/xpm-e-110131_TTF_NCG_(2).PDF<br />
30
Trading volume in GWh<br />
6.000<br />
5.000<br />
4.000<br />
3.000<br />
2.000<br />
1.000<br />
-<br />
Control energy volume L-Gas by NCG<br />
External control energy volume L-Gas zoned by periods since Octob. 2010<br />
0%<br />
(0,00 TWh)<br />
<strong>EEX</strong><br />
Monday-Friday<br />
9.30-17.30<br />
71%<br />
(3,83 TWh)<br />
OTC or<br />
Monday-Friday<br />
17.30-9.30<br />
29%<br />
(1,57 TWh)<br />
29%<br />
71%<br />
OTC <strong>at</strong> Weekend Appr. sum for<br />
24/7-trading <strong>at</strong> <strong>EEX</strong><br />
31
Idea: Control energy trading L-Gas via <strong>EEX</strong><br />
Following objectives should be reached<br />
� Realis<strong>at</strong>ion of quality overlapping market areas as of 1 st of April 2011<br />
� Quick elimin<strong>at</strong>ion of conversion fee or reduction to a conversion socialis<strong>at</strong>ion<br />
� Goal: Trading gas <strong>at</strong> German VTP regardless of gas quality<br />
� Significant increase of number of “L-Gas” trading participants<br />
� Anonymous control energy trade of “L-Gas” <strong>at</strong> the exchange to H-Gas prices<br />
� Usage of L-Gas control energy <strong>at</strong> the favoured local CBP by MAO<br />
� Minimis<strong>at</strong>ion / relay of gas flows promises through market mechanism<br />
� Minimis<strong>at</strong>ion / relay of the expansion of technical conversion capacity<br />
Summary<br />
� Control energy costs for MAO might be further reduced<br />
� No needs for adjustment of GABi Gas regarding control energy trading L-Gas<br />
� Market-driven altern<strong>at</strong>ive for introduction of a conversion socialis<strong>at</strong>ion<br />
32
Agenda<br />
Review: <strong>Developments</strong> of the gas market <strong>at</strong> <strong>EEX</strong><br />
Control energy trading <strong>and</strong> gas exchange<br />
Introduction of 24/7 trading <strong>at</strong> <strong>EEX</strong><br />
Exchange market area TTF: Gas trading via <strong>EEX</strong><br />
EGIX – Reference price for the <strong>European</strong> gas economy<br />
33
Requirements for a reference price<br />
1. Acceptance of the gas market in fair pricing processes<br />
2. Number <strong>and</strong> heterogeneity of trading participants<br />
3. Market surveillance<br />
4. Independency of the market place<br />
5. Simple <strong>and</strong> transparent calcul<strong>at</strong>ion p<strong>at</strong>tern<br />
6. Comp<strong>at</strong>ibility to the gas market <strong>and</strong> adaptability in bil<strong>at</strong>eral contracts<br />
7. Benefits for several stakeholders / users<br />
34
Gas prices in €/MWh<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
EGIX – <strong>European</strong> <strong>Energy</strong> Gas Index<br />
EGIX vs. published German oilindexed gas import prices<br />
Linked oil <strong>and</strong> gas prices<br />
Jul 07 Oct 07 Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11<br />
Delivery month<br />
Unlinked oil <strong>and</strong> gas prices<br />
Oil indexed<br />
gas import<br />
prices due to<br />
Δ 7,5<br />
Oil price linking ???<br />
(BAFA)<br />
- EGIX<br />
35
Efficiency<br />
EGIX – Benefits for the gas business<br />
� EGIX based on market prices for the front month contracts<br />
� EGIX could replace or add monthly values of gas substitutes (e.g. oil) in gas<br />
contracts by maintenance of established price adjustment clauses<br />
� EGIX could recover the fair sharing between price <strong>and</strong> volume risks along the<br />
several stages <strong>at</strong> the gas value chain (delivery chain)<br />
Transparency<br />
Trust<br />
� EGIX simplified the adjustment <strong>and</strong> st<strong>and</strong>ardiz<strong>at</strong>ion of existing gas contracts<br />
� EGIX permits hedging of price <strong>and</strong> volume risks in gas supply contracts<br />
through exchange trading of EGIX relevant gas products<br />
� EGIX is based on exchange deals which are concluded <strong>at</strong> <strong>EEX</strong> on an<br />
anonymous, non-discrimin<strong>at</strong>ory basis under recognised market surveillance<br />
� EGIX safeguards the prompt <strong>and</strong> free comprehensibility of gas price changes<br />
without costly research in other markets<br />
� EGIX takes the ”old gas world“ into the “<strong>new</strong> gas world“<br />
36
Example: Calcul<strong>at</strong>ion of EGIX Germany<br />
� Determine of the first <strong>and</strong> last trading day for the front month Frontmon<strong>at</strong><br />
� First trading day: Old front month only tradable as Balance-of-month (BOM)<br />
� Last trading day: Front month owns for the last time the whole contract size<br />
� Daily EGIX-calcul<strong>at</strong>ion to the end of trading<br />
Daily value<br />
Germany<br />
(second to the last exchange trading day before physical delivery)<br />
1. Calcul<strong>at</strong>ion of cross market area volume weighted Daily value, derived from<br />
trades in the front months of GASPOOL <strong>and</strong> NCG across the whole trading day<br />
2. Calcul<strong>at</strong>ion of EGIX as arithmetical average of existing Daily values for the<br />
respective front months<br />
3. Last calcul<strong>at</strong>ion of EGIX on the last trading day for the front month<br />
� If no trades in both market areas are available, <strong>EEX</strong> will use as a substitute<br />
the settlement prices for the front months<br />
trades<br />
P<br />
NCG GASPOOL<br />
trades<br />
V<br />
V<br />
NCG GASPOOL<br />
EGIX<br />
Germany<br />
n<br />
Daily value<br />
with n = number of index relevant exchange trading days for the dedic<strong>at</strong>ed front month<br />
n<br />
Germany<br />
37
Bsp.: EGIX Deutschl<strong>and</strong> für Februar 11 1/3<br />
Trading Day<br />
Front<br />
Contract<br />
30.12.2010 Feb-2011<br />
03.01.2011 Feb-2011<br />
04.01.2011 Feb-2011<br />
05.01.2011 Feb-2011<br />
06.01.2011 Feb-2011<br />
07.01.2011 Feb-2011<br />
10.01.2011 Feb-2011<br />
11.01.2011 Feb-2011<br />
12.01.2011 Feb-2011<br />
13.01.2011 Feb-2011<br />
14.01.2011 Feb-2011<br />
17.01.2011 Feb-2011<br />
18.01.2011 Feb-2011<br />
19.01.2011 Feb-2011<br />
20.01.2011 Feb-2011<br />
21.01.2011 Feb-2011<br />
24.01.2011 Feb-2011<br />
25.01.2011 Feb-2011<br />
26.01.2011 Feb-2011<br />
27.01.2011 Feb-2011<br />
28.01.2011 Feb-2011<br />
31.01.2011 Mar-2011<br />
Germany<br />
Volume EGIX Day<br />
MWh EUR/MWh<br />
13440 24.52<br />
Germany<br />
EGIX Month<br />
EUR/MWh<br />
24.52<br />
38
Bsp.: EGIX Deutschl<strong>and</strong> für Februar 11 2/3<br />
Trading Day<br />
Front<br />
Contract<br />
30.12.2010 Feb-2011<br />
03.01.2011 Feb-2011<br />
04.01.2011 Feb-2011<br />
05.01.2011 Feb-2011<br />
06.01.2011 Feb-2011<br />
07.01.2011 Feb-2011<br />
10.01.2011 Feb-2011<br />
11.01.2011 Feb-2011<br />
12.01.2011 Feb-2011<br />
13.01.2011 Feb-2011<br />
14.01.2011 Feb-2011<br />
17.01.2011 Feb-2011<br />
18.01.2011 Feb-2011<br />
19.01.2011 Feb-2011<br />
20.01.2011 Feb-2011<br />
21.01.2011 Feb-2011<br />
24.01.2011 Feb-2011<br />
25.01.2011 Feb-2011<br />
26.01.2011 Feb-2011<br />
27.01.2011 Feb-2011<br />
28.01.2011 Feb-2011<br />
31.01.2011 Mar-2011<br />
Germany<br />
Volume EGIX Day<br />
MWh EUR/MWh<br />
13440 24.52<br />
0 24.38<br />
Ø<br />
Germany<br />
EGIX Month<br />
EUR/MWh<br />
24.52<br />
24.45<br />
39
Bsp.: EGIX Deutschl<strong>and</strong> für Februar 11 3/3<br />
Trading Day<br />
Front<br />
Contract<br />
30.12.2010 Feb-2011<br />
03.01.2011 Feb-2011<br />
04.01.2011 Feb-2011<br />
05.01.2011 Feb-2011<br />
06.01.2011 Feb-2011<br />
07.01.2011 Feb-2011<br />
10.01.2011 Feb-2011<br />
11.01.2011 Feb-2011<br />
12.01.2011 Feb-2011<br />
13.01.2011 Feb-2011<br />
14.01.2011 Feb-2011<br />
17.01.2011 Feb-2011<br />
18.01.2011 Feb-2011<br />
19.01.2011 Feb-2011<br />
20.01.2011 Feb-2011<br />
21.01.2011 Feb-2011<br />
24.01.2011 Feb-2011<br />
25.01.2011 Feb-2011<br />
26.01.2011 Feb-2011<br />
27.01.2011 Feb-2011<br />
28.01.2011 Feb-2011<br />
31.01.2011 Mar-2011<br />
Germany<br />
Volume EGIX Day<br />
MWh EUR/MWh<br />
13440 24.52<br />
0 24.38<br />
0 23.03<br />
0 22.66<br />
0 22.88<br />
0 22.87<br />
0 22.65<br />
0 22.74<br />
40320 23.08<br />
0 22.79<br />
20160 22.52<br />
0 22.59<br />
20160 22.73<br />
0 22.67<br />
40320 22.65<br />
26880 22.41<br />
20160 22.20<br />
20160 21.75<br />
20160 22.00<br />
0 21.72<br />
0 21.48<br />
22290 21.09<br />
Ø<br />
Germany<br />
EGIX Month<br />
EUR/MWh<br />
24.52<br />
24.45<br />
23.98<br />
23.65<br />
23.49<br />
23.39<br />
23.28<br />
23.22<br />
23.20<br />
23.16<br />
23.10<br />
23.06<br />
23.03<br />
23.01<br />
22.98<br />
22.95<br />
22.90<br />
22.84<br />
22.80<br />
22.74<br />
22.68<br />
21.09<br />
40
Now, it’s time to discuss...<br />
<strong>EEX</strong> AG; Sirko Beid<strong>at</strong>sch; Sirko.Beid<strong>at</strong>sch@eex.com; +49 (0) 341 2156-223<br />
© <strong>European</strong> <strong>Energy</strong> Exchange AG
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