OMV opens storage on Day-ahead basis to boost liquidity
Austrian OMV Gas, the gas subsidiary of oil and gas group OMV, is opening its gas storage facilities on a Day-ahead basis to support liquidity on the balancing market in the country´s largest balancing zone East, according to clearing agency AGCS Gas Clearing and Settlement AG.
The service will be exclusively available to participants of
the gas balancing market in cases when the market has to be reopened after the usual close at 16:00 CET due to a lack of liquidity. Last year, the market had to be reopened about four or five times due to a shortage of offers. Incumbents EconGas, Steirische Gas-Wärme, Rohölaufsuchungs AG (RAG), Kärntner Elektrizitäts Aktiengesellschaft (KELAG) and Salzburg AG are understood to be the most active members of the balancing market. However, the service is only relevant for those members who are already using OMV´s storage facilities.
Therefore, it is unlikely that the service will be of interest to oil and gas producer RAG, which has access to its own storage assets. Tariffs for the Day-ahead storage service will be subject to negotiation, in line with Austria´s principle of negotiated storage access.
Energy regulator E-Control generally embraced OMV´s new service but says it closely watches the market in order to see whether participants basically changed their trading behaviour as a consequence. Whilst AGCS is responsible for the commercial organisation of the balancing market, balancing zone manager AGGM Austrian Gas Grid Management – a full subsidiary of OMV Gas – is in charge of the system´s physical balancing, which is carried out on an hourly basis. OMV Gas holds a 20% stake in the clearing house, which is co-owned by other grid operators and financial institutions.
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