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Spain to hold Yela and Castor cushion gas auction in June

04 May 2012 15:24:41 | esgm

Spain will hold an auction to secure 9.8TWh of cushion natural gas that will be injected into the two new underground storage facilities of Castor and Yela on 6 June, it was announced on Friday.

Injections will take place during two periods. The first is between 15 June and 15 August and the second between 16 August and 15 October, according to OMEL Diversification, a division of Spanish electricity spot market operator OMIE that is holding the auction.

The auction is open to all sellers, even if they do not hold a Spanish shippers' licence, since the owners of the Yela and Castor underground storages will take delivery of their purchased gas at border entry points to the Spanish gas system.

Alternatively, vendors can supply the injection gas as LNG delivered ex-ship.

In both cases, it will be the responsibility of buyers to transport the gas from these points to the storage sites, and sellers will bear no responsibility for any entry charges into the Spanish gas system.

The auction will take the form of a sealed-envelope, pay-as-bid auction conducted electronically on 6 June.

Once fully operational in the second half of the year, the first phases of Yela and Castor will add 1.2TWh and 7.0TWh of commercial supply, respectively, to the 28.1TWh already available to the market at Serrablo and Gaviota.

A total of 700GWh is available at the Marismas facility, giving availability for the period between 1 April 2012 and 31 March 2013 of 37.0TWh, according to a recent resolution by BOE, the Spanish government's state bulletin, in February. RS

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