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Strong start to Dutch/German cross-border natural gas auction

24 May 2012 15:35:09 | esgm

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Natural gas shippers bought 80% of the 50,000 cubic metres (m³)/hour firm Day-ahead capacity auctioned at the Oude Statenzjil border point on the first day of the new service, Dutch transmission system operator (TSO) Gas Transport Services (GTS) said on Thursday.

Launched on 22 May, the pilot scheme between the relevant Dutch and German TSOs has attracted more than 20 registrants. On 23 May, shippers bought 60% or 30,000m³/hour of capacity (see ESGM 22 May 2012.)

Shippers can buy capacity at a daily rate of €0.276/KWh per hour to exit the GTS grid and €0.350/kWh per hour to enter the system, plus an auction fee that differs depending on the day and the demand for the capacity, a GTS spokesman said. The annual tariff for exit from the GTS is €0.93363/KWh per hour and entry is €0.73607/KWh per hour.

Earlier in the week, shippers had questioned the business case for such as scheme in light of the growing convergence in price of Day-ahead gas on the TTF and GASPOOL markets. The market had traded flat between 1118 May, according to ICIS data.

But since then the spread has widened, with GASPOOL recovering its premium to TTF. At its peak this week, GASPOOL Day-ahead finished €0.60/MWh above the TTF, with the latter closing at €22.90/MWh on 22 May. KA

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