Iberian Gas Hub will move to Trayport at end of January
Energy broker Iberian Gas Hub (IGH) will launch on the Trayport trading system on 29 January, a source at the Bilbao-based company has confirmed, in a move that will boost price transparency on the Spanish and Portuguese gas markets.
The two companies signed an agreement in October last year but no date was provided for a launch ( see ESGM 25 October 2013 ). The news was broadly welcomed by traders, although not all saw it as a game changer.
“IGH’s Trayport launch could have a big impact [on the AOC market],” said one trader. “It should at least have the effect of narrowing the bid/offer spread”.
“IBH have been active … If they can persuade people to go on screen, so much the better - their clients seem more local,” a second said on Tuesday.
But a third source, more active in the LNG sector than Spain itself doubted the level of interest in the company’s offering would be significant.
IGH parent company Sociedad Promotora Bilbao Gas Hub, which signed the deal with Trayport, is one of two bodies bidding to operate the first gas hub in Spain and Portugal – the other being Iberian electricity market operator OMI.
IGH’s ultimate aim is to become a natural gas exchange in 2014-15, once the government has implemented some key market reforms. But for the time being it will concentrate purely on the OTC market, according to a source from IGH.
Over the last year, IGH’s voice-brokered OTC energy trading business has developed into the only real competition in the peninsula to the dominant OTC broker in Spain, London-based Tullett Prebon.
Traders suggest that the two energy brokers currently coexist rather than compete, with Tullett Prebon’s European and global reach making it more popular with international players, while IGH has to date been preferred by more local operators. Rob Songer
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