Czech brokerage unveils plans to provide Polish natural gas screen

Czech brokerage firm 42 Financial Services (42FS) is continuing to widen its reach in the European markets, as it plans to launch a new screen for Polish over-the-counter natural gas trading within the next two months, the company has confirmed.

A new pricing screen provided by the broker could bring more price transparency into the growing Polish market.

A spokesman for the inter-deal broker said the new screen was the result of huge customer demand from clients based in Poland, as well as Czech traders interested in the Polish market.

The wholesale gas market in Poland also had a boost this month, after a recently created retail company of incumbent PGNiG began supplying new customers from 1 August ( see ESGM 1 August 2014 ). The sole purpose of PGNiG Obrot Detaliczny would be to buy gas from its parent company and then resell it onwards to much of the retail market. This meant that the new division would become an active buyer on the POLPX energy exchange, which should increase overall liquidity.

As well as Poland, 42FS is also considering launching a Romanian screen later in the year.

Recent changes to Romanian legislation has forced producers to sell 20% of their output through an open platform ( see ESGM 8 August 2014 ). This threshold could even rise to 50% in the near future.

42FS launched new two Slovak screens in January, along with screens for the Italian PSV and Hungarian MGP gas hubs. Slovakian gas can be traded on the virtual point as well as its domestic point.

While volume on the Slovak screens has seen a marked growth – having reached 509MWh by the end of June – no trades have yet been exchanged on the Hungarian screen. Bids and offers are regularly appearing on the Hungarian screen, but are still very wide.

Brokered volume for the Italian market has reached 300MWh since January, although how this volume has been spread over the year was not disclosed.

42FS also provides platforms for the German NCG and GASPOOL hubs, Austria’s VTP hub, the Dutch TTF and the Czech market. The firm brokers deals for about 15 companies, with the majority of these based in the Czech Republic. Miriam Siers