2016 saw the launch of Spain’s new balancing regime in a move that – if it achieves its aim – will stimulate trade on spot products.
Operating under the name Punto Virtual de Balance (PVB), or Virtual Balancing Point, trade at the hub is underpinned by new requirements that impose stronger penalties for imbalances. Shippers now face strict penalties for being imbalanced and will no longer enjoy the ‘shock absorber’ of storage flexibility that bundled to them under the previous system.
Instead, shippers must now rely on near real-time steering information provided by Enagas, the technical system manager of the Spanish gas grid.
Alongside its existing price assessments, ICIS’s new Day-ahead product will track the development of this new market, offering the ability to compare the price of gas for day-ahead delivery with ICIS’s benchmark TTF and Day-ahead products, as well as other key European spot assessments.
Liquidity has risen substantially as a result of:
- Growing trading activity by Spanish and foreign international market participants
- The enforcement of European gas network code balancing reforms
- The phasing-out of generous linepack flexibility
The PVB month-ahead assessment has moved into the pricing orbit of well-established hubs such as the Dutch TTF in recent years, as a multi-euro premium for Spanish has evaporated.
European spot gas markets
The ICIS European Spot Gas Markets report provides you with the latest prices, news and expert analysis on the current day's trading.
We publish independent price assessments and Heren indices for the British NBP, Dutch TTF, German NCG and GASPOOL, Belgian Zeebrugge and ZTP, French PEG Nord and TRS, Italian PSV, Austrian VTP, Czech VTP, Spanish PVB, Slovak VTP and Turkey.
We offer a wide range of information:
- A comprehensive range of price assessments for the Spanish gas market, providing you with an independent source of OTC prices for the new PVB
- Day-ahead, Weekend, Month +1, Month +2, Quarter +1, Quarter +2 and Calendar Year +1 price assessments
- Daily PDF report, online dashboard and data feed options
- Daily news and commentary on the Spanish gas market, keeping you informed on the market trends
- A daily summary of Spain’s gas balance: imports, LNG send-out, storage, demand, exports