Czech broker sees first trade on Slovak gas products

10 January 2014 16:35 Source:ICIS

Czech brokerage firm 42 Financial Services (42FS) has launched a screen for trading Slovak natural gas products, with the first spot trades taking place on Friday, ICIS has learned.

Saturday and Sunday traded separately, both at a price of €27.250/MWh in clips of 10MW and 13MW respectively. This was a premium of €0.35/MWh to Austria and was €0.40/MWh above the Czech hub.

Currently three companies are registered to trade Slovak gas with the broker, with at least three more companies expressing interest in providing prices for the screen, according to 42 Financial Services. These names are not yet public due to the sensitivity of the small market.

The Slovak screen was launched on 6 January.

“We have always tried to get a good market presence in central Eastern Europe, and it makes sense to connect those countries,” said Juraj Broncek, head of 42 Energy at 42 Financial Services in Prague.

Only spot contracts were brokered on Friday, but sources say products on the curve will quickly follow.

The 42 Financial Services Slovak broker screen will be the first public price reference for a market that has previously been marked by its lack of transparency.

The market has seen significant changes recently. Last year French GDF SUEZ and German E.ON agreed to sell their combined 49% stake in Slovak natural gas supplier incumbent SPP to Czech Energy and Industrial Holding.

42 Financial Services also expects its Hungarian product to start trading soon, although the spread remains wide.

In September, ICIS reported that the broker would launch the Hungarian products by the end of 2013, with five companies registered to trade Hungarian gas. They included Swiss Alpiq and Vitol, E.ON, Anglo-Dutch Shell and Hungarian trader Optenergy ( see ESGM 26 September ).

The firm brokers deals for about 15 companies, with the majority of these based in the Czech Republic. Miriam Siers

By Miriam Siers