Gaspoint Nordic A/S. Nordic Gas Exchange. Introduction to the. Updated 1 st quarter 2015

Transcription

1 Gaspoint Nordic A/S Introduction to the Nordic Gas Exchange Updated 1 st quarter 2015

2 Introducing Gaspoint Nordic Company Background Established in 2008, first trade March 4th Strong ownership - With effect January 2015 split 50/50 between Energinet.dk and EEX European Energy Exchange - From December 2012 to December 2014: 100 percent by Energinet.dk - Danish system operator - Before December 2012: Split ownership 50/50 between Energinet.dk and Nord Pool Spot - Nordic Power exchange The exchange Provide continues trading via the electronic trading system Trayport Global Vision Physical trade in: Within day, Day ahead, Weekend and Month ahead Aim to promote further competition, transparency and deliver market price reference Significant development Strong growth journey. Now has a market share at 41% (Q1 2015) of the domestic demand Achievements 2014 Expanded opening hours to 24/7 trading in Within day, Day ahead and Weekend products. Month ahead from 08:30 to 18:00 CET. Successful change of clearing house to ECC European Commodity Clearing in October 2014 New Data products: FTP server access, Data Center access and a new Delayed Real time Graph showing trading activity with 15 min delay represented in a dynamic graph and table solution.

3 Danish Gas Market History of the Danish gas market Early 1970 ties: First North Sea gas fields discovered Early 1980 ties: Maersk sell all it s gas production to state owned DONG via oil/coal indexed long term GSAs 1980 ties and 90 ties: Gas substitutes oil and coal for power and heat production. DONG on sell to customers on oil index in a monopoly regime 2004: Full market liberalization - Only one exit zone - Daily market based balancing - Low barriers to entry - Few supply sources - Potential system bottlenecks - Bilateral transactions still prevail

4 Change in ownership became co-owner on January 1 st 2015 Energinet.dk sold 50 percent of shares to German energy exchange EEX EEX is a leading European player operating exchange trading in multiple energy products and market areas (NCG, GASPOOL, TTF) EEX operates regulated markets under the German exchange act and is subject to comprehensive supervision. The transaction was approved by the competitions authorities in December % 50 %

5 Market structure changes Gaspoint Nordic market was re-launched on October 1 st 2014: Revised product structure that mimics the PEGAS products Extended opening hours and 24/7 trading in all spot products Clearing services moved to European Commodity Clearing AG 24/7 market supervision outsourced to EEX market supervision Rules, regelation and processes harmonized to European standards New ENDK balancing model was implemented also by October 1 st 2014: Introducing market based balancing allowing TSO intervention in the Gaspoint Nordic market The balancing model a requires 24/7 and active gas market to work properly Pervious ENDK analysis show that the model has been well perceived by market participants though some features might still be work in progress

6 Trayport Energy Trading Screen by October 1st 2014

7 Traded volume at Gaspoint Nordic Gaspoint Nordic volumes year (2015 Q1) Q1 2015

8 Distribution of volumes on Gaspoint Nordic tradable contracts The Day contract dominate the picture but Within day and Month ahead has picked up since October 1 st. The month ahead contract was closed for trading in September, due to the clearing change to ECC. Contract distribution 2015, MWh Weeken d Month 8% Intraday 7% Contract distribution 2014, MWh Weekend 22% BoM 0% Month 10% Withinday 7% Swap 0% Day 66 Dayahead 61% Intraday Day Weekend Month Withinday Dayahead Swap Weekend BoM Month

9 Traded volume at Gaspoint Nordic The Day contract dominate the picture but month ahead attract ever more liquidity MWh Trade volume (MWh) allocated by product Dayahead Withinday Weekend Month BoM Swap

10 Gaspoint Nordic trade statistics The average deal size has increased significantly being the main driver behind the volume growth Trade statistics (2015 TYM) # of trades Q # trades Avg. DA Deal size MW Avg. # deals per day 0

11 Number of trades at Gaspoint Nordic The Day contract dominate the picture but Within day and Weekend products attract ever more liquidity # of trades 1000 Number of trades allocated by product Day Withinday Weekend Month BoM Swap

12 Market share of domestic market Traded volume vs. volume at Danish exit zone year (2015 Q1) 50,0% 45,0% 40,0% Gaspoint Nordic Market Shares (2015 Q1) 41,7% 35,0% 34,3% 30,0% 26,7% 25,0% 20,0% 18,1% 15,0% 10,0% 8,3% 10,1% 5,0% 0,0% Q1 2015

13 Trading at EFT vs GTF Significant volume move towards ETF (Exchange Transfer Facility) at the expense of GTF (Gas Transfer Facility) Monthly ETF vs. GTF volumes (TWh) 3,5 3,3 3,0 2,8 2,7 2,5 2,4 2,0 1,5 1,9 1,8 1,5 1,3 1,4 1,6 1,7 1,6 1,6 1,5 ETF GTF 1,0 0,5 0,6 0,4 0,5 0,6 0,7 0,8 0,8 0,6 0,8 0,9 0,9 0,9 1,0 1,0 0,7 0,6 0,0 jan-14 feb-14 mar-14 apr-14 maj-14 jun-14 jul-14 aug-14 sep-14 okt-14 nov-14 dec-14 jan-15 feb-15 mar-15

14 Trading at EFT vs GTF The ETF (wholesale) market share has gone form < 15% to more than 69% in February 2015! 120,0% Montly market shares ETF vs. GTF 100,0% 80,0% 60,0% 15% 13% 17% 20% 29% 30% 35% 32% 37% 49% 64% 64% 62% 69% 73% ETF GTF 40,0% 20,0% 85% 87% 83% 80% 71% 70% 65% 68% 63% 51% 36% 36% 38% 31% 27% 0,0% jan-14 feb-14 mar-14 apr-14 maj-14 jun-14 jul-14 aug-14 sep-14 okt-14 nov-14 dec-14 jan-15 feb-15 mar-15

15 Trading at Gaspoint Nordic Continues daily trading Trading takes place 24/7 for spot contracts and from 08:30 to 18:00 for Month ahead Participants place orders (bids and asks) via the Trayport screen in a total of 4 different products. Trading is anonymous. The Clearing House acts as the central counterparty on all deals to ensure physical delivery and payment. Pricing Gaspoint Nordic Spot Index is published shortly after 18:00 on each exchange day Reference prices for all other products are published the day after the trading day before 09:30 The reference prices are based on volume weighed averages of all deal. The Gaspoint Nordic Spot Index represent the value of gas in the Danish and Swedish markets. It is calculated using the most liquid products with delivery on the gas day. The Dayahead, Weekend and individual day contracts are used in the calculation of the Gaspoint Nordic Spot Index Transparency Price and volume data are published on the Gaspoint Nordic webpage The Gaspoint Nordic Spot Index offer a Nordic market price reference that can be used as a price index in wholesale and retail gas supply agreement Since October 1 st 2011 Energinet.dk has used the Gaspoint Nordic Spot index to establish the system neutral price. From October 1 st 2014 the system neutral gas price will be established daily based on a combination of the Within day and Gaspoint Nordic Spot Index.

16 Trading at Gaspoint Nordic The following applies for products offered at Gaspoint Nordic Trading product Delivery or purchase of H-gas defined by Energinet.dk Trading product European gas day from 06:00 06:00 Trading product The delivery point of all contracts is ETF a virtual trading point Trading unit Trading hours Trading and clearing system Currency Tick size The total amount of gas is 24 MWh per delivery day based in a 1 MW contract 24/7 365 days a year for spot contract and all Danish banking days from 08:30 AM - 18:00 PM CET for Month ahead contracts Electronic real-time trading, with our clearing house ECC as central counterpart The trading currency is Euro The minimum tick size is EUR/MWh for sell/purchase bids

17 Price development at Gaspoint Nordic Gaspoint Nordic pricing (virtual point: ETF) is highly correlated to pricing at adjacent markets EUR 39,00 34,00 29,00 Spot prices at the Danish and German markets Spikes in the end of March and early May 2013, are due to supply issues and low storage levels. Energinet.dk announced Early Warning on both occasions July 2014 prices was the lowest since march A minld winter coupled with very high storage fillings in the spring created a comfortable short term supply situation ETF GASPOOL 24,00 NCG 19,00 14,00

18 Price development at Gaspoint Nordic Positive Dalta s indicate that the Danish market is prices above German markets

19 Price development at Gaspoint Nordic Trend line indicates that the price spread towards Germany is gradually closing in, despite fluctuations which happen due to supply issues. 6,00 Average monthly spreads NPG-NCG and NPG-GUD 5,00 4, : An immature and less competitive Danish market used to trade 1-2 EUR/MWh above the German markets : The spread vanished in 2012 and prices where generally below German levels : In 2013 the spread was generally positive, Supply disruptions during March following a long and cold Winter caused record high price spreads. 2014: On average price spreads have been close to zero throughout the long period of price drops 3,00 2, : The first quarter of 2015 has evolved like 2014 ended. A rather small spread towards the neighboring German markets. 1,00 0,00 jan-12 mar-12 maj-12 jul-12 sep-12 nov-12 jan-13 mar-13 maj-13 jul-13 sep-13 nov-13 jan-14 mar-14 maj-14 jul-14 sep-14 nov-14 jan-15 mar-15-1,00 ETF-GASPOOL ETF-NCG

20 How to become a Trading Participant We need a copy of your: 1. Company certificate (not older than one (1) month) 2. Complete signatory authorization in English (not older than one (1) month) of those persons entitled to sign any legal documents on behalf of the company 3. Latest annual report You must sign the following agreement towards Gaspoint Nordic: 4. Participant agreement, Gaspoint Nordic A/S (sign two (2) copies) Clearing house agreements: In addition to the above you need to enter into a Non-Clearing-Member agreement with the European Commodity Clearing (ECC) European Commodity Clearing (ECC) All documents must be sent to Gaspoint Nordic for further detail: How to become a participant

21 Data Access New data services FTP server containing End of day (EOD) and historical data plus real time trade data for trading participants Data Center allows for custom downloads of EOD, historical data and statistics plus trade data for trading participants. Delayed Real time Graph showing the trading activity with 15 min delay as shown below

22 Data Access New Data Area offers different packages with different data content

23 Data Access Get Access to the new Data Area by submitting the Data Access Agreement which you find on this link:

24 Follow Gaspoint Nordic at More and frequently updated information can be found on: Here you will be able to: Observe daily prices and volume data Get access to price data via FTP or Data Center Subscribe to news and RSS feeds Calculate prices based on the Gaspoint Nordic Spot Index