Gaspoint Nordic A/S Introduction to the Nordic Gas Exchange Updated Q1 2016
Introducing Gaspoint Nordic The slide package contain info on the following topics Introduction to the Nordic Gas Exchange slides 2-6 GPN Market development slides 7-12 Trading on GPN slides 13-15 Price development slides 16-19 GPN Data Services slides 20-23
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 of 60% (2016) of the domestic demand Achievements 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. Liquidity is supported by market making services provided by three different trading participants
Danish Gas Market at a glance» Fast growing market: 17 TWh traded in 2015 up 66 percent year on year. In 2015 58 percent of the domestic demand was traded at Gaspoint Nordic and exchange traded volumes has surpassed OTC volumes» Product range harmonized to PEGAS offerings» Exchange membership and Shipper license free of charge.» Low Entry Barriers i.a. due to ECC clearing and use of Trayport trading system.» Plenty of capacity in and out of Denmark at German border point Ellund. Intraday to yearly capacity contracts sold on PRISMA.» Market based TSO balancing and access to customized storage products.
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 2014 50 % 50 %
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 October 7 th 2015 offers joint EEX, Powernext and Gaspoint Nordic REMIT Transaction Reporting 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
Traded volume at Gaspoint Nordic Gaspoint Nordic volumes year 2010 2016 Q1 18.000.000 17.086.983 16.000.000 14.000.000 MWh 12.000.000 10.000.000 8.000.000 6.937.065 9.281.220 10.295.320 6.000.000 5.889.305 4.000.000 4.070.993 4.019.782 2.000.000-2010 2011 2012 2013 2014 2015 2016 Q1
Distribution of volumes on Gaspoint Nordic tradable contracts The Day contract continue to dominate the picture. The Within day volumes picks up in 2016, particularly after the introduction of a WD market maker. Contract distribution 2016, MWh Weekend 21% Month 1% Withinday 9% Contract distribution 2015, MWh Month 6% Withinday 5% Weekend 23% Dayahead 69% Dayahead 66% Withinday Dayahead Weekend Month Withinday Dayahead Weekend Month
Gaspoint Nordic trade statistics The average deal size has increased significantly being the main driver behind the volume growth Trade statistics 2010-2016 Q1 9000 8000 8400 88 100 90 7000 6768 6865 7220 80 6000 75 70 # of trades 5000 4000 3000 2000 1000 5128 4901 31 32 14 13 52 47 39 19 19 20 23 2754 30 60 50 40 30 20 10 0 2010 2011 2012 2013 2014 2015 2016 YTM # trades Avg. DA Deal size MW Avg. # deals per day 0
Market share of domestic market Traded volume vs. volume at Danish exit zone year 2010 2016 (2016 Q1) 60,0% 58,2% 50,0% 51,27% 40,0% 34,3% 30,0% 26,7% 20,0% 18,1% 10,0% 8,3% 10,1% 0,0% 2010 2011 2012 2013 2014 2015 2016 YTM
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 1,5 1,3 1,6 1,7 1,8 1,4 2,1 2,0 2,0 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 1,1 1,2 1,0 1,0 1,1 0,9 1,0 1,0 0,7 0,8 0,6 1,1 0,7 1,0 0,9 0,8 0,0
29% 30% 35% 32% 37% 71% 70% 65% 68% 63% Trading at EFT vs GTF The ETF (wholesale) market share has gone form < 15% to app. 70% in 2016 100,0% Montly market shares ETF (exchange) vs. GTF (OTC) 90,0% 15% 13% 17% 20% 80,0% 70,0% 60,0% 49% 64% 64% 62% 69% 73% 60% 67% 52% 57% 53% 57% 60% 55% 71% 68% 68% 70% 50,0% 40,0% 85% 87% 83% 80% ETF GTF 30,0% 20,0% 10,0% 51% 36% 36% 38% 31% 27% 40% 33% 48% 43% 47% 43% 40% 45% 29% 32% 32% 30% 0,0%
How to become a Trading Participant Only Few Steps To Membership» Become a shipper - Free of charge - Contact TSO Energinet.dk - www.energinet.dk» Sign NCM agreement with Clearing Member and ECC - Contact ECC for Non Clearing Membership (NCM) and list of potential Clearing Members - www.ecc.de» Sign Trading Participant Agreement with Gaspoint Nordic - Find agreements at www.gaspointnordic.com» No membership fee the first 12 months for new members for further detail: How to become a participant
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. Since October 1 st 2014 the system neutral gas price has been established daily based on a combination of the Within day and Gaspoint Nordic Spot Index. From October 7 th 2015 a joint EEX, Powernext and Gaspoint Nordic REMIT Transaction Reporting system is introduced. Read more on this link: http://www.gaspointnordic.com/trading-services/remit-transaction-reporting
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 0.025 EUR/MWh for sell/purchase bids
Price development at Gaspoint Nordic Gaspoint Nordic pricing (virtual point: ETF) is highly correlated to pricing at adjacent markets EUR/MWh Spot prices at the Danish and German markets 29,00 24,00 July 2014 prices was the lowest since march 2010. A mild winter coupled with very high storage fillings in the spring created a comfortable short term supply situation. A well supplied Europe has caused the prices to move down to a seven year low 19,00 14,00 9,00 GASPOOL NCG ETF
Price development at Gaspoint Nordic Gaspoint Nordic pricing (virtual point: ETF) is highly correlated to pricing at adjacent markets. In addition the graph shows that since late February 2016 that the German markets have been trading at a premium to ETF. EUR/MWh 16,000 Spot prices at the Danish and German markets 15,500 15,000 14,500 14,000 13,500 13,000 12,500 12,000 11,500 11,000 GASPOOL NCG ETF
Price development at Gaspoint Nordic Price spread between Danish and German exchange traded markets 1,50 GPN/GASPOOL GPN/NCG 1,00 0,50 EUR/MWh 0,00-0,50-1,00-1,50
Price development at Gaspoint Nordic Price spread between Danish and German exchange traded markets 1,50 GPN/GASPOOL GPN/NCG 1,00 0,50 EUR/MWh 0,00-0,50-1,00-1,50
REMIT Transaction Reporting From October 7 th 2015 a joint REMIT transaction reporting service between EEX, Powernext and Gaspoint Nordic will be introduced Starting on 7 October 2015, EEX, Gaspoint Nordic and Powernext will offer a new service for the reporting of transaction data according to Article 8 of REMIT. This service enables all trading participants to delegate their reporting obligations of transaction data to EEX, Gaspoint Nordic and Powernext. This includes all transactions concluded on EEX, Gaspoint Nordic or Powernext or via the trade registration function, as well as orders. The service covers the reporting or the provision of EEX, Gaspoint Nordic and Powernext trading data. The data will be formatted as defined by REMIT, the REMIT Implementing Regulation and the latest procedures, standards and electronic formats published by the Agency for the Cooperation of Energy Regulators (ACER), and reported or provided accordingly. EEX, Gaspoint Nordic and Powernext offer the following options to trading participants that would like to use the service: 1. Provision of the data in an established format, for individual download by the trading participant (basic service). 2. Reporting to ACER (additional service). 3. Provision of the data to Regis-TR (additional service) 4. Provision of the data to EFETnet (additional service) Read more on this link: http://www.gaspointnordic.com/trading-services/remit-transaction-reporting
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. Market Overview showing the trading activity with 15 min delay as shown below
Data Access Get Access to the new Data Area by submitting the Data Access Agreement which you find on this link: http://www.gaspointnordic.com/data-access/get-access
Follow Gaspoint Nordic at www.gaspointnordic.com More and frequently updated information can be found on: www.gaspointnordic.com 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