iberian gas hub-gabriel pérez
DESCRIPTION
Institutional and Organizational Designs of Natural Gas Hubs: An Introduction to the Iberian Gas HubTRANSCRIPT
IBERIAN GAS HUB
Bilbao, 24 June 2014
The Iberian Gas Hub project
2
The objective of the Iberian Gas Hub project is to promote the development
of a liquid natural gas hub in the Iberian peninsula
Source: Iberian Gas Hub
Adaptable to thefuture role of TSOsunder new codes
Integrating and non-exclusive, open to new stakeholders
Design in line with otherEuropean hubs
Self-financing on thebasis of value-addingservices
Approach from thecurrent reality of the market(inclusion of OTC)
Flexibility toadjust to a transitory period
Adapted to thephysical reality of natural gas and LNG
Value-adding services and innovation
Initial steps Voice broking in the
OTC space
Take off Electronic trading
platform (initially, OTC)
Liquidity Forward
Platform with Counterparty services + CCP
Matureness Futures market
Market services at the VTP
Standardization and liquidity
Iberian Gas Hub roadmap
Q2-Q3 2013
Q1-Q2 2014
2014-15 2015-6
Spot Trading Platform (OMIE)
Implementation of Network Code on
Balancing
3 Source: Iberian Gas Hub
Regulatory Roadmap –Adaptation of the Spanish gas system to European Regulation
4 Source: Enagás GTS/TSO (51st meeting CSSG).
Sector Reform
-Adaptation of Hydrocarbons Law
- RD. Adaptation
- Market rules
- Gas day 06h-06h
- NCB: Information provision
- Congestion mechanism (auctions)
CAM/CMP (A-T-S)
Daily operation gas auction
Organized Market (HUB)
CAM/CMP (Day-intraday)
Change of gas day
NBC: information provision
NC Balancing
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Jun
-Ju
l
Sep
Jan
Ja
n
No
v N
ov
No
v
Ap
r
IBGH: Where we stand (June 2014)
5
OTC Market • Operating and closing OTC trades as a broker since July 2013
Trading Platform • Trading Platform (Trayport Exchange Trading System) operational
since 29 January 2014 (initially, OTC products)
IT • Infrastructures and IT systems to support the Trading Platform are
fully operational, with redundancies and security
IBGH Client Committee • Meetings regularly take place since July 2013 (contracts have been
designed)
Hub development and regulation
• Agreement with OMI Group (OMIE, OMIClear)
• Taking part in Ministry of Energy and TSO’s working groups
New services
• Working with OMIClear to offer counterparty services (complete anonymity, collateral through the CCP)
• Defining services similar to those provided by other hub operators
Source: Iberian Gas Hub
Shareholders
6
Sociedad Promotora Bilbao Gas Hub, S.A. is developing an institutional framework and
infrastructures to offer market services along the entire forward curve of natural gas and for
various trading channels (short, medium and long-term, OTC and organized markets, financial
and physical contracts, etc.).
Current shareholders
Spanish
TSO
Energy agencies of the Basque and Catalan
regional governments
Two of
Spain’s key
financial
institutions
Relevant
energy
utilities in
Spain
Additional new shareholders (June 2014 share capital increase)
Source: Iberian Gas Hub
TO BE ANNOUNCED
The Gas Target Model as the basis for the definition of gas hubs in Europe
7
Promotion of
cross-border
exchanges
(between VTPs)
Virtual Trading
Points
Entry-exit system
on a physical
zone without
congestions
Linked to
each other Defined on
Gas Target Model’s essential elements
Virtual Trading Point
Short-term Organized
Market (Spot)
Short-term standard
products
THE VIRTUAL TRADING
POINT IS A DELIVERY
POINT FOR THE ORGANIZED SPOT AND FORWARD
MARKETS AND THE OTC MARKET Disposing/acquiring trade notifications to the TSO
Forward Organized
Market (Forward/Futures)
Forward standard products
OTC Market
Non-standard forward
products
THE GAS TARGET MODEL DEFINES MARKET AREAS
AROUND VIRTUAL TRADING
POINTS (HUBS)
Source: Iberian Gas Hub
Iberian Gas Hub main services
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Tracking and reporting of transactions at the VTP
Matching of net positions at the VTP
Flexibility services (BUBD, imbalance management)
Notification of net positions at the VTP to the TSO
Market, flexibility and
financial services at the
VTP
Reporting and REMIT
compliance
Reporting services for the market participants
Organized Forward Market
Exchange services through a Central Counterparty
Brokerage services
Brokerage services in the OTC market 1
2
3
4 Support in market surveillance (required by REMIT)
Source: Iberian Gas Hub
IBGH- OMI Group Agreement
9
Spot Trading Platform (OMIE)
Central Counterparty clearing services (OMIClear)
Services in the OTC Market and in the Organized Forward Market
Market services at the Virtual Trading Point
Source: Iberian Gas Hub
IBGH: Companies which take part in our Client Committee and/or provide us with buying or selling interests
10 Source: Iberian Gas Hub
Contact and more information
Contact:
Director of Middle and Back Office: Gabriel Pérez Urrutia
Phone: (+34) 946 124 275
E-mail addresses:
More information at: www.iberiangashub.com
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Thank you very much!
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