NZX is pleased to announce that it will launch a spot gas market in June 2013, contingent upon its securing of operating approvals.
The new market will provide a valuable tool for participants to better manage their supply of gas, in the face of new gas pipeline requirements, and as the industry continues to develop.
NZX is an independent, experienced market operator that can offer a cost effective solution and extensive options to support the industry as it develops.
In preparation for the launch, NZX has consulted with a number of prospective participants and considered the merits of various market features.
The result was the decision to deploy a baseline market in June, which will enable trading on monthly, weekly, daily and intraday products.
The June market deployment will incorporate a 'virtual welded point' which concentrates liquidity and is compatible with existing shipping arrangements. A virtual welded point is a notional connection to the Maui pipeline that provides a reference for both trading and physical delivery of gas.
NZX Head of Energy Erich Livengood commented: "Our vision for the gas market starts with a simple, rock solid trading system that encourages participation and is beneficial to the operation of the pipeline.
"We already have the trading system up and running, now it's a matter of making further alterations to fine tune the market to meet traders' needs.
"Following that, once traders have had a chance to experience trading and refine their requirements, we envision introducing staged enhancements, where they make sense for the market. For example, one enhancement could be to offer centralised clearing and settlement."
NZX will continue to look for opportunities to use its existing market operations infrastructure to enable a broad range of industries to better manage their risk.
