Through an early exercise of our right to acquire all of NGX, we can develop NGX faster. We plan to implement a new clearing structure in order to capitalize on OM's clearing expertise and widen the product range. In time, we will develop NGX from being a regional marketplace in Alberta to cover all of the North American market, said Niklas Midby, head of OM Business Area Transaction in North America.
NGX, located in Calgary, Canada provides electronic trading and clearing services to natural gas buyers and sellers in Alberta, one of the largest and most significant production areas of natural gas in North America. Since its inception six years ago, NGX has grown to serve over 120 customer with trading activity averaging 200 BCF (211 000 TJ) per month. Among the customers at NGX are most of the major North American players at the energy market. NGX has quadrupled turnover since 1997 and is expected to grow fast in the future on the basis of a new clearing structure and a wider range of products.
Today, NGX has 20 employees and a turnover of about 7 million CAD. The total acquisition of NGX is not expected to have an effect on earnings per share 2001 for OM.
OM operates equity and fixed income exchanges in London (OM London Exchange, a Recognised Investment Exchange) and Stockholm (OM Stockholm Exchange and OM Fixed Income Exchange). OM develops technology that increases the efficiency of financial and energy markets throughout the world, e.g. the Nordic Electricity exchange Nord Pool and the Finnish electricity exchange EL-EX. OM has operations in Europe, North America and Asia with offices in eleven countries. The parent company, OM Gruppen, is listed on the OM Stockholm Exchange. For more information, please visit www.omgroup.com
