PEGAS: Powernext To Launch PEG TIGF / PEG Sud Spot Spread Contracts On 4th February 2014

Powernext announces the launch of a Spot spread contract between TIGF and GRTgaz Sud delivery zones as of 4th February. This new product will be listed for all Spot maturities on PEGAS, the common natural gas platform launched by Powernext and EEX.

PEG TIGF and PEG Sud Spot contracts have been traded on Powernext Gas Spot since 26 November 2008. By launching the spread between GRTgaz PEG Sud and PEG Nord in May 2011, Powernext Gas Spot was the first organised market in Europe to offer location spread products corresponding to the actors’ trading practices on an anonymous and cleared platform. These geographical spread products have progressively been offered between all hubs listed on PEGAS ever since, contributing to the development of the liquidity of the European gas markets, and the transparency of their price references.

“There is now a clear market need for spread products between PEG TIGF and PEG Sud. The supply of the south of France strongly depends on LNG imports and with the connection from PEG Nord being regularly congested, volatility on these two hubs is comparatively much stronger than on PEG Nord. This new contract will help the 22 members of Powernext Gas Spot that are active on both PEG TIGF and PEG Sud to balance their portfolios in this region”, comments Jean-François Conil-Lacoste, Powernext’s CEO.

“GRTgaz supports the launch of this product as an efficient way to handle positions in highly correlated delivery zones, and also in the perspective of the creation of a common PEG in 2015”, noted Guy Fasanino, Commercial Director of gas transmission operator GRTgaz.

“This new product is expected to foster liquidity, and improve the quality of the balancing interventions on TIGF delivery area”, adds Monique Delamare, CEO of gas transmission and storage operator TIGF.