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After 3 years of activity, Powernext Gas has completed a 2011 exercise with a very strong volume increase on its Spot and Futures segments in a context more and more favorable to the development of the French gas market.
The total volume traded on Powernext Gas reached 129.8 TWh which represents 3.2 times 2010 volume (40.9 TWh). On the Spot segment, the traded volume amounted to 29.2 TWh in 2011 compared to 13.8 TWh in 2010, an increase of 112%. Powernext Gas Spot thus remains the most liquid Spot Exchange in continental Europe. On the Futures segment, a total volume of 100.6 TWh was traded in 2011 compared to 27.2 TWh in 2010, an increase of 272%, making Powernext Gas Futures the second most important organized market on gas derivatives in continental Europe. The OTC registration service launched at the end of 2010 was heavily used by the market members. It represented 46% of the total volume on the Futures segment in 2011.
In May 2011, Powernext was the first European organized market to offer spread contracts. They were implemented to facilitate trading on PEG Sud, 75% of which is traded as a spread with the more liquid PEG Nord. On the basis of this new contract, Powernext Gas, in cooperation with GRTgaz, successfully launched, on 1st July, a continuous market coupling service between GRTgaz’s North and South zones. This initiative was an innovation in Europe and aims to be a pilot model in the scope of reflections on the European Gas Target Model.
In the line of a constant improvement of its market model, Powernext Gas also proceeded, at the end of the year, to several evolutions with regards to its contracts and to an extension of its opening trading hours.
On 31st December 2011, Powernext Gas counted a total of 45 members compared to 38 at the end of 2010 with, among others, the arrival of Barclays Bank, Danske Commodities A/S, Deutsche Bank, Econgas GmbH, Goldman Sachs International, Ineos Manufacturing France SAS, TIGF SA and Verbund AG.
“With Ineos Manufacturing France SAS, we salute the start of the third industrial company on Powernext Gas. We are also very glad to welcome TIGF, the second gas transmission system operator, which will carry out a part of its balancing needs on our organized market as of 2012. Our OTC Clearing service also benefitted from the arrival of ICAP Energy Limited and Global Commodities as registering brokers on Powernext Gas Futures; we now have a complete offer on the PEGs”, comments Richard Katz, Powernext’s Sales and Communication Director.
“In 2011, the level of gas markets prices compared to oil indices has remained favorable to the development of the different hubs in Europe and especially in France where several providers include our prices in their offers. Our prices are now also used by all French infrastructure operators (Elengy, GrDF, GRTgaz, Storengy, TIGF). Powernext Gas has always put itself at the disposal of the market participants, and wants to keep contributing to the development of the gas market in France and in Europe”, adds Jean-François Conil-Lacoste, CEO of Powernext.
