Central European Gas Hub AGp
Institutional Aspects of
Gas Hub DesignGas Hub Design
24 June 2014
1
Agendag
• Aspects of a Gas Hub & Development of CEGH
• Hub & VTP Operation
• CEGH Gas Exchange of Wiener Boerse
Austrian M...
What is a Gas Hub?
Liberalized
gas market
Infrastructure:
storage,
pipelines
Gas supply:
diversification
p p
TrustKnowledg...
What is a successful hub?
Goal
• Competitiveness
• Security of supply
• Transparent and reliable price
Instrument signals
...
CEGH Markets
Central European Gas Hub
CEGH Gas Exchange of
Wiener Boerse CEGH OTC Market
CEGH Czech Futures
Market by PXE
...
Agendag
 CEGH OTC Market / VTP Operation
Central European Gas Hub AG 6
Number of Registered Hub Members
Balance Group Resp 80 (+1)Balance Group Resp. 80 (+1)
Virtueller Traders 85
Registered Me...
OTC Trading: Registered Members by Country
8Central European Gas Hub AG
OTC Trading: Daily Volumes
9Central European Gas Hub AG
Active traders on daily basis
Central European Gas Hub AG 10
Daily churn rate
Central European Gas Hub AG 11
Agendag
 CEGH Gas Exchange of Wiener Boerse
Central European Gas Hub AG 12
Registered Members CEGH Gas Exchange
Futures Market 22 Trading
Participants9 Clearing
Spot Market
11 Clearing
81 Trading
P...
Gas Exchange: Monthly Trading Volume
i D 2009since Dec 2009
14Central European Gas Hub AG
Relation between CEGH, Huberator, NCG,
TTF and PSVTTF and PSV
15Central European Gas Hub AG
Agendag
 Austrian Market Model
Gas Market Model
All ti f ibiliti b G A t 2011 (i d ith EU Allocation of responsibilities by Gas Act 2011 (in accordance ...
Balancing by MAM
Energie-Control Austria Executive Board Ordinance on Provisions for
the Gas Market Model (“Gas Market Mod...
From physical Gas Hub to
Operator of Virtual Trading PointOperator of Virtual Trading Point
P i CEGH l ti C t CEGH l tiPre...
Appointment of VTP Operatorpp p
• Institutional appointments
– Market Area Manager is appointed by TSOs
M k t A M d i t th...
Legal Supervision
 Börsegesetz (Austrian Exchange Law)Börsegesetz (Austrian Exchange Law)
Federal Ministry of
Economic Af...
Responsibilities of VTP Operatorp p
The operator of the Virtual Trading Point has inter alia the followingThe operator of ...
Independence of VTP Operatorp p
fThe operator of the Virtual Trading Point shall be independent,
• especially from the ver...
Non discrimination by VTP Operatory p
Compliance & Non discrimination provisionCompliance & Non discrimination provision
•...
Publication by VTP Operatory p
O t f th Vi t l T di P i t h ll bli h i di i i tOperator of the Virtual Trading Point shall...
Thank you very much
ffor your attention
Central European Gas Hub AG 26
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Institutional Aspects of Gas Hub Design-Frederick Bernthaler

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Institutional and Organizational Designs of Natural Gas Hubs: An Introduction to the Iberian Gas Hub

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Institutional Aspects of Gas Hub Design-Frederick Bernthaler

  1. 1. Central European Gas Hub AGp Institutional Aspects of Gas Hub DesignGas Hub Design 24 June 2014 1
  2. 2. Agendag • Aspects of a Gas Hub & Development of CEGH • Hub & VTP Operation • CEGH Gas Exchange of Wiener Boerse Austrian Market Model• Austrian Market Model Central European Gas Hub AG 2
  3. 3. What is a Gas Hub? Liberalized gas market Infrastructure: storage, pipelines Gas supply: diversification p p TrustKnowledgeKnowledge Hub operator/ exchange (IT)exchange (IT) Central European Gas Hub AG 3
  4. 4. What is a successful hub? Goal • Competitiveness • Security of supply • Transparent and reliable price Instrument signals • Liquidity Parameter • Customers • Trade volumes • Standardised d t t Parameter Trade volumes • Churn rate products, etc. Central European Gas Hub AG 4
  5. 5. CEGH Markets Central European Gas Hub CEGH Gas Exchange of Wiener Boerse CEGH OTC Market CEGH Czech Futures Market by PXE Spot Market Futures Market Futures Market (active / passive) Futures Market Futures Market Front Months Day Ahead contracts Within-Day contracts 1. 2. 3. Front Month Front Months, Seasons, Quarters, Years Central European Gas Hub AG 5
  6. 6. Agendag  CEGH OTC Market / VTP Operation Central European Gas Hub AG 6
  7. 7. Number of Registered Hub Members Balance Group Resp 80 (+1)Balance Group Resp. 80 (+1) Virtueller Traders 85 Registered Members 166 7Central European Gas Hub AG
  8. 8. OTC Trading: Registered Members by Country 8Central European Gas Hub AG
  9. 9. OTC Trading: Daily Volumes 9Central European Gas Hub AG
  10. 10. Active traders on daily basis Central European Gas Hub AG 10
  11. 11. Daily churn rate Central European Gas Hub AG 11
  12. 12. Agendag  CEGH Gas Exchange of Wiener Boerse Central European Gas Hub AG 12
  13. 13. Registered Members CEGH Gas Exchange Futures Market 22 Trading Participants9 Clearing Spot Market 11 Clearing 81 Trading Participants a t c pa ts ParticipantsParticipants Central European Gas Hub AG 13
  14. 14. Gas Exchange: Monthly Trading Volume i D 2009since Dec 2009 14Central European Gas Hub AG
  15. 15. Relation between CEGH, Huberator, NCG, TTF and PSVTTF and PSV 15Central European Gas Hub AG
  16. 16. Agendag  Austrian Market Model
  17. 17. Gas Market Model All ti f ibiliti b G A t 2011 (i d ith EU Allocation of responsibilities by Gas Act 2011 (in accordance with EU Network Codes) - switch to new model by 2013 Entr /E it S stem S stem Di ision in Transit and DSO Zones (storage Entry-/Exit System System: Division in Transit and DSO Zones (storage location is in DSO zone), System Operators (MAM, VTP Operator, etc)  Market Area Manager Market Area Manager • Single Point of Contact for Balance Group-, VTP registration • Balancing Coordinator A h i R l i i h NRA• Authority Relations with NRA  E-Control Austria • NRA for Energy Market • Approves Terms and Conditions of System Operators • Balance Group Responsible Party requires approval of NRAp p y q pp Central European Gas Hub AG 17
  18. 18. Balancing by MAM Energie-Control Austria Executive Board Ordinance on Provisions for the Gas Market Model (“Gas Market Model Ordinance 2012”) Section 26 (4): The market area manager shall net the volumes nominated for each balance group and inform the balance responsible parties of any imbalances over the day Should the relevant balance responsible party fail toimbalances over the day. Should the relevant balance responsible party fail to renominate and thereby eliminate any daily imbalances in the balance group within one hour, gas shall be purchased or sold at the virtual trading point to ensure that the group is in balance Such exchange transactions at theto ensure that the group is in balance. Such exchange transactions at the virtual trading point shall be executed on behalf and for account of the balance responsible party, at the best available purchase/selling price at that timetime. Central European Gas Hub AG 18
  19. 19. From physical Gas Hub to Operator of Virtual Trading PointOperator of Virtual Trading Point P i CEGH l ti C t CEGH l tiPrevious CEGH locations Current CEGH location Baumgarten Oberkappel (2 TT points) Ueberackern (2 TT points) g (13 TT points) (2 TT points) Mosonmagyaróvár CEGH VTP (1 title transfer point) Murfeld (1 TT i t) Mosonmagyaróvár (1 TT point) Weitendorf (1 TT point) (1 TT point) Definition Virtual Trading Point: Notional point in the market area at which market participants can trade natural gas even without having the right to Central European Gas Hub AG 19 Notional point in the market area at which market participants can trade natural gas even without having the right to system access for the market area. Access to the Virtual Trading Point shall be subject to the operational rules of the market area manager and the transmission system operators, in line with the market rules.
  20. 20. Appointment of VTP Operatorpp p • Institutional appointments – Market Area Manager is appointed by TSOs M k t A M d i t th O t f th– Market Area Manager designates the Operator of the Virtual Trading Point • Gas Hub GT&C´s: – Subject to public consultation– Subject to public consultation – Mandatory approval by NRA Central European Gas Hub AG 20
  21. 21. Legal Supervision  Börsegesetz (Austrian Exchange Law)Börsegesetz (Austrian Exchange Law) Federal Ministry of Economic Affairs E – ControlAustrian Financial Market Authority Gas derivatives marketGas spot market VTP Operator Gas Exchange Activities 21Central European Gas Hub AG
  22. 22. Responsibilities of VTP Operatorp p The operator of the Virtual Trading Point has inter alia the followingThe operator of the Virtual Trading Point has inter alia the following responsibilities: • to offer commercial hub services including without limitation title tracking• to offer commercial hub services, including, without limitation, title tracking to prove the transfer of ownership rights in natural gas at the virtual trading point t l t i ll d d ttl titi f t d t th i t l• to electronically record and settle energy quantities from trades at the virtual trading point • provide 24/7 operations of the virtual trading point • provide for balancing options • conduct market consultations. Central European Gas Hub AG 22
  23. 23. Independence of VTP Operatorp p fThe operator of the Virtual Trading Point shall be independent, • especially from the vertically integrated natural gas• especially from the vertically integrated natural gas undertaking • it shall take the legal form of an Aktiengesellschaft (publicg g (p limited company under Austrian law) share capital of at least 2 million EUR th ibl f th t h ll h• the persons responsible for the management shall have no other professional position or responsibility, with any other part of the vertically integrated natural gas undertakingp y g g g Central European Gas Hub AG 23
  24. 24. Non discrimination by VTP Operatory p Compliance & Non discrimination provisionCompliance & Non discrimination provision • VTP Operator refrain from discriminating users of its services, in particular if this would be to the benefit of vertically integrated natural gas undertakingsthis would be to the benefit of vertically integrated natural gas undertakings. • Appoint a dedicated Compliance Officer • Implement confidential areas (between OTC & Exchange) • Shall preserve the confidentiality of any economically sensitive information (and price information) and of any business or trade secrets of which it obtains knowledge in the course of carrying out its business • Shareholders shall refrain from any actions which would endanger the performance of the obligations of the operator of the virtual trading Central European Gas Hub AG 24
  25. 25. Publication by VTP Operatory p O t f th Vi t l T di P i t h ll bli h i di i i tOperator of the Virtual Trading Point shall publish in a non-discriminatory manner and without undue delay, in an appropriate format information of which it obtains knowledge and which might have an impact on the market in an anon mo s and aggregate general market information on the internetanonymous and aggregate general market information on the internet. CEGH REMIT Plattform  Central European Gas Hub AG 25
  26. 26. Thank you very much ffor your attention Central European Gas Hub AG 26
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