Baltic Energy Market Interconnection Plan GRIP 2017

Image courtesy of Energinet.dk

3.1.4 MARKET INDICATORS, SUPPLY AND DEMAND Gaspoint Nordic (the Danish Gas Exchange) was established in 2007. After some years with limited liquidity, the traded volume has increased significantly, and the exchange is regarded among the shippers to be a reliable trading platform with sufficient gas to supply the market. Currently, the price of the day- ahead product at Gaspoint Nordic follows closely the price development at the gas exchanges GASPOOL and NCG in Germany. However, at Gaspoint Nordic, it is only possible to trade short-term products, and the future market is missing. There have been two major market changes helping to boost the liquidity at Gaspoint Nordic. In October 2014, Energinet.dk introduced a new balancing model, which is in line with the European Balancing Network Code. With this change, the shippers became responsible for balancing their deliveries and offtakes when trading at e. g. Gaspoint Nordic. Moreover, Energinet.dk trades at Gaspoint Nordic in case of com- mercial imbalance. This has helped to boost liquidity. In addition, the capacity between Denmark and Germany has been expanded step- wise. This has removed the bottleneck at Ellund (border point to Germany). Today, large amounts of gas enter the Danish gas market – either from the North Sea or from Germany. So, there is enough gas to ensure a well-defined liquid market price. In July 2016, Energinet.dk signed an agreement to sell its 50% shareholding in Ga- spoint Nordic, making the company a full member of EEX Group. Following this change in ownership, the Danish natural gas products currently traded at Gaspoint Nordic will be opened on the PEGAS platform, which is a platform covering most of the European gas exchanges. It is expected that this change will open for an accel- erated market development and an extended product offering.

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BEMIP Gas Regional Investment Plan 2017