ENTSOG Gas Regional Investment Plan South 2017 - Main Report

5.1 Descriptions of Hubs

The South Region has three organised gas markets: PEG Nord and TRS in France and PVB in Spain. Both French gas markets are operated by Powernext, whereas, the Spanish market, PVB, is operated by MIBGAS.

5.1.1 IBERIAN GAS MARKET

The Organised Gas Market in Spain has been stablished in December 2015, with the creation of a platform for trading gas products (MIBGAS) to be delivered at the Spanish Virtual Balancing Point (PVB) for different time horizons, and the designation of MIBGAS as the Organised Gas Market Operator. In accordance with Spanish regulation, operational, cushion and heel gas is acquired at MIBGAS trading platform. Additionally, gas for balancing auctions is purchased or sold at MIBGAS trading platform. The different gas products that can be currently traded at MIBGAS are: within-day, day ahead, month ahead and balance of month product. As MIBGAS is an emerging market with a relatively short run, the number of agents authorised for trading gas and traded volumes are still increasing day by day. Until January 2017, 45 agents have been registered on the Organised Gas Market. With the objective of increasing the liquidity of the market, GUNVOR international B. V. Amsterdam has initiated, on a voluntary basis and for limited volumes, its activity as a Market Maker in the Organised Gas Market since January 2017.

PEG Nord

PVB

Figure 5.1: Gas Hubs and market operators in the South Region

5.1.2 FRENCH GAS MARKET

The PEG Nord hub (“Point d’Échange de Gaz”) is the largest of the two trading regions in France. The TRS hub (Trading Region South) was launched on 1 April 2015. It is the product of the merger between the PEG Sud and the TIGF trading regions in the South of France, and is one of the first cases of successful market integration between gas hubs. The TRS was established with the aim of increasing the liquidity and depth of the southern French market. It is also part of a comprehensive plan overseen by the French National Regulator (CRE) to establish a unified trading zone for France in 2018. PEG Nord and TRS constitute two balancing areas for shippers. PEGs allow both for a bilateral over-the-counter exchanges as well as exchanges on Powernext Gas. Different products can be traded at Powernext: within day, day-ahead, month- ahead. On PEG North monthly, seasonal, quarterly and yearly products can be traded up to two years ahead. Around 94 customers are active on both hubs.

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