ENTSOG Gas Regional Investment Plan South 2017 - Main Report

5.3.4 EVOLUTION OF GAS HUBS OF THE SOUTH REGION

As it has been previously remarked, Organised Gas Market in the Iberian Peninsula is a recently-created market and needs more time in order to develop and increase its liquidity. It can be observed how the PVB and TRS converge with mature European markets during some periods of the year, whereas divergent trends can be observed from the last quarter of 2016.

€/MWh

40

35

30

25

20

15

10

5

0

Aug 14

Oct 14

Jan 15

Mar 15

Jul 15

Oct 15

Jan 16

Mar 16

Jul 16

Oct 16

Jan 17

PEG NORD

TRS

TTF

PVB

Figure 5.9: Day-ahead European hubs prices in South region (Source: Platts,Bloomberg, ICIS Heren and own elaboration)

Due to the low level of transactions and traded volumes in the PVB and the fact that MIBGAS has been created in December 2015, the reference price cannot be considered as significant as in other more mature markets, however, it is a first public reference in the price. It is important to highlight the increase of European hub prices in the last quarter of 2016 and beginning of 2017, unusually steep for the South Region market.

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