PEGAS ZTP monthly gas price index attractive new option for end users and suppliers in Belgium

PEGAS ZTP monthly gas price index attractive new option for end users and suppliers in Belgium
PEGAS ZTP monthly gas price index attractive option for end users and suppliers

14 September 2017 – As liquidity and market depth at the Belgian gas trading place ZTP continues to increase, pan-European gas trading platform PEGAS has launched a ZTP monthly price index. The monthly index offers end users and grid users in Belgium an attractive alternative for currently used price references in gas supply contracts.

Monthly index shows growing ZTP maturity

Traded volumes nominated on ZTP rose with 54% in the first 8 months of 2017 compared to the same period last year. Besides, gas increasingly gets traded through monthly products. ZTP also saw a rise in so-called market maker agreements in which hub customers commit to a minimum number of transactions. This continued increase in liquidity and market depth led PEGAS to launch a monthly price index for ZTP. 

Accurate reflection of gas-to-gas competition in Belgium

Compared to sourcing gas at trading places in neighbouring countries, the ZTP option has shown to be more advantageous for approximately 85-95% of the time over the past 20 months. The monthly index therefore is good news for the market: suppliers and end users now can include the ZTP index in their gas supply contracts to make the gas price more accurately reflect gas-to-gas competition in Belgium.  

Further liquidity build-up expected

The addition of the publically available PEGAS monthly index intensifies the visibility of the ZTP market and is expected to support further liquidity build-up. As the interest in Belgian based indices is likely to increase activity on the PEGAS platform, price formation is set to still improve in accuracy over time. 

About PEGAS

PEGAS is the central gas trading platform of EEX Group operated by Powernext. PEGAS provides its members with access to all products on one single platform and allows them to trade natural gas contracts in the Austrian, Belgian, Danish, Dutch, French, German, Italian and UK market areas. The product range of PEGAS covers spot and derivatives contracts for the major European gas hubs as well as trading in location and time spread products. This setup enables market harmonisation and forms the preferred pan-European natural gas market. www.pegas-trading.com

About Fluxys Belgium

Fluxys Belgium is the independent operator of the natural gas transmission and storage infrastructure in Belgium. Through its subsidiary Fluxys LNG, the company also operates the Zeebrugge liquefied natural gas (LNG) terminal. Fluxys Belgium is a subsidiary of Fluxys, the Belgium-based independent gas infrastructure group active on the European market. www.fluxys.com/belgium

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