Powernext Gas Spot Liquidity Boost in December 2009

Powernext Gas Spot Liquidity Boost in December 2009
Traded volumes on Powernext Gas Spot have more than doubled in December 2009 confirming the growth observed since several months.

A total volume of 706 GWh in 604 transactions has been traded on Powernext Gas Spot in December 2009, which represents an increase of 115% (+378 GWh) compared to November 2009 volumes (328 GWh).

“Spot volumes have been in constant progression over the past 5 months, yet the launch of GRTgaz’s balancing interventions has given a new momentum to transactions on the French market”, comments Jean-Francois Conil-Lacoste, Powernext’s CEO.

Indeed, since 1st December 2009, Transmission System Operator GRTgaz directly trades on Powernext Gas Spot to buy or sell parts of its balancing gas. However, these new volumes only represent a part of the transactions as GRTgaz, who traded 181 GWh in December, is only counterparty for 25% of the trades over the month.

“These interventions have especially enabled the French Within-Day market to soar. The concentration of orders on the screen during GRTgaz’s intervention time slots has created new trading opportunities for our members. We have seen up to 13 000 MWh in the order book for a GRTgaz intervention of 2 750 MWh in Within-Day on PEG Nord”, observes Richard Katz, Powernext’s Sales and Communication Director.

“We are very satisfied with the success of these interventions that contribute to the development of the liquidity on the French Market, and improve the quality and transparency of the price references that are used for the balancing of the GRTgaz’s transmission network”, says Philippe Garnier, GRTgaz’s Chief Strategy & Marketing Officer.

Moreover, since the beginning of 2010, two new members have started trading on the Exchange: Endesa Trading SAU and Enovos Luxembourg S.A., bringing the total number of members connected to the platform up to 26. 

About Powernext:

Powernext SA, incorporated in 2001, manages several complementary, transparent and anonymous energy markets: Powernext Gas Spot and Powernext Gas Futures were launched on November 26, 2008 in order to hedge volume and price risks for natural gas in France from Within-Day to the next three gas seasons. Since 1st December 2009, Powernext Gas Spot also allows the Transmission System Operator GRTgaz to progressively cover parts of its daily balancing needs on the market. EPEX Spot, based in Paris and owned equally by Powernext and by EEX, the German energy organized market, was launched on January 1st 2009 and facilitates, 365 days a year, the hourly balancing of physical power delivered the following day on the French, German/Austrian and Swiss hubs. In April 2009, Powernext contributed the French power derivatives to EEX Power Derivatives, a company dedicated to European power derivatives, based in Leipzig, against a 20 percent equity stake in this company.

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