Powernext Gas Spot new volume record in April 2010

Powernext Gas Spot new volume record in April 2010
Significant liquidity increase on Powernext Gas Spot in April 2010.

Increasing volumes:

Volumes traded on Powernext Gas Spot have again increased significantly in April with 1 196 GWh traded compared with 643 GWh in March. A new volume high since the launch of the gas exchange was also recorded in April, thus confirming the growing dynamism of the spot market since November 2008.

“A very distinct threshold had been reached in December 2009 as a strong concentration of liquidity was achieved due to the start of GRTgaz’s balancing interventions on Powernext Gas Spot. These very good results were confirmed all along the first quarter, especially with several new counterparties starting trading on the market. In April, which marks the beginning of the gas summer season, we have reached a new level as traded volumes have almost doubled compared with those of March”, comments Richard Katz, Powernext’s Sales & Communication Director.

In this favorable context, and following the conclusions of the “Concertation Gaz” (Gas Concertation working group) validated by the French regulator CRE on 15 April 2010, GRTgaz which, until now, contributed approximately 9 GWh per day, has increased the size of its daily balancing interventions by more than 40% since 1st May. The transportation system operator had indeed a market share of 6% in April and this volume increase thus remains coherent with the development of the liquidity, and without any risk of disturbance for the market.

“We are very pleased to see that the service provided by our exchange is more and more appreciated by the market participants, creating a fast growing pool of liquidity which in turn leads to robust spot price references in the French PEGs (Gas Exchange Points).”, comments Jean-François Conil-Lacoste, Powernext’s CEO.

Since the beginning of the year, 7 new counterparties, including A2A Trading S.R.L., Altergaz, Endesa Trading SAU, Enovos Luxembourg S.A., ExxonMobil Gas Marketing Europe Limited, and Gunvor International B.V., have started trading on Powernext Gas, bringing the overall number of members up to 31. Upcoming starts will be announced shortly.

The increasing trend of the traded volumes confirms Powernext Gas Spot’s leading position among gas organised markets in Continental Europe.

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. Powernext Gas Spot also allows the Transmission System Operator GRTgaz to progressively cover parts of its daily balancing needs through direct interventions on the market since 1st December 2009. 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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