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PEGAS launches ZTP monthly gas price index

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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.

Traded volumes nominated on ZTP rose with 54 per cent 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.
Compared to sourcing gas at trading places in neighbouring countries, the ZTP option has shown to be more advantageous for approximately 85-95 per cent 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.

The addition of the publicly 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. 

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