PEGAS, the pan-European gas trading platform operated by Powernext, has launched the European Gas Spot Market Index (EGSI), which will cover all liquid gas spot markets operated by PEGAS.
Along with the launch of EGSI, PEGAS will also harmonise the use of existing indices for the futures market.
The introduction of EGSI will allow market participants to better mirror short-term price developments in their contracts. As a result of the opening and liberalisation of the European Gas markets, the importance of transparent prices determined on supervised exchanges has increased further. The substitution of oil-indexed pricing by gas-hub pricing is proof of the energy sector’s trust in market-based pricing mechanisms. By providing a reliable and transparent pricing index, PEGAS further facilitates this development.
Starting on 5 September 2017, the European Gas Spot Index will be calculated and published by PEGAS for the gas markets of Germany (GASPOOL and NCG), the Netherlands (TTF), France (PEG Nord and TRS), Belgium (ZTP) as well as Austria (CEGH) and Denmark (ETF). Index values will be calculated for each calendar day and weekend under consideration of day and weekend trades executed during the business hours (8 am to 6 pm) on the last exchange trading day before delivery.
“The introduction of EGSI now enables market participants to track price developments also for short-dated gas deliveries within their own trading and contract portfolio based on transparent, supervised and reliable exchange trades,” says Dr Egbert Laege (pictured), CEO of Powernext.
Along with the launch of EGSI, PEGAS will also harmonise the use of existing indices for the futures market. Both the EGIX (European Gas Index) and the PEGAS Futures Monthly Index refer to trades in the front month and will now be published equally for the liquid PEGAS futures market. As a result, corresponding index values will be available for the Gas markets of Germany (GASPOOL, NCG and a virtual German market), the Netherlands (TTF), France (PEG Nord and TRS), Belgium (ZTP), Austria (CEGH) and Denmark (ETF).
Index values for the EGSI, EGIX and PEGAS Futures Monthly Index will be published on each exchange trading day after 6:00PM CET.