Important agreement inked on Balkan Gas Hub

Oil&Gas Materials 19 November 2019 11:19 (UTC +04:00)

BAKU, Azerbaijan, Nov.19

By Leman Zeynalova – Trend:

Trayport Limited (Trayport), a wholly owned subsidiary of TMX Group, and Balkan Gas Hub EAD, a Bulgaria based commodities and derivatives OTC and exchange market operator, today announced an agreement for the implementation of Trayport‘s Exchange Trading System (ETS) for Balkan Gas Hub trading, Trend reports with reference to Trayport.

‘We are pleased that Balkan Gas Hub has chosen Trayport for the launch of the first Bulgaria based liquid physical and gas trading hub,’ said Richard Everett, Chief Operating Officer, Trayport. ‘We are committed to supporting the growth of energy trading markets globally, and Balkan Gas Hub will now join the growing list of over 40+ brokers and exchanges that our network supports. We look forward to working towards a successful implementation.’

‘The launch of the new gas market is an important milestone in the development of energy trading in Bulgaria,’ said Kiril Ravnachki, Executive Director, Balkan Gas Hub. ‘We wanted to capitalise on Trayport’s significant experience and needed a provider with proven technology. The new platform aims to bring together many participants in gas trading, including those from the wider region, and we expect this initiative will deliver the long term benefits already experienced in other markets.’

Balkan Gas Hub will initially introduce OTC and exchange contracts that best fit the needs of Bulgarian market participants. This includes short term standardised products according to the Network Code for balancing and standardised OTC long term contracts (month, quarters, season, calendar and multiple calendar). A template Master Agreement for gas delivery to serve the needs of the Bulgarian market will be also available as an option for any OTC trading market participants.

Contracts planned for launch include:

Gas release programme (GRP service)
Short term segment (cleared)
Short term segment (non-cleared/ with credit matrix)
Long term futures segment (cleared)
Long term futures segment (non-cleared/ with credit matrix)

Balkan Gas Hub will be consulting with market participants and the Bulgarian NRA as we work towards a go-live date at the start of 2020.

Trayport is the primary network and platform for European wholesale energy markets. Trayport limited is a wholly-owned subsidiary of TMX Group Limited (TMX Group).

Balkan Gas Hub ЕAD will operate a trading platform servicing the needs of the natural gas markets within the Balkan gas hub. In synergy with the physical infrastructure, the prerequisites required for establishment of the first, Bulgaria based, liquid trading gas hub in the South Eastern Europe region will be provided. The company would contribute to the increase in liquidity of the natural gas market in Bulgaria and the region of South Eastern Europe. The portfolio of products is consisting of Gas release program segment contracts, short term OTC and cleared contracts, and long term OTC and cleared contracts.

Bulgaria says that the Balkan Gas Hub would also transit and trade gas volumes from the Southern Gas Corridor and potential liquefied natural gas (LNG) sources. Bulgaria has secured one billion cubic meters a year of natural gas from Azerbaijan starting in 2020, while the main link to the Southern Gas Corridor, the Interconnector Greece-Bulgaria (IGB) is progressing well.


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