European Gas Trading 2012
We estimate that in 2011 around 32,200 TWh changed hands in Europe’s wholesale gas markets. This 17% increase over the previous year is impressive, especially considering that European physical gas consumption fell by over 10% in the same period. Trading activity as a proportion of physical consumption has increased substantially.
This 217 page report offers a comprehensive analysis of the trading market, the brokers and exchanges, EU competition and environmental policy factors, top industry players, and more. The market’s dimensions and trends are profiled in 51 tables and 41 charts. The report is structured as follows:
Chapter 1 – European Gas Markets Profile: This chapter reviews the supply and demand fundamentals of the European gas market and places it in a global context. It considers gas reserves, production, consumption, imports and exports, and covers the growing importance of LNG as a source of supply. It also assesses the sources of seasonal flexibility within the European gas system, and the relative importance of production flexibility and storage. European figures refer to the 27 EU countries (excluding Cyprus and Malta, which have no natural gas industry) plus Norway and Switzerland.
Chapter 2 – Gas Market Infrastructure: This chapter provides an overview of European gas infrastructure policy, planning and project funding initiatives. It reviews existing and planned gas infrastructure, including import and transit pipelines, regional interconnections, LNG import terminals and storage facilities.
Chapter 3 – Regulation: This chapter outlines the legislative and regulatory framework within which European gas trading occurs. It introduces the new regulation on energy markets integrity and transparency (REMIT) that came into force at the end of 2011, and the process of developing new European network codes for implementation between now and 2014. It also reviews the main EU directives and regulations that have driven the opening of gas markets to competition, and the bodies and processes associated with them. It concludes with a brief review of the state of liberalisation in Europe’s national gas markets, many of which are still far from fully open and competitive.
Chapter 4 – Trading Activity: This chapter reviews the development of trading volumes, including exchange and OTC activity, at Europe’s gas trading hubs. It highlights recent changes in growth rates at different markets and identifies the markets with the highest trading liquidity. It gives details of the main traded instruments and describes the types of contract that are used in wholesale and retail markets. Recent developments and planned changes in national gas markets are also discussed, and the key characteristics of each major national market are discussed.
Chapter 5 – Trading Markets: This chapter reviews the trading venues for natural gas in Europe, covering the OTC markets, exchange spot and futures trading and cleared OTC trading. It includes a detailed analysis of trading volumes in each of these sectors, and covers the characteristics, key features and performance of the exchanges on which gas can be traded.
Chapter 6 – Physical Trading Practicalities: This chapter reviews some of the important practical and technical issues that are faced by traders involved in physical gas supply in Europe. It assesses the current variety of rules and the planned unified European network codes in areas such as system balancing, capacity allocation and congestion management and quality conversion.
Chapter 7 – Gas Prices: This chapter looks at the ways in which the price of gas in Europe is established and reviews the evolution of wholesale market prices over the past 18 months. It compares market-based pricing with the indexation used in long-term contracts, and discusses the recent rounds of re-negotiations that have weakened the contractual linkage between oil and gas prices.
Chapter 8 – Market Participants: This chapter provides profiles of the major physical gas traders (including producers and suppliers) in the European gas market. It also profiles the main trading companies, and assesses the roles and importance in the markets of physical gas traders, commodity trading companies, banks and other participants. It reviews the main brokers active in the market, and lists recent mergers and acquisitions involving European gas companies.
Chapter 9 – Definitions and Conversion Factors: This chapter explains the units, unit conversion factors and currency conversions used in this report.
Back to top
This 217 page report offers a comprehensive analysis of the trading market, the brokers and exchanges, EU competition and environmental policy factors, top industry players, and more. The market’s dimensions and trends are profiled in 51 tables and 41 charts. The report is structured as follows:
Chapter 1 – European Gas Markets Profile: This chapter reviews the supply and demand fundamentals of the European gas market and places it in a global context. It considers gas reserves, production, consumption, imports and exports, and covers the growing importance of LNG as a source of supply. It also assesses the sources of seasonal flexibility within the European gas system, and the relative importance of production flexibility and storage. European figures refer to the 27 EU countries (excluding Cyprus and Malta, which have no natural gas industry) plus Norway and Switzerland.
Chapter 2 – Gas Market Infrastructure: This chapter provides an overview of European gas infrastructure policy, planning and project funding initiatives. It reviews existing and planned gas infrastructure, including import and transit pipelines, regional interconnections, LNG import terminals and storage facilities.
Chapter 3 – Regulation: This chapter outlines the legislative and regulatory framework within which European gas trading occurs. It introduces the new regulation on energy markets integrity and transparency (REMIT) that came into force at the end of 2011, and the process of developing new European network codes for implementation between now and 2014. It also reviews the main EU directives and regulations that have driven the opening of gas markets to competition, and the bodies and processes associated with them. It concludes with a brief review of the state of liberalisation in Europe’s national gas markets, many of which are still far from fully open and competitive.
Chapter 4 – Trading Activity: This chapter reviews the development of trading volumes, including exchange and OTC activity, at Europe’s gas trading hubs. It highlights recent changes in growth rates at different markets and identifies the markets with the highest trading liquidity. It gives details of the main traded instruments and describes the types of contract that are used in wholesale and retail markets. Recent developments and planned changes in national gas markets are also discussed, and the key characteristics of each major national market are discussed.
Chapter 5 – Trading Markets: This chapter reviews the trading venues for natural gas in Europe, covering the OTC markets, exchange spot and futures trading and cleared OTC trading. It includes a detailed analysis of trading volumes in each of these sectors, and covers the characteristics, key features and performance of the exchanges on which gas can be traded.
Chapter 6 – Physical Trading Practicalities: This chapter reviews some of the important practical and technical issues that are faced by traders involved in physical gas supply in Europe. It assesses the current variety of rules and the planned unified European network codes in areas such as system balancing, capacity allocation and congestion management and quality conversion.
Chapter 7 – Gas Prices: This chapter looks at the ways in which the price of gas in Europe is established and reviews the evolution of wholesale market prices over the past 18 months. It compares market-based pricing with the indexation used in long-term contracts, and discusses the recent rounds of re-negotiations that have weakened the contractual linkage between oil and gas prices.
Chapter 8 – Market Participants: This chapter provides profiles of the major physical gas traders (including producers and suppliers) in the European gas market. It also profiles the main trading companies, and assesses the roles and importance in the markets of physical gas traders, commodity trading companies, banks and other participants. It reviews the main brokers active in the market, and lists recent mergers and acquisitions involving European gas companies.
Chapter 9 – Definitions and Conversion Factors: This chapter explains the units, unit conversion factors and currency conversions used in this report.
Back to top
European Gas Trading 2012
Download the report summary & order form
Other Useful Reports
Related reports:
Bookmark with: