Gas exchanges and TSOs commit to developing integrated SEE gas market
Date: July 21st 2021
Author: Tanja Srnovršnik
The Energy Community Secretariat, gas exchanges and TSOs from six countries in south-eastern and eastern Europe signed a memorandum of understanding on Wednesday aimed at developing an integrated regional gas market, said the Secretariat.The memorandum was signed by the Romanian, Ukrainian, Polish and Hungarian energy exchanges (BRM, UEEX, TGE and Ceegex), and the Moldovan, Ukrainian, Hungarian and Polish gas TSOs (Moldovatransgaz, GTSOU, FGSZ and Gaz-System).
“The signatories aim to cooperate on the development of cross-border natural gas trading, eg on exchange platforms, and introduce transparent and competitive interregional market-based pricing mechanisms and efficient cross-border gas transmission and interoperability,” said the Secretariat in a press release.
The Energy Community Secretariat launched the South East and East European Gas (SEEGAS) initiative at the end of last year. Its aim is to bring together the different gas market stakeholders in these regions in order to analyse and see how they can all work together in order to achieve an integrated SEE gas market.
At that time, Gregor Weinzettel, an expert on gas at the Secretariat, told Energetika.NET that although the Secretariat was not developing a gas trading platform, this initiative could result in existing regional exchanges cooperating and launching a Pegas-style platform, where gas contracts from different regional markets could be traded. However, there are still many barriers to developing gas trading liquidity and clear market signals in the region, with one of the biggest being possible government interventions.
A key role of the Energy Community Secretariat is to assist non-EU countries in SEE in their adoption of EU energy legislation and the aim of this new memorandum is “to create prerequisites for the functioning of a competitive liquid SEEGAS market and to ensure unhindered access to the respective natural gas markets for all market participants and service providers on a non-discriminatory basis and on equal terms in accordance with the EU acquis,” said the Secretariat.
“It also aims to facilitate cooperation on the implementation of an effective commodity clearing system for natural gas transactions that is in line with best European practices,” added the Secretariat.
“With the growing impact of Southeast and East Europe on the world’s natural gas trade, the SEEGAS initiative can bring a new concept to the region, as well as a great platform to develop price signals, transparency and liquidity,” said Daniel Garai, CEO of Ceegex. Meanwhile, Gabriel Purice, CEO of BRM, is convinced that “in a short time, solutions will be developed to facilitate cross-border gas flows and to create a functional regional market.”
The Secretariat added that the memorandum is open to the idea of any active exchange or TSO in the SEEGAS region joining the initiative at a later stage.