Wholesale natural gas spot market launch expected in March

The launch of the wholesale natural gas spot market is now imminent as pending details are being resolved to enable a start expected in March.

RAE, the Regulatory Authority for Energy, has already taken care of the majority of regulatory matters and made further progress yesterday, announcing three further steps.

The authority approved regulations for natural gas trading on the energy exchange. It also approved a decision concerning risk management procedures and the transaction clearing system, as well as product specifications for the exchange’s gas trading platform.

The trading platform will incorporate a day-ahead market with products covering three-day periods, as well as an intraday platform.

The wholesale gas spot market, promising more competitive prices as well as greater transparency, will come as an addition to bilateral contracts, currently the only trading method available for transactions between importers and suppliers, as well as for major-scale consumers, who independently secure gas supply deals for their needs.