The outcome of the auction is an average weighted price per SBU of €4.86 ($5.3)
Image: ICE Endex announces results of European Gas Storage auction for GasTerra. Photo: courtesy of georgiusevenson from Pixabay.
Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced the results of the ICE Endex gas storage auction held on November 27, 2019, on behalf of GasTerra.
A total of 3,392,168 Standard Bundled Units (SBUs) for the contract period 2020/2021 were offered to the market and after five auction rounds, all SBUs were allocated. The outcome of the auction is an average weighted price per SBU of 4.86 EUR.
ICE Endex has successfully operated auctions for virtual gas storage services in the Netherlands since 2011, with auctions taking place twice a year.
Gas storage services are sold in the form of “standard bundled units” (SBUs), which allow market participants to inject or withdraw gas from a virtual storage facility. An SBU has a capacity of 1,440 kWh and participants may withdraw between 0.6 and 1.0 kWh per hour and inject up to 0.3333 kWh per hour. The total annual gas storage space is almost 10 billion kWh of natural gas or 6,784,336 SBUs. The natural gas from this virtual storage is delivered at the Title Transfer Facility (TTF). TTF is the most liquid European natural gas benchmark, followed by ICE’s UK Natural Gas Futures. TTF Futures and Options volume is up 102% year to date versus last year to date. Open Interest in TTF Futures hit a record 1,246,942 lots on November 22, 2019, as TTF transforms into a global natural gas benchmark.
As a leading energy exchange in continental Europe, ICE Endex provides transparent and widely accessible continental European markets for trading natural gas and power derivatives, gas balancing markets and gas storage services.
Source: Company Press Release