Ukrtransgaz will cooperate with French Powernext to develop exchange trade in gas
PJSC Ukrtransgaz and Powernext (France) intend to cooperate in the creation of spot and futures exchange markets for gas trading in Ukraine, the company's press service has said, with reference to the signed memorandum.
"For Ukrtransgaz, this is another step towards integration with European gas transportation operators, a further development of the gas market in Ukraine," the report said.
According to the press service, Powernext is the provider of the pan-European gas trading platform PEGAS, which allows market participants to sell natural gas at 12 hubs in nine countries. Today it is the main trading platform for natural gas sales in Europe. After establishing cooperation with the Central European Gas Hub (CEGH) in 2016 and integrating the Czech gas pipeline into the PEGAS platform in December 2017, Powernext began to integrate into Eastern Europe.
Ukrtransgaz notes that the main obstacle to the development of exchange trade in Ukraine is a lack of modern information systems and clearing mechanisms, which are designed to guarantee the execution of transactions concluded on the exchange and minimize counterparty risks. At the same time, the country needs to apply market mechanisms for introducing the daily balancing regime and further development of exchange trade in gas.
PEGAS is a pan-European gas trading platform. It is part of EEX Group operated by Powernext. PEGAS provides its members with access to all products on a single platform and allows them to trade in natural gas contracts in the markets of Austria, Belgium, Denmark, Holland, France, Germany, Italy, the Czech Republic, and the UK.