The market

By means of sundry directives and regulations, the European Council and the European Parliament have laid down the common rules on the creation of the interior market for natural gas in the European Union. Within this context, the European Commission, the Agency for the Cooperation of Energy Regulators (ACER) and national regulators are backing the implementation of the European Gas Target Model.

Following the principles shown in this model, the Organised Gas Market of the Iberian Peninsula - managed by MIBGAS S.A - has a platform for trading in the gas products to be delivered at the Virtual Balancing Point (PVB), at the Virtual Balancing Tank (TVB), at Virtual Balancing UGS (AVB) and at the VTP (Virtual Trading Point) in Portugal for different time horizons.

All shippers, distributors, retailers and direct consumers may buy or sell gas via these products according to their commitments and needs. Likewise, and pursuant to the code on the balancing network, the Technical Manager of the Gas System is to participate in the Organised Gas Market in order to purchase or sell the gas required to enable it to perform its balancing actions and ensure the viability of the programmes.

Within this perspective, the following core concepts define the Organised Gas Market’s operating model:

  • Gas trading, both at the Virtual Balancing Point and at one or more local points.

  • Contracting capacity independently for gas inputs and outputs on the network.

  • Daily balancing of operations.

  • Firmness of trades in the market, with a commitment to deliver.

  • Involvement of the Technical Manager of the Gas System for balancing procedures and ensuring the supply.