MIBGAS launches today the trading of liquefied natural gas (LNG) spot products in a single point or virtual tank where all the transactions, that until now were carried out individually in each of the six Spanish regasification plants, will be grouped. This measure greatly benefits traders by increasing their trading possibilities (in fact, the first transaction was performed in the opening session), providing a balancing platform for LNG as well. It also contributes to put in value the regasification infrastructure existing in Spain with plants in Barcelona, Sagunto, Cartagena, Huelva, Mugardos and Bilbao.
From now on, the liquefied natural gas (LNG) storage tanks of each of the Spanish regasification plants join in a single virtual tank, so that the LNG owners do not know the physical location of their LNG.
The implementation of the TVB (Tanque Virtual de Balance in Spanish) is one of the changes included in the new regulation of the Spanish gas system that has been approved this year by the National Commission on Markets and Competition (CNMC).
The implementation and launch of this new trading products in a single virtual point (TVB) from the previous system with the six Spanish regasification plants have been carried out in cooperation with Enagás GTS, the TSO of the Spanish gas system.
Increasing counterparties and liquidity
MIBGAS was a pioneer last year launching LNG spot products in all Spanish plants, becoming the first exchange listing this kind of products. With the launch of TVB, market participants of MIBGAS Derivatives (a subsidiary company of MIBGAS in charge of negotiating LNG spot products) can now buy and sell LNG regardless of its physical location, which considerably increases the number of counterparties and the liquidity of this market. In this way, MIBGAS creates a LNG trading hub that is unique in the world.
With this type of product, MIBGAS expects to continue contributing to the increase of liquidity and transparency in the European LNG market by publishing a transparent price in Spain resulting of the exchange of LNG based on physical trades.
MIBGAS currently has a total of 115 registered market participants. Spot products are traded on its platform including the Month Ahead product (M+1). Natural gas physical futures and LNG spot products are traded on MIBGAS Derivatives -a subsidiary of MIBGAS-, which also offers the OTC registration service for clearing in OMIClear.