MIBGAS registered the lowest gas natural prices of Europe during November and December (press release).

MIBGAS registered the lowest prices in the European markets during various sessions of the last two months. MIBGAS prices were below the Dutch TTF prices, which are the price reference most used in Europe. During the last two months MIBGAS were the most competitive prices, being correlated with the rest of European markets. This trend started from the beginning of the year.

In fact, on November 2nd, the MIBGAS Day-ahead price reached 8€/MWh, its historical minimum due to different factors combination: low demand, high entry volume in Algeria and high storage level of LNG in the regasification plants.

The combination of oversupply and low demand, that press prices bearishly, reoccurred last week in the Spanish market. It made MIBGAS prices the most competitive in Europe again. On December 19th, the MIBGAS Day-ahead price was 10.21€/MWh while the Dutch TTF price was 12.90€/MWh reaching the largest price difference favorable to MIBGAS of December (-2.69€/MWh) and the third of this year.

Futures market

Not only a remarkable bearish trend exists in the short-term market but also the MIBGAS Derivatives futures market shows an average 2020 anual price around 15 €/MWh and highly correlated with the Dutch market.

On October 1st, the Quarter Ahead product (delivery during 2020 Q1) was traded at 20.65 €/MWh. On December 19th, this price fell 30% and reached 14.58 €/MWh, almost 0.5 €/MWh below the European reference price (TTF).

Other remarkable fact is that, for the first time, the MIBGAS Year Ahead product quoted at a price lower than the European reference. On December 18th and 19th, the MIBGAS Year Ahead price was cheaper than the TTF price (12/18/2019: MIBGAS 15.00 €/MWh, TTF 15.10€/MWh; 12/19/2019: MIBGAS 15.06 €/MWh, TTF 15.23€/MWh). This fact shows that the prices transparency brought by MIBGAS has changed the market context: now the Spanish market is not only aligned with the European markets, but it is also cheaper for the beginning of 2020.

Currently The Iberian Gas Market has 105 participants. A total of 51.8 TWh has been traded from January to November this year, which doubles the total volume registered in 2018 (26.3 TWh). MIBGAS offers from spot and prompt products up to the Month Ahead product (included) and MIBGAS Derivatives (MIBGAS subsidiary) offers natural gas futures products with physical delivery and LNG products. It also offers the OTC registration service.