MIBGAS Derivatives this morning held the first auction at the request of one of its agents which involved the purchase of 109.5 GWh (300 MWh/day) of natural gas for the year 2023 in the Spanish gas system: Cal23 (Y+1) product at the VBP. This has allowed the agent that requested that MIBGAS Derivatives hold the auction to secure the supply of this volume of natural gas over the next year through a competitive market mechanism.
Auctions on request is a new service launched by MIBGAS Derivatives, which thus expands its range of products and services in order to respond to the concerns and needs of its agents.
On this occasion, the first purchase auction was held on 21 December between 11:30 a.m. and 12 noon, in the PVB market session and for the product Cal23 (Y+1).
Flexibility to schedule purchases or sales
This new MIBGAS Derivatives tool offers flexibility to its agents in scheduling their purchases or sales by holding an auction on the MIBGAS platform for any future physical, non-financial natural gas or liquefied natural gas (LNG) product.
This new service is also intended to be beneficial for the purchase and sale of LNG, since, due to its physical characteristics, transfers of ownership of liquefied natural gas can involve significant volumes of energy.
The result of the auction, in this case, is settled through the MIBGAS central counterparty clearing house (OMIClear). This means that the clearing house acts as a central counterparty and settles transactions: clearing, between buyer and seller(s).
There is also the additional option, if required by the agent initiating the auction, of legally materialising the auction result through bilateral contracts, without the intermediation of the central counterparty. For this purpose, a Master Services Agreement (MSA) between the parties needs to be signed in advance.
In short, with this new service, the Iberian market operator provides another tool for users of the gas system so they can voluntarily choose the option that best suits their needs for buying or selling natural gas or liquefied natural gas.