New auction in MIBGAS for EMT Madrid to supply gas for its fleet


MIBGAS Derivatives held another auction this morning at the request of the Municipal Transport Company of Madrid (EMT), in which a total of 980 MWh/d at €33.80/MWh were awarded in the PVB market session for the Cal24 product (Y+1). Following the success of the auction held last week, EMT Madrid, in collaboration with Sercomgas, has decided to rely once more on this tool to make its purchases more flexible and thus guarantee a greater part of its supply for the year 2024.

The good results of the auction held last week have led EMT Madrid to consider holding a new one in which the amount of the previous one has almost doubled (980 MWh/d in the one held today compared to 500 MWh/d in the one held last Wednesday).

This new auction denotes the interest in this tool that gives more flexibility to natural gas purchases and supplies, in this case to EMT Madrid, in addition to achieving a competitive and stable price for its supply.

The result of the auction is settled through the central counterparty clearing house of MIBGAS (OMIClear), thus eliminating the risk of bankruptcy of the counterparty.

How an on-demand auction works

Prior to the auction, authorised agents introduce offers on the MIBGAS platform at the time indicated for the auction. After verifying the submitted offers and matching the auction, MIBGAS Derivatives publishes the total matched price and volume on its platform, maintaining the anonymity of the successful bidders.

Next, the settlement process begins, which may be through the central counterparty chamber of MIBGAS (OMIClear). This means that the clearing house acts as a central counterparty and settles transactions: 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.

How to take part

Participating in the auction is very easy; you only need to be registered in MIBGAS Derivatives (in the Auctions segment) and in the OMIClear clearing house; thus, you can request admission to the auction announced by MIBGAS Derivatives and sign the Accession Contract, if you have not already done so.