Beginning of the Organised Natural Gas Market in Portugal

• MIBGAS AND REN, AS OPERATOR OF THE IBERIAN MARKET AND GLOBAL TECHNICAL MANAGER OF THE NATIONAL NATURAL GAS SYSTEM (SNGN), RESPECTIVELY, COMPLETED THE ACTIVITIES NECESSARY FOR THE IMPLEMENTATION OF THE NATURAL GAS MARKET IN PORTUGAL

• AGENTS SEEKING TO TRADE IN PORTUGAL MUST SIGN THE ADHESION CONTRACT TO THE PORTUGUESE MARKET RULES AND BE AUTHORISED BY REN, HAVING ACQUIRED THE STATUS OF MARKET AGENT

• THE OPERATOR OF THE IBERIAN GAS MARKET ALREADY INCLUDES IN ITS PLATFORM THE NATURAL GAS PRODUCTS WITH PHYSICAL DELIVERY AT THE VTP, THE VIRTUAL TRADING POINT IN PORTUGAL

• WITH THE BEGINNING OF TRADING IN PORTUGAL, THE IBERIAN DIMENSION OF MIBGAS BECOMES A REALITY, REPRESENTING A DECISIVE STEP FORWARD IN CONSOLIDATING THE PLATFORM AS A REFERENCE HUB IN SOUTHWEST EUROPE

The Organised Gas Market, managed by MIBGAS, began the trading of natural gas products with physical delivery in Portugal today, at the VTP (virtual trading point). The Transmission System Operator, REN-Gasodutos, as the Global Technical Manager of the National Gas System (SNG), and MIBGAS, the Operator of the Iberian Natural Gas Market, published, at the end of October 2020, a joint schedule of activities seeking the implementation of the organised gas market in Portugal, which are concluded today with the launch of the products with physical delivery at the VTP on MIBGAS's platform.

MIBGAS's entry in Portugal is an important step for the development of the Iberian natural gas market, contributing not only to the increase in the level of competition and trading transparency, but also to the increase in the number of participants and to the liquidity of the gas market. It will also enable the Transmission System Operator to buy and sell gas on an organised market for the balancing actions necessary to the residual balance of the transmission network.

MIBGAS is already a solid price reference in the Spanish market, and the goal is to make it a reference at the Iberian level, providing transparency to the prices of the natural gas traded in the Iberian Peninsula, making them known to all stakeholders and thus contributing to fostering competition in the natural gas sector.

With the start of product trading in Portugal, the Iberian dimension of MIBGAS is completed, a decisive step towards its consolidation as a reference hub in Southwest Europe.

The work to ensure the operationalisation of the organised market was carried out jointly by MIBGAS and REN, providing MIBGAS's platform with the services necessary for trading. Thus, procedures and processes have been developed for the incorporation of the Portuguese products and for the correct implementation of the information exchanges necessary for the registration of natural gas purchase and sale transactions in the organised market in Portugal.

Products can be traded on MIBGAS's platform and also through Trayport's Joule portal, as currently happens in the Spanish organised gas market. Trading is voluntary and anonymous through standard products at the European level.

Suppliers and companies interested in trading Portuguese products must sign the Adhesion Contract to the market rules in Portugal and be authorised by the Global Technical Manager of the National Gas System (SNG). These rules were approved and published by ERSE, the Portuguese Regulatory Authority, through Directive No. 14/20 of 30 September 2020. 

In Portugal, trading starts today with intraday, daily, and weekend natural gas products. At a later date, the monthly and rest-of-month products will be added, which will be settled through Portuguese clearing house OMICLEAR.