The Ukrainian Energy Exchange, with the support of the Ministry of Energy of Ukraine, the EBRD and the Energy Community, is launching a short-term natural gas market in Ukraine in accordance with European standards.A set of measures is envisaged to be implemented to achieve this goal.

But today the Ukrainian Energy Exchange is making the first long-awaited step - from September 2020 we are launching our trading platform as a service for settling daily imbalances by customers of transportation services.

Oleksii Dubovskyi, Chairman of the Exchange Committee, tells about the instrument provided by the Ukrainian Energy Exchange today and future plans:

“The functioning of the trading platform for the settlement of short-term fluctuations in supply and demand during a gas day and balancing, provided for by the GTS Code and, accordingly, EU Regulation No. 312/2014.

The short-term natural gas markets in the EU began precisely out of the need for balancing and have evolved into well-functioning liquid markets and entire gas hubs. We are starting this process in Ukraine as well.

Now the GTS Operator of Ukraine expresses its active support for the launch of the market, it will also be able to join the auction in order to perform balancing actions as soon as the amendments to the law “On Public Procurement” are adopted, which we expect in the nearest future.

TSOs play an important role in the development of short-term markets. TSO balancing activities should stimulate the short-term market, and the use of instruments other than short-term standardized products slows down the development of market liquidity. The UEEX trading platform, due to separate technical solutions, will provide two services for the market: 1) settlement of daily imbalances by participants, 2) meeting the needs of the GTS Operator in the physical balancing of the gas transmission system.

At the moment, we are launching intraday trading of title products on the Energy Trading Platform, which will allow participants to balance their portfolios. We are making a step towards meeting market participants, since the corresponding amendments to the GTS Code were adopted, which significantly increase financial responsibility for imbalances.

The Energy Trading Platform has a clearing module that performs settlements using escrow accounts, exchange of trade notifications and the results of their processing with the Ukrainian GTS Operator.

The system operates on the principle of a bilateral counter auction based on continuous trading technology, transactions are concluded through matching. Together with the Ukrainian GTS Operator, we are working on launching the next stage in the work of the trading platform - trading in short-term standardized products with the provision of physical entry / exit to / from the GTS in order for the GTS Operator to complete the final balancing of the system. Subsequently, the Energy Trading Platform will be supplemented with physical (location-based) products for the physical settlement of imbalances in the GTS and the ability to trade on a “Day-ahead” basis.

“The strategy of the Ukrainian GTS Operator includes the goal of cooperation in creating a transparent and competitive gas market in Ukraine. We are actively cooperating with the UEEX to launch the market for short-term products, and after the adoption of draft law 3176, the Ukrainian GTS Operator will also be able to become a full-fledged participant in the exchange gas market. "- commenting on the last changes, CEO of OGTSU Sergiy Makogon.

We remind you that the process of accessing the short-term UEX market requires a separate procedure. We invite all transportation customers to gain access to the short-term natural gas market, in order to be able to effectively manage their imbalances. If you have additional questions and in order to undergo training on how to work in the Energy Trading Platform, please call: 044 35 35 735.