UEEX was chosen as a trading platform for balancing by the GTS Operator

Today, on June 14, the GTS Operator of Ukraine LLC announced the results of the tender for the procurement of services for the organization of exchange trade in natural gas. The exchange for the GTS Operator’s balancing actions by trading short-term standardized products has been determined the Ukrainian Energy Exchange LLC.

OGTSU conducted competitive selection according to requirements of Law of Ukraine № 1021-IX dd. 02.12.2020, which made it possible to make sure, that Exchange is not only ensure sufficient opportunities during gas day for the market participants to provide trade and for the GTS Operator to make the proper balancing actions, but also meets requirements of the legislation, which regulate commodity exchanges activities and GTS Code requirements.

Since January of this year, the balancing activities are carried out by OGTSU in accordance with the contract for the provision of balancing services concluded by "Naftogaz Trading" LLC at "Prozorro", and the marginal sale and purchase prices are calculated based on the cost of services provided by Naftogaz with reference to the European quotations and taking into account the contractor’s margin.

From now on, the OGTSU will be able to purchase and sell natural gas on the short-term UEEX market for the purpose of balancing the GTS and to ensure its own economic activities.

UEEX launched a short-term gas market consisting of an within-day market and a day-ahead market last fall, and already now this direction of exchange trading is effectively used for trading and balancing by participants.

"The implementation of GTS balancing by means of a trading platform is the target model envisaged by the EU Regulation No. 312/2014. In accordance with European legislation and practice, GTS operators should contribute to the development and liquidity of short-term gas markets by their participation there, for the purpose that marginal prices are formed on the basis of real market pricing. LLC GTS Operator of Ukraine in every possible way contributes to the implementation in Ukraine of the European model of balancing and together with the partners within the framework of the signed Memorandum (Secretariat of Energy Community, NEURC, OGTSU, UEEX) are working on the development of the short-term gas market in Ukraine.

However, the market is not created by a few players. To ensure the formation of marginal prices based on the trading platform indicators, the trading platform must ensure high liquidity and concentration of participants. The Ukrainian Energy Exchange invites everyone who has not yet joined the short-term UEEX market to jointly create the market," - said Inna Shcherbyna, Deputy Chairman of the Exchange Committee of the Ukrainian Energy Exchange.