Baltic, Energy, EU – Baltic States, Gas Market , Good for Business, Lithuania
International Internet Magazine. Baltic States news & analytics
Thursday, 25.04.2024, 22:33
GET Baltic is expanding regional gas exchange operations to Finland from 2020
By expanding to Finland, GET Baltic will take another step
in establishing a one-stop-shop for natural gas trading in the region. Further
wholesale market integration on the Regional Gas Exchange will improve Finnish
gas market health and enhance the cross-border trading opportunities for the
gas market players, adding up to liquidity, competition and transparency.
GET Baltic is going to offer access to spot and forward
contracts for the Finnish gas market participants, as well as application of
implicit capacity allocation model, also known as integrated trading model,
which will contribute to the price convergence in the region and will make
easier cross-border trading between the Finnish and Baltic gas markets.
Registration process for the Finnish market area will be launched in September
2019.
”The best way for the Finnish-Baltic gas market to
achieve effectiveness and value for gas consumers is by integrating their
natural gas markets and creating regional trading opportunities. Regional
trading platform further geographical development will create favorable
conditions for new gas market players to enter the open Finnish gas market.
This will result in higher gas market liquidity, more transparency and reliable
price index for the Finnish gas market”, says GET Baltic Chief
Business Development Officer, Gintaras Buzkys. According to him, with this step
GET Baltic is seeking to achieve one of its strategic goals – by creating
innovative solutions to promote the development of the regional wholesale natural
gas market.
GET Baltic was established in 2012 in Lithuania, company is
a part of energy transmission and exchange group of companies – EPSO-G.
Effective organization is run by experts in energy trading, commodity markets,
IT projects management, EU regulation, international business development, risk
management and other relevant business fields. To run the trading platform
company is using services of Finnish contractor Hansen Technologies Finland Oy,
which is one of the leading IT software solutions developer for energy
utilities in Scandinavia.
Using experience through the years of operation and
willingness to contribute to the common development of the Baltic Natural Gas
Market, in 2017 GET Baltic established Latvian and Estonian market areas and
became regional Baltic Gas Exchange. Moreover, the Company took other important
step – started providing innovative short-term cross-border implicit capacity
allocation service for the TSOs, which integrated trading between the Baltic
States.
The number of participants of Regional Gas Exchange and
transactions concluded on different market areas are constantly growing. All
leading energy supply and trading companies from the Baltic States, as well as
international commodity traders are active on the Exchange, which together with
market makers ensures sufficient liquidity and continuous trading in all the
market areas of the Baltic Gas Exchange.
Value of Regional Gas exchange for the Finnish – Baltic
Gas Market:
§ Market integration and convergence of prices
§ Higher liquidity and market attractiveness
§ Higher number of supply sources
§ Lower market concentration
§ Higher level of transparency