5 Years of the Gas Exchange Market

5 Years of the Gas Exchange Market

•    On 20 December 2017, Towarowa Giełda Energii (TGE) celebrates 5th anniversary of its gas exchange market.
•    The volume traded on the spot and forward markets in the years 2012-2017 reached 469.8 TWh.
•    Currently, there are 111 active players operating on the gas exchange market.

On 20 December 2017, Towarowa Giełda Energii (TGE) celebrates 5th anniversary of its gas exchange market. The gas exchange which has been in operation for 5 years now is the evidence of the notable progress of the gas market transformation in Poland. It provides a secure and transparent mechanism for the creation of the fundamental market driver, i.e. the price, as well as clear and non-discriminatory conditions for the access to and participation in the market. The exchange has contributed something that had been lacking before, i.e. a point of reference for all the market participants. Thanks to the concentration of trade at a single point, the free market forces may come into play.

“The gas market in Poland, since the foundation of the Energy Regulatory Office, has been one of the key focus areas for the Regulator. Definitely, the launch of the gas market at TGE was a milestone step in the development of the market.
It should be noted that the public trading obligation guarantees the liquidity of the wholesale market and the competition in retail market may also be driven by the supply of gas from the exchange. For the President of ERO as the gas market regulator whose mission is to create the balance between energy companies and final consumers, including households, competition is a crucial element, which is largely driven by the difference between wholesale and retail prices. Therefore, the President of ERO is actively engaged in the development of the commodity exchange market in Poland.
As the President of ERO, I wish the gas exchange operated by TGE, as a close partner of the Polish regulator of the electricity and gas markets, further growth of this market segment which is an essential feature on the economic map of Poland” – said Maciej Bando, President of the Energy Regulatory Office.

In 5 years, the gas exchange has become an important and integral element of the natural gas market in Poland. It is a place which guarantees secure and transparent trade, which is proven by systematically growing volumes. In mid-December 2017, the combined volume of gas trade for the spot and forward markets totalled 136.01 TW, and the cumulative volume in the years 2012-2017 reached 469.8 TWh. The total number of all the transactions executed on the gas exchange since its conception is 244,656.

There is a steady inflow of new participants joining the exchange. In 2014, there were 54 members trading on the gas markets operated by TGE, in December 2017 this number has more than doubled reaching 111 players.

 “For the last 5 years of its existence, the Gas Exchange has proven that it serves the market well. The success of the exchange market is confirmed by the growing number of members and increasing trade volumes. However, this success would have not been possible without the commitment of market participants thanks to whom the exchange plays the role of a liquid wholesale gas trading point in Poland. Their trust is the most valuable asset to us” – said Piotr Zawistowski, President of Towarowa Giełda Energii.

On the occasion of the anniversary, TGE organised a debate titled “The Future of the Gas Market – Growth Prospects for Poland as a Regional Hub”, with the participation of:

Michał Kurtyka - Deputy Minister of Energy, Piotr Woźniak – President of the Management Board of Polskie Górnictwo Naftowe i Gazownictwo, Iwona Ustach – Vice-President of the Management Board of Noble Securities, Małgorzata Kozak – Director, Markets Development and Consumer Matters Department, Energy Regulatory Office, Andrzej Kalinowski – President of the Management Board of the Warsaw Commodity Clearing House and Piotr Zawistowski – President of the Management Board of Towarowa Giełda Energii.

The discussion was centred around the role of the exchange in the process of gas market development and its significance for transaction security. The topic of liquidity development and further concentration of trade at the exchange was also addressed. The debate also included the exchange of views on the question of optimum strategy for the exchange as the regional centre for the reference price development.

Press release (pdf).

Photorelation