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Natural Gas Compensation Auctions

The publication of Regulation (EU) No 312/2014 of 26 March establishing the network code on gas balancing of transmission networks (also called Balancing Network Code) requires new rules for compensation of the National Natural Gas Transmission Network (RNTGN).

That Regulation establishes that, if possible, the transmission system operator shall execute balancing actions through the purchase or sale of short-term standard products on a trading platform. Where the short term wholesale gas market has or is anticipated to have insufficient liquidity or where temporal products and locational products required by the transmission system operator cannot reasonably be procured on this market, a balancing platform shall be established for the purpose of transmission system operator balancing

Therefore, ERSE designated OMIP – Pólo Português S.G.M.R., S.A., as the entity that operates the balancing platform for the procurement of products that enable the actions needed to balance the National Network Natural Gas Transportation (NNNGT) by the transmission system operator.

This assignment has a temporary nature until MIBGAS, the designated trading platform for the short term wholesale gas market starts listing products for delivery in the Portuguese Virtual Trading Point (VTP), for the transmission system operator to procure to procure the mentioned products.

During the period in which OMIP platform keeps operating, the transmission system operator will previously announce the needs of purchase or sale of the balancing products within its procedures for maintaining the network security. All entities holding the status of market participants within the Global Technical Management Procedures Manual of the SNGN (GTMPM) have the possibility to place sell and purchase orders on the platform, in order to cover the needs announced by the transmission system operator.

The auctions will be held on OMIP’s Trayport Platform, used in the derivatives market, fully complying the requirements imposed by the Regulation (EU) No 312/2014:
  • Provides sufficient support throughout the gas day to both the network users to trade in and the transmission system operators to undertake appropriate balancing actions through trade in the relevant short term standardised products;
  • Provides transparent and non-discriminatory access;
  • Provides services on an equal treatment basis;
  • Ensures anonymous trading at least until a transaction is concluded;
  • Provides a detailed overview of the current bids and offers to all trading participants;
  • Ensures that all trades are duly notified to the transmission system operator.