OREANDA-NEWS. September 09, 2015. Gazprom Export begins the bidding for gas supply to Europe. Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Elena Burmistrova, Director General of Gazprom Export launched the bidding with a solemn ceremony by striking a symbolic bell.

The bidding will last four days, from September 7 to September 10. 127 lots with the total volume of 3.24 billion cubic meters will be presented to the bidders. The gas will be supplied during the 2015/2016 winter period to several delivery points in Northwestern Europe, at the choice of the potential customers.

“The European gas market permanently changes and, responding to its challenges, we want to test the new gas trading tool and see what benefits it can deliver to sellers and buyers,” said Alexander Medvedev.

This new selling techniques will be used in addition to the long-term contracts, which provide energy security in Europe.

Background

The auction for 3.2 billion cubic meters to be supplied during the 2015/2016 winter period was announced by Gazprom Export on July 31, 2015. On August 14 the prequalification stage was completed. 39 companies have successfully qualified in the mentioned procedure.

On each day of 7, 8, 9 and 10 September, three rounds of bidding are held. In each round, the bidders receive information about the number of lots available in the current round, and the minimal price. During 30 minutes the bidders are expected to present their bids that include price, desired volume (number of lots) and the product chosen (A, B or C).

Products offered:

  • Auction A – 48 lots of 60 MW/h each at the Greifswald/NEL delivery point with optional VP/Gaspool delivery point for buyers for the supply period from 1 October 2015 to 31 March 2016;
  • Auction B – 57 lots of 60 MW/h each at the Olbernhau II delivery point with an option for buyers to purchase entry capacity to the Czech gas transmission network from Gazprom Export for the supply period from 1 October 2015 to 31March 2016;
  • Auction C – 22 lots of 60 MW/h each at the Greifswald/OPAL delivery point (exempted capacities). The associated OPAL capacities with the exit point at Brandov can be purchased from the network operator for the supply period from 1 October 2015 to 31 March 2016.