European Wholesale Gas Markets

  • DATAMONITOR VIEW
    • Catalyst
    • Summary
    • Sources
  • ANALYSIS
    • Wholesale gas hub development will lead to further competition, enhanced security of supply, and greater market efficiency
      • The EU continues to strive for greater competition by promoting a single integrated wholesale gas market
      • The market's traditional pricing mechanisms present obstacles to competition
      • The development of wholesale hubs and more gas-on-gas pricing will lead to greater security of supply
    • Traded volumes in European exchange systems
      • The Netherlands
      • Italy
      • Spain
    • Adequate levels of liquidity on wholesale hubs are integral to the development of a competitive European gas market
      • The development of wholesale markets tends to follow a preset pattern of distinct stages
      • The wholesale market development cycle gradually builds up enough momentum to spawn the creation of wholesale support services
      • Once sufficient structural factors are in place, the necessary support services required for wholesale market development begin to emerge
      • The market-based factors supporting hub development are crucial elements in facilitating and developing traded markets
      • Wholesale gas markets are required by different players throughout the value chain for different reasons
    • Currently Europe's wholesale gas markets cover the full range of developmental stages
      • Nascent
      • Emerging
      • Established
      • Mature
    • The UK remains the most mature market
      • Europe's current wholesale gas markets cover the full spectrum of segmentation
      • Analysis of churn levels provides an insight into liquidity and wholesale market developments
      • Current levels of churn in individual wholesale markets vary significantly
      • The National Balancing Point's maturity, deep liquidity, and strong volume growth have led to the UK's position as Europe's leading gas market
      • The Zeebrugge Hub remains Europe's second most liquid hub
      • The TTF has experienced remarkable liquidity growth and continues to challenge the Zeebrugge Hub in traded volumes
    • Price efficiency levels in the European wholesale markets show varying ranges of volatility
      • Datamonitor's Deviation Days Index measures price movement ranges and provides insight into price efficiency
      • Levels of volatility in the established markets have been decreasing markedly
    • Other less developed hubs
      • The Central European Gas Hub continues to develop its traded volumes, although it is still limited by its single source of gas supply
      • Europe's emerging wholesale gas hubs continue to expand in both traded volumes and liquidity
      • Europe's nascent markets are seeing renewed impetus towards development
    • The Netherlands
      • Market overview: demand and supply
      • Future supply diversification
      • The role of non-conventional gas
      • Gas infrastructure and storage investment
      • The growing importance of the TTF
      • Changes of note in the TTF
      • Regulation in the Dutch market
    • Major players in the market
      • GasTerra
      • Nederlandse Aardolie Maatschappij
      • Essent
      • Nuon
      • GTS
    • Italy
      • Market overview: demand and supply
      • PSV developments
      • M-Gas, Italy's new exchange
      • Virtual storage program
      • Competition and concentration in the market
      • Regulation
    • Active and major players in the market
      • Eni
      • Edison
      • Enel
    • Iberian Peninsula
      • Market overview
    • Supply diversification through Nabucco
      • Nabucco pipeline
  • APPENDIX
    • Ask the analyst
    • Disclaimer
  • FIGURES
    • Figure: Liquidity in natural gas markets, as defined by the IEA, incorporates four distinct market characteristics
    • Figure: The five distinct stages of wholesale market progression
    • Figure: Wholesale support services emerge as the cycle builds momentum
    • Figure: The interaction between structural and support factors creates a "snowball" effect
    • Figure: The key support elements to wholesale market growth
    • Figure: Different players engage in wholesale trading for different reasons
    • Figure: Market development in Europe
    • Figure: Europe's newer, less developed markets lag far behind the established markets in terms of churn ratios
    • Figure: The NBP remains Europe's most liquid traded wholesale market
    • Figure: Both the TTF and the Zeebrugge Hub have high levels of liquidity and churn ratios
    • Figure: On balance, price volatility on the TTF and the Zeebrugge Hub has remained significantly lower than that on the NBP
    • Figure: Absolute price movements on the TTF and the NBP (£p/th), July 2001–July 2011

Brief

Published by
Datamonitor
Published on
29 May 2012
Product code
EN00066-001
Pages
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