Belgian gas transmission system operator Fluxys and energy exchange APX-ENDEX announced their cooperation in developing the new Zeebrugge Trading Point which will be created when Fluxys switches to a new Entry/Exit model for its transmission grid by the end of 2012. APX-ENDEX will provide the exchange services for the new Zeebrugge Trading Point.
The new Entry/Exit model will be fully in line with the objectives of the European Third Energy Package and is to give grid users full flexibility in booking and using capacity in the Belgian grid for the entire range of transmission services. One of the novelties is the creation of the new Zeebrugge Trading Point, a notional trading point on which market based balancing will be introduced. Grid users will be able to buy or sell gas on the APX-ENDEX market for the new Zeebrugge Trading point to balance their gas flows in and out of the network. Fluxys as TSO will also be active on the APX-ENDEX if the overall balance of the network needs to be restored.
APX-ENDEX will be providing the screen-based trading solution to facilitate bids and offers on the new Zeebrugge Trading Point, offering products that accommodate both grid users’ and Fluxys’ needs as TSO.
The APX-ENDEX within-day balancing market will also be used as a stepping stone to further develop liquidity of the Belgian market by introducing a range of longer term contracts in order to meet the needs expressed by the market parties.
Additionally, all spot market trades concluded on the gas exchange for the Zeebrugge Trading Point will be cleared by APX-ENDEX, which considerably reduces the counterparty risk of the exchange participants. The exchange will also enhance transparency of the market through the provision of clear price signals and indices. Robust price indices are a prerequisite for the further development of market based gas pricing in a gas-to-gas competition environment: they can be used as a reference in the pricing of gas for supply to end consumers in Belgium.