PEGAS ZTP monthly gas price index attractive new option for end users and suppliers in Belgium
Monthly index shows growing ZTP maturity
Traded volumes nominated on ZTP rose with 54% in the first 8 months of 2017 compared to the same period last year. Besides, gas increasingly gets traded through monthly products. ZTP also saw a rise in so-called market maker agreements in which hub customers commit to a minimum number of transactions. This continued increase in liquidity and market depth led PEGAS to launch a monthly price index for ZTP.
Accurate reflection of gas-to-gas competition in Belgium
Compared to sourcing gas at trading places in neighbouring countries, the ZTP option has shown to be more advantageous for approximately 85-95% of the time over the past 20 months. The monthly index therefore is good news for the market: suppliers and end users now can include the ZTP index in their gas supply contracts to make the gas price more accurately reflect gas-to-gas competition in Belgium.
Further liquidity build-up expected
The addition of the publically available PEGAS monthly index intensifies the visibility of the ZTP market and is expected to support further liquidity build-up. As the interest in Belgian based indices is likely to increase activity on the PEGAS platform, price formation is set to still improve in accuracy over time.