Trading Hub Europe (THE): Project partners sign comprehensive package of contracts for the joint German gas market area
THE market area to start on 1 October 2021
Berlin/Ratingen, 22 April 2021 · On 21 April 2021, the cooperation contract, which provides for the merger of the two gas market areas GASPOOL and NetConnect Germany to form the Trading Hub Europe (THE) market area, was signed in Berlin.
Since November 2017, the transmission system operators (TSOs) have been working on the details of the new nation-wide market area, which is to become one of the most attractive and liquid gas trading hubs in Europe. "The signing of the cooperation agreement marks a major milestone in this project. We now have a sound basis for the new joint THE market area, which will start trading on 1 October 2021," said Jürgen Fuhlrott from the project team.
In addition to the cooperation contract, the contracts for the merger of the two market area managers GASPOOL Balancing Services GmbH and NetConnect Germany GmbH to form Trading Hub Europe GmbH were also signed. After entry in the commercial register, Trading Hub Europe GmbH will take over management of the GASPOOL and NetConnect Germany market areas until 1 October 2021 and subsequently become the operator of the new THE market area from 1 October 2021.
Intensive work is currently underway to push ahead with the operational implementation of the new market area. This work has included extensive IT system upgrades, which will undergo thorough testing over the coming weeks. "We are looking forward to the launch of THE with a great deal of confidence. The close cooperation of the TSOs and the market area managers has allowed us to take today’s step," said Bianca Dittmann, another member of the project team. "The continuous and constructive dialogue with the market participants and the Federal Network Agency has also been a key success factor.".
THE will benefit shippers and end users, network operators and balancing group managers alike. Due to its central location in the heart of Europe, the new Germany-wide market area will act as an international hub linking other European gas markets.
Trading Hub Europe GmbH will operate from its two offices in Berlin and Ratingen. The launch date for the nationwide market area is 1 October 2021. The high-pressure pipeline network in the new market area will have a total length of around 40,000 km and connect more than 700 downstream networks.
The market area manager’s responsibilities will include balancing group management, operation of the virtual trading point and the procurement of balancing gas for the new market area. In GY 2019/20, the virtual trading points of GASPOOL and NetConnect Germany registered transactions totalling 3790 terawatts of natural gas and 24 terawatts of biogas. Trading Hub Europe will serve approx. 600 balancing group managers.
Thus, Trading Hub Europe will ensure the operation of the joint market area and make an important contribution to the security of natural gas supplies in Germany and Europe.
(Press release as pdf-Document)
The initiative – GET H2
Appeal before the Federal Supreme Court
GRTgaz Deutschland lodges a legal appeal against the establishment of REGENT & AMELIE before the Federal Supreme Court.
On 21 October 2020, GRTgaz Deutschland and other complainants filed a legal appeal against the Düsseldorf Higher Regional Court (OLG) of 16 September 2020 in the matter of REGENT & AMELIE. The background of the appeal is the so-called REGENT & AMELIE determination of the BNetzA and the associated joint application of the reference price method of the uniform stamp fees in Germany. In the opinion of GRTgaz Deutschland, the decisive point is that the model developed by DNV-GL (DNV GL Energy Advisory GmbH) is a cost-oriented reference price method, which has not been sufficiently appreciated by either the BNetzA or the OLG Düsseldorf. For this reason alone, in the opinion of the complainant, the decision of the OLG Düsseldorf and the BNetzA cannot stand.
The differentiation between cross-system and system-internal network functions, as shown by DNV-GL, shows that differentiation in terms of costs and thus charges is possible and in order. Appropriate cost-oriented pricing, which prevents cross-subsidization between different groups of network users, is also necessary to prevent new costs from being shifted from the distribution network to the transmission sector by means of combined network operators.
At the beginning of the year, the introduction of a joint stamp duty in Germany almost doubled the fees for GRTgaz Deutschland and brought the transit flows to France via Medelsheim largely to a standstill.
Fuel Gas Tender Successfully Completed
On 14 October 2020, GRTgaz Deutschland once again became a first mover by awarding supply contracts for fuel gas in the form of biogas. In total, 17,520 MWh (approx. 5 %) of our forecast annual consumption in 2021 will now be covered with biogas.
As in previous years, the contracts were awarded by way of a tendering process via the online platform tender365. Five bidders participated actively in the tendering process, enabling us to secure attractive prices. Meanwhile, strict specifications in our terms of delivery ensured that the biogas meets the requirements to be considered carbon-neutral under the EU Emission Trading System for greenhouse gases. The biogas is supplied directly from German biogas balancing groups, i.e. it is physically fed into the NCG market area network.
Having had a successful auction, we consider increasing the share of biogas to up to 10% in future auctions.
Market Information for the THE VIP Implementation
Due to the merger of the Netconnect Germany (NCG) and GASPOOL market areas into the new Trading Hub Europe (THE) market area on October 1st, 2021, there will be an obligation at some borders to merge further interconnection points (IP) and existing VIPs to new THE VIPs.
Please find all information in our information paper on THE VIP implementation.
First time GRTgaz Deutschland calls for Biogas in fuel gas tender
As of today, 1st October 2020, GRTgaz Deutschland's fuel gas tender for the calendar year 2021 can be viewed on the platform Tender365. For the first time, GRTgaz Deutschland inquires biogas as fuel gas.
As part of the ongoing energy transition, it is important to contribute sooner than later to a sustainable operation of the gas infrastructure. Hence GRTgaz Deutschland will tender a part of its fuel gas (17 GWh) as biogas. This will be done in coordination with the Bundesnetzagentur.
The tender will take place on 14 October 2020 and will take place between 10:00 and 12:30 Berlin time, depending on the tranche tendered. The tender can be accessed online via the platform's marketplace.
Suppliers can participate in the tender via guest access on Tender365. Offers via other communication channels will not be accepted. Interested parties are kindly requested to qualify in advance. For further details please refer to the Gerneral Terms and Conditions.
Due to technical reasons, the biogas lots will be available on Tender365 from 7th October onwards.
For further questions please contact us.
Price list valid as of 1st October 2021 published
GRTgaz Deutschland has published the price list for transports in the new market area THE valid as of 1st October 2021.
Please find the price list in our Downloads section.
Biogas levy for calender year 2021 published
In the sense of § 7 of the Cooperation Agreement in the currently valid version (“KoV”) in conjunction with the „Guideline for biogas redistribution levy“, GRTgaz Deutschland publishes the uniform throughout Germany applicable specific biogas levy. The throughout Germany applicable biogas levy for the calender year 2021 amounts to 0,6250 EUR/kWh/h/a.
The biogas levy fee is charged in addition to the network fee at Exit points to directly connected end consumers and downstream grids of GRTgaz Deutschland. Exit points to storages, border- and market area interconnection points remain unaffected.
2021 Price List Published
Network fees valid from 1 January 2021 for the NCG market area published
The fees for firm and free assignable capacity with a booking period of one year amount to 3,77 €/kWh/h/a for the NCG market area with effect from 01.01.2021.
GRTgaz Deutschland points out that it has lodged a complaint against the decision REGENT-NCG issued by the Federal Network Agency on 29/03/2019 - which is the basis for the fee - before the competent court.
GRTgaz Deutschland offers additional capacity in 2021/22 according to KAP+
According to tenor 3 lit. a of the BNetzA decision KAP+ from 25.03.2020 (BK7-19-037) TSO GRTgaz Deutschland informed BNetzA about the amount of additional capacity („Zusatzkapazität“). It amounts to 3,808 GW on their Entry point Waidhaus. In the following years equivalent information will solely be disclosed on the homepage of GRTgaz Deutschland.
Information on the Coronavirus
From the very beginning of the health crisis sparked by the spread of the corona virus Sars-CoV-2, we have worked hard to secure the continuance of our transport services in the gas system.
Dear clients, business partners and friends,
From the very beginning of the health crisis sparked by the spread of the corona virus Sars-CoV-2, we have worked hard to secure the continuance of our transport services in the gas system. We are monitoring the situation and continuously adjusting our processes to shifting circumstances. We have taken special measures for all employees, and in particular for employees with tasks directly related to our customers, to carry out transport orders at our usual reliability while protecting the health of our employees.
Please do not hesitate to contact us at email@example.com if you have any questions.
Your team @ GRTgaz Deutschland GmbH