CENTRAL EUROPEAN GAS HUB
First-class
gas trading in the
heart of Europe
First-class
gas trading
Central European
Gas Hub – gas trading
in the heart of Europe
Central European Gas Hub AG (CEGH), located in Vienna, Austria, is the leading hub for trading
gas from the east to the west. As the operator of the Virtual Trading Point, CEGH opens inter­
national gas traders a gateway for trading in the entry/exit zone of the Austrian market. In 2014, CEGH
achieved a total trading volume of 440 terawatt hours (TWh) of natural gas, thus consolidating its
position among the most important gas hubs in Continental Europe.
CEGH functions as a cross regional balancing
platform by offering trading activities and services
for different markets:
a CEGH OTC (Over-The-Counter) Market
a CEGH Gas Exchange Spot Market
of Wiener Boerse
a CEGH Gas Exchange Within-Day Market
of Wiener Boerse
a CEGH Gas Exchange Futures Market
of Wiener Boerse
a CEGH Czech Gas Futures Market
powered by PXE
In the last years, CEGH has introduced various
new services, such as the transfer of the exchange
trading systems to the Trayport GlobalVision
ETS, which is well known for its user friendliness
and easy implementation. Furthermore, a central
web-based platform in accordance with EnergyControl Austria enables traders to easily publish
insider information according to REMIT. By constantly improving its technology and by responding to regulatory and market changes, CEGH
will offer an even more attractive marketplace to
its customers.
The unique combination of OTC and exchange
services turns CEGH into a one-stop-shop for
gas traders and makes it one of the leading
gas hubs in Central Europe. CEGH’s key success
factors are its reliability, flexibility and outperforming customized technology combined with
its knowledge of the liberalized gas markets.
CEGH is based on a strong shareholder structure with OMV Gas & Power GmbH holding
65%, Wiener Boerse AG holding 20% and
Eustream a.s. holding 15% of shares. By closing
further partnerships CEGH will maximize the
benefits of its trading customers and support the
further development of liberalized gas markets
in Central Europe.
Gottfried Steiner
Chief Executive Officer;
Chairman of the Executive Board of CEGH
Bernhard Stamm
Chief Financial Officer;
Member of the Executive Board of CEGH
03
The gas hub for
Central and
Eastern Europe
2013
January
Start of
Within-Day Market
Since its start in 2005, CEGH has set
many important milestones on its way to
become one of Europe’s leading gas hubs.
Operator of
the Virtual Trading
Point for Austria
2011
January
Sum of net traded
volume since 2005
in total 100 bcm
2009
December
Start of
CEGH Czech Gas
Futures Market
December
Start of Gas Exchange
Spot Market
2006
May
First Gas Release
Program for EconGas
November
First time monthly
net traded volume
more than 1 bcm
2014
2012
April
4 bcm net traded
volume per month
2010
2005
October
Start of CEGH;
Start of OTC Market
04
2008
December
2 bcm net traded
volume per month
June
Vienna Stock Exchange
acquires 20% share
in CEGH
December
Start of Gas Exchange
Futures Market
July
Start of Trayport ETS
September
Eustream joins
CEGH with 15% share
October
Launch of
REMIT platform
August
Launch of new
Futures products:
Quarters,
Seasons, Years
Gateway to the east
As the operator of the Virtual Trading Point in the Austrian entry/exit system, CEGH offers gas
traders the unique opportunity to maximize their benefits from gas transit through Austria. Thanks to
its beneficial geographical location, Austria has developed over the last half century into a node
for gas transit to Europe. Approximately one quarter of all Russian gas exports to Western Europe
are handled via Baumgarten, Austria’s most important gas turntable.
CEGH serves as a gateway from the east to
the west and is the most interesting gas trading
platform for South Eastern European markets.
Austria offers a unique geographical position for
gas trading, with the distribution station at
Baumgarten being the eastern most distribution
node in Europe.
CEGH functions as the operator of the Virtual
Trading Point (CEGH VTP) in Austria’s entry/exit
system. With this change of the Austrian gas
legislation, liquidity now is concentrated into one
single trading point. New challenges and
opportunities include the new balancing system,
which is served well with CEGH’s new WithinDay Exchange Market. A direct connection of
storage facilities to the CEGH VTP contributes
to additional flexibility and makes gas trading in
Austria even more attractive.
The dedicated linkage of commercial transaction
and physical settlement has always been crucial
for a successful trade. Through its connection
to the important transit pipeline and storage
systems, CEGH is the most attractive gas market
in Central Europe.
Central European Gas Hub (CEGH) and Power
Exchange Central Europe (PXE) together
launched the CEGH Czech Gas Futures Market.
This market offers new trading opportunities
for traders in the emerging Czech Gas Market
and will further improve gas trading in the entire
region.
CEGH
05
CEGH OTC Market:
Multi Trading System
for bilateral contracts
The CEGH OTC (Over-The-Counter) Market has become the main platform for traditional gas
trading in Central Europe. CEGH offers a highly customized state-of-the-art online platform for the
settlement of bilateral natural gas trading activities on the Austrian market, where CEGH operates
the Virtual Trading Point for the entry/exit market model.
The CEGH Multi Trading System allows the settlement of bilateral trades in the Austrian entry/exit
system combining several transmission pipelines,
storage sites and the domestic Austrian grid
as well as conjunctions to neighbouring systems.
Hence, customers can rely on CEGH in its
role as the operator of the Virtual Trading Point
to supervise the operational completion and,
in cooperation with the market area manager
and the adjacent network operators, to take care
of the actual physical availability of the gas:
a With the matching process finished, CEGH
delivers the final matching values to all
customers in individual confirmation messages.
a After the physical gas flow CEGH also carries
out the allocation of the confirmed quantities.
The allocated values will result in a customizable quantity protocol, which is online
accessible and where time period, time profile,
location and file format can be selected as
needed.
CEGH OTC Market in 2014
[in TWh]
5.0
Net traded
volume
4.0
3.0
2.0
Input volume
1.0
0
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Following the introduction of the New Market rules in the Austrian gas market,
CEGH has established itself as the pre-eminent Eastern European gas hub
and represents an essential location for trading opportunities in Central, Eastern
and Southern Europe. For EconGas, CEGH is a vital trading location providing a
reliable, predictable and dependable service in support of our business activities.
Andrew Williamson
Head of Supply, LNG, Commercial Operations & Trading, EconGas GmbH
Nomination made easy
CEGH also provides a nomination management service, tailored to the individual needs and
requirements of the customers. This includes
basic nominations for daily business, short term
changes and pre-defined measures in case
of reductions. Confirmations and matched quantities can be processed to ensure a consistent
gas flow.
To allow the customers to carry out their operational business as easily as possible, CEGH offers
User A
Bilateral contract
Nomination
a variety of nomination possibilities (edig@s,
Web-Nomination, Excel-form or fax). To complement the well-established nomination formats,
CEGH developed an independent online
nomination platform. This web-portal provides
a simple way to handle the complete nomination process without an own IT-system.
In addition to the nomination services, the online
platform offers access to individual quantity
reports. CEGH also implemented automatically
generated mismatch notices as an additional
service for its customers.
User B
Nomination
CEGH OTC Market
Confirmation
report
Confirmation
report
Market Area Manager
07
CEGH Gas Exchange:
Transparent trading
with first-class service
The CEGH Gas Exchange of Wiener Boerse is operated in cooperation with Wiener Boerse AG
and European Commodity Clearing AG (ECC). Comprehensive trading, clearing and settlement services
on multiple markets offer unique possibilities for international traders.
The CEGH Gas Exchange of Wiener Boerse
is based on a solid partnership of CEGH, Wiener
Boerse and European Commodity Clearing, each
fulfilling different tasks reflecting their strengths.
a CEGH, as the Gas Exchange Market operator,
operates the physical settlement and is the
face to the customer.
a Wiener Boerse, as the commodity exchange
license holder, operates the fully developed
Austrian securities exchange which is granted
by the Ministry for Economic Affairs and the
Austrian Financial Market Authority.
a European Commodity Clearing (ECC), as the
commodity exchange clearing house, offers
clearing and settlement services for exchange
as well as OTC transactions.
Once a trade has been concluded, all other necessary steps, from nomination to margin calculation
and billing, will run automatically. When traders
5 years of CEGH Gas Exchange
enter their orders and generate a transaction,
Wiener Boerse (the Vienna Stock Exchange) will
distribute selected information to ECC and CEGH.
ECC will call margins from the Clearing Member
which calls the margins from their customers
(Non Clearing Member, NCM). CEGH as the Gas
Exchange Market operator and OTC platform
provider will match the gas flows from gas
exchange deals with the corresponding OTC gas
flows and send confirmations to the customers.
Transparent balancing on the
CEGH Gas Exchange Within-Day Market
Part of the Austrian Gas Market Model is a transparent and non-discriminatory trading of balancing energy. CEGH meets this demand with its
Within-Day Market, offering a professional solution for the balancing market on a daily and hourly
basis. Trading on the Within-Day Market takes
place 24/7, with a continuous trading period
of 45 minutes being combined with a 15 minutes
call phase for hourly auctions. Active members
of CEGH may also use it to optimize their trading
activities.
[in TWh]
15.0
CEGHIX as reference price for Spot Market
12.0
CEGHIX, the CEGH Spot Index, is a transparent
reference price for the CEGH Gas Exchange
Spot Market of Wiener Boerse. The CEGHIX
guarantees a daily reference price, based on the
volume weighted average price of all transactions.
It illustrates price signals, supports the increase
of liquidity on the Austrian market and establishes CEGH as a price setting point for Central
and South Eastern Europe.
Day Ahead
9.0
6.0
Within-Day
3.0
Futures
0
2010
08
2011
2012
2013
2014
Basic principles for CEGH Gas Exchange of Wiener Boerse Markets
Spot Market
Futures Market
Within-Day Market
Gas product type
Base load
Base load
Base load
Delivery point
VTP Austria
VTP Austria
VTP Austria
Settlement
Physical delivery from
6:00 a.m. (d+1) to 6:00 a.m. (d+2)
Physical delivery from
6:00 a.m. (d+1) to 6:00 a.m. (d+2)
aRest of day with a lead time
Trading hours
From 9:00 a.m. to 5:30 p.m.
From 9:00 a.m. to 5:30 p.m.
24/7
Price units
€ per MWh
€ per MWh
€ per MWh
Minimum price change
0.025 € per MWh
0.025 € per MWh
0.025 € per MWh
Minimum trade size
1 MW
10 MW
1 MW
Single sided
nomination
By European Commodity
Clearing (ECC), counter party
nomination done by CEGH
on behalf of exchange member
By European Commodity
Clearing (ECC), counter party
nomination done by CEGH
on behalf of exchange member
By European Commodity
Clearing (ECC), counter party
nomination done by CEGH
on behalf of exchange member
Settlement
process
Trade, matching
Euro
User A
of 3 hours based on the
next full hour to 6:00 a.m. (d or d+1)
aNext Hour contract
with a lead time of 3 hours
Trade, matching
Wiener Boerse
Clearing member
Netting
Netting
ECC
CEGH Gas Exchange
Clearing member
Euro
User B
Matching
VTP
Market Area Manager
09
CEGH Czech
Gas Exchange Market
Central European Gas Hub (CEGH) and Power Exchange Central Europe (PXE) together launched the
CEGH Czech Gas Futures Market by end of 2013. These two well established companies share
their expertise and established a joint Czech Natural Gas Market. Building a liquid regulated trading
platform will create a competitive and transparent environment and will further improve gas trading
in the Czech Republic. CEGH with its long experience in operating gas markets and PXE with the
know-how of the Czech market and in electricity trading together will bring a lot of benefits for gas
traders. The market is operated under the exchange licence of PXE.
CEGH Czech Gas Futures
Trading method
The CEGH Czech Gas Futures Market offers
physically settled natural gas futures with delivery
to the Czech Virtual Trading Point. The following
future products are listed:
Order driven electronic trading with the participation of market makers; registration of OTC deals
for clearing is possible.
Monthly futures
3 consecutive months
Quarterly futures
4 consecutive quarters
Trading system
GlobalVision Exchange Trading System provided
by Trayport.
Seasons
3 consecutive seasons
(winter/summer)
Yearly futures
2 consecutive years
Clearing and settlement
Provided by European Commodity
Clearing AG (ECC).
Benefits and incentives
CEGH Czech Gas Exchange in 2014
[in GWh]
The cooperation between CEGH and PXE
brings easy access to the new CEGH Czech Gas
Market for the market participants of both com­
panies for reasonable costs. Market Makers
benefit from reduced trading fees. Traded volume
based discounts on trading fees apply for regular
participants.
350
280
210
140
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All in one:
Advantages of trading
at CEGH
CEGH is a one-stop-shop for gas trading in Central Europe. The unique combination
of OTC and Gas Exchange services offers gas traders one professional counterparty covering
the market demands in Austria as well as in Central and South Eastern Europe.
Strong OTC Market
Professional Gas Exchange services
The CEGH OTC (Over-The-Counter) Market is the
leading trading format. Standardized basic agreements enable the realization of transactions within
a few hours. Using the highly developed CEGH
Multi Trading System, more transactions can
be completed and larger volumes can be handled
with very short lead times.
The CEGH Gas Exchange of Wiener Boerse
enables convenient trading on the Spot Market,
the Within-Day Market and the Futures Market in
Austria. This makes CEGH the only hub with
OTC Services and Exchange Services – all in one.
CEGH’s assets have their origin in the following
service characteristics:
a High number of international gas traders
being active members of CEGH
a Standardized framework contracts
a Confirmation of CEGH for nominations
a Automatically generated mismatch notice
for customers
Due to its ideal geographic location, CEGH
serves as a vital gateway hub. It offers
our traders a reliable, transparent platform
to connect the gas markets of the East and
West and will play an increasingly important
role in helping to achieve the EU’s objective
of a single pan-European gas market.
The CEGH Gas Exchange of Wiener Boerse
provides a modern environment for gas trading:
a Wiener Boerse’s expertise and experience
a Strict conditions and regulations
of the Austrian Stock Exchange Act
a Risk to the contractual parties covered
by the clearing house ECC
a Best possible price transparency through
the current market value
a State of the art commodity trading facilities:
All markets are combined in the Trayport ETS
trading system, offering traders a comfortable direct access.
In addition to the Austrian Gas Exchange CEGH
also offers trading at the CEGH Czech Gas
Exchange Market in cooperation with PXE with
physical delivery to the Czech VTP.
Olav Grüttner
Head of Structured Trading CEE & Nordic/Business Development,
E.ON Energy Trading SE
11
Be compliant
with CEGH’s REMIT
platform
As a special service, CEGH has developed and launched a web-based
platform for the publication of inside information. This gives traders an
easy tool to publish inside information in an effective and timely manner,
according to the EU REMIT regulations.
REMIT stands for Regulation on wholesale
Energy Market Integrity and Transparency and
is part of an EU initiative for more transparency
on the energy markets. Article 4 requires from
market participants to publish inside information
in an effective and timely manner. Otherwise,
trading restrictions may apply and traders may
face penalties.
While publishing inside information only on the
company’s website is not efficient, the new
CEGH REMIT platform makes it easy to fulfill legal
obligations for market participants. It is supported and endorsed by Energie-Control Austria
(E-Control). The REMIT platform offers market
participants a central tool to publish and find
inside information.
Using the platform is free of charge for registered
members. Active CEGH members have preferred
access, meaning that the registration process
is skipped partially. Active traders therefore can
use their pre-installed account after appointing
a person responsible. Other market participants
such as Transmission System Operators (TSO)
and Storage System Operators (SSO) can publish
information after registration, including customer
authentication and verification. Non-registered
customers have a read-only access, allowing
them to get information. Everybody can subscribe
on the platform to receive a publication alert,
when new messages are posted.
Find all information regarding CEGH’s central
REMIT platform: www.cegh.at/remit
The REMIT platform for publication of insider information is
a very useful and helpful service of CEGH. This gives the market
the opportunity to get price relevant insider information
on one centralised platform, as generally envisaged by ACER,
the European Agency for the Cooperation of Energy Regulators.
Johannes Mayer
Head of Regulation and Competition, Energie-Control Austria
12
How to become
a member@CEGH
Registration on the CEGH OTC Market is done
in three steps:
a Provision of bank guarantee
a Conclusion of the Membership Agreement
(for Balance Group Responsible Parties
via Market Area Manager)
a Connectivity tests
Wiener Boerse AG as the license holder of the
CEGH Gas Exchange of Wiener Boerse approves
the registration of a member.
In order to become a member of the
CEGH OTC Market please contact:
Central European Gas Hub AG
Ms. Susanne Neunteufl
Phone: +43-1-270 2700-28516
E-mail:susanne.neunteufl@gashub.at
To serve its customers according to their needs,
CEGH offers different types of membership.
Active CEGH members are able to trade on all
markets without any restrictions – including Spot,
Futures and Within-Day Market. For all other
balance group representatives CEGH implemented a passive membership for being balanced on
the Within-Day Market. This enables the Market
Area Manager to conclude trades on behalf
and on the account of these balance group representatives, therefore fulfilling its legal obligations.
To become a member at the CEGH Gas Exchange Markets of Wiener Boerse it is a prereq­
uisite that the member is already registered at the
CEGH OTC Market. Then a contractual relationship with ECC and with a Clearing Member
has to be established in order to receive an ECC
admission letter for the gas exchange. Finally,
In order to start the registration process
for CEGH Gas Exchange, please contact:
Central European Gas Hub AG
Market Support & Services
Phone: +43-1-270 2700-28550
E-mail:exchange@gashub.at
CEGH OTC Market
Credit assessment bank guarantee
Conclusion of the agreement
Connectivity
Mandatory contracts
Additional contracts
CEGH OTC Member
Active Member
Spot Market
Technical requirements
Contractual requirements
User setup
European Commodity
Clearing (ECC)
Futures Market
Passive Member
Within-Day Market
Within-Day Market
Balancing by MAM
Admission
Wiener Boerse and authorities
CEGH Gas Exchange
of Wiener Boerse
13
Contact
Central European Gas Hub AG
floridotower
Floridsdorfer Hauptstrasse 1
1210 Vienna, Austria
Phone: +43-1-270 2700-28501
Fax:
+43-1-270 2700-181
info@cegh.at
www.cegh.at
CEGH OTC Dispatching
Phone: +43-1-270 2700-28520
dispatching@gashub.at
CEGH Gas Exchange
Phone: +43-1-270 2700-28550
exchange@gashub.at
Imprint:
Owner, editor and publisher: CEGH, Floridsdorfer Hauptstrasse 1, 1210 Vienna, Austria
Registered with the Commercial Court Vienna: FN 203485 v
Text and project coordination: designertexte e.U., Barbara Bressler-Kolembar
Design: marchesani_kreativstudio GmbH / Printed by: Bernsteiner Print Company GmbH
Printed in accordance with the Austrian Ecolabel directive for printed materials (UW No. 922)
Issue: January 2015
Member of
CEGH.at