London, 25 October 2013 Trayport, a leading provider of energy trading solutions to traders, brokers and exchanges worldwide, today announced that it has signed an agreement with Sociedad Promotora Bilbao Gas Hub, S.A. for the launch of the trading platform to be used by Iberian Gas Hub.
The Iberian Gas Hub (IGH) project aims at developing a natural gas hub in the Iberian Peninsula. This is in line with the South Gas Regional Initiative, the Gas Target Model and the general views of regulatory institutions in Spain and Portugal. IGH will launch both an OTC market, initially, and, in a second phase, a Cleared market. The OTC market will be used for Physical Gas and Time/Location swaps and the Cleared market will be used for contracts of Spanish Gas covering the longer horizons along the price curve.
Trayport’s ETS is a market leading, real-time matching engine and front end trading system designed specifically to enable commodity exchanges to host electronic marketplaces. The extensive flexibility of the system provides exchanges with a single solution for price dissemination, order and deal management and matching of any energy commodity globally.
Miguel Ángel Lasheras, CEO at Sociedad Promotora Bilbao Gas Hub, S.A. said, ‘“The Iberian Peninsula is facing a period of positive change. We needed to choose a proven market leading exchange platform that would allow us to deliver the long-term benefits of introducing a gas hub. Trayport is an experienced provider who clearly demonstrated their commitment to supporting our current and future business needs.”
Elliott Piggott, CEO at Trayport said, ‘We are pleased that Iberian Gas Hub has chosen Trayport as its exchange trading solutions partner. This is another exciting and important relationship which underlines our commitment to supporting the launch and growth of new markets. A growing number of exchanges already benefit from our trading solutions and the IGH is an important addition to our trading network. We look forward to working with Iberian Gas Hub for a successful implementation.’
The creation of a liquid natural gas hub in Spain and Portugal as the backbone institution of the wholesale Iberian natural gas and LNG markets is expected to increase the efficiency of the natural gas sector in the Iberian Peninsula, foster wholesale and retail competition and facilitate the surveillance of the markets by the regulatory authorities.