ICIS is implementing a process of rolling consultation on all of its pricing methodologies. This consultation paper is part of this formal process and covers all of the ICIS primary price points included in the European Spot Gas Markets (ESGM) publication.
The consultation asks both general questions about the suitability of the ICIS pricing methodology and questions addressing specific European Spot Gas Markets (ESGM) market issues.
Click here to view the European Spot Gas Markets (ESGM) Methodology Consultation 2022
The consultation contained a section asking general questions about the sustainability of ICIS methodology for the markets concerned.
There was also a section about specific market issues regarding changes to pricing coverage of the Zeebrugge gas hub, additional conversions of some price assessments into $/MMBtu, and additional closing indices covering the NBP and TTF hubs.
Summary
ICIS received 2 written responses. This summary takes into account all responses.
One respondent asked for daily price assessments of gas options products.
One respondent commented on the liquidity split between multiple trading venues and proposed price assessments that incorporate all such venues.
One respondent requested price assessments out to year+7 for Europe’s largest gas hubs (eg, TTF, NBP and PEG).
One respondent proposed additional information regarding the exercise of judgment in price assessments where applicable.
All respondents supported or had no comment on ICIS’s prosed changes.
Decision
As of 28 April 2022, ICIS will stop publishing the following assessments
- Belgian Zeebrugge: WDNW, BOM, Month+2, Month+3, six quarters ahead, three seasons ahead, one gas year ahead, one calendar year ahead
ICIS will retain Zeebrugge Day-ahead, Weekend and Month+1 assessments.
ICIS will stop publishing the following assessments
- Turkish UDN: Day-ahead, individual Forward Weekend days
ICIS will add add conversions of the following assessments in $/MMBtu:
- French PEG: Day-ahead, Weekend (only on the last English working day of the week), BOM, three months ahead, three quarters ahead, three seasons ahead and one calendar year ahead
- Italian PSV: Day-ahead, Weekend (only on the last English working day of the week), BOM, three months ahead, four quarters ahead, three seasons ahead, one gas year ahead and two calendar years ahead
ICIS will add the following indices:
- British NBP: Month-ahead Heren closing index (HCI)
- Dutch TTF: Month-ahead Heren closing index (HCI)
The ESGM methodology document will be updated ahead of these changes taking effect. Should you have any questions please contact ESGM Editor Alice Casagni at alice.casagni@icis.com.
Regarding its response to the general questions:
- ICIS continues to monitor liquidity between trading venues.
- ICIS is continuing to survey market participants to research the demand for and viability of price assessments out to year+7 and further for Europe’s largest gas hubs
- ICIS already has provision for providing additional information regarding the exercise of judgment in price assessments where applicable and will review its approach.
