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- Release Date: 05/03/13 10:31
- Summary: GENERAL: NZX: NZX to launch NZ natural gas market in June 2013
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NZX
05/03/2013 08:31
GENERAL
REL: 0831 HRS NZX Limited
GENERAL: NZX: NZX to launch NZ natural gas market in June 2013
NZX is pleased to announce that it will launch a spot gas market in June
2013, contingent upon its securing of operating approvals.
The new market will provide a valuable tool for participants to better manage
their supply of gas, in the face of new gas pipeline requirements, and as the
industry continues to develop.
NZX is an independent, experienced market operator that can offer a cost
effective solution and extensive options to support the industry as it
develops.
In preparation for the launch, NZX has consulted with a number of prospective
participants and considered the merits of various market features.
The result was the decision to deploy a baseline market in June, which will
enable trading on monthly, weekly, daily and intraday products.
The June market deployment will incorporate a 'virtual welded point' which
concentrates liquidity and is compatible with existing shipping arrangements.
A virtual welded point is a notional connection to the Maui pipeline that
provides a reference for both trading and physical delivery of gas.
NZX Head of Energy Erich Livengood commented: "Our vision for the gas market
starts with a simple, rock solid trading system that encourages participation
and is beneficial to the operation of the pipeline.
"We already have the trading system up and running, now it's a matter of
making further alterations to fine tune the market to meet traders' needs.
"Following that, once traders have had a chance to experience trading and
refine their requirements, we envision introducing staged enhancements, where
they make sense for the market. For example, one enhancement could be to
offer centralised clearing and settlement."
NZX will continue to look for opportunities to use its existing market
operations infrastructure to enable a broad range of industries to better
manage their risk.
If you require further information please contact:
Kate McLaughlin
Corporate Communications
M: 027 533 4529
T: 09 309 3654
E: [email protected]
End CA:00233768 For:NZX Type:GENERAL Time:2013-03-05 08:31:30
