Overview
Introduction
The current Government Policy Statement on Gas Governance invites Gas Industry Co to recommend efficient arrangements for the short-term trading of gas. It is expected that Gas Industry Co will develop protocols and standards applying to wholesale gas trading, including quality standards, balancing and reconciliation.
With these objectives in mind, Gas Industry Co established the New Zealand Gas Exchange (NZGE), an electronic platform on which short-term quantities of gas can be bought and sold on a bilateral basis between participants. Gas is physically traded at the Trading Hub, a pair of notional welded points on the
Summary of Status
The NZGE went live at the end of June 2010, following amendments to the Maui Pipeline Operating Code that allowed the Trading Hub to be established. The NZGE was offered as a short-term trial. However, there was not sufficient interest in the NZGE to sustain a trial and it was halted in December 2010. For a copy of the letter to the Minister regarding the termination of the wholesale market trial and the Minister's response, click HERE. The advice to the Minister noted that MDL is in the process of extending the Balancing Gas Exchange for wholesale gas trades, and Gas Industry Co will report to the Minister by the end of 2011 on the success, or otherwise, of this endeavour.
Previous consultation on the concept and design of the wholesale market occurred in March, September and December 2006. Analysis of submissions on these papers highlighted a suitable way forward and following an interim recommendation to the Minister of Energy in December 2006, Gas Industry Co progressed with the publication of a standard short-term trading contract in April 2007 and the development of a functional specification for a simple matching platform.
In August 2007 M-Co was selected as the service provider for the trading platform. A further recommendation was made to the Minister of Energy to proceed with a market trial.Governance documents for trading on the market and operational aspects of the market design were finalised in the first half of 2010.
Contact Details
gasindustry [dot] co [dot] nz