AUCTION OF GAS LOANING PRODUCT, 31 AUGUST 2021
150 GWh combined capacity and gas loan for sale
We witness an extraordinary market situation, where the gas prices in the remaining of 2021 and in Q1 2022 are significantly higher than the prices further down the forwards curve. This development makes gas storage unattractive to purchase in the coming winter and this coincidences with more than 1,68 TWh unsold storage capacity.
An additional consideration is that the winter is approaching, and the time is running out on the unsold storage capacity, due to the limitations of the reservoir’s ability to receive injected gas. This makes it reasonable to bring the reservoir’s capacity to market in the form of a loan of GSD’s own gas that is not needed for the purpose of producing storage capacity, for the remainder of the storage year.
On the background of the above GSD has already conducted one auction with a combined capacity and gas loan product. This was completed on15 July 2021.
With a view to securing more sales up towards the coming winter, GSD has decided to conduct one more pay-as-bid auction on 31 August 2021 at 11:00 am Danish time. In the auction GSD will offer capacity inclusive a fix-term loaning agreement. The total volume capacity offered on the auction will be 150 GWh. In addition, 150 GWh gas loan will be allocated to the successful participants.
All terms and conditions including product description, reservation prices and security for gas loan are described in the Auction Rules.
After the Auction another 1 TWh storage capacity will be taken from the available capacity for SY 2021. After this, the remaining storage capacity for sale will be approx. 530 GWh.
If you have any questions, please do not hesitate to contact us.