Central European Gas Hub and Vienna Stock Exchange launch futures market on the CEGH Gas Exchange of Wiener Börse
December 10, 2010 - 10:30 am (CET)
- CEGH Gas Exchange of Wiener Börse launches a futures trading market one year after the start of the spot market
- CEGH is therefore the only gas hub in Europe that provides services in the OTC (over the counter) market and exchange services and is therefore a one-stop shop for trading
- Strengthening Europe’s security of supply by increasing short-term trading volumes
- Goal: To build CEGH into the largest gas trading hub in Continental Europe
This morning, OMV Executive Board Member Werner Auli, Vienna Stock Exchange executive board member Heinrich Schaller and board chairman of CEGH AG, Harald Wüstrich, opened the international futures trading market on the CEGH Gas Exchange of Wiener Börse. With this step, the Central European Gas Hub (CEGH) is now the only European gas hub to offer its customers a “one-stop shop” for a full range of gas trading services. It provides both over-the-counter (OTC) and exchange trading services in cooperation with international partners. The CEGH has therefore been able to take a further important step towards becoming an international hub and gateway for gas trading in Central and Eastern Europe. This will improve market competition and represents a further step towards market liberalisation.
The Central European Gas Hub is already one of the largest OTC gas trading platforms in Continental Europe and provides its customers with easy access to gas trading markets. The gas turnover volume of the more than 110 registered participants will reach a volume of more than 30 bcm this year. On the CEGH, more than four times as much gas will be traded this year than is typically consumed by Austria annually. Thanks to the successful launch of the futures market of the CEGH Gas Exchange of Wiener Börse, the volume traded via the CEGH will increase even further.
For OMV, the expansion of gas trading activities will also strengthen its gas logistics business. “Strengthened by the direct access to the infrastructure of the OMV distribution centre in Baumgarten and the resulting connection to important transit pipeline systems and extensive storage capacity, the CEGH fulfils all prerequisites for a modern energy trading centre,” stressed Werner Auli, OMV Executive Board Member in charge of Gas & Power. The cooperation between CEGH and the Vienna Stock Exchange will also further strengthen the role of the Baumgarten compression station, which is 100% owned by OMV, as a physical gas hub for central Europe. As it stands, around a third of all Russian gas exports already flows to Western Europe via the OMV compressor station in Baumgarten.
Short-term gas trading volumes are an important complement to long-term delivery contracts and ensure competition on the liberalised energy market.
“The launch of the futures market on the CEGH Gas Exchange of Wiener Börse enables us to expand our product range in the energy sector and provides us with an important strategic position in the gas market,” said Heinrich Schaller, member of the board of Wiener Börse AG and CEESEG Aktiengesellschaft.
“The start of futures trading represents the highest degree of standardisation in trading and complements the well-established OTC market, meaning that the entire spectrum of exchange trading services is now available,” added Harald Wüstrich, board chairman of CEGH AG.
Trading on the futures market of the CEGH Gas Exchange of Wiener Börse will be carried out via the stock exchange’s EUREX® system. The cash market is run using the XETRA® system. With regard to exchange trading, CEGH is responsible for market and customer care, while Wiener Börse is responsible for monitoring trading activity, publishing prices and keeping operational control of the exchange trading systems. The exchange trading on the CEGH Gas Exchange of Wiener Börse is subject to strict laws and controls under stock exchange law. This ensures that trading is clearly structured and regimented and minimises the risk for all parties.
The handling of exchange business is carried out in two stages: the financial settlement and clearing is carried out by European Commodity Clearing AG (ECC) in Leipzig; the physical settlement is carried out via the CEGH trading points.
Background information:
Central European Gas Hub:
The Central European Gas Hub (CEGH), a subsidiary of OMV Gas & Power GmbH (80%) and Wiener Börse AG (20%), is one of the most important natural gas trading platforms in Continental Europe. It provides international gas companies with a commercial gas hub in Baumgarten in addition to other hub trading points along the Austrian pipeline network. In 2010, the CEGH was able to record a total trading volume of around 3 bcm/month, positioning itself among the leading gas trading platforms in Continental Europe. By expanding its service offering on an ongoing basis up to the establishment of the CEGH Gas Exchange of Wiener Börse, the CEGH aims to be the largest gas hub in Continental Europe in a joint effort with the Vienna Stock Exchange.
OMV Gas & Power GmbH:
OMV Gas & Power GmbH is OMV's central company for the gas- and power business and comprises the three business units of Gas Supply, Marketing & Trading as well as Gas Logistics and Power. The sustainable growth strategy of the business segment focuses on four main objectives: optimizing and enlarging OMV’s natural gas supply portfolio, expanding the logistics business, further strengthening the gas trading and distribution activities as well as extending the value chain by embarking on the power business. This way all processes along the gas value chain – from exploration and production, transport, storage and marketing to power generation in gas power plants – are integrated into the group.
In the business area of Gas Supply, Marketing & Trading, OMV Gas & Power and EconGas sold 8.5 bcm and Petrom Gas sold 4.6 bcm in 2009. With a traded volume of 23 bcm in 2009, and the expansion of the service portfolio by gas stock market activities in 2009, the Central European Gas Hub developed into one of the most important gas hubs in Continental Europe. In the Gas Logistics business unit the total transportation volume sold in 2009 was 75.3 bcm. In addition to supplying gas for Austria, the OMV gas pipeline system carries gas to Germany, Italy, France, Slovenia, Croatia and Hungary. The security of supply with natural gas should be further strengthened not least due to the leading role in the Nabucco Gas Pipeline project.
OMV Aktiengesellschaft
With Group sales of EUR 17.92 bn and a workforce of 34,676 employees in 2009, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. As the leading energy Group in the European growth belt, OMV is active in Refining & Marketing (R&M) in 12 countries. In Exploration & Production (E&P) OMV is active in 16 countries on four continents. In Gas & Power (G&P) OMV sells approximately 13 bcm gas per year. Through its 2,000 km long gas pipeline network in Austria G&P transports approximately 75 bcm gas annually. OMV’s Central European Gas Hub is with around 23 bcm annual trading volume one of the most important gas hubs in Continental Europe.
OMV is the leading energy Group in the European growth belt with oil and gas reserves of approximately 1.19 bn boe, daily production of around 316,000 boe in Q3/10 and an annual refining capacity of approximately 26 mn t. OMV now has 2,310 filling stations as of Q3/10. The market share of the group in the R&M business segment in the Danube Region is now 20%.
OMV further strengthened its leading position in the European growth belt through the acquisition of a stake in Petrol Ofisi, Turkey’s leading company in the retail and commercial business.
Under its 3plus strategy, OMV combines the strengths of its E&P, G&P and R&M business units in order to ensure that it provides the best possible supply service to its three core markets of Central and Eastern Europe, Southeast Europe and Turkey. OMV uses the synergies that result from the combination of these strengths to extend its supply chain from oil and gas through to electricity and eventually renewable energy.
Sustainability
OMV is a signatory to the UN Global Compact, and an active supporter to the values enshrined in its Code of Conduct. These include a strong sense of responsibility towards the social and natural environment, especially in economically weak regions. OMV continuously addresses economic, environmental and social issues related to its business in a responsible manner. The Company reports on its activities in a sustainability report in accordance with the Global Reporting Initiative Guidelines. This report is published at the same time as the annual report.
Wiener Börse AG:
Wiener Börse AG is a 100%-owned subsidiary of CEESEG Aktiengesellschaft, which also has stakes in the Budapest, Laibach and Prague stock exchanges. The CEE Stock Exchange Group is the largest stock exchange group in the region with almost half of the total market capitalisation and around two thirds of all equity turnover in Central and Eastern Europe. In order to increase market liquidity CEESEG has made it easier to access markets and to trade in local trading centres. At the same time the group has implemented joint activities to increase the international awareness of the four markets.