A bundled Day-ahead cross-border capacity product between Zeebrugge and the German virtual trading point NetConnect Germany (NCG) has received a "positive response," according to the Belgian natural-gas transmission system operator (TSO) Fluxys.
The product, which enables shippers to book bundled capacity at the border, was launched by Fluxys and the German TSO Open Grid Europe on 14 September.
The Belgian TSO said results so far showed the bundled capacity "successfully links two liquid markets and is yet another step towards a European gas market."
On some days, according to Fluxys, the offered capacities have sold out immediately on the opening of the market, reflecting the strong demand and increasingly close connection between the two hubs.
Precisely how many times the capacity has sold out since the launch could not be confirmed, however. Nor was there official comment on the predominant flow of gas.
But the small premium the NCG Day-ahead contract traditionally holds to its Zeebrugge equivalent, as assessed by ICIS Heren, indicates that the majority of gas is shipped from Belgium to Germany.
Since the product's launch, the average premium of the NCG Day-ahead contract to its Zeebrugge equivalent has been €0.27/MWh, according to ICIS Heren data.
Given that the new product has made it easier to flow gas between the two markets on a daily basis, more arbitrage opportunities could be available in the future.
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