2014 posed no major challenges to security of supply. This is mainly due to the warm winter and the resulting low gas consumption as well as stable supplies from the North Sea.
Development characterised by tense situation in Ukraine
Gas supplies were not affected by the strained relations between Russia and Ukraine, which characterised the discussions on gas supplies to Europe during 2014. Nevertheless, the situation has put European security of supply back on the agenda.
This is because Ukraine is one of the key transit routes in the European gas supply as much of the Russian natural gas is transported through Ukraine. Energinet.dk is therefore carefully monitoring the initiatives launched to secure the European security of supply. These include, for example, a stress test of the gas supply for the coming winter and the work on a new emergency-supply regulation.
New balancing model introduced
2014 saw the introduction of a new balancing model for the gas market. Overall, the new model means that the shippers must play a more active role in balancing the Danish gas system. In this way, customers ensure that the amount of gas being fed into the gas system better matches consumption than is currently the case.
With the new model, hourly monitoring checks whether there is balance between the expected consumption and the amount of gas being fed into the system for the individual shipper.
"I am very pleased that the new balancing model can enter into force from 1 October 2014. The model has been developed in close cooperation with our shippers, and we expect that the model will help promote liquidity in the Danish gas exchange for the benefit of everyone in the gas market," says Jeppe Danø, Director, Gas Market, at Energinet.dk.
Energinet.dk expects that the shippers will need a higher degree of flexibility during the gas day to maintain a constant balance, which they, among other things, will be able to achieve by trading on the gas exchange. This means that the Danish gas market can become more liquid and prices are kept at a competitive market level for the benefit of both consumers and the trade on the European market.
Energinet.dk sells half of Gaspoint Nordic
In 2014, Energinet.dk and the German European Energy Exchange, EEX, signed an agreement on the sale of half of the shares in the Nordic gas exchange Gaspoint Nordic to the German European Energy Exchange, EEX. On Friday, 28 November 2014, the Danish Competition and Consumer Authority announced that it will approve Energinet.dk’s sale of half its shares. The German Federal Cartel Office has also given their approval. The sale is now final and becomes effective as of 1 January 2015.
“Our commitment to the gas exchange has always been motivated by a desire to promote the gas market and ensure healthy competition, and we have now reached a point, where it makes perfect sense to join forces with EEX. A partnership with EEX will provide gas market players with new and better opportunities in future,” says Jeppe Danø. “Working with a large and experienced player in the European market is a natural extension of our strategy,” he continues.