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Auction info

Storage year 2019

Gas Storage Bergermeer (GSB) has a total of 17.25 TWh Standard Bundled Units (SBU’s) capacity available for storage year 2019. TAQA will auction 11.25 TWh on both a fixed and indexed priced basis via three separate auctions. The remaining 6 TWh will be (re)allocated to the Optimization Agreement (OA) via a tender.

A precondition for joining the auction and/or the tender is the signing of our SSSA version 1.5.

Auctions

The details of each auction are as follows:

Auction 1
Date 13th of December 2018
Time 1100 – 1130 CET
Capacity on offer 4 TWh
Pricing methodology Fixed Price
Duration One storage year (April 2019 – March 2020)
Minimum price 1.50 €/MWh

 

Auction 2
Date 13th of December 2018
Time 1300 – 1330 CET
Capacity on offer 4.25 TWh
Pricing methodology Indexed Price
Duration One storage year (April 2019 – March 2020)
Minimum multiplier 1.1
Remark The traditional pricing period for this product (mid-October till mid-December and mid-January till mid-March) is shortened by only using the latter period.

 

Auction 3
Date 12th of February 2019
Time 1100 – 1130 CET
Capacity on offer 3 TWh
Pricing methodology Fixed Price
Duration One storage year (April 2019 – March 2020)
Minimum price 1.50 €/MWh

 

In order to participate for any of the auctions, customers must have the following in place at least six business days prior to the respective auction:

    • Standard Storage Services Agreement version 1.5
    • Signed Auction Rules 2019 (link)
    • Provide a Power of Attorney (draft attached as Annex II in Auction Rules 2019)
    • Upon request, provide any information required to establish a bidder limit

Bids can be submitted to the notary (Allen & Overy) via email.

Optimization Agreement

The allocation of 6 TWh under the Optimization Agreement is a two-legged process, resulting each year in three customers that are selected to optimize the capacity on GSB’s behalf.

The first step is to award the current OA customer that generated most value for GSB during the storage year 2018 with 3 TWh for the storage year 2019 and second-best performer with 2 TWh to monetize on GSB’s behalf.

The second step is to award a third customer the remaining 1 TWh for storage year 2019.

Any SSSA customer interested to participate in the tender for the remaining 1 TWh is invited to review our standard GSB Optimization Agreement and provide feedback before 22/01/2019, 17.00h CET on the below four points:

  1. A firm proposal for the GSB share (%) of the Additional Value and, if applicable, for the Financing costs.
  2. A pitch (one-page maximum) why your company is well equipped to maximize the Additional Value.
  3. Your agreement with the terms and conditions of the GSB Optimization Agreement.
  4. Only if requested; provide TAQA with additional information for a credit check

Based on the responses on 1-4, the remaining 1 TWh will be allocated to the customer with the most attractive proposition, at TAQA’s sole discretion. At the end of SY19, the intention is to re-distribute 6 TWh again based on a similar ranking process.

Please note TAQA may terminate or change the processes as described above at its sole discretion at any time.

 

Historical information

Fixed price auction 2018

TAQA sold the remaining 3.25 TWh for storage year 2018 during a fixed price auction on 22 February 2018.

A reserve price of 1.50 €/SBU was applicable, but TAQA sold the available capacity with a cut-off price of 1.52 €/SBU and a weighted average price of 1.59 €/SBU. Overall demand above the reserve price was more than twice the capacity on offer. All capacity for storage year 2018 has now been sold.

Profit Sharing Agreement 2017

TAQA has sold the remaining 5 TWh for the 2017-18 storage year via a tender on a Profit Sharing Agreement (PSA) basis to several customers. The nature of the PSA means that it can capture the upside of increasing DA-winter spreads during the summer and share any additional profits between the storage owner and capacity contractors.

Auction 2016

TAQA has sold the remaining 2 TWh for the 2016-17 storage year on 23 June 2016.

TAQA sold the available capacity with a cut-off fixed price of 2.50 €/SBU and a weighted average fixed price of 2.51 €/SBU.  There was no reserve price applicable.

Overall demand was more than seven times the capacity on offer. All capacity for the 2016-17 storage year has now been sold.

Auction 2015

TAQA had previously sold 39 TWh of capacity for the 2016-17 storage year. In September 2015 we auctioned and sold 5 TWh as short-term capacity for Storage Years 2016-2018.

TAQA sold the available capacity with a cut-off multiplier of 1.22 and a weighted average multiplier of 1.29. Participants could submit up to five bids, for one, two or three years starting from April 2016. The total volume of 5 TWh has been allocated to the three year product.

Overall demand was more than five times the capacity on offer.

Auction 2014

In the open seasons held prior to 2014, 13TWh has been sold as long-term capacity. In September 2014 we auctioned and sold 13TWh as short-term capacity for Storage Years 2015-2017.

The auction results were as follows

Tenor Offered Sold Cut off multiplier
3 years 3 TWh 3 TWh 1,15
2 years 3 TWh 3 TWh 1,16
1 year 7 TWh 7 TWh 1,17

Overall demand was more than double the capacity on offer. The weighted average multiplier of the capacity sold is around 1,2.

Should you have any questions or comments, or if you wish to be kept informed regarding Gas Storage Bergermeer please contact us.