AUCTION OF PRODUCT A/B
Free choice to bid on product A and/or Product B
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 reduces the minimum value of gas storage in the coming winter and this coincidences with more than 3 TWh unsold storage capacity. GSD expects this situation to last probably until the end of Q12022, which makes it unlikely that significantly more storage capacity will be sold with effect in SY2021.
On the background of the above and with a view to securing greater storage booking towards the coming winter, GSD has decided to conduct a pay-as-bid auction on 15 July 2021 at 11:00 am Danish time. In the auction GSD will offer two different products:
- Product A
> Delivery period: 1 August 2021 – 1 April 2022
> Max Firm Volume Capacity: 1000 GWh
- Product B
> Delivery period: 1 August 2021 – 1 October 2022
> Max Firm Volume Capacity: 300 GWh incl. fix-term loaning agreement
Each sold 1 MWh of Product B will offset 3.33 MWh of the remaining, available for sale capacity in SY2021 (until 1 April 2022), which means that the total amount available for sale firm volume capacity will be reduced by 1000 GWh (300 GWh x 3.33). Currently, GSD has 3.2 TWh available for sale in SY21. If the Auction should sell out (both Product A and B), the remaining for sale capacity in SY21 will be 0.9 TWh (3.2 - 1.0 - 0.3 - 1.0).
All terms and conditions including product description, reservation prices and security for gas loan in respect of Product B are described in the Auction Rules. GSD invites all interested Storage Customers to participate in the auction by submitting a completed Bidding Sheet. For the Auction Rules and Bidding Sheet - se under DOWNLOADS.
If you have any questions, please do not hesitate to contact us.