The OPCOM and BRM have received the licenses for trading natural gas

On Friday, the ANRE (the regulator of the energy market) has granted the licenses requested by the OPCOM (the operator of the Romanian energy exchange) and the Romanian Commodities Exchange (BRM) for the management of the centralized natural gas markets. Also approved were the trading regulations for the two operators.

On Thursday, BURSA exclusively announced that the natural gas exchanges would become functional starting in August. The OPCOM began the testing of the trading platform in June.

Approximately half of Romania's natural gas consumption is currently being sold at a regulated price, far below the international quotations, because we have the advantage of a plentiful domestic production (which covers 70% of the consumption). In the coming years, domestic gas will need to reach the average of prices practiced in the region, which means a 160% price increase. The increase in the transparency of transactions, through the creation of the natural gas exchanges, is very important, in this context, for consumers, who need to have the certainty that the price they pay to their supplier is fair. An exchange will not only ensure the transparency of the traded quantities and trading prices, but the indiscriminate access to natural gas as well.

This year's first trading months will only bring small volumes of natural gas on the stock exchanges. Most likely, it will be Romgaz, the state-owned natural gas producer which will "break the ice" with smaller quantities in the beginning, according to market sources.

Private operators are more cautious when it comes to the trading platforms. Silvia Vlăsceanu, the executive director of the ACUE (The Association of the Utility Provider Companies), said: "There is anxiety when it comes to the regulated market. Obviously everyone likes selling the natural gas on the open market, where they earn more. Thus, there is the risk that in the event of a harsher winter, the volumes of natural gas domestically produced may not be enough and the import of more natural gas may be needed. The imported natural gas is far more expensive and it is very hard to get the ANRE to acknowledge them as part of the tariff. That is why the ANRE must ensure that producers set aside the quantity needed for the regulated market".

Following the consultation with several market operators, the OPCOM has proposed a type of product with applicability on the Romanian natural gas market, characterized by a far less intense competition than on the energy market, namely the monthly contract for base load delivery.

The BRM also has simple or double competitive double auctions, for trading periods ranging from one month to one year.