emsTradepoint launches new strip products

29 January 2015

Transpower announced that its natural gas spot market, emsTradepoint will today launch its new product range which includes weekly and monthly strip products. This follows the early success of its daily natural gas spot contracts.

emsTradepoint was developed last year to help add flexibility and transparency to the gas market, and allow participants to better manage their daily gas requirements.

Strip products are an important addition to the emsTradepoint service as they offer easy execution of the daily spot contract over fixed terms. These products help to increase the viability of exchange traded spot contracts replacing bilaterally negotiated gas contracting. For participants, this extends the existing benefits of the daily contract, including improved supply-diversity, single-source credit and billing management and price transparency, over the mid to long term.

emsTradepoint’s James Whistler said that the new weekly strips will run Mon-Sun, and monthly strips will run across each calendar month.

“The new strip products now incorporate force majeure provisions. This will allow larger volumes of gas to be traded in a sustainable manner and provide traders with greater field/ supply diversity than they would otherwise have under bilateral contracting,” he said.

The new open windows will be as follows:

  • Daily: Up to 14 days forward, new 7 days opens each Monday
  • Weekly: 8 weeks forward
  • Monthly: 24 months forward

All products remain as physical settlement only.

Whistler said that in addition to the new strip products being launched today, a new and improved exchange platform is also being put in place.

“New features of the exchange platform include improved trading screens, a new scheduling tool and a more efficient collateral methodology. These improvements will give gas market participants an enhanced overview of the market and help streamline their processes.”

“We are continuing to look at how to improve and build on the early success of emsTradepoint and make it beneficial for its participants. Strip products will play an important part in making centrally-cleared trading an efficient base load procurement option, and begin establishing longer-term price transparency,” he said.

Further information can be found at www.emstradepoint.co.nz