Denmark Makes Gas Swap with The Netherlands

June 13, 2012

DONG Energy reported that its recent Gas Tender 2012 was a complete sell-out. The buyers will receive natural gas in the Danish market, and, in return, will deliver corresponding volumes to DONG Energy on the Dutch gas hub, TTF.

Ten lots of 131,400 MWh/year for delivery on the Danish gas hub, GTF, had been put up for sale.
DONG Energy will receive corresponding gas volumes on the Dutch TTF gas hub.
Seven companies placed bids.
A total of 58 bids were placed – all ten lots were sold.

Tim Gustav Weibel is Senior Portfolio Manager in DONG Energy’s division for trading with energy commodities:

”Demand for natural gas in the Danish market has been high, and the outcome matches our expectations. The gas auction has proved to be a good successor to our earlier auction programme, Gas Release, which came to an end last year.”

The programme is based on a so-called ’swap’, ie a transaction in which two counterparties make an identical volume of gas available to each other at two geographically different supply points, in this case in Denmark and the Netherlands.

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LNG World News Staff, June 13, 2012; Image: dongenergy