GET Baltic announces an auction for the sale of the regasified LNG terminal required volume surplus
From 31st July all Baltic natural gas market participants are invited to participate in the LNG terminal required volume surplus auction organized by GET Baltic, during which it will be possible to purchase 110 GWh of natural gas. In accordance with the procedure established by the legal acts of the Republic of Lithuania, the auction is organized upon receipt of a request from the LNG supply and trading company LITGAS, which carries out the designated supplier activity, in order to ensure the effective sale of the regasified LNG terminal required volume surplus to all market participants on equal and non-discriminatory basis.
“This is the first such public auction in the Baltic States. We hope that the experience and competencies gained organizing centralized trading on the Baltic Gas Exchange GET Baltic and developed advanced electronic auction platform will contribute ensuring successful and transparent realization of regasified LNG terminal required volume surplus. Therefore, we invite all participants of the natural gas market in the Baltic States actively participate in the auction by offering the best prices”, – said Chief Business Development Officer of GET Baltic Gintaras Buzkys.
Participants of the Baltic gas market willing to participate in the auction are invited to submit auction documentation and bids starting from 31 July 2018 up to 8 August 2018 24:00 o’clock. Auction results and winning bidder will be announced on 10 August 2018.
Essential conditions of the auction:
- the total volume of natural gas sold at the auction is up to 110 GWh;
- the total volume of natural gas sold may be devided into parts not less than 10 GWh;
- the period of supply of natural gas is from 15 August 2018 until 30 September 2018, but not earlier than the date of signing of Natural Gas Purchase-Sales Agreement with the LITGAS;
- the maximum amount of natural gas supplied per day is equal to 15 GWh;
- the initial minimum selling price of LNG terminal required volume surplus is equal to 22,52 Eur/MWh;
- the place of delivery of natural gas is the virtual trading point in the Lithuanian natural gas transmission system;
- schedules of the natural gas supply are agreed between the designated supplier and the auction winner(s) prior to the signing of the Natural Gas Purchase-Sale Agreement(s);
- auction participant must provide the assurance of the natural gas purchase bid. The bid can be secured by an irrevocable guarantee issued by the bank under the first request or by an irrevocable first-pass guarantee issued by the insurance company or deposit, transferred to Market operator account. The amount of the bid security or deposit must be not less than 10,000 (ten thousand) Eur;
- in the event that the total quantity of natural gas (110 GWh) is not sold at the auction, the repeated auction shall be published for the remaining unrealized natural gas volume (repeated auction may be published once). The repeated auction can be attended only by the participants who participated in the initial auction and who were included in the list of auction participants (bidders).
Market participants willing to participate in the auction can get acquainted with the requirements for the auction participants and the documents to be submitted here.
About GET Baltic
Conducting its operations since 2012, GET Baltic is a licensed natural gas market operator with a status of Registered Reporting Mechanism provided by the ACER. The Company administrates the electronic trading system for trading spot and forward natural gas products with physical delivery in the market areas located in Lithuania, Latvia, and Estonia. Moreover, GET Baltic regularly extends the functionality of its electronic trading system and develops other services provided by the Company. By providing high quality services, the Company is seeking to contribute to increase in liquidity, competitiveness, and transparency of the wholesale gas market of the Baltic States.
Chief Business Development Officer
Mob. +370 600 88047