PRISMA introduces Mid-Term Tenders through AggregateEU

To address the growing demand for stability and predictability among participants, PRISMA, on behalf of the European Commission, has broadened its product portfolio by introducing Mid-Term Tenders. In these tenders, buyers will be able to submit their demand for seasonal six month periods, going from April 2024 to October 2029.

The first Mid-Term Tender on AggregateEU is scheduled to begin on 15 February, 2024.

Maroš Šefcovic, Executive Vice President of the European Commission said:

“This follows a request from some market actors, namely industrial consumers, for a new product that would better match their procurement strategies and needs in terms of stability and predictability for contracting gas supplies. In addition to buyers, the mid-term product will provide further predictability to suppliers, especially of LNG, that may enable further LNG supplies through AggregateEU”.

In that spirit, Mid-Term Tenders are intended to:

1. support industrial consumers in exploring additional trading options under a pseudonym, i.e. attract buyers purely based on the demand profile;

2. support sellers in identifying buyers who might be interested in a longer trading partnership – that is, up to 5 years.

About Mid-Term Tenders via AggregateEU

Mid-Term Tenders offer participants the opportunity to submit demands for six month periods: namely, Summer and Winter. The Summer Period goes from 1 April to 30 September of each year, while the Winter Period goes from 1 October to 31 March of the following year. The earliest possible delivery runtime is anticipated to be Summer 2024. The last delivery runtime will be Summer 2029.

Buyers can submit their demand for up to five years, or ten consecutive six month periods. Each demand must meet the minimum stipulated quantity for the relevant product, whether LNG (1 800 000 MWh) or NBP (30 000 MWh).

Demands at a specific location for a particular period will not be aggregated. Instead, each demand will be published as a separate tender, allowing sellers to express their interest to sell to individual buyers the total amount expressed as demand. To ensure fairness, buyers will be displayed to sellers under a pseudonym.

To participate in Mid-Term Tenders, buyers and sellers must already have a PRISMA account and a subscription to AggregateEU.

Read the article online at: https://www.worldpipelines.com/business-news/19012024/prisma-introduces-mid-term-tenders-through-aggregateeu/