Paris (Platts)–2Jun2015/602 am EDT/1002 GMT The European gas hubs are in the phase of early development and have the potential to grow but the challenge was to attract participants with different interests, while the EU regulation frameworks also have to be designed carefully, said new CEO of Paris-based investment firm Powernext Egbert Laege and head of gas sales Richard Katz on Monday. In the last year, volumes traded on European gas platforms have increased significantly. For example, the total volume of gas traded on PEGAS, the pan-European gas trading platform operated by Powernext, showed an increase of 81% year on year in April to 77 TWh, according to Powernext. “The biggest challenge for the European gas markets to take off is to find some counter-parties with different risk profiles and different interests so that they can trade together. You also need a few financial players on top of that,” Laege said. “There is a potential for new players to enter,” said Laege, who pointed to the equity market as an example. “Their margins are thinner and thinner, therefore they are looking at risk management diversification. The gas commodity could become one of those assets,” he said, adding that the gas … continue reading
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Source: CTRM Center