October sees return of gas sales for prompt delivery on Gazprom Export's ESP

London — Gazprom Export's Electronic Sales Platform has seen its first sales for prompt delivery since mid-May in auctions held since the start of October, according to a sales update posted to the company's website Oct. 14.

There had been no ESP sales for prompt delivery -- within-day, day-ahead or balance-of-month -- since May 21 as prompt European gas prices plunged.

Although the volumes sold for prompt delivery so far this month are small, it signaled a return of nearer-term activity on the ESP for the first time in almost five months.

According to the data, Gazprom Export sold 0.6 million cu m of gas on Oct. 5 for day-ahead delivery to the Bereg virtual interconnection point between Ukraine and Hungary.

The same day, it also sold a total of 2.1 million cu m -- across four lots -- for within-day delivery to the Austrian virtual trading point.

Then on Oct. 9, the platform saw a sale of 11.5 million cu m for weekend delivery to the Slovakian VTP.

Small percentage

The total sales for prompt delivery of 14.2 million cu m represented just 2.7% of the sales across the nine auctions held so far this month, which totaled 521 million cu m.

The remaining sales were divided among volumes for delivery in November, Q1 2021, Summer 2021, Q1 2022, Summer 2022, Calendar Year 2022, and as far out as Q4 2022.

However, given those volumes are for delivery on a monthly, quarterly, seasonal and even yearly basis, it means a lower average delivery volume than when sales are for prompt delivery.

ESP sales so far this month have averaged 58 million cu m/d, up from the September average of 48 million cu m/d.

As well as sales for delivery to Bereg and the Austrian and Slovakian VTPs, volumes sold have been for delivery to the German Gaspool and NCG hubs; the Baumgarten hub in Austria; and the Olbernhau interconnection point between Germany and the Czech Republic.

In all, gas sales on the ESP total 41.32 Bcm since the first sale took place in September 2018.

Price index

In October so far, the so-called ESPGazEX index -- which represents the average price of ESP sales in any month regardless of delivery period -- is Eur10.846/MWh ($12.7/MWh), well up on the September average of Eur6.881/MWh.

The higher price reflected the rebound in European gas prices, which has seen the day-ahead TTF price rise above Eur13/MWh.

The ESPGazEX index dropped to an all-time low in August of Eur6.744/MWh.

The highest average monthly price of gas sold on the ESP was Eur28.766/MWh in October 2018.

Gazprom Export's ESP sales in October (million cu m)

Note: Converted from MWh using Gazprom equivalence

Source: Gazprom Export