EFET 2023 Gas Hub Scorecard now published

EFET is pleased to release its assessment of developing gas hubs for 2023.? This is the first time in two years the scores have been published because of exceptional market events in 2022.? There has been a marginal improvement in the average score of hubs assessed over the two years, but within this there is good progress in some markets, others who have remained constant and some whose scores have reduced.? For the first time we have included Moldova and Serbia.

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The biggest improvers were Greece where balancing has improved and the exchange is more established, and Ireland where we better recognise market-based balancing and where the index is increasingly referenced.? We have also seen improvements in the Baltic states, attributable to transparency and balancing, and the gas release programme in Lithuania.? Slovenia has nudged ahead of Croatia in terms of market design, though Croatia is more widely traded.? Poland sees a technical increase in the score, though trading remains challenging.

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Many markets have remained constant.? Ukraine has preserved its trading despite the challenges it faces.? Hungary remains constant at equal top of the table, but below the level at which we would consider the hub mature.? Lower down the table, progress is stalled at Slovakia and Romania.?

Scores are reduced at Turkey where transparency has become worse and trading activity more difficult, and Bulgaria where, despite recognised improvements in transparency and progress in establishing the exchange, balancing is less market-based, trading obligations are more onerous and market intervention exacerbates concentration issues rather than facilitates competition and liquidity.? Moldova and Serbia have been added, but scores indicate still only basic hub design, reflecting part-implementation of EU rules rather than genuine reform that will lead to wholesale trading.

“In the scorecard, we see the commitment of some jurisdictions to address security and supply diversity in a market-based way, compared to others who prefer to have a high degree of political control.? We must continue to work to show the benefits that are brought by open access”, said Doug Wood, EFET Gas Committee Chair.?

“The assessment shows a good summary of the real challenges faced by commercial entities who are seeking to do business in these markets”, added Steve Rose, Chair of the EFET Gas Hub Development Group, which produced the analysis.

Please note that the scorecard is intended to measure progress in hub development, and is not intended as a proxy for broader market conditions.? For further information on the design of the scorecard, details behind the scores and historical comparisons, please see here, or contact [email protected]