The Polish Commodity Clearing House (IRGiT) signed a letter of intent with Balkan Gas Hub (BGH) to cooperate on the further development of the Bulgarian and regional gas market.
According to the provisions of the letter of intent, IRGiT will define an offering of clearing services for the spot markets operated by BGH. To ensure project success, the parties intend to cooperate closely in the preparatory phase, which will include, among other things, the identification of legal and tax constraints and the creation of the necessary framework in this regard, the verification of business needs, including the identification of potential clients, the assessment of the necessary IT infrastructure, the model for clearing and cross-border bank transfer services and the drafting, negotiation and conclusion of all necessary agreements or regulations.
“The situation on the European power and gas exchanges in recent months has demonstrated in a very particular way the need to provide the markets with clearing certainty, the guarantee of delivery and mechanisms to ensure stability and security,” said Łukasz Goliszewski, Vice President of the Management Board of IRGiT. “We are pleased that, as part of the development of our offering, we are entering into a partnership with Balkan Gas Hub, through which IRGiT will contribute to strengthening the security of the Bulgarian gas market. I am convinced that our many years of experience gained on the Polish market will transform into increased attractiveness of the offering and boost the liquidity on the BGH markets.”
“Working on this vitally important service of providing proper clearing solution for our market is a fundamental milestone in the further development of gas trading in Bulgaria and the region,” added Kiril Ravnachki, Executive Director of the Balkan Gas Hub. “Our approach since the establishment of the company is to capitalise on best practices and solutions that meet the market needs and at the same time provide proven technology. In this sense, we are very enthusiastic about working together with IRGiT in the upcoming months to find solutions for long-term benefits and additional security for the Bulgarian and the regional gas market.”
The letter of intent is not the only undertaking to further develop the regional gas market in which the two entities are involved. Both IRGiT and BGH are actively participating in the SEEGAS initiative, led by the Energy Community Secretariat, where the counterparts have committed to work together towards the establishment of common regional post-trade framework rules in Southern and Eastern Europe. At the core of this cooperation is the drive to support the energy transition and facilitate cross-border trading in energy markets between Bulgaria, Greece, Hungary, Poland, Romania and Ukraine.
“It is good to see, that the SEEGAS initiative has provided a useful platform for cooperation and exchange of knowledge,” commented Gregor Weinzettel, Gas Expert, Energy Community Secretariat. “We see that the gas markets of the region are coming closer together as additional gas infrastructure is being put into commercial operation, which will allow for further gas market diversification. The initiative of BGH and IRGiT shows that now, on the gas market operation side, a lot of effort is being undertaken to further improve market integration through providing clearing services. We hope that this cooperation will pave the ground for all stakeholders of the SEEGAS initiative to engage in finding a good solution with regional scope.”