Monday, September 25, 2023
HomeOil & GasMajor MoU signed to support gas market integration in CEE

Major MoU signed to support gas market integration in CEE

A Memorandum of Understanding (MoU) about trans-regional cooperation on the development of an integrated South-Eastern and Eastern European gas (SEEGAS) market was signed by the Energy Community Secretariat, energy exchanges and trading service providers BRM, UEEX, TGE, CEEGEX and ECG and Transmission System Operators (TSOs) Moldovatransgaz, GTSOU, FGSZ and GAZ-SYSTEM.

The signatories aim to cooperate on the development of cross-border natural gas trading, for example on exchange platforms and introduce transparent and competitive interregional market-based pricing mechanisms and efficient cross-border gas transmission and interoperability.

“Since its establishment, the Energy Community has supported the integration of its Contracting Parties with the EU energy markets, which for Ukraine and Moldova is now gradually becoming a reality,” said the Director of the Energy Community Secretariat, Janez Kopač. “The signature of the SEEGAS Memorandum of Understanding is a joint effort of core movers in the region towards further integration of exchange traded markets for natural gas.”

South-Eastern European gas market

The MoU specifically aims to create prerequisites for the functioning of a competitive liquid SEEGAS market and to ensure unhindered access to the respective natural gas markets for all market participants and service providers on a non-discriminatory basis and equal terms in accordance with the EU acquis. It also aims to facilitate cooperation on the implementation of an effective commodity clearing system for natural gas transactions that is in line with best European practices.

According to Piotr Zawistowski, President of the Management Board of the Polish energy exchange TGE, the SEEGAS project initiated by the Energy Community responds to the current needs as regards the further development and integration of gas markets in the region.

“I have always believed that the countries in the region need to know each other better and to cooperate to solve their problems,” added Gabriel Purice, CEO of the Romanian energy exchange BRM. “This is exactly what the SEEGAS project aims to do, which is why BRM has joined the first proposal with confidence. We are positive that in a short time, solutions will be developed to facilitate cross-border gas flows and to create a functional regional market.”

“With the growing impact of Southeast and East Europe on the world’s natural gas trade, the SEEGAS initiative can bring a new concept to the region, as well as a great platform to develop price signals, transparency and liquidity,” underlined Dániel Garai, CEO at the Hungarian Central Eastern European Gas Exchange (CEEGEX).

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