Danish Oil and Natural Gas (DONG) Energy
Gas Release Programme Auction
August 2006 – present
In August 2006, DONG Energy conducted the first of at least six annual gas release auctions, where 400 million m3 of natural gas, corresponding to 10% of the Danish gas market, were offered.
The gas release is part of DONG Energy’s commitment to the European Commission following the approval of the merger of the Danish energy companies DONG, Energi E2, Elsam, Nesa, Frederiksberg Forsyning and Kobenhavn Energi (electricity division).
The auction was designed after a new concept the Two-Way Gas Release where DONG Energy will deliver natural gas in Denmark and will receive swaps of corresponding deliveries at the gas markets in the UK, Belgium, Germany and the Netherlands.
Power Auctions LLC developed the Auction Rules and the software used to implement the auction. Power Auctions also served as the Auction Administrator for the auction.
Further details about the DONG Energy Gas Release Programme Auction can be found on the DONG Energy Gas Release Programme website.
E.ON Ruhrgas Gas Release Programme Auction
Germany – July 2003 – present
In 2002, the Federal Minister of Economics and Labour approved the acquisition by E.ON of the share capital in Ruhrgas, subject to Ruhrgas fulfilling a number of obligations. These obligations include a Gas Release Programme (GRP) under which E.ON Ruhrgas is required to conduct auctions in six annual steps and to release a total volume of 200 billion kWh of gas. With the GRP auctions, E.ON Ruhrgas offers in each of the six annual auctions a tranche of 33.33 billion kWh of high calorific gas, which will be made available in three annual quantities of 11.11 billion kWh. The deliveries under contracts won in the annual auction will commence on October 1st of each year.
The Gas Release Programme auction is an ascending-clock auction designed by Market Design Inc. and implemented on the PowerAuctionTM software platform. E.ON Ruhrgas now conducts the auction in the spring of each year, giving purchasers time to arrange transportation and possibly re-sell the gas before deliveries start.
Further details about the E.ON Ruhrgas Gas Release Programme Auction can be found on the E.ON Ruhrgas Gas Release Programme website.
E.ON Földgáz Trading Gas Release Programme Auction
Hungary – May 2006 – present
In connection with the 2006 acquisition of MOL, the largest gas company in Hungary, the European Commission required E.ON to implement a gas release programme of 1 billion m3 of gas per year. The gas release programme auction is an ascending-clock auction implemented on the PowerAuction™ software platform. Gas is offered in three lot sizes: 100 million m3 ; 50 million m3; and 25 million m3.