Transpower does u-turn to keep gas trading platform emsTradepoint. Photo: 123RF
- Transpower does u-turn to keep gas trading platform emsTradepoint
- Grid operator could not find buyer, was on limited time
- Transpower says platform needed as gas supplies dwindle.
Transpower has done an about-face and decided to keep and expand the country's only gas trading platform, emsTradepoint, as the country's gas supplies dwindle.
Last year, the national grid operator put the platform up for sale because it was a non-core asset, and when it could not find a buyer said it would shut it down in September this year, prompting industry criticism.
However, rapidly dwindling gas supplies appear to have triggered a change of mind.
"emsTradepoint plays an important role in New Zealand's gas and carbon markets through delivering price and trading transparency," chief executive James Kilty said.
"This has become increasingly important given the accelerated decline in gas availability over the last 12-18 months."
Transpower had previously said the platform was trading only small amounts and its closure would make little or no difference to the overall gas market.
However, for some commercial users the platform has become increasingly important to find supplies at viable prices.
Leading power companies Contact and Genesis have recently cut deals to buy gas from the country's biggest gas user, Methanex, to shore up reserves if needed for electricity generation this winter.
Kilty said Transpower accepted that it was best placed to retain and operate the platform, which would be expanded with new products and prices later in the year.
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