Imlitex Energy will use Dutch TTF ICE index in all its contracts. Here are the answers to most common questions:
Why Gaspool index will not be used anymore?
This year Gaspool Index expires as Gaspool’s German gas zone merges with NCG into a single market and the Gaspool gas zone ceases to exist. We see in the markets that the liquidity of this index is lower so this can lead to more uncertainty and greater price volatility. We therefore propose to choose the most liquid and widely used Dutch TTF index in order to avoid potential fluctuations.
– TTF index is the most widely used index in Europe, forming the basis of all major natural gas contracts (purchases and sales);
– TTF index has strongly correlated with Gaspool index for a number of years, so there will be no significant price changes;
– Forecasts of TTF index values can be observed here, thus providing transparency in price calculation.
How is the index price of the reference month (M) calculated?
The calculation period of the reference month (M) index starts on the last working day of the month M-2 and ends on the last working day of the following month (M-1), e.g. the April 2020 index was calculated based on values from 26 February to 30 March1 . The final monthly M index is obtained by averaging those values.
1There are exceptions when the calculation period of the month M index ends two working days before the beginning of the reference month (M).