Day Ahead Market for Natural Gas - About
Day Ahead Market for Natural Gas (DAM-NG) is a component of the centralized natural gas market administered by the Operator of the Electricity and Natural Gas Market OPCOM S.A., on which daily natural gas transactions are performed, with delivery on the day following the trading day.
The organization and functioning framework of the DAM-NG is stipulated in the Regulation concerning the organized trading framework on centralized markets for natural gas administrated by Gas and Power Market Operator OPCOM – S.A., approved by the Order of the President of the National Regulatory Authority for Energy no. 107/13.10.2021.
The Regulation establishes an organized framework for trading of the natural gas in a competitive market by the DAM-NG participants, necessary to:- Facilitate the formation of a wholesale natural gas market at national level under conditions of competition, transparency and non-discrimination;
- Establishment of reference prices for other transactions in the natural gas market.
Characteristics of the Day Ahead Market for Natural Gas:
- Conditions for participation
- Registration as a participant in the Day Ahead Market for Natural Gas
- Deposit to OPCOM S.A. of the Direct Debit Agreement regarding direct debit and the Banking Guarantee Letter pledged in favor of OPCOM S.A. for participation with buying offers
- Trading sessions
- Are organized every calendar day
- The transaction is made online from the terminals of the market participants
- For each gas day, a standard instrument is assigned, having a unique alphanumeric code DAY_zz_LLL_aa, where: z - the gas delivery day* expressed in two digits, L - the month expressed in abbreviated three letters and a - the year expressed by two digits
- Anonymous environment - the market window provides information only on volumes (MWh) and prices
- It takes place in two successive stages::
- A offers submission stage
- A transaction completion stage
Offers submission stage
- participants may enter, respectively modify or cancel their own offers
- the trading system automatically compares the value of each buying offer with the validation warranty available
- Introduced and validated offers are updated and ordered automatically by the trading system, in real time, based on the best price, increasing for selling offers and decreasing for buying offers and by time stamp for same type offers with the same price
- no transactions are concluded at this stage
- the trading system calculates and automatically displays for the traded standard instrument, based on active offers, equilibrium price and surplus offer. This information is updated automatically each time an order is entered / modified / canceled
Transaction conclusion stage
- Participants are restricted - no offers can be entered / modified / canceled
- All active offers are compared for setting compatible offers and concluding transactions
- compatible bids are traded, in whole or in part, at the market closing price (PIP)
- OPCOM S.A. is the counterpart for all trades for the sale / purchase of natural gas concluded by the DAM-NG participants on this market
* The hourly intervals by which the gas day is defined are in accordance with the definition in the Network Code for the National Gas Transmission System in force
- Confirmation of transactions and publication of results
- Immediately after a transaction is concluded, the Trades Confirmation is available to each participant who concluded trades on the trading platform
- Also, for the participants who have concluded transactions are made available the Physical Notifications for the concluded transactions and the Daily Settlement Notes
- The results of each DAM-NG trading day are made public on the OPCOM S.A. website in the Trades - Results / Day Ahead Market for Natural Gas
The trading schedule on DAM-NG is the following (Romania time):
| 12:00 - 14:00 | Offers submission stage |
| 14:00 - 14:10 | Transaction conclusion stage |
| 14:10 - 15:40 | Submission of Notes on the concluded transactions by OPCOM S.A. to TSO |