OIES Podcast – European Traded Gas Hubs

In this latest OIES podcast, brought to you by the Gas Programme, James Henderson talks to Patrick Heather about the latest in his decade long series of reports on the European traded gas hubs. After reviewing the key metrics that he uses in his analysis Patrick looks at the liquidity of the key gas hubs in Europe and highlights the dominant position which TTF has now established, as it essentially dwarfs the rest of Europe in terms of volumes traded. This does not make the rest of the hubs irrelevant, he points out but does mean that they are highly correlated with price movements on the TTF, which has now, he argues, become a global hub used by traders in gas markets across the world as a benchmark. Meanwhile NBP, which had been equally important a decade ago, has now become a regional sterling-based hub and much less relevant on the global market. Finally, he compares TTF with Henry Hub in the US and JKM in Asia and finds that, if anything, TTF has a more important global role as it sits at the heart of a major importing region with a very liquid trading market and the ability to offer significant risk management options.

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