Overview
When making an offer in response to the demand aggregated in a tender, sellers must provide an indicative price. The nature of the indicative price depends on the type of tender - LNG or National Balancing Points (NBP) - in which the offer is made.
As such, the price of offers will be used to:
1. Rank those offers in the Matching Process;
2. Start negotiations among buyers and sellers, which may lead to the conclusion of contracts.
Prices in NBP Tenders
In NBP Tenders, sellers are to express their price as a discount (negative value) or a premium (positive value) in EUR/MWh to the price of the Dutch TTF Natural Gas Futures for the month of delivery.
The latter shall not be understood as the outright TTF futures price for the month of delivery at the time of bidding but as a relative reference allowing for variations during the offer window and negotiation period after matching.
The applicable reference in this case is to the TTF Natural Gas Futures, which covers the possible months of delivery from M+2 to March 2025. ‘TTF Natural Gas Index for the month’ is not suitable since it is an expiring front-month contract, which does not correspond to the delivery period under AggregateEU.
For the avoidance of doubt and as requested by DG ENER, the reference price for the month of delivery of the Dutch TTF Natural Gas Futures shall be, for the time being, the one established and published by ICE Endex Markets B.V.
Buyers and sellers are free, however, to agree on a different location and time references for the price formulation while negotiating and concluding a contract (that is, after matching).
