RWE Successfully Auctions Off Gas Storage Capacities

German utility major RWE has announced that a total of 18 companies from the gas industry took part in an auction held by its Essen-based RWE Trading arm for eight gas storage capacity packages for the Eon Ruhrgas Transport market area.

The participants included international trading companies and smaller German gas suppliers. In total five companies succeeded in the auction. Due to the above-average market response, the company has said that it will be auctioning off more gas storage capacity in the future.

RWE Trading used store-x, a platform specifically used for trading secondary capacities, to offer the eight storage capacity packages. Each of the packages has an operational gas volume of 100 million kWh, a storage infeed performance of 60MWh per hour and a storage outfeed performance of 75MWh per hour.

The storage capacity packages are valid for the period extending from April 1, 2008, until April 1, 2011. Each package started with a base price of E2.77 million. The auction was open to all interested trading partners except for all RWE Group companies.

Dietrich Hoffmann, gas trader for RWE Trading, said: “This result clearly shows that our product meets the needs of the market. It is a further positive sign for the developing competition on the German gas market.”