E.ON Energy Trading launches activity in US natural gas market
E.ON Energy Trading today announced it has commenced trading US natural gas financial contracts, completing an over-the-counter Henry Hub trade for June 2010 on the IntercontinentalExchange (ICE) OTC platform. The move is part of the Düsseldorf-based company’s strategy to develop and expand its US gas trading capabilities.
Gareth Griffiths, chief commercial officer, for E.ON Energy Trading said: “This is an important step for us. The influence of the US gas markets in Europe has increased substantially over the last 18 months. The emergence of US shale gas has led to the increased availability of LNG cargos, which has connected markets around the world, from Henry Hub to NBP to the Pacific Basin. We expect that this connection, driven by US shale and increased LNG liquefaction, is here to stay. It’s therefore vital for us to look beyond Europe and develop our understanding of the US gas market.”
E.ON Energy Trading, one of the largest asset-backed trading businesses in Europe, has also been active trading financial contracts in the US ERCOT power market since November 2009.
Gareth said: “Global energy markets and commodities are increasingly interconnected and going forward we expect to expand our range of traded products in the US to better optimize correlations between energy markets on both sides of the Atlantic. It’s not just the European drivers we need to understand, but what is happening on a global scale.”
E.ON Energy Trading, backed by one of the broadest and most diverse power and gas asset bases in Europe, traded 1,498 billion kWh of gas and 1,240 billon kWh of power in 2009. The company is active at all major exchanges and gas trading hubs throughout Europe.
Notes to editors:
Gareth Griffiths, chief commercial officer, for E.ON Energy Trading said: “This is an important step for us. The influence of the US gas markets in Europe has increased substantially over the last 18 months. The emergence of US shale gas has led to the increased availability of LNG cargos, which has connected markets around the world, from Henry Hub to NBP to the Pacific Basin. We expect that this connection, driven by US shale and increased LNG liquefaction, is here to stay. It’s therefore vital for us to look beyond Europe and develop our understanding of the US gas market.”
E.ON Energy Trading, one of the largest asset-backed trading businesses in Europe, has also been active trading financial contracts in the US ERCOT power market since November 2009.
Gareth said: “Global energy markets and commodities are increasingly interconnected and going forward we expect to expand our range of traded products in the US to better optimize correlations between energy markets on both sides of the Atlantic. It’s not just the European drivers we need to understand, but what is happening on a global scale.”
E.ON Energy Trading, backed by one of the broadest and most diverse power and gas asset bases in Europe, traded 1,498 billion kWh of gas and 1,240 billon kWh of power in 2009. The company is active at all major exchanges and gas trading hubs throughout Europe.
Notes to editors:
- E.ON Energy Trading is the energy trading business of E.ON, one of the world's largest investor-owned power and gas companies. As a single, strategically focused European business, we draw on our international strength and industry expertise to play a leading role in Europe’s energy markets. We work across national borders in all key energy markets including power, gas, coal, oil and CO2;
- Through our trading activities, we enhance the value of E.ON’s asset base, minimize the commodity risk of E.ON’s power generation activities, and look for ways to take advantage of converging European and global markets to add value for E.ON and its consumers.
The information contained herein is for informational purposes only. It represents the current view of E.ON Energy Trading SE as of the date of its release. It is not to be construed as an offer or request for an offer, amendment, novation or settlement of a contract, investment advice or as a waiver of any terms of a contract by E.ON Energy Trading SE. E.ON Energy Trading SE does not guarantee the accuracy of any of the information provided herein.
For more information contact:
Georg Oppermann on +49 (0) 211 4579 5532
Jamee Majid on +49 (0) 211 73275 2307