The Danish gas market
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Last updated on 30. September 2013
The Danish gas market
The Danish gas market is fully liberalised, and all consumers are free to choose their gas supplier. The Gas exchange in Denmark – Gaspoint Nordic– also facilitates an increased competition on the wholesale market.

One of Energinet.dk’s main tasks is to ensure a well-functioning and flexible natural gas market and to develop the products and facilities used by commercial players.

The wholesalers on the natural gas market – the shippers – can:

  • Sign yearly contracts
  • Order capacity and balancing services and keep themselves updated on their own orders via Energinet Online.
  • Trade bilaterally at Energinet.dk’s Gas Transfer Facility (GTF)
  • Trade on the Danish gas exchange: Gaspoint Nordic. The shippers can trade anonymously as the gas exchange is always the counterpart in all trades.

Shippers can meet through the electronic bulletin board and trade in both natural gas, transport and balancing services. 

The Danish business model
The Danish transmission system is constructed as an entry-exit model containing:

  • Three entry points at Nybro, Ellund and Dragør where the natural gas can enter Denmark.
  • One entry point for upgraded biogas - BNG Entry point - where shippers virtually can inject bio natural gas into the transmission system.
  • One exit zone where Danish consumers are supplied with natural gas by the gas suppliers via the distribution network. The exit zone consists of six distribution areas, each with a distribution company. There are also three large power stations in the exit zone (Avedøre 2, H.C. Ørsted and Skærbæk power stations), which are directly connected to the transmission grid.
  • Three transit exit points at Nybro, Elllund and Dragør where the natural gas can be exported out of Denmark.
  • Two virtual trading points for natural gas: Gas Transfer Facility (GTF) and Exhange Transfer Faciltity (ETF) where shippers can trade in natural gas.
  • Two physical storage points covering the storage facilities at Stenlille and Lille Torup where storage customers can inject and withdraw gas as needed.

Market model - Gas
The consumer market
All natural gas consumers in Denmark have been free to choose their gas supplier since 1 January 2004. Most often it is large gas consumers, especially heat and power generators, and major industrial consumers who have changed gas suppliers.

The liberalisation has made it possible for everyone to set up as a gas supplier or shipper.

Energinet.dk and the distribution companies collaborate to ensure continued market development.

Questions

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