German THE launches two gas balancing tenders for 1Q27

German gas market area manager THE has opened two separate bidding rounds for long-term balancing of high and low-calorie gas to ensure security of supply over the first quarter of next year.

The tenders cover a theoretical maximum of 24TWh if THE called every contracted megawatt hour for every hour across the maximum permitted call days in both tenders combined. THE usually issues gas balancing tenders ahead of the coming quarters but has expanded volumes for January-March 2027. THE said the additional volumes support gas supply security measures set out in the German economy ministry's framework paper on strengthening security of supply.

Around 14.5TWh at maximum comes from THE's standard quarterly long-term balancing (LTO) product, split across January, February and March 2027. THE is seeking 344 GWh/d of system buy capacity in each month, allocated between the H-Gas Sud, H-Gas Ontras and the L-Gas Ost/West/GUD and Nowega balancing zones (see table). Providers can be called for up to 14 days a month.

The second, "special", tender adds a further 9.7TWh at maximum. It covers only high-calorie gas and requires delivery exclusively at storage connection points. This tender runs during 1 February–1 March with up to 14 call days and during 1–15 March with up to seven call days.

THE will accept bids for both tenders from 6–20 October, and it will confirm awards by 23 October. Successful bidders supplying high-calorie gas cannot meet their obligation by shifting importing volumes across the border from the Netherlands, Belgium, France or Denmark. This means suppliers must achieve balancing through other supply sources like LNG sendout, alternate entry points or storage sites.

Successful bidders will be compensated through a capacity payment — fixed for the delivery period regardless of use — and a working price tied to the EEX hourly reference price, payable only for gas actually delivered following a call. THE awards contracts on a cost-optimal basis. Non-performance triggers a contractual penalty of up to 25pc of the relevant capacity price per shortfall day, capped at 50pc per call day and 100pc over the full delivery period.

By Alejandro Moreano