The Organised Gas Market in Spain

Within the gas market a distinction is usually drawn between the primary market, where transactions take place between supply-side gas producers and demand-side traders, and the secondary market, where transactions take place between traders and other suppliers. While in the first case, the market is usually of an international nature, the secondary market does have a clear regional dimension, including contracts of resale from traders to other suppliers and transactions made between suppliers to adjust their buy and sell positions in respect of end consumer supply needs. However, this secondary market in Spain, unlike what happens in other Member States, was not until recently an organised exchange, as transactions conducted thereon responded exclusively to bilateral long-term trading mechanisms between traders and its result did not reflect a gas reference price in the Spanish market.