The South-East European Gas Initiative

The South-East European Gas Initiative (SEEGAS) was launched on 15 December 2020 as a joint project of ten EU countries and contracting parties of the region as a response to stakeholders’ increasing interest in establishing organized gas exchanges and improving cross-border trading. The aim of the initiative is to foster closer cooperation between gas exchanges and transmission system operatorss in the region for the development of natural gas cross-border trade in an open, liquid, and competitive market that would ultimately benefit end-consumers.

Recognizing the need for dialogue and cooperation well before the first signs of the current energy crisis, the SEEGAS initiative has acquired now a greater significance, as the region’s energy security is reliant on enhanced cooperation and coordination of gas exchanges. Through the initiative, the secretariat aims to increase the security of gas supply in the region and encourage closed markets to open up and diversify their supply of sources towards a better integrated regional market.

This page presents the main milestones, reports and discussions conducted in the context of the SEEGAS initiative, together with an in-depth country analysis of each SEEGAS participant country.

SEEGAS Reports

Report on Gas Exchange - Update

2023 SEEGAS REPORT - Initiative update and post-crisis development analysis

The 2023 report provides a general overview on how the gas crisis derived from the war on Ukraine impacted the exchange development on the SEEGAS Region. The initial chapter illustrates how SEEGAS members collectively reacted to the recent gas crisis through the establishment of Extraordinary Crisis Response meetings. Furthermore, special sections are dedicated to the description of the Regional Clearing Initiative between SEEGAS, EBRD and PONTON, as well as to the specific task force that the Energy Community dedicated through SEEGAS concerning the fulfilment of Ukrainian storages with EU gas. The second chapter outlines gas market and exchange developments during 2022 and 2023 in the SEEGAS participating countries: three Energy Community Contracting Parties (Georgia, Moldova and Ukraine), five EU Member States (Austria, Bulgaria, Greece, Hungary, Poland and Romania), one Observer Party to the Energy Community (Turkey) and Israel.

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Report on Regional Transmission Routes

2022 SEEGAS Report on Regional Transmission Routes

The 2022 Report was framed as an ad-hoc response to the gas crisis derived from the war on Ukraine and as an Secretariat's in-house initiative to provide practical information on import and transmission capacity availability in the region and recommend solutions to barriers causing bottlenecks and preventing further regional cooperation.

Report surveyed 10 national gas transmission system operators in Bulgaria, Croatia, Greece, Hungary, Moldova, North Macedonia, Poland, Romania, Turkey, Ukraine, 10 existing or prospective LNG terminal operators in Croatia, Greece, Poland, Turkey as well as the operators of the recently commissioned Trans-Anatolian Pipeline (TANAP) and Trans-Adriatic Pipeline, which together make up the Southern Gas Corridor. Respondents include operators in EU Member States and Energy Community Contracting Parties which have also expressed interest in joining the SEEGAS project.

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Report on Gas Exchange

2021 SEEGAS Report on Gas Exchange

The report begins by providing an overview of the SEEGAS Initiative and summarizing its achievements to date. The second chapter outlines gas market and exchange developments in the SEEGAS participating countries, three Energy Community Contracting Parties (Georgia, Moldova and Ukraine), five EU Member States (Austria, Bulgaria, Greece, Hungary, Poland and Romania) and one Observer to the Energy Community (Turkey). All countries which are covered by this report are either in the process of establishing exchange traded gas markets or have such markets already in operation.

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SEEGAS achievements and activities

SEEGAS milestones

key actions and achievements so far

Sep 2023

New Memorandum of Understandings for enhanced regional cooperation

In a move towards strengthening regional energy markets, Central-Eastern European Energy Exchanges joined hands through the signing of MoU. The agreements signed between

Ukrainian Energy Exchange (UEEX) and Romanian Commodities Exchange (BRM);
Ukrainian Energy Exchange (UEEX), Towarowa Giełda Energii S.A. (TGE), and Izba Rozliczeniowa Giełd Towarowych S.A. (IRGiT),

aim to foster cooperation in various aspects of the energy trading landscape. These MoUs streamline interconnectivity and harmonize trading and clearing systems across national borders, ultimately facilitating seamless cross-border operations.

Apr 2023

Welcoming East Med Energy Exchange (EMEX)

The SEEGAS forum welcomed the CEO and founder of the Tel Aviv-based East Med Energy Exchange (EMEX), Doron Liban, who presented the exchange's gas physical spot market, which opened in November 2022.

Apr 2023

Collaboration with EBRD: Towards the integration of regional clearing operations

The Energy Community and SEEGAS Exchanges started its collaboration with the European Bank for Reconstruction and Development (EBRD) and a designated international consultant to produce a study for the integration of regional clearing operations.

Oct 2022

Release of the 2nd SEEGAS Report on Regional Transmission Routes

Prepared in consultation with the region’s gas stakeholders, and taking into account the urgency of ensuring the energy security of consumers in preparation for winter, the Energy Community Secretariat concludes on its SEEGAS Regional Transmission Routes Report that the region remains vulnerable and poorly connected due to numerous regulatory bottlenecks impeding the establishment of a competitive and resilient gas market despite the existence of abundant but underutilized physical transmission and import capacities. The report also lays out general and country-specific recommendations to remove these bottlenecks.

Dec 2021

Release of the first SEEGAS Report on Gas Exchange

The report with the title Introduction to the SEEGAS Initiative and Gas Exchange Development in the Region begins by providing an overview of the SEEGAS Initiative and summarizing its achievements to date. The second chapter outlines gas market and exchange developments in the SEEGAS participating countries, three Energy Community Contracting Parties, five EU Member States and one Observer to the Energy Community. All countries which are covered by this report are either in the process of establishing exchange traded gas markets or have such markets already in operation.

Sep 2021

Memorandum of Understanding expansion with new signatories

Key regional stakeholders joined SEEGAS on the occasion of the first Steering Committee meeting in Vienna. The scope of SEEGAS MoU was widened by the signatures of four further gas transmission system operators:

Transgaz of Romania;
Desfa of Greece;
the Balkan Gas Hub of Bulgaria;
the Hellenic Energy Exchange.

Jul 2021

The first Memorandum of Understanding

A Memorandum of Understanding (MoU) about trans-regional cooperation on the development of an integrated South-Eastern and Eastern European gas market was signed by

the Energy Community Secretariat;
energy exchanges and trading service providers BRM, UEEX, TGE, CEEGEX and ECG;
transmission system operators Moldovatransgaz, GTSOU, FGSZ and GAZ-SYSTEM.

The signatories aim to cooperate on the development of cross-border natural gas trading, e.g. on exchange platforms, and introduce transparent and competitive interregional market-based pricing mechanisms and efficient cross-border gas transmission and interoperability.

May 2021

Public Consultation

From 12 May 2021 to 30 June 2021, the EU Agency for the Cooperation of Energy Regulators (ACER) and the Energy Community Secretariat (ECS) carried out a joint public consultation regarding gas capacity availability and use on a number of interconnection points (IPs). The IPs concerned are located on the borders of the EU Member States and the Energy Community Contracting Parties and between the Energy Community Contracting Parties. By way of this consultation, ACER and the ECS aimed at gaining a firmer understanding of stakeholders’ views on best practices in pursuit of enhancing connectivity, optimal use of existing capacity, market integration, and competition

SEEGAS meetings

SEEGAS Stakeholder Platform, Joint Steering Committee

SEEGAS Stakeholder Platform

4th SEEGAS Stakeholder Platform Meeting

Date	Focus
17 DEC 2021	Celebrating the first anniversary of the SEEGAS initiative, the speakers provided achievement updates: • A general achievement update of the initiative and the launch of the SEEGAS report • News from the exchanges active in the region • A traders perspective on the status of regional gas market development

3rd SEEGAS Stakeholder Platform Meeting

Date	Focus
15 JUN 2021	The Energy Community Secretariat decided to host a third Stakeholder Meeting on 12 June 2021. Given the overwhelming interest by participants in the topic, this session focused entirely on clearing. Over the course of the SEEGAS initiative, many stakeholders stressed that the development of clearing services will be key for the region. This meeting had a more interactive format, focusing on those stakeholders directly involved in developing/providing clearing services in the SEEGAS region for gas trading. This closed format with less participants facilitated constructive discussion around what would need to be in place to potentially create favourable conditions for a regional clearing solution to be developed.

Date

Focus

15 JUN 2021

The Energy Community Secretariat decided to host a third Stakeholder Meeting on 12 June 2021. Given the overwhelming interest by participants in the topic, this session focused entirely on clearing. Over the course of the SEEGAS initiative, many stakeholders stressed that the development of clearing services will be key for the region. This meeting had a more interactive format, focusing on those stakeholders directly involved in developing/providing clearing services in the SEEGAS region for gas trading. This closed format with less participants facilitated constructive discussion around what would need to be in place to potentially create favourable conditions for a regional clearing solution to be developed.

2nd SEEGAS Stakeholder Platform Meeting

Date	Focus
10 MAR 2021	Gas experts continued their efforts to harmonise views and practices in relation to the development of a common and integrated SEE & EE gas market during the second SEEGAS Stakeholder Meeting on 10 March 2021. The central theme was the topic of clearing and the importance of clearing services for market development. Panellists underlined that clearing systems require well-defined rules and correct implementation of the EU’s legal framework. This includes EU Directive 2014/65/EU on Markets in Financial Instruments Directive (MiFID II) and EU Regulation No 600/2014 on Markets in Financial Instruments Regulation (MiFIR) as the most effective tools to underpin market confidence. The event was supported by presentations from clearing service providers and energy exchanges in the SEE region, the European Federation of Energy Traders (EFET) and the Association of European Energy Exchanges (Europex).

Date

Focus

10 MAR 2021

Gas experts continued their efforts to harmonise views and practices in relation to the development of a common and integrated SEE & EE gas market during the second SEEGAS Stakeholder Meeting on 10 March 2021. The central theme was the topic of clearing and the importance of clearing services for market development. Panellists underlined that clearing systems require well-defined rules and correct implementation of the EU’s legal framework. This includes EU Directive 2014/65/EU on Markets in Financial Instruments Directive (MiFID II) and EU Regulation No 600/2014 on Markets in Financial Instruments Regulation (MiFIR) as the most effective tools to underpin market confidence. The event was supported by presentations from clearing service providers and energy exchanges in the SEE region, the European Federation of Energy Traders (EFET) and the Association of European Energy Exchanges (Europex).

Kick-off meeting of the SEEGAS Stakeholder Platform

Date	Focus
15 DEC 2020	On 15 December 2020, the Energy Community Secretariat officially launched the SEEGAS Platform with its first SEEGAS Stakeholder Meeting. During the first stakeholder meeting, a group of active energy exchanges in the region, consisting of BRM, UEEX, CEEGEX, HEnEX, TGE and CEGH, presented themselves and their gas exchange development projects. Regional stakeholders discussed the remaining challenges and made practical proposals towards market integration, such as implicit allocations. With around 90 participants, the event was also attended by gas trading companies such as Shell, ENGIE, OMV and Uniper. The event was supported by EBRD and ICIS.

Date

Focus

15 DEC 2020

On 15 December 2020, the Energy Community Secretariat officially launched the SEEGAS Platform with its first SEEGAS Stakeholder Meeting. During the first stakeholder meeting, a group of active energy exchanges in the region, consisting of BRM, UEEX, CEEGEX, HEnEX, TGE and CEGH, presented themselves and their gas exchange development projects. Regional stakeholders discussed the remaining challenges and made practical proposals towards market integration, such as implicit allocations. With around 90 participants, the event was also attended by gas trading companies such as Shell, ENGIE, OMV and Uniper. The event was supported by EBRD and ICIS.

Joint Steering Committee

In order to establish a dialogue between the relevant stakeholders in the region with the aim of facilitating the goals mentioned and tackling potential obstacles to gas market integration, the Energy Community Secretariat established the SEEGAS Stakeholder Meetings. These recurring meetings served as a platform to introduce the current, most significant stakeholders in the SEE & EE regions and to share best practices towards further development of regional exchange traded markets for gas. The first meeting took place on 15 December 2020, with follow-up meetings in various constellations taking place every three months.

4th SEEGAS Joint Steering Committee

Date	Focus
30 JUN - 1 JUL 2022	Participants of the fourth SEEGAS JSC agreed that the risks of a Russian gas supply disruption in the region can only be addressed through further market integration and the harmonisation of market rules, as well as trading and post-trading structures on regional gas exchanges. The meeting focused on how to fast-track the integration of gas infrastructure and markets in central, southern and eastern Europe. In order to react to the ongoing gas crisis effectively, the meeting was joined by representatives from the European Commission, ACER, EBRD, USAID, ENTSOG, Europex and EFET.

Date

Focus

30 JUN - 1 JUL 2022

Participants of the fourth SEEGAS JSC agreed that the risks of a Russian gas supply disruption in the region can only be addressed through further market integration and the harmonisation of market rules, as well as trading and post-trading structures on regional gas exchanges. The meeting focused on how to fast-track the integration of gas infrastructure and markets in central, southern and eastern Europe. In order to react to the ongoing gas crisis effectively, the meeting was joined by representatives from the European Commission, ACER, EBRD, USAID, ENTSOG, Europex and EFET.

3rd SEEGAS Joint Steering Committee

Date	Focus
17 - 18 MAR 2022	The third JSC was conducted as an extraordinary crises response meeting. The first day covered gas infrastructure issues, risk preparedness and availability of gas in the region, including supply diversification options. The second day looked into gas market situation and debated the potential reaction to surging market prices. In addition to the gas exchange representatives, also ENTSOG, ACER, Socar, Botas, Desfa, EBRD and USAID contributed to the discussions.

Date

Focus

17 - 18 MAR 2022

The third JSC was conducted as an extraordinary crises response meeting. The first day covered gas infrastructure issues, risk preparedness and availability of gas in the region, including supply diversification options. The second day looked into gas market situation and debated the potential reaction to surging market prices. In addition to the gas exchange representatives, also ENTSOG, ACER, Socar, Botas, Desfa, EBRD and USAID contributed to the discussions.

2nd SEEGAS Joint Steering Committee

Date	Focus
16 DEC 2021	The second SEEGAS Joint Steering Committee took place online. The JSC members agreed on the developed terms of references and tasks. Two follow-up projects were initiated; one covering the exchanges and post trading environment, the other focusing on the TSOs and feasibility of Trans-Balkan reverse flow.

1st SEEGAS Joint Steering Committee

Date	Focus
16 - 17 SEPT 2021	The first SEEGAS Joint Steering Committee met physically in Vienna and established the terms of references and tasks of this trans-regional working group.