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New Trading Hub Europe (THE) : A review

Chrulski Tomasz

Energy Policy Studies

2021

No. 2 (8)

25--32

There As of 1 October 2021, the existing market areas in Germany, GASPOOL (GPL) and NetConnect Germany (NCG), have been merged into a new German national gas market called Trading Hub Europe, or THE for short. This market, as a result of the merger, could become a competitive and even the most important gas hub in the European gas market. The background to this is that the transmission and storage infrastructure in Germany is very well developed. Another fact is the fact that Germany in 2021 consumed the most natural gas in comparison with other European countries. This article presents a review of the literature on gas hub and specifically examines the new gas hub in Germany. Natural gas prices on THE in the early days of its launch indicated that they were not out of line with prices on other European gas hubs. The article notes the fact of the merger and reminds other developing European countries of the importance of having their own gas hub.