The year 2023 opened a new chapter in the TTF’s history, after the EU adopted the price cap on natural gas, which we discussed in one of our earlier
publications. The world’s most liquid trading venue for TTF futures and options is the ICE Endex exchange, while on 20 February the exchange operator ICE launched a new market for these contracts on ICE Futures Europe, its London-based exchange.
New players are also coming on the trading scene as more countries aspire for their own gas hubs after Russia cut gas supplies to Europe, with its total pipeline exports this January dropping 36% MoM and 79% YoY.
The most talked about is a Turkish hub. The idea of having a hub there came to mind over twenty years ago, but started to take shape only last October. Turkey is poised to become a trading point not just for Russian gas, but also for supplies originating from Azerbaijan, Iran (see Fig. 5) and, possibly, the Mediterranean. In fact, the hub already exists, as Turkey is home to seven international natural gas pipelines, as well as four LNG land-based terminals and floating storage units.
However, to make a transition from de facto to de jure, the hub needs to be legalized.