Physical delivery

Delivery of the Underlying Asset is carried out through valid Title Transfer Gas Notification, for each Delivery Day. Information will be sent using telematic procedures by BME Clearing or, as applicable, by a Notification Service Provider, to the Transmission System Operator or "TSO" (Enagás), pursuant to gas system Regulations. It will notify the Natural Gas title transfers at a Virtual Balancing Point cleared by BME Clearing.

Monthly and Weekly contracts will be settled by daily partial deliveries prepared as of two working days prior to the first day of the Contracts Delivery Period.

For physical delivery (by means of notification to the TSO), all sales and purchases will be aggregated corresponding to daily partial deliveries for the day (D) on day-ahead Contracts and the Balance of the Month and Balance of the Week breaking down for each Balancing Portfolio, at the delivery area or point registered in BME Clearing.


Clarifications for delivery:


  • We use the word “Preparation”, referring to the erosion of the Monthly or Weekly contract in a day (except if Target holiday). Erosion procedure is the same as that of the Cascade, however it is presented separately in order to explain the particularities and preparatory work of the Physical Delivery.
  • The preparation/erosion process is carried out in D-2, where D is the delivery day and D-2 is a working day.
  • In case there is a Target holiday when eroding the contract, the system searches for the next working day and erodes this working day and all the Target holidays encountered in the process.
  • The Margin due to delivery is calculated each day. In addition, it is calculated based on preparations for that day.
  • On the following day, the system must erode the following day that has to be prepared. If the following day to be prepared is a working day, the system stops there. If the following day is a Target holiday, the system will search for the following working day.


One major issue to be borne in mind is that preparation is not the same as nomination. Nomination is the process of notifying the TSO the quantity of Natural Gas that will be delivered or received on the following day. Nominations are always carried out at D-1 around 06:00 pm.

Preparation involves obtaining the contracts to be delivered on a certain day (the result of erosion of Monthly and Weekly contracts). However, since it is carried out in D-2, this preparation may be considered temporary since nomination takes account of the result of "preparation" and any Day-Ahead contracts traded in D-1 up to the cut-off time (04:30 pm), since nominations are carried out in D-1 in 06:00 pm.

Finally, it should be noted that, pursuant to gas regulations, when the TSO announces it has accepted the nomination, it is considered that the delivery of gas has been carried out.

Monetary Settlement of the Delivery

The Monetary Settlement of the Delivery is carried out by applying the following rule: (i) if D+2 is a business day, the Monetary Settlement will be carried out the following business day; (ii) if D+2 is not a business day, the Monetary Settlement will be carried out the second business day following D+2, through BME CLEARING's Multilateral Settlement.


Delivery Settlement


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