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Sales procedure
Last updated on 7. March 2017
Gas Storage Denmark uses First-Come-First-Served (FCFS) and/or auctions to sell storage capacity
FCFS
With this allocation mechanism storage customers can order capacity within in a defined time window at a defined price. The storage customers can place orders via the automatically click and book procedure at Gas Storage Denmark's system Online. Orders are binding and will be accomodated in the order they are received until all capacity has been sold out.
  
Auctions
Gas Storage Denmark can use either a "Sealed bid" auction or a "Multi-Round Ascending Clock" auction. Bids placed in any auction is binding.
 
At the "Sealed bid" auction storage customers place bids within a defined time window for the requested quantities of the offered capacity and the corresponding bid price they are willing to pay. After the close of the auction Gas Storage Denmark will rank the bids starting with the bid with the highest bid price and continue until the total quantity from the ranked bids equals the offered capacity, eventually by pro rata reducing the last bid or bids.
 
At the “ Multi-Round Ascending Clock” combined with a pro rata allocation principle storage customers can make their bids for the requested capacity. A starting price is given by Gas Storage Denmark before the start of the auction.
“Ascending Clock” means that if after a bidding round the demand excesses the supply of storage capacity Gas Storage Denmark will start a new bidding round with a new actual bidding price which will be increased by a fixed amount for each bidding round. For each bidding round Gas Storage Denmark will increase the price and thus the quantity demanded by the customers will be reduced according to the price. The bidding rounds will continue until the demand is equal to or below the supplied capacity. The iterative steps provide all storage customers with an equal possibility to “see” price information during the auctioning process.
 
The auctions will be held online through Gas Storage Denmark’s web portal or by using a spread sheet. Gas Storage Denmark will publish the relevant information on the web page prior to conducting an auction. The final price in both the "Sealed bid" and "Multi-Round Ascending Clock" auction will be a uniform market clearing price that applies to all the capacities sold.  
 
Interruptible storage products
It is possible for storage customers to buy storage capacity separately on interruptible terms on a current basis. This will be effected through the daily nomination mechanism. A precondition for the purchase of interruptible products is that is has been agreed in the framework agreement.
 
Daily procedures
The most important daily procedures for storage customers’ use of the gas storage facility, such as nomination, renomination, matching and allocation, are described in the Nomination Guide, which is available in "Read more".