Israel’s PZ Projects (www.projects.org.il), is launching a novel software platform that enables
the registering of transactions between companies that are active in the global natural gas
sector. Developed over a two-year period, the platform has been successfully tested by
several leading local players who are active in the gas market.
It allows players in the gas sector, including consumers and gas marketing companies, to list
their proposals for buying or selling of natural gas, to establish direct contact with potential
partners and fully document the trade within the system after negotiations are conducted by
the parties outside of the platform.
A gas consumer interested in selling surplus gas by using the platform lists the volume
available for sale, the asking price and the time at which the gas will be available for delivery.
The process greatly simplifies the buying and selling of surplus gas.
Carmi Zinger, CEO, PZ Projects, who led the development of the new platform said, “till now
transactions in the natural gas market were conducted and registered through a manual and
unofficial process based on personal contacts over the phone, using email and numerous
pages of Excel documents. This form of trading typically permitted only two-sided trading
between two parties.”
Zinger adds that this platform is not only limited to improving the efficiency of the trading
process but also impact the overall market, by creating operational flexibility for all players in
the sector. He noted that from a purely market perspective, the expected penetration of the
platform into the gas sector will enable each and every buyer and seller to be exposed to a
large number of potential trading partners and therefore obtain the best deal from a price,
quantity and availability perspective.
As Zinger sees it “this will open the door to a much freer, more competitive and sophisticated
market in the gas sector.” From a purely economic standpoint, he adds that players in the
sector will gain a new stream of revenue through the sale of gas to new customers and will
avert losses from the need to store surplus gas.
In addition, Zinger notes that from an operational flexibility point of view large quantities of gas
can be transferred from one customer to another without the direct involvement of the original
supplier. As a result he believes the P.Z. Projects’ platform will upgrade the actual trading
process in the gas sector and will lead to a sharp increase in the volume and number of
The platform’s business model is based on the sale annual licenses of the software program.
Beyond the initial development of the program for the customer, PZ Projects may also
customise the program in accordance with the needs of the customer as part of maintenance
and upgrading agreements.
The development of the platform is the result of the economic and business environment that
has emerged in Israel over the past decade following the discovery of huge offshore gas
reserves in the eastern Mediterranean.
These discoveries have led to the need for technologies and services that have been
specifically adapted for the use of gas in an industrial environment. On the global scale,
demand for gas is the fastest growing form of energy in terms of both consumption and
production. According to estimates by energy experts, if the current trend continues, natural
gas will be the leading source of energy in the world by 2050.