The Virtual Trading Point is the reference for wholesale natural gas pricing in Italy.
The PSV (Punto di Scambio Virtuale, Virtual Trading Point) is the virtual hub where wholesale natural gas trades take place in Italy. It is the primary reference for gas price formation in the Italian market.
PSV key facts
How it works
The PSV is not a physical location but a virtual point in the transport network managed by Snam Rete Gas. Operators can trade gas at the PSV through bilateral contracts (OTC) or on the GME platform. The PSV price reflects the supply-demand balance in the Italian market, influenced by the European TTF price, import flows, and domestic demand.
PSV vs TTF: comparison
| Feature | PSV (Italy) | TTF (Netherlands) |
|---|---|---|
| Scope | Italian market | European benchmark |
| Liquidity | Medium | Very high |
| Operator | GME / Snam | ICE / EEX |
| Futures contracts | Limited | Highly developed |
| Use in B2B contracts | Standard in Italy | Standard in Europe |
| Typical differential | PSV = TTF + 0.5-2.0 EUR/MWh (transport costs) | |
The PSV tends to follow the TTF with a differential reflecting transport costs and Italian market specifics. During periods of tension, this differential can widen significantly.
Impact on contracts
In variable-price gas contracts, the price is typically expressed as "PSV + spread" or "TTF + spread." For Italian businesses, the PSV is generally the most representative reference of actual gas cost, as it already includes the logistical specifics of the national market.
PSV data is published by GME and can be consulted to evaluate historical trends and compare supplier offers.
Informational content by IPGS Energy. Information is reviewed as of the stated update date and does not replace a contractual, tax or regulatory assessment specific to an individual business.