eNymex, as originally conceived is dead, but the idea of providing over-the-counter (OTC) energy products lives on through Nymex Access, a spokeswoman for the New York Mercantile Exchange said Monday in an interview with NGI.

“eNymex has been folded into the auspices of Nymex Access,” said Nymex spokeswoman Nachamah Jacobovits. “To say that it’s not going to be done [is not quite true]. We will have OTC clearing available over the Internet — to the extent that we have the Henry Hub swap on Access, we already do. It’s just the name ‘eNymex’ that has kind of fallen by the way side, but the concept has actually been folded into Nymex Access.”

Currently, Nymex is offering a Henry Hub swaps on Access, but to date it hasn’t followed through on its plans to make the numerous other swaps and related energy products available. Those should be rolled out in phases over the next several months, said Jacobovits.

The events of Sept. 11 were devastating to the exchange, which lost 25 people in the World Trader Center collapse, but Nymex was able to maintain operations and did so partly by converting its electronic Access trading system into a web-based system.

The other major factor in shelving its original plans was the failure of one of its web technology vendors, Global View, to follow through on its commitments, Nymex claims. It has filed a lawsuit against the company for not providing the services for which it was hired.

“I don’t know what the problem was with Global View, but we are in litigation with them because they were supposed to be developing the front-end stuff but they didn’t deliver; they took our money and didn’t deliver,” said Jacobovits. “They subcontracted it out and never paid the company that they subcontracted to. They are the only vendor that we really have a dispute with. There were other delays and things that happened with consultants. We basically just sat in frustration. We did Access in house, and it was done, but [then we couldn’t finish eNymex].”

Jacobovits wouldn’t comment on rumors about Nymex’s discussions with IntercontinentalExhange (ICE). “I really wouldn’t be able to say anything other that we are always open to discussions on potential strategic alliances.” After Enron’s demise, ICE developed into a leading exchange for OTC energy products. It also purchased London-based International Petroleum Exchange.

Nymex still is expected to provide an array of other natural gas swaps and index-related products, followed by swaps in crude oil markets. Its plans include basis swap contracts based on NGI’s bidweek indexes at Chicago and the Southern California border. Other products include a West Texas Intermediate crude oil calendar swap contract; basis swap contracts based on the differential between the final settlement price for the Henry Hub natural gas futures contract and Inside FERC’s Gas Market Report quoted indexes for Henry Hub; El Paso San Juan Basin; Houston Ship Channel; and Transco Zone 6; basis swap contracts based on the differential between the exchange Henry Hub natural gas futures contract and the Canadian Gas Price Reporter Alberta spot month price (based on AECO C/NIT); and several other crude and heating oil products.

©Copyright 2002 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.