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KYOS offers specialized advise on trading and risk management in energy markets. Our expert team has years of experience in quantitative modelling and advisory services in commodity markets. Our sophisticated solutions are developed to support decision making, investment proposals and risk calculations. KYOS has a clear focus on the following areas: Products, Consulting and Training.

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    KyGasPortfolio - Gas Assets Optimization

    KyGasPortfolio software optimizes the sources of flexibility in a gas portfolio. Gas portfolio optimization software assists portfolio managers, business developers and traders in the reduction of portfolio costs and risks, and thereby improve profits.   

    The starting point is that one or more uncertain demand patterns have to be served. The demand might come from a customer base or a company's own assets, such as power generation. Then the optimization finds out how this uncertain gas demand can be served by a combination of:

    • long-term gas contracts
    • gas storages
    • LNG
    • gas pipeline transportation
    • gas market trading

    Gas portfolio optimization is useful for portfolio managers, business developers and traders. KyGasPortfolio can be applied on a day-to-day operational basis on the current portfolio. In addition, the model helps to assess the benefits of new long-term contracts and other assets against the existing portfolio. This will help to reduce portfolio costs. It also limits the risk of paying contract penalties, buying at very high market prices or not being able to serve demand.

    Outputs gas portfolio optimization 

    The outputs of KyGasPortfolio include:

    • The value of a portfolio of gas assets
    • Delta positions of a total gas portfolio
    • Optimal use of multiple gas storages, swing contracts, LNG and gas trading possibilities

    Comparison with individual optimization gas assets and contracts

    The gas portfolio model uses various elements of our Gas Storage Valuation Model and Swing Contract Valuation Model. For example, it handles similar asset and contract constraints, and Monte Carlo simulations form a critical element. However, there are a couple of important differences:

    • KyStore and KySwing find the optimal use of a single asset or contract. KyGasPortfolio finds the joint optimal use of a whole portfolio.
    • KyStore and KySwing find the optimal use by trading in rather liquid forward and spot markets. KyGasPortfolio only allows for forward trading and does not assume a liquid market; it even works fine if there is no market to trade at all.
    • KyGasPortfolio incorporates gas demand. Demand can be in one or more delivery areas (countries)