Gas Storage and Swing Report – quarterly update

15 July 2021

Make the most of your gas storage!

KYOS gas storage and swing reportEvery quarter we publish an update of our Natural Gas Storage and Swing Report. It presents price assessments of a few standard storage and swing contracts, which you can benchmark to your own valuations. Above all, the report provides transparency to an otherwise opaque trading market, also revealing the underlying assumptions about market prices, market volatilities and trading strategies. Take advantage of our free service to you!

With our Natural Gas Storage and Swing report, we report about a few selected contracts. But of course we realize that you may have different needs! Our report compares the current quarter to the previous, but would you need data per month? Or do you need historical valuations? Or over a longer horizon? No problem, just contact us for more information.

We have in the past made customized reports for very different types of companies. For example, we provided data that was used in several arbitration cases between energy companies. Also companies used our analysis to facilitate their investment or divestment decisions.

Gas Storage and Swing Report – Market Comments July 2021

European gas prices moved in the second quarter of 2021 in the same way as the first quarter: up. While one year ago people were discussing the potential to see negative gas prices, this quarter saw record high prices! The TTF month-ahead contract ended the quarter at 34.6€/MWh, the highest price level since September 2008! The forward curve changed as a result massively, where especially the very pronounced Q1-22 x Q2-22 spread draws a lot of attention. Many different reasons contributed to the high prices. On the supply side there were reduced Russian flows. European gas demand was high especially in the beginning of the quarter due to a cold start. And Asian gas demand picked up after the Covid-dip leading to a strong increase in LNG demand, which had a bullish effect on the TTF.

To read the complete report with graphs and tables, please click here: KYOS Gas Storage and Swing report Nr 31 July 2021

Methodology

All valuations have been performed with KYOS software and models, KyStore and KySwing. KyStore and KySwing support traders, portfolio and risk managers in natural gas markets. Inputs include market parameters, together with our own suggestions, forward curves and other parameters and settings. The model calculates the intrinsic value based on the forward curve and takes tradable products and bid/ask spreads into account. Our software uses Monte Carlo simulations of spot and forward prices to provide the rolling intrinsic and option values. Numerous companies in the energy industry already use our valuation software. You can find more information about our gas optimization software on our solutions page here.

More information

Would you like more information about the models and assumptions underlying this report, or request a demonstration of the KYOS software? Contact us for more information via the contact form in the black section below, or send us and e-mail: info@kyos.com.