Cyriel de Jong made a presentation at the Platts European Gas & LNG Summit. This is a yearly event, which was this year held in Amsterdam on 23 and 24 September 2019. He spoke about gas storage, and in particular: is there is still a future?
Cyriel first described the market trends and current volatility. He then continued to with the assessment of the value of a gas storage. Both the historical and future valuation approaches are important. Every quarter we provide you with an update of these valuations in our Gas Storage and Swing report
The good news is that the outlook for gas storages is rather positive, due to the phase-out of coal plants, closure of sites and added volatility of LNG. However, to get the maximum value for your gas storage – an active trading policy is essential.
Have a look at the slides of his presentation: Presentation Platts European Gas & LNG Summit
Would you also like to make your gas storage facility more profitable? Our gas storage modelling software makes this possible. The KYOS models KyStore and KySwing provided the basis for the presentation. The KyStore model supports traders and portfolio managers in natural gas markets. The gas storage optimization software raises revenues from gas storage trading operations. In addition, it provides accurate valuations and reduces risk with adequate hedge recommendations. Moreover, the model uses advanced stochastics including Least Squares Monte Carlo techniques to capture the full optionality in gas storage facilities.
Secondly, KyStore is complemented by KySwing. The KySwing model helps to generate most income from gas contracts by optimizing the contract flexibility. Swing options are typical components of gas contracts, which offer the opportunity to vary the contracted volume under a number of restrictions. Sometimes the market also refers to these contracts as Take-or-Pay (ToP), interruptible or variable load contracts. You can reduce the risk on future income however by forward hedging. The model gives you recommendations for your hedging – it applies advanced stochastics to find the optimal exercise.
Please contact us for a free demonstration. We are more than happy to show you what our models can do. And more importantly, how they can work for you! Just leave your details in the black section below, or send an e-mail to email@example.com