Are you accurately valuing the flexibility and optionality of your gas swing and storage assets?
24 Feb 09
Author: Lacima Group

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In today’s challenging energy business environment, senior management demands ever greater financial scrutiny of any assets that offer flexibility of operation, and thus contain embedded value. In the natural gas markets, there is an increasing focus on gas storage assets and swing contracts as sources of hidden, untapped flexibility. This makes their accurate valuation, operation, and optimisation more important than ever before.

It is only recently that techniques have been developed to capture the value in the flexibility of these contracts and permit realistic incorporation into at-risk calculations.

This paper presents an overview of the latest techniques that can be employed to value and optimise gas swing and storage assets, which move closer towards best practice.