risk management

Boosting midstream asset value capture | 03 Dec, 2018

This decade has been a tough one for owners of flexible midstream gas assets such as storage, pipelines & regas terminals. Asset returns have been ...

Shock suspension of UK Capacity Market | 19 Nov, 2018

Last Thursday the UK government abruptly halted the Capacity Market to comply with a European Court of Justice (ECJ) ruling.  The implications of thi ...

Power plant optionality & dispatch cost hurdles | 29 Oct, 2018

The transition taking place in European power markets is reshaping supply stacks. Retiring coal, CCGT & nuclear plants are being replaced with a c ...

Battery investment 2: Monetising battery value | 01 Oct, 2018

2019 may be the breakthrough year for merchant battery investment in the UK.  Battery developers have re-focused investment cases on wholesale market ...

Building an energy trading capability | 24 Sep, 2018

To trade or not to trade. This has been a philosophical question confronting energy company boards since the liberalization of energy markets. Trad ...

Monetising European gas storage value | 11 Jun, 2018

Storage capacity is a feature of most European gas portfolios.  Traders and portfolio managers use storage as a key source of midstream flexibility t ...

At the flicks: gas curve animation | 30 Apr, 2018

Energy markets are awash with charts. We work in a data intensive industry and a good chart can be worth a thousand words. But charts by nature provid ...

Plant closure: drivers of the decision to close | 16 Apr, 2018

European power markets are facing a demographic issue.  Flexible thermal generation capacity is ageing at a faster rate than it is being replaced. ...

Interpreting TTF implied volatility | 12 Feb, 2018

The European gas options market is still in a relative state of infancy versus for example the crude options market.  But as TTF gas hub liquidity gr ...

Market access contracts: 5 success factors | 10 Apr, 2017

Owners of gas and power assets in Europe are increasingly contracting 3rd parties to provide market access services. This is a function of changing as ...

Contracting for market access via a 3rd party | 06 Mar, 2017

A major transition is taking place with European energy asset ownership structures. Thermal power and midstream gas assets have traditionally been own ...

Long term contracting to support asset financing | 24 Oct, 2016

Infrastructure investors are set to feature as prominent buyers of conventional supply assets, as utilities ramp up asset sales in Europe. European ut ...

Evidence of a 2016 recovery in gas price volatility | 26 Sep, 2016

Prompt gas price volatility is the key market price signal for short term supply flexibility response.  Volatility plays a key role in determining th ...

Long term contract pricing: 5 key drivers | 23 May, 2016

Long term contracts play an important role in enabling the owners of flexible gas and power assets to monetise asset value and manage market risk. Com ...

Long term contract pricing: counterparty motivations | 11 Apr, 2016

The pricing terms of long term contracts on flexible gas & power assets are typically the subject of lengthy negotiations. They also often remain ...

A revival in contracting of flexible assets | 21 Mar, 2016

Long term contracts are a cornerstone of the energy industry. They play a key role in underpinning the capital expenditure required to develop assets. ...

Risk management done the right way | 18 Jan, 2016

A risk manager’s life is not an easy one. Their role by definition is one of vigilance and challenge. Yet a good risk manager can be a facilitator w ...

Implied vs historical gas price volatility | 16 Nov, 2015

European gas hub markets are maturing. This can be seen via the increase in range and liquidity of traded products. Growth in trading activity is focu ...

Defending energy portfolios against a credit event | 12 Oct, 2015

Last week we looked at the threat of a systemic credit event in energy markets. Market prices are flashing a warning signal about the capitalisation a ...

Watch out for a major credit event | 05 Oct, 2015

It is often said that when the tide goes out on commodity prices we find out who’s been swimming without shorts on. The market smells trouble brewin ...

Acquisitions and monetising asset value | 11 May, 2015

European energy asset transaction activity is on the rise. After ambitious but largely unsuccessful growth and acquisition sprees last decade, utiliti ...

The dangers of mixing forecasts and forward curves | 30 Mar, 2015

Forward market liquidity has steadily developed with the evolution of traded gas and power markets in Europe. This has supported traders and asset man ...

Monetising the value of flexible gas & power assets | 09 Mar, 2015

Flexibility value is a term often loosely used in association with gas and power asset optionality. It is a simple and widely accepted principle that ...

Brent curve collapse in animation | 02 Feb, 2015

The Brent crude forward curve had a wild ride across 2008 and 2009.  The commodity supercycle peak dragged spot crude towards 150 $/bbl, with forward ...

Spot vs forward price dynamics: UK gas case study | 17 Nov, 2014

Commodity markets are plagued by confusion as to the relationship between spot and forward prices.  There are good reasons.  The relationship is not ...