risk management

Hydrogen’s path into the gas supply chain | 09 Dec, 2019

Governments in most of the largest European gas markets are committed to COP21 decarbonisation targets.  Some future targets are likely to be missed. ...

Gaining an edge: LNG portfolio analysis | 07 Oct, 2019

Commercial evolution of the LNG market has accelerated over the last three years. This is the result of new and more flexible sources of supply.  But ...

Building a viable battery margin stack | 02 Sep, 2019

We flagged a ‘take off’ in European merchant battery investment as one of our 5 surprises to watch out for in 2019. Investment momentum has been a ...

Resurgence in UK gas storage value | 24 Jun, 2019

Investment in gas storage, like most energy asset classes, has strong cyclical dynamics.  Storage cycles are reinforced by relatively long project co ...

The changing role of UK’s gas interconnectors | 25 Mar, 2019

2019 is going to be an important year of transition for the two key interconnectors that link the UK with Continental gas markets. The IUK pipe bet ...

5 energy market surprises for 2019 | 07 Jan, 2019

Welcome back to our first feature article for 2019.  As has become tradition we start the year with five surprises to watch for on your radar screens ...

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 ...