risk management

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 ...

Risk management of optionality in energy portfolios | 05 May, 2014

This is the third in a series of articles on the principles of energy risk management, written by Nick Perry. Energy portfolios are rich with physi ...

Unique energy risk management characteristics | 07 Apr, 2014

This is the second in a series of articles on the principles of energy risk management, written by Nick Perry. In the previous article we considere ...

There is more to energy risk management than option theory | 17 Mar, 2014

This is the first in a series of articles on the principles of energy risk management, written by Nick Perry. The business of energy companies incr ...

GasTerra storage auctions & flexibility value implications | 10 Feb, 2014

Twice a year GasTerra auctions Dutch storage capacity.  The price the market is willing to pay for this capacity provides a useful insight into the v ...

What drives contract counterparties back to the negotiating table? | 23 Sep, 2013

This is the first in a series of articles on commercial considerations in the negotiation of long term energy contracts, written by Nick Perry. Th ...

Beware of proxy risk | 17 Jun, 2013

Supply contract pricing terms are a key driver of marginal gas pricing dynamics in spot and forward markets. Contract prices can vary widely and terms ...

Headaches from FX and interest rate exposures | 15 Apr, 2013

Since the heightened panic across the Eurozone last summer, central banks have flooded credit markets with cheap money.  This has temporarily calmed ...

Currency wars and European energy portfolios | 11 Feb, 2013

Foreign exchange market volatility has sprung to life over the Christmas break.  Over the last two months the EUR has appreciated 7% against USD and ...

Cracking gas storage and swing valuation | 21 Jan, 2013

As the European gas market matures, so does the depth and sophistication of flexibility services available. Swing and storage products form the founda ...