Gas Swap

Establishing today the gas price of tomorrow.

Contact Us

 

Product features 

A swap is an OTC contract in which two counterparties undertake to exchange future payments, whose calculation rules and frequency are defined in the contract.

For example, it can be used to set the gas price: one of the counterparties promises the other one to pay a fixed price upon receiving the variable price (spot or indexed of other type). The settlement is made on the difference between the two amounts.

Safety
The future price of gas is set today.
No immediate disbursement
Financial settlement is made on the date of contract expiry.
Price risk coverage
Reduced exposure to market price.

Graphic Illustration

The following graphs show the value of a swap contract for different levels of the underlying. In the event of a purchase, the contract has a higher value as the price of the underlying market increases. If, for example, a gas purchase contract was signed for the month of May at a price of 20 €/MWh, as the market price increases, there will be a greater gain deriving from the signing of the contract. On the contrary, in cases of price reduction, there will be a loss proportional to the difference between the market price and the purchase price.

Chart | Enel Global Trading

In the event of sale, the contract has a higher value as the price of the underlying market decreases. If, for example, a gas sale contract was signed for the month of May at a price of 20 €/MWh, as the market price decreases, there will be a greater gain deriving from the signing of the contract. On the contrary, in cases of price increases, there will be a loss proportional to the difference between the market price and the selling price.    

Chart | Enel Global Trading

Don't you know what to choose ?

Contact us or discover the product that suits your needs