Gas Structured Products
Gas Structured Products
Flexibility tailored to take advantage of all market opportunities.
Structured products are customized products according to the needs of the parties. In most cases they have a value linked to the flexibility and optionality. They arise from the need of the producers to manage the flexibility within their own portfolio or to increase the value of their assets such as plants or contracts. They are products that require specific analyses and models, not of immediate valorization, but which can bring extra value in the asset portfolios. They are products that mostly do not have high liquidity and that are developed between counterparties in the sector.
Reduced exposure to market volatility with the fixed purchase price or the sale of a minimum quantity of gas.
The swing option allows to set the purchase price of gas at a pre-established level to protect the buyer from the price increase and at the same time to offer the seller the collection of the option premium and the certainty of the sale of a minimum quantity of gas over the period. The swing option is perfect for those looking for a low-cost product with daily flexibility or want to monetize the flexibility of gas contracts.
Main Advantages of the product
- Flexibility: it allows to choose from a wide range of price solutions daily, weekly or monthly on the gas market.
- Right to exercise (buyer): it offers the right to exercise the option only when the market price of gas exceeds certain price limits.
- Monetization (seller): it allows to monetize the flexibility of gas contracts.
It allows to obtain a greater value from the annual fluctuations of the gas market.
Gas storage guarantees the buyer the possibility to store natural gas and then withdraw it according to his needs for the duration of the contract and allows the seller to monetize his flexibility. It is the ideal product for those who want to exploit seasonal fluctuations in gas prices and for those who want to monetize their gas availability.
Main advantages of the product:
- Low costs: possibility to store gas at advantageous prices.
- Free withdrawal: withdrawal of what have been stored according to one's needs.
- Emergency reserve: it is possible to cope with any unexpected increases in demand with the best reserve.