Deriving storage value
Natural gas storage assets or contracts provide a series of calendar spread options to their owners. However, optimising the value of storage assets should be consistent with the risk-return appetite of the company and its approved trading strategies.
Market participants may use different strategies to extract value from the storage assets. These fall into two broad categories:
- Linear strategies: These include capturing the spreads in forward markets and re-establishing the positions on a daily
More on Gas/LNG
Energy Risk at 30: Learning from the past
Energy Risk looks back at the seminal events and developments that have shaped today’s energy markets
Natural gas/LNG house of the year: ENGIE
Energy Risk Awards 2025: Energy firm signs a string of innovative deals in established and fledgling gas markets
Natural gas/LNG house of the year: ENGIE
ENGIE continues to expand its services to better serve firms in Apac dealing with the challenges of energy risk management and supply
Market shrugs off EC’s plan to change gas benchmark
Dutch TTF prices unmoved, as market participants say they are “not taking it seriously”
Natural gas/LNG house of the year: Engie
Energy Risk Awards 2021: In a volatile market Engie continued to grow its gas and asset management businesses
Dynamic gas models make for better hedges
Study highlights dwindling role of weather in market
Short term, LNG view
Excitement over fast-growing LNG markets shouldn't blind us to the potential risks
