We offer an assessment service, specializing in the purchase of natural gas
The Natural Gas and LNG market brings together their unique characteristics which are quite different from other fuels, and affect the way the industry tackles gas supply.
Price variations, both at regional and global level, together with developing liquidity and transparency in the main gas hubs (Henry Hub, TTF, NBP) allow for the development of new competitive strategies in natural gas purchasing throughout the Iberian market.
PORTFOLIO MANAGEMENT IN GAS PURCHASING
Gas purchasing is a process customized for each customer, tailored to meet his or her needs. Conecta Energía works with all our customers in an ongoing process at all times, to determine the best way to hit their targets of VALUE, COST, and RISK.
Primer paso: ANALYSIS
- 1.- Internal analysis and optimization of your gas variables.
We perform an initial analysis to form a total understanding of the following points:
- How your business uses gas.
- How your business uses gas.
- The possibility of bringing flexibility to your gas supply contracts.
- Optimization of the factors, which impact your gas costs.
- 2.- Analysis of the gas market.
The fundamental analysis of information in the gas market, its dynamics and drivers that influence gas prices help us to manage risk and the value our assessment service brings. Some of the indicators we follow include the following points:
- LNG prices at global level.
- Gas prices in the European gas hubs.
- Volatility in the futures market.
- Benchmarking between markets.
- Spreads between commodities.
We don’t claim to be able to predict the future; we understand how the market works. Above all, we’re pragmatic in our approach. We believe that theory and methodology are powerful tools when combined with expert knowledge of the target market.
- 3.- Regulatory analysis of the gas sector.
The energy sector is highly regulated, so we know, understand and anticipate that any possible regulatory change will affect both the way the market operates and the cost of gas.
We follow regulations in force at both national and European levels, as well as significant repercussions, which may occur in key market or regions such as North America or Southwest Asia.
Second Step: GAS BUYING
- 4.- Second Step: Gas Buying.
- Identification of existing choice in the marketplace.
- Definition of the Request for Quotation (RFQ).
- Completion of the Request for Quotation (RFQ) process at the correct time in the market.
- o Analysis and modeling of submitted quotations: fixed price, Brent indexing, Hub indexing, combined formulas, custom products.
- 5.- Management of gas contracts.
The balance between the supplier and buyer in the gas market is biased in the supplier’s favor. It is still commonplace for contracts to comply directly with the supplier’s general conditions. There are, however, opportunities to negotiate changes to aspects of the contract and we can help with this right from the start of the gas buying process. Depending on the chosen supply method, the qualitative aspects of the contract to be signed are more relevant than the pricing of the gas itself or non-negotiable formula.
Third step: CONTROL AND MONITORING
- 6.- Control and monitoring of gas prices.
In an ongoing process, the decisions taken according to the targets set by the customer are monitored and analyzed periodically, based on the chosen purchasing strategy.
- 7.- Risk Management