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 da

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: