Utilities and Retailers

Utilities and retailer providers are generally more focused on ensuring the reliability of their gas supply than on pursuing opportunities to extract value from their assets.  Although some may acquire additional pipeline capacity with the goal of monetizing the asset, most secure pipeline capacity to improve reliability and ensure access to reasonably-priced markets.

For this reason utilities and retailer will ,among other measures, hold capacity on multiple natural gas pipelines to ensure the access to a supply of natural gas. Holding a portfolio of pipeline capacity agreements provides them with options for securing their required supply.

Blue Cube Helps Utilities and Retailers by:

• Evaluating their supply requirements and their portfolio of capacity against the current market and pipeline conditions to identify optimal use of their Capacity Agreements
• Identifying the cheapest source of natural gas, cognizant of any reliability requirements/constraints
• Documenting their decision rationale via a formal “Decision Environment” report which details the market and pipeline conditions at the time of the decision, allowing users to easily defend their decisions internally or to the various regulatory bodies
• Analyzing pipeline capacity contemplated for purchase against a variety of pricing and/or position scenarios to allows users to evaluate how a specific piece of pipeline capacity will perform for their portfolio