Because capacity volumes, losses, and charges assigned to a pipeline capacity agreement generally vary across input/output locations, a single capacity agreement can result in hundreds, thousands, or even tens of thousands of segmentation options. Monitoring all these options for a single trading period (e.g., Cash, etc.) is difficult. Monitoring them for all trading periods (e.g., Prompt+23, Next Summer, etc.) only exacerbates the problem. And holding multiple agreements makes it essentially impossible to monitor every possible capacity utilization.
As a result, companies holding capacity rights face the daunting challenge of identifying their best utilization from all of the available segmentation options while simultaneously meeting their gas requirements and adhering to the ever-present pipeline scheduling deadlines.
To accomplish this, most transport capacity holders hire a team of traders to optimize their capacity agreements based on their deep experience. While this approach can capture a good amount of an agreement's value, it definitively leaves value on the table - both by missing opportunities for incremental uplift as well as by delaying the recognition of long-term movements in the spreads.
Blue Cube enables organizations to evaluate every utilization option, for every capacity agreement, for every trading period in real-time to definitively identify their best utilization.