Energy Trading Systems PDF
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Uploaded by BetterOctagon
C.T. Bauer College of Business at the University of Houston
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Summary
This document provides an overview of energy trading systems, focusing on the natural gas industry and its transportation/scheduling aspects. It covers key concepts like supply, logistics, demand, and transportation pricing, along with details on transporting natural gas, scheduling, pools, and interconnects. The diagrams and visuals support its practical applications.
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Energy Trading Systems Focus on the Natural Gas Industry Transportation / Scheduling © Rise Services Gas Industry Fundamentals Supply > Transport > Processing > Storage > Demand Supply Logist...
Energy Trading Systems Focus on the Natural Gas Industry Transportation / Scheduling © Rise Services Gas Industry Fundamentals Supply > Transport > Processing > Storage > Demand Supply Logistics Demand © Rise Services Transportation Pricing Gathering > Mainline > Distribution © Rise Services Transporting / Scheduling Transporting Is the shipping of Natural Gas from Supply to Demand Via Pressurized Pipelines o Transport Charges – Demand, Firm & Non-Firm Commodity, Fuel Retained, Fuel Charge. o Transportation orders (nominations) from customers are due to the pipelines by 11:30 CDT Players: o Pipeline Personnel (Dispatcher) – Manages the daily flow of all the customer’s gas on each pipeline. o Transport Customer (Scheduler) – Manages the daily flow of its gas across multiple pipelines Nomination, Confirmation, and Actualization o Nominated Units – What the transport customer requests be moved Receipt to Delivery. o Confirmed Units – What the Receipt & Delivery side counterparties have confirmed. o Actual Units – What the pipeline meters have actually measured received and delivered. Objectives o Pipeline – Safely, reliably and efficiently manage (deliver) the flow of customer gas. o Schedulers – Balance receipts to fuel to deliveries using the most cost effective paths. © Rise Services The Art of Scheduling Point A – Point B (That’s It) Buy / Sell o Simplest of the scheduling transactions, where the Buy and Sell are at the same point (No transport). o Sometimes used with a Masking Transport Contract (No Transport), to conceal trading partners. Single-Leg / Multi-Leg Hauls (Transport) o Single-Leg - where the ultimate receipt and delivery points are but one Leg (Link) apart. o Multi-Leg – where the ultimate receipt and delivery points are two or more Legs (Links) apart. Pools o The practice of transporting multiple supplies from various points to one aggregated supply at a single point. o This aggregate supply point is called a logical Pool and is used to simplify the scheduling process. Interconnects o Represent a location where two pipelines meet and transport service gas flows from one to the other pipeline. o Scheduler must sometimes navigate across multiple pipelines (via interconnects) in order to have supply delivered to a customer. © Rise Services Airline Business Example Pooling and Transfers - Multi-Leg Hauls © Rise Services Pipeline – Transportation © Rise Services Scheduling Exercise Pipeline Systems Configuration © Rise Services