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, with a focus on the natural gas industry. It covers transportation and scheduling aspects, including pricing, nominations, and actualization. The document also discusses different types of transportation arrangements, like single-leg and multi-leg hauls, along with pools and interconnects.
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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
