What is a virtual gas storage?

Virtual gas storage

A virtual gas storage is similar to a gas storage contract, however it is not (fully) backed by a physical storage. Virtual products have typical simpler contract characteristics than those with fully physical backed products. This increases the ease of negotiating and trading such contracts.

Owners with multiple storages may combine the characteristics of the storages into one virtual version. The resulting pooling effect lead to less physical restriction and a commercially more attractive product.

Virtual gas storage products are traded bilateral between market participants, via brokers or via auctions.

Owners of multiple physical gas storage facilities may combine the characteristics into one virtual version to create a commercially more attractive product.

KYOS Software models and Advisory

Natural gas portfolio management is about managing price and volume risks. KYOS helps to optimize a portfolio with natural gas storage and swing contracts. Trade in the markets to maximize the flexibility value and minimize risks!

For example, our flagship software model KyStore supports traders and portfolio managers in natural gas markets. The gas storage optimization software not only raises revenues from gas storage trading operations, but also provides accurate valuations and reduces risk with adequate hedge recommendations. The model uses advanced stochastics including Least Squares Monte Carlo techniques to capture the full optionality in gas storage facilities.

Since the start of KYOS in 2008, our mission is to serve professionals in the energy business (power, natural gas and renewable) or those working with commodities with superior models to aid with decision-making. Use our analytical models to your advantage!

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