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Tag: Tutorial (page 1 of 5)

Tutorial gas market 6: Natural gas transportation and storage

Damen-Shiprepair-Brest-Scores-Second-LNG-Repair-Commission (LNG Worldnews)

Natural gas can either be transported grid-bound via pipelines or liquefied as LNG. In order to increase the energy density, the gas is transported through the pipelines under high pressure (around 80 bar).


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Tutorial gas market 5: Price indices

The linkage to the oil price is achieved by not including a fixed price in the gas contracts but a formula by which the gas price is calculated using the oil price.


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Tutorial gas market 4: Specificities of natural gas procurement contracts

In the procurement of gas some singularities have developed, which distinguish the gas market from other commodity markets. Import companies, for example, sometimes have very long-term contracts with gas producers (up to 20 years), a linkage to the oil price and the so called take-or-pay volumes or flexibilities with limits. This chapter aims to familiarize you with the terminology, to understand their meaning and to assess the consequences for the energy industry.


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Tutorial gas market 3: Influence of the LNG market

Damen-Shiprepair-Brest-Scores-Second-LNG-Repair-Commission (LNG Worldnews)

For a long time natural gas has exclusively been a grid-bound energy carrier. In consequence, markets for natural were not globalized, but there were several submarkets (see Tutorial 1) which supplied themselves. Furthermore, the price level in the various markets varied as no arbitrage between the markets was possible.


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Tutorial gas market 1: Geopolitical framework conditions of the natural gas markets

Gas transport facility Chongqing (China Daily)

Natural Gas is currently the third most important primary energy carrier in the world (after oil and coal). The main advantages of natural gas in comparison to coal or oil are the high efficiency levels that can be achieved when generating electricity from natural gas. As with oil, the global reserves of natural gas are concentrated in a few countries around the world.


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Tutorial 8: Trading electricity and clearing a transaction on an exchange

trading_power_large (Copyright: Mercuria)

In the year 2000 the European Energy Exchange AG (EEX) started its business with electricity and other products. The most important part of their business is the futures market. The spot market is taken care for by a subsidiary company EPEX SPOT.


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Tutorial 7: Trading electricity on an OTC-market and on an exchange

trading_power_large (Copyright: Mercuria)

The OTC market (Over-the-Counter-Market) is a bilateral market where deals are done directly between two traders. This is the main difference to trading on an exchange which is anonymous, which means the trading parties don’t get to know each other.


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Tutorial power trading 6: The spot market for electricity

trading_power_large (Copyright: Mercuria)

A spot market contract is an agreement to buy or sell a clearly defined amount of a certain good which is traded for immediate delivery at a specific price.


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