Evaluation of forward sales and options created through natural gas storage. G.S. Salahor and D.G. Laughton. J. Can. Petrol. Technol., October 1996, 35(8), 43--49.
Gas storage services are evaluated as a means of creating physical forward sales and options. The technique involves determining the value of fixed-term and optional storage scenarios. Parameters such as price forecast, volatility, price of risk, and storage costs are considered. Gas storage proposals of specific duration and potential are analysed. Factors reviewed are seasonality of demand, related transportation constraints, and the price and availability of gas storage services. Expected financial returns and effects of storage duration are reviewed and implications for the Canadian market are discussed. 6 refs.
- Journal title: Journal of Canadian Petroleum Technology