In this paper the authors tackle the gas storage evaluation, dividing its value in Intrinsic and Extrinsic. The Intrinsic value is defined at the time t, given the market Forward curve, by the strategy that maximize the P&L, due to the difference between the injection and withdrawal prices,...

We analyse a stochastic control problem for the valuation of a natural gas storage facility while taking into account operating characteristics. The underlying natural gas spot price dynamics is assumed to follow time-inhomogeneous exponential Lévy process by F.E. Benth and C. Sgarra. This...

The seasonal demand for natural gas requires supply flexibility. This "swing" is now largely provided in northwestern Europe by indigenous production. Declining reserves will increase the dependency on imports from far-off sources, which are less flexible. Hence, flexibility must be provided by...

The value of seasonal energy storage depends on how the firm best operates the storage to capture the seasonal price spread. Energy storage operations typically face limited operational flexibility characterized by the speed of storing and releasing energy. A widely used practice-based...

The purpose of this paper is the comparative analysis of four natural gas storage valuation approaches. In competitive natural gas markets the optimal valuation and operation of natural gas storages is a key task for natural gas companies operating storages. Within this paper, four spot based...