SERVICE OFFERINGS

CHALLENGES OF STORAGE OPTIMIZATION

Because of low seasonal spreads in natural gas prices, an appropriate short term optimization of gas storage facilities is crucial for a profitable operation. A pure utilization as a seasonal storage only realizes a small part of the revenue potential. An economically optimal dispatching of storage facilities is only ensured if short term price volatilities are also captured in the storage optimization. As market prices can only be projected in the sense of a probability distribution, storage optimization presents a stochastic optimization problem. Hence, the optimal storage dispatch can only be determined with a suitable model of stochastic optimization. Other common approaches based on deterministic optimization cannot achieve the full potential of a true stochastic optimization, even in an extended approach, e.g. scenario analysis.

OUR SOLUTIONS

Q-Storage is based on stochastic dual dynamic programming (SDDP). It supports you with the optimization of your natural gas storage facilities or virtual storage contracts along the full time horizon from short term spot optimization to forward trading and long run valuation and planning of new asset investments.

Screenshot Retrieve and visualize your model results online or export your data for further processing.

The SDDP-model, which underlies Q-Storage, was specifically developed to capture the particularities of the natural gas market through a very detailed stochastic process which generates probability distribution for the optimization model. The model can comprehensively handle the technical restrictions of all common storage technologies while ensuring a very short computation time. This makes it an excellent choice for time-critical trading procedures. We also model your electricity storage facilities in close coordination with you.

You can control Q-Storage quickly and easily with a user-friendly and clearly structured interface, adjust the model assumptions and configure the input of external market data.

Screenshot Edit your Q-Storage with the user-friendly interface

For the integration of market data and further fundamental inputs as well as the data exchange with your existing systems, we have developed a powerful data flow system on which Q-Storage is based. Simply login to your account by using the convenient web interface. From there you can administrate your forward and spot marketing activities.

YOUR ADVANTAGES AT A GLANCE

  • Realistic results close to the market by means of stochastic dual dynamic programming
  • Very suitable to support time-critical trading procedures due to short calculation times
  • Low costs, because of no efforts for implementation, maintenance and model calibration
  • Transparent and individual model assumptions
  • Easy integration into your existing IT-infrastructure through flexible data interfaces