Leading Natural Gas Development Company Manages Expanding Operations with Eka TRM

EKA > Leading Natural Gas Development Company Manages Expanding Operations with Eka TRM
Jul 02, 2018

Leading Natural Gas Development Company Manages Expanding Operations with Eka TRM

 

Natural gas has become an increasingly vital global source of energy. It is considered one of the safest energy sources since it burns cleaner than other fossil fuels. With greater innovation and exploration, new sources of natural gas have increased availability and reduced costs, further increasing demand. Finding, extracting, and transporting gas, however, is complicated and full of risk. Therefore, companies that produce, transport, and trade natural gas face many challenges, including growing production, thinner margins, pipeline capacity, and volatile market prices.

 

Background
A global natural gas company needed a scalable front-to-back ETRM platform to manage trading, position, risk, scheduling and settlement for natural gas, crude, and refined products. The company had outgrown its existing system, which was not capable of managing its rapidly expanding operations. It also needed better transparency and controls for marketing operations.

 

Business Challenge
The company was using spreadsheets to manage business critical data. These spreadsheets were error prone and generated suboptimal decisions. Controlling and maintaining data access was a challenge without a sophisticated solution to record data, track commodity exposures, understand mark-to-market position, and manage joint venture reporting.

 

Solution
The company implemented Eka’s TRM solution to capture physical and financial contracts with complex pricing features such as crack spreads, spark spreads, and formula-based deals. Eka TRM supports real-time P&L attribution, VAR scenario optimization, GL integration, mark-to-market position and risk exposures for the company.

The solution can manage the entire lifecycle of natural gas including transaction capture, confirmations, operations, risk management, credit, and settlement. It provides robust scheduling and actualization functionality using real-time balance, capacity, and transportation cost data and manages the company’s exchange, over-the-counter (OTC), foreign exchange (FX), and interest rate (IR) derivatives. It also delivers asset management for production units.

Business Benefits
The company now has better visibility into risk numbers to evaluate both market and price risk. Eka’s solution simplifies scheduling and volumetric balancing and reduces manual re-entry of data and adjustments. The company can now take advantage of fixed cost mitigation opportunities with insights into joint venture data.

 

Using Eka, the company has greater control over data access, retention and archiving through specific roles and permissions and numerous controls. Eka’s solution also helps reduce operational risk by enforcing segregation of duties.

 

With Eka’s advanced platform, the company can make better, faster, smarter decisions.