Transport & Storage - Pricing more critical than ever

Transport & StoragePricing more critical than ever

Rudolf Huber

Head of Business Development, EconGas GmbH

Barcelona, 30 January 2009

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Numbers???

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Long distance transport

Price a factor or not?

The un-flexibility factor

Netback – the big equalizer

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Regional Transport

More strategic than economic

Better price attracts business

Swaps better suited

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LNG

The flexibility factor

Advantage – or not so much?

Only real price competition

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Storage – original intentions

Transform baseload into structure

No money incentive

Necessity driven

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The uncertainty factor

Recent events point to need for more

World became much more uncertain

What cushion do you feel comfortable with?

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Taking a stance

Playing on price differential

Strategic gamble

Depends on situation of the player

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Depleted fields or caverns

Maybe not for everyone

Can you absorb the rates

Assumes solid physical portfolio

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LNG tanks

No real storage

Structuring tool

But paid asset

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Floating storage

Divertability

Limited attractions for commercial gambles

Option of very last ressort

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Strategic positioning

Long before operations commence

Preparing the playground

Flex and its price

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The human factor

Teams value more than contracts

Optimisation trumps

No real treshold for good or bad price

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► EconGas GmbH

ARES Tower, Donau-City-Strasse 11, 1220 Vienna, Austria

www.econgas.com