Consulting Services > Natural Gas Solutions

 

Palmer Energy Company Inc. is a BBB Accredited Energy Management & Conservation Consultant in Toledo, OH

 

Natural Gas Solutions

 

Initial Evaluation

  • Evaluate current hedge and basis position
  • Review current supply contract
  • Assess energy consumption flexibility
  • Analyze LDC rate code
  • Provide budget projections
  • Negotiate 3rd party supply contract

The Palmer Energy Company Procurement Process

Negotiate Basis Contract

Secure Competitive Basis Contracts

  • Basis is the cost to transport natural gas to LDC
  • Essential to negotiate basis rate before hedging supplies
  • Comprised 30% of natural gas cost a few years ago, often less than 8% today (changed slightly)
  • Supplier’s contractual obligations are critical
  • Your requirements are actively solicited to qualified marketers
  • Responses evaluated for price, reliability, and operational order flexibility
  • Recommendations provided with information on proposals’ economics and general strengths and weaknesses
  • Final supplier selected and proper contract language to maximize customer protection is secured

Futures & Options Market
  • Hedging programs based upon individual customer needs
  • Prices frequently fluctuate 10% to 15% in a day
  • Ability to evaluate future costs in real time
  • Stabilized & predictable costs

 

Hedging Program Progression

  • Understand ┬ábusiness needs
  • Evaluate market conditions and buying opportunities
  • Identify and assess risk tolerance
  • Formulate hedging goals and strategy
  • Work directly with management to determine an appropriate hedging plan for your company
  • Implement hedging schedule and define communication protocol
  • Monitor market conditions & trends for extended buying opportunities

 

Banking, Balancing, and Arbitrage

  • Determine maximum bank availability
  • Assess customer consumption pattern
  • Evaluate arbitrage potential
  • Determine if stand-alone bank is best alternative
  • Make recommendations to customer on stand alone
  • Educate customer on arbitrage potential
  • Implement arbitrage strategy if practical

Natural Gas Invoice Analysis and Reconciliation

  • Analyze and reconcile all utility and marketer bills for accuracy, errors, and omissions

 

Pooling of Resources Creates Economy of Scale

  • Individual Pooling of Company Resources
  • Take advantage of multiple accounts and pool individual site locations to maximize opportunity for basis and hedging
  • Customer Choice Pool Groups
  • Combine smaller natural gas loads to create an economy of scale sufficient to secure better transportation prices and hedging options.

Gas Utility Pipeline Bypass Strategies

  • Evaluate opportunities
  • Negotiate utility contracts
  • Implement recommended changes

© 2014 Palmer Energy Solutions