Natural gas
Natural gas storage
The offering
Offer a defined quantity of storage capacity for a specified contract term. Bidders state how much capacity they want at the announced price. Their responses reveal demand for the offering and determine its allocation under the auction rules.
Demand, price and allocation
A major US natural gas storage company used auctions to price and allocate its offered capacity. Bidders could receive different quantities, with successful awards made at a common price. The bidding record revealed individual and aggregate demand, and how demand changed with price.
The historical storage case below provides a concrete example of this Level 1 application.
Historical natural gas storage case
Results, 2012–2022
From 2012 to 2022, this client recorded the following results:
- $18.69 million in additional revenue above modeled predicted value.
- 128 bidding events.
- Four minutes average bidding duration.
These figures describe this customer's historical results. They are not a forecast for another offering.
