Service Type: Physical Commodity Risk Management
Project: Cross Commodity Hedging Strategy
This client, with multiple assets and risk-related commodity price volatility in ethane and natural gas liquids, was concerned about the risk affecting their earnings and reduced investor returns.
Approach & Results:
We developed a procurement strategy with committed assets, storage, and transportation. We identified a compound hedging strategy with a combination of liquid financial hedging instruments and physical forward contracts possessing flexible volumetric features that fit the production facilities’ operational model.