Frontier values gas storage in Germany
Changes to the transport arrangements in the German gas network and the emergence of new sites have raised new interest in gas storage investments in Germany.
Frontier (Cologne and London) has completed a number of valuations for an established player and newcomers to the market. Frontier valued investment options in three Federal states (L䮤er) against a range of competitive benchmarks including offerings of established players, contractual offers from abroad and the implied price for gas flexibility services in full supply contracts of established suppliers.
The analysis took account of location specific transport prices and known and projected bottlenecks in the gas system. In order to project future network congestion, Frontier used its in-house gas market model. The model reflects the network topology in Germany connections to neighbouring countries.
The effect of changes to the regulatory and market environment on the valuation was reflected through scenario analysis.
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