Managing portfolios in stock exchange-oriented gas trading

Like the power market, gas trading is currently being deregulated; in other words the products "combined gas", "continuous supply" and "structured supply" can be traded on energy exchanges. In classic gas trading, long-term supply contracts are concluded for specific quantities forecast by the customer. Prices are derived from the current oil price using formulae. "Combined gas" softens this model in that part of the supplied quantity can be traded on the stock exchange (normally 1/3), with the customer informing the supplier when and how much is to be procured on the stock exchange. The "continuous supply" product is not based on any sales forecasts. The supplier merely procures certain quantities of gas on the stock exchange on behalf of the customer. This can either be settled at a fixed price or on the basis of formulae. "Structured procurement" is similar to the "combined gas" product. The difference is that the customer does not make any forecasts.