|Title:||Global top 20 natural gas capacity traders ranked by cubic feet daily equivalent and number of deals for 2011|
|Source:||Pipeline & Gas Journal|
Start of full article - but without data
2011 Top XX Capacity Traders
Rank 2011 change 2011 Deal from Rank Acquiring Shipper Daily Equiv Count 2010
X Tenaska X,XXX,XXX XXX -- X BP X,XXX,XXX X,XXX +X X Sequent Energy Mgmt X,XXX,XXX XXX +X X Macquarie Cook Energy XXX,XXX XXX +XX X Amerada Hess XXX,XXX X,XXX -X X Shell XXX,XXX XXX +X X Direct Energy XXX,XXX X,XXX XX X Dominion Non Reg XXX,XXX XXX -- X BG Energy XXX,XXX XX +X XX NRG Power Marketing XXX,XXX XXX +XX XX Southern Company XXX,XXX XX +XX XX Scana Energy Non Reg XXX,XXX XXX -X XX ConocoPhillips XXX,XXX XXX -X XX Interstate Gas Supply XXX,XXX XXX +X XX DTE Non Reg XXX,XXX XXX +X XX EDF Trading XXX,XXX XXX +X XX Atmos Energy Non Reg XXX,XXX XXX -X XX Repsol XXX,XXX XX +XX XX National Energy & Trade XXX,XXX XX +X XX Snc Gen XXX,XXX XXX -X
Equiv Count Change Change 2011 2010 to 2010 to Rank Acquiring Shipper 2011 2011
X Tenaska XXX% XXX% X BP XXX% XXX% X Sequent Energy Mgmt XXX% XXX% X Macquarie Cook Energy XXX% XXX% X Amerada Hess XX% XXX% X Shell XXX% XXX% X Direct Energy XXX% XXX% X Dominion Non Reg XXX% XXX% X BG Energy XXX% XXX% XX NRG Power Marketing XXX% XXX% XX Southern Company XXXX% XXX% XX Scana Energy Non Reg XXX% XX% XX ConocoPhillips XX% XX% XX Interstate Gas Supply XXX% XXX% XX DTE Non Reg XXX% XXX% XX EDF Trading XXX% XXX% XX Atmos Energy Non Reg XX% XXX% XX Repsol XXX% XXX% XX National Energy & Trade XXX% XXX% XX Snc Gen XX% XX%
In many ways the world of natural gas trading bears little resemblance to the halcyon days of the 2000-2001 period when the business began an infamous meltdown because of the questionable practices some companies were applying.
For those trading companies that stayed the course and refused to deviate from their original strategies, they have enjoyed a gradual climb that has enabled them to become leading earners for their corporate bottom line. That's a good reason why Tenaska Marketing Ventures (TMV) has again been singled out for first place in Capacity Center's annual Top XX of natural gas pipeline capacity trading company rankings. This marks the third year in a row that the Omaha, NE-based company came in first. TMV is an affiliate of Tenaska, one of the nation's largest independent power producers.
Boston-based Capacity Trading Company (CapacityCenter.com) monitors and collects capacity and operational information on all interstate pipelines. The XX-month period through September 2011 was the second straight year that the total volume of pipeline capacity traded by the Top XX increased, coming in a remarkable XXX% over 2010 volumes, topping it by XX Bcf/d.
"In 2011 we saw a continuation of two key trends in capacity trading from the previous year," said Greg Lander, president of Capacity Center. "The first trend is the increased volume level of capacity deals traded. The second trend is the ongoing concentration of capacity trading activity by the Top XX trading firms. In 2011, XX% of non-affiliate deals were traded by the Top XX, an increase from the XX% traded by the Top XX in 2010. Further, XX% of the volume traded by the Top XX was traded by the Top X.
"Interestingly, the grouping of trading firms in positions XX through XX was tight with only XXX MDth/d equivalent separating number XX from number XX," Lander said.
More than XXX entities traded over XX Bcf/d on a daily equivalent basis through September 2011, an increase from the XX.X Bcf/d traded over the same period in 2010. While total traded capacity in 2011 approached XX Bcf/d, Capacity Center excluded for ranking purposes the nearly X Bcf/d traded between affiliates.
TMV repeated as the No. X capacity trading company in 2011 as it nearly doubled its daily equivalent traded from X.X Bcf/d to more than X.X Bcf/d. The Top X are rounded out by BP and Sequent, each rising by one spot to second and third respectively, Macquarie rising by XX spots to number X, and Amerada Hess dropping three spots to number X. TMV did XX% more volume than BP, although BP did more than twice as many deals.
Several new players cracked the Top XX including, NRG Power Marketing (XX), Southern Company (XX), Interstate Gas Supply (IGS) an Ohio-based retail marketer (XX) and Repsol, the LNG importer (XX) which vaulted into the Top XX by moving up XX spots as Canadian imported LNG came fully on-stream in 2011. Among those dropping out of the Top XX were Atmos Energy's regulated operations, Minnesota Energy, and Southstar (all three dropping out due to the exclusion of affiliated transactions). These were joined by Total, FPL and J Aron.
For TMV, which celebrated its XXth anniversary in 2011, it's just another day at the office. With offices in Calgary, Alberta, Dallas, TX and Denver, CO as well as its Omaha headquarters, TMV covers nearly all of North America, transporting gas on virtually every major pipeline system. In 2010, TMV was also named a winner of Mastio & Company's XXth Natural Gas Marketer Customer Value and Loyalty Study.
In 2010 Tenaska's gross operating revenues were $XX billion and its assets were $X.X billion. Forbes magazine ranked Tenaska XXth among the largest privately held U.S. companies, based on 2010 revenues, and thanks in large part to the revenues provided by the marketing arm.
Fred Hunzeker is the president of TMV, having joined the company in its start-up. He is justly proud that they successfully weathered the storm that forever changed the trading business.
"It's amazing when you think about all of the cycles we've been through and the people who have entered and exited our business. I don't think we can find any of the other leading people in the business who are under the same ownership today as they were XX years, like we are," he told P&GJ.
TMV markets about X Bcf/d of natural gas--about XX% of the U.S. market--and has remained in Capacity Center's Top XX rankings for the past nine years. TMV is atypical from the others on the list because it is independent and privately held by Tenaska while the others are either affiliated with a large producer, utility, bank or international corporation. What difference does that make?
"We would tell our customers that they should have less conflicts of interest with us," Hunzeker explained. "Being independent we're truly able to represent our customers, so they shouldn't have to worry about whether we have another agenda that helps our production or our utility.
"Our strategy is that we are, and always have been, very physically focusing on touching and moving the actual gas molecule--working with those who either produce, transport, store or the customer who consumes it."
By either controlling or managing those physical assets (the vast majority are nonTenaska assets), TMV can trade around them and extract the inefficiencies in the marketplace that exist around that capacity and share the value with its customers. Other trading companies say they can do likewise but probably also run proprietary trading shops and are trying to profit from the volatility in the market by taking risks, Hunzeker said. That's why relationship-building is an essential ingredient of TMV's success.
"It depends on your strategy," Hunzeker explained. "We're not just sitting at a desk, trying to pick the direction of the market and profit from that. If that's your strategy, then relationships are not very important. In our business, we're moving molecules and helping to solve customers' needs. So relationships are very important for us."
TMV's skill in creating specialized solutions for customers of nearly any size and its intimate knowledge of the market enable it to outperform nationally focused companies and deliver faster service, more market opportunities, and reliable, cost-effective energy supplies, he said. In addition to providing value, that means managing risk for utilities, pipelines, producers and large industrial users.
Technology made some changes inevitable in the business, leading to even greater transparency. Where most gas was once traded by phone, traders now rely on online platforms. IntercontinentalExchange (ICE) is the premiere Internet-based platform, designed to provide an efficient market structure for OTC energy commodity trading. Established in May 2000, ICE represents some of the world's largest energy traders and is said to offer traders better price transparency, more efficiency, greater liquidity and lower costs than manual trading.
TMV employs about XXX people with more than XX involved directly with commercial transactions. The average experience of those XXX is about XX to XX years with more than half of that time spent with TMV. This is what they do: a power plant has to sign up for firm capacity for a peak summer day but it happens the weather isn't that hot so the plant is not dispatched. That transport capacity sits empty. TMV, meanwhile, has figured a way to utilize that capacity for those days when the client doesn't ship to their plant.
That reduces the inefficiency they would otherwise face from not using all of their contracted capacity. This provides a value to their client which TMV also shares in as payment for its service. In addition to managing transport, TMV may help them lease gas storage so that if the weather is indeed a scorcher, TMV can pull the needed gas out of storage and get it to them on very short notice.