Enuit’s ETRM CTRM solution: Entrade, is your commodity trade management solution, whatever you trade, wherever you trade. Its universal deal manager and risk engine ensures that all your commodity trading activities can be well managed within one system, with one architecture, on one trade management platform.
Entrade also provides industry- and market segment-specific logistics management forms and reports, which take into account the nuances of the specific logistical requirements of each commodity.
The abundance of natural gas in North America, and its clean-burning, climate-friendly nature, has made natural gas a fuel of choice for electricity generation, closing in on coal as a baseload fuel for electricity production. At the same time, the location of new-found natural gas basins is completely changing the dynamics of a marketplace accustomed to single direction flows of natural gas from production basins in the mid-continental and offshore Gulf of Mexico to northeastern places of consumption. The complexity of natural gas trading has never been greater. Nor the risks.
That’s why there is Entrade for ETRM. It has functions and features to help you manage trading and logistics from producing gas wells, through processing and NGL production, downstream to points of consumption. And, Entrade has many features to help natural gas retailers aggregate and manage forecasted demand behind traditional city-gates. You will be up-and-running Entrade faster than you can imagine. Entrade comes ready-to-install, and out-of-box, with many of the features you have been looking for. Entrade is a great choice. Here are some features from the most comprehensive Natural Gas application today:
• Captures Counterparty data and Agreement terms
• Stores all sorts of Physical and Financial types of deals
• Calculates position risk and exposure to price movement
• Evaluates Counterparty Credit Risk
• Calculates Physical and Financial deal settlements
• Generates counterparty invoices
• Tracks costs associated with pipeline transport and storage
• Creates profit/loss drill-down, pivot reports
• Extended functions to support retail operations
• Aggregates retail load
• Allocates demand to supply pools
• Applies various load shaping factors, such as attrition and fuel loss
• Allocates physical supply to markets to close monthly business
Customer choice programs are now available in many cities and states, allowing consumers to select electricity providers and rate programs from among many offered in a growing free marketplace. It is a very competitive world we live in. Profit margins are squeezed. Managing all the details of electricity trading can be overwhelming. Spreadsheets certainly are not up to the job. Not when balancing trading positions hourly is essential.
Entrade for ETRM does the job without breaking a sweat. It has the horsepower to crunch through the mounds of hourly data associated with power trading. You will never need to worry about getting invoices generated correctly and on-time. Entrade is your system of choice. Here are some features from this very comprehensive solution:
• Captures both Physical and Financial deal types such as Bilateral Contracts and Power Swaps
• Calculates both hourly and on/off-peak risk valuations and position summaries
• Tracks Credit Exposure
• Handles both standard products and hourly load-shaped deals
• Generates monthly settlement statements
• Extended functions to support retail operations
• Aggregates retail load
• Applies load shaping factors such as attrition and line loss
• Shows netted hourly supply and demand positions
Oil markets are increasingly volatile. There are many details to track and manage. That’s why you need Enuit’s ETRM CTRM solution: Entrade.
It is a platform built to the specific nuances of oil markets. Wherever you trade crude oil, Entrade is there to help your business manage its trading activities, logistics, settlements, track inventory levels and valuations, and account for all primary and secondary logistical costs.
Entrade is an integrated ETRM solution, which means that all areas of your trading operation, in all office locations you staff, are linked together, sharing information.
Whether it is trading, credit management, trade finance, operations or accounting, every part of your organization has timely access to the information it needs to perform its function.
Freight & Cargo Trading
Shipping lanes remain the great conduits of commerce. Ninety per cent of the world’s traded goods are transported by sea. Oil products and minerals are the most transported commodities.
But, getting cargo from point A to point B is far from straightforward. There are many risk factors to consider when transporting cargo: Shipping lane congestion, port availability, piracy, bunker fuel requirements, etc… And, there is financial exposure to freight rate volatility and counterparty credit risk.
Enuit’s ETRM CTRM solution: Entrade, can help with all of these risks. Its risk architecture is very robust. Additionally, freight risk captured by Entrade can be incorporated into your company’s overall risk position.
Recent emphasis on reducing greenhouse gas emissions and improving air quality has made natural gas the fuel of choice for electricity generation. Unfortunately, many countries lack this natural resource within their borders; or, they can’t access the natural resource; or, if they can access it, they can’t get it to population centres. Major emerging economies, like China and India, therefore, look to LNG as a means to enjoy the benefits of this clean-burning fuel.
However, its complex life cycle involves many stages: production, transportation in pipelines, liquefaction, storage, transportation by vessel, back to storage, and eventually regasification and consumption. Fortunately, Enuit’s ETRM CTRM solution: Entrade, has out-of-box forms, features, and reports to track primary and secondary costs of each stage in LNG’s life cycle all in one uniform commodity trading and logistics management system. There isn’t another system like Entrade which can handle the logistical aspects of both natural gas and bulk shipped commodities like LNG. Only Entrade.
LNG deal pricing formulas can be complicated and difficult to set up in most systems, especially Excel spreadsheets. Entrade makes deal entry easy because of its pre¬configured formula templates and pricing engine. Formulas may reference any one of the many commodity indexes available, including Brent and WTI, Gas Daily and Inside FERC, TTF, NBP, and JKM, to name just a few.
Entrade’s curve engine can be used to construct and bootstrap very complex LNG term pricing curves. Deals may be marked to intent within Entrade as well. A second formula may be entered on each trade to indicate how to value a trade based on its destination and the various flexibility and options in the delivery schedule.
Entrade can evaluate LNG contracts with embedded FX and Interest Rate risk components. Each component is recognized in order to better manage FX and Interest Rate Risks. Entrade’s LNG scheduling module manages flexible delivery terms, such as Take-Or-Pay, Cargo-By-Cargo, Diversion Flexibility Right, Onward and Downward Adjustment Flexibility Rights. It manages boil-off and heel, too; and, integrally reflects the boil-off and heel in risk valuation.
NGLs, while similar in nature to refined products, trade very differently. Separation plants knock these high-value products out of wells producing natural gas in the form of a raw mix. Valuing raw mix is problematic because each of the purity components in the raw mix has its own independent market value. And, each well may produce its own unique composition of raw mix. How can overall market value be calculated?
It’s easy with Enuit’s ETRM CTRM solution: Entrade. Entrade maintains each well’s unique raw mix proportion. It decomposes and values inherent market risk without disaggregating estimated and actual production volumes, which are still traded, scheduled, and settled in aggregate. Logistics management is a snap in Entrade, which captures all primary and secondary fees and costs associated with movements.
And, Entrade manages inventories as well, whether in-transit or stationery. Fractionation plants can even be modelled within Entrade so that purity production can be estimated to forecast sales revenues.
Metals Concentrates and mining
With coal prices historically lower and more stable than oil and gas, coal is likely to remain the most affordable fuel for power generation in many developing and industrialized countries for decades. And politics is moving back in the direction of coal, too, like a swinging pendulum.
Because of low volatility in prices, managing costs is most important. To control costs, major coal users need to focus on supply chain and inventory efficiency as well as managing quality specification from contract to delivery. And, Entrade can help you manage all of these important details that make the bottom line much better.
Precious and base metals
Global markets are moving away from fixed price, long-term contracts and towards short-term spot- or index-based contracts. Emerging exchanges with quoted prices and indices for metals are making it happen. Prices are more volatile. Managing costs, including secondary costs, is vital for a profitable business operation.
And, that is what Entrade does best. Let Entrade help your company manage its trading operations in metals. Entrade comes out-of-box with reference data ready-to-go for Non-ferrous Metals like Aluminum, Copper, Tin, Nickel, Lead & Zinc, Steel, Scrap and Recycled Materials, and Precious Metals like Gold, Silver, Platinum, and Palladium.
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ENUIT® provides ETRM and CTRM software for the Global Energy and Commodities market.
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