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UNDERSTAND GAS AND POWER MARKET INTERACTIONS
The role of natural gas in power generation is huge. As the highest source of US primary energy, one third of US produced natural gas goes to producing electricity.
With more and more renewable sources connecting to the grid, natural gas provides swift dispatchable power needed to ensure reliability. It follows that natural gas and power markets have become more interconnected.
When analysts model power markets, what happens when an assumed gas price input (gas as a fuel for power) produces results out of alignment with actual prices at the resultant gas demand?
To fully understand the intricacies of how gas and power markets interact, you need a way for power market models and gas market models to communicate.
You need a tool that enables you to eliminate differentials between price and demand forecasts generated by these market models.
You need Gas4Power®.
Gas4Power databases contain realistic assumptions regarding global demand for North American LNG, computed using RBAC’s G2M2® global gas and LNG market simulator. It also contains tools enabling Gas4Power analysts to design unique LNG export assumptions for their own proprietary scenarios.
Gas4Power gives analysts and managers the benefit of RBAC’s GPCM quarterly base case. Users get an insider’s view of gas production, pipeline and storage utilization, deliveries, LNG exports and price points throughout the North American gas market. Its design enables users to integrate proprietary data and assumptions in support of a credible and comprehensive gas and power outlook.
Gas4Power enables power market analysts to better understand and simulate gas market dynamics. Even more, users can easily layer in potential changes to those dynamics to simulate how that could affect important business decisions. When properly used to its fullest potential within the organization, Gas4Power could minimize corporate risk and improve contributions to business earnings.
Frequently Asked Questions
Gas4Power can be utilized to find where differences in gas demand and price forecasts differ between power market models and gas market models. Gas4power provides a high degree of certainty and insight into the gas market price and demand fluctuations and how it relates to power markets.
- Scenario Overview Exporter
- Supply Disposition Summary
- Consumption Summary
- LNG Imports/Exports Summary
- Source-Destination Flows
- Scenario builders to create company-unique reference case and analysis
- Supply by basin group, play type (conventional, CBM, shale)
- Demand by census region and sector
- LNG imports/exports by terminal
- New infrastructure
CO2 emission price scenarios - Scenarios involving renewable natural gas and, in the future, hydrogen
RBAC’s Gas4Power® makes the process of simulating interactions between natural gas and power markets faster, more efficient, and transparent. As gas price affects gas demand in power generation, power market demand simultaneously affects gas price. Gas4Power provides a means to compute a consistent solution to this circular relationship. Built upon the industry-standard GPCM® gas market simulator, Gas4Power enables electricity market modelers to increase their knowledge and certainty about the North American gas industry with a minimal burden on staff and resources.
On-site or online training offering in-depth training on gas fundamentals for power analysts as well as real-world practical application. Telephone support available from 9:00 am through 5:00 pm Central Time. E-mail support is also available.
Gas4Power provides an efficient process for gas price forecasts to be transferred into a power market model and for resulting gas use to be transferred back into RBAC‘s GPCM gas market simulator in an iterative process. This process produces realistic and consistent forecasts for both the gas and the power market. Gas4Power can be “custom fit” to suit the level of detail needed to maximize efficiency and value. RBAC’s Gas4Power base case database is regularly calibrated against historical supply, demand, and price data, offering credible representations of actual market conditions.
