Reply To: Balance leg on COMM-STOR


The COMM-STOR with a SubType Deal Phys Balance is a common model for Gas Storage. But this only really works in two ways :

(1) The Total Injections = Total Withdrawals ( where for past its Actual and for future its External Model Optimised Volumes ) . In this case the Balance Leg = 0 . The whole MtM value of the Storage Deal is coming from optimised future Injections and Withdrawals which net to zero. So the Balance Leg is not really being used at all ( though it can act as a indicator/warning that the optimised volumes are not netting to zero is the Balance Leg is not zero )

(2) If however instead of a Optimised Volumes you just want to value the existing Inventory off a Gas In Storage Price ( there are a few storage facilities where such a price exists ) then you would just put the Actual Injections and Withdrawals on the deal – and then the Balance Leg would then not be zero and it would value off this Gas In Storage Price.

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