Price lock and liquidation configuration

The Price lock and liquidation configuration feature allows users to manage price locks and liquidation for natural gas transactions. Users can lock in prices for specific periods, securing favorable rates and managing price risk effectively. Flexible configuration options support various liquidation methods, helping users adapt to market changes and optimize trading strategies. It also provides a clear and auditable record of all price lock and liquidation activities, supporting transparency and alignment with regulatory requirements.

Procedure to configure price lock and liquidation

Step 1: Navigate to the Price agreement screen

Price agreement specify the pricing structure and validity period for gas transactions with counterparties. This section allows users to access, create, or modify pricing details that are applied in contract management and billing processes.

Follow below steps to navigate to the Price agreement screen:

1. Go to the End user screen, then navigate to Price agreement screen to view all existing price agreement records.
2. Select the price agreement record to open End user price agreement screen.
3. Click Edit to modify Pricing tiers details.
4. Define the fields available in the Complex pricing, Components and Computed price tab.

5. Click Save to apply changes.

   Note

   Price agreements may differ significantly depending on the Pricing methodology applied.

Step 2: Configure lock

Lock configuration is the process of fixing prices or volumes for a defined period to protect against market fluctuations. Locked volumes are calculated using a single Weighted Average Cost of Gas (WACOG) applied uniformly across all months.

1. Navigate to the Price agreement screen. 
2. Click on the Lock icon to open the Price lock wizard.

3. In the Price lock wizard screen, fill in the below details:

   1. Specify the date range and enter the Volume to lock/fix.
   2. Choose the Execute price lock method from the dropdown.
   3. Enable the Use single WACOG for all months checkbox (optional).
   4. Click Next.

4. Verify whether the Eligible box is checked for each tier and click Next.

   Note

   The display of the commodity and basis value will depend on the price method locking configuration.

5. Review the WACOG details (commodity-specific) and click Next.

6. Validate the new volume and click Execute lock. The locked volumes displays in the Pricing agreement screen for selected months.

Step 3: Configure liquidation

Liquidation is the process of closing or offsetting a position by creating opposing tiers—one positive and one negative. It is typically used for risk management or contract settlement. Liquidation applies to a single month only and cannot span multiple months.

Follow the below steps to configure the liquidation in nGenue.

1. Click the Lock icon to reopen the Price lock wizard screen.
2. Set the liquidation date and enter the Volume to lock/fix.
3. Select Execute price lock method from drop-down.
4. Enable the checkbox: This is a liquidation. Click Next.
5. Check the Eligible box of each tier and click Next.
6. Validate the liquidation volume and click Execute lock. This will create two tiers, one negative and one positive tier.

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