The Mississippi Gas Storage Agreement is a legally binding contract that outlines the terms and conditions between a gas storage provider and a gas storage customer in the state of Mississippi. This agreement governs the storage, withdrawal, and injection of natural gas in underground storage facilities within the state. Keywords: Mississippi Gas Storage Agreement, gas storage provider, gas storage customer, natural gas, underground storage facilities. There are various types of Mississippi Gas Storage Agreements based on the specific needs and requirements of the parties involved. Some commonly seen types are: 1. Firm Storage Agreement: This type of agreement guarantees that a certain amount of storage capacity will be reserved exclusively for a specific customer. The customer pays a fixed fee to secure this capacity throughout the contract term and has the right to inject and withdraw gas as per their requirements. 2. Interruptible Storage Agreement: In contrast to the firm storage agreement, this type of agreement does not guarantee reserved storage capacity. The gas storage provider can interrupt or curtail the customer's gas injection or withdrawal, typically with prior notice, based on operational requirements or high demand periods. 3. Wheeling Agreement: This agreement allows a gas storage customer to transport natural gas owned by them or a third party through a gas storage provider's facilities for a fee. It provides flexibility in terms of gas movement without the need for physical ownership of the stored gas. 4. Hub Services Agreement: Hub services agreements facilitate the exchange of natural gas supplies at a centralized hub. Gas storage providers offer these agreements to allow customers to inject surplus gas into storage during periods of low demand and withdraw it during periods of high demand or supply disruptions. The Mississippi Gas Storage Agreement typically includes important terms such as injection/withdrawal rights, gas storage fees and charges, quality specifications, operational procedures, and liability provisions. It also usually covers issues such as force majeure, indemnity, and dispute resolution mechanisms. In conclusion, the Mississippi Gas Storage Agreement is a vital contract that governs the terms of natural gas storage within the state. The different types of agreements cater to various customer needs and provide flexibility in gas storage and movement.
Mississippi Gas Storage Agreement
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How to fill out Mississippi Gas Storage Agreement?
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It is most commonly held in inventory underground under pressure in three types of facilities. These underground facilities are depleted reservoirs in oil and/or natural gas fields, aquifers, and salt cavern formations. Natural gas is also stored in liquid or gaseous form in above?ground tanks.
Gas Storage Agreement means a contract entered into between a person and the Facility Operator, pursuant to which a person is entitled to utilise the Facility for the injection, storage and delivery of Natural Gas, (as amended, supplemented, assigned or novated from time to time);
The market part of the storage value has two components: intrinsic and extrinsic value. While intrinsic value is a static view of the forward curve, extrinsic value is a complex function of the seasonal spread, spot price volatility, forward spread volatility, asset flexibility and individual optimisation strategies.
The storage value is a portfolio of complex spread options. The value of the spread option is a function of the value of the forward contracts plus the risk-neutral expectation of the future forward value spread. The factor driving the spread option values (storage value) is the variability of the forward curve.
The intrinsic valuation methodology derives value from time spreads in the price of gas. Months for which the forward price is relatively low are chosen from the current forward curve for entering into a long position and injecting gas into the facility.
Deliverability is most often expressed as a measure of the amount of gas that can be delivered (withdrawn) from a storage facility on a daily basis. Also referred to as the deliverability rate, withdrawal rate, or withdrawal capacity, deliverability is usually expressed in terms of million cubic feet per day (MMcf/d).
The basic approach to storage valuation is to calculate the optimal position given the available forward curve and take this position on the forward market. This intrinsic value approach captures the predictable seasonal pattern in gas prices and secures a sure profit.
There are approximately 400 active storage facilities in 30 states. Approximately 20 percent of all natural gas consumed during the five-month winter heating season each year is supplied by underground storage.