NAFTA has responded to market needs in an innovative way and has offered a unique gas storage product: an option on storage capacity. The option gives you the right to reserve storage capacity at a fixed price and use it in the following gas year if exercised.
The call option allows the customer to exercise the right to call storage capacity by the option’s maturity date.
The price for this product is composed of 2 components: a premium, payable at the purchase of the option, and a fixed component, paid only if the option is exercised. The customer would bid a premium and if the option is exercised, the customer would pay the fixed component of price for storage.