Talanza Energy Consulting

Midstream and Downstream


System imbalance

In the newly organized natural gas market, the end-users (industrial plants, generation plants) must be responsible for their GN consumption. They have to inform the authorities how much GN they will consume and adjust their consumption whenever necessary, to maintain balance and operate the GN (pipelines) systems at 100%.

Why is it necessary to be held responsible?

Because there are many cases where the system becomes complex. Mainly it’s where the operators continue consuming GN despite being told to reduce their consumption.
For this reason, the operators must pay for the additional natural gas they consume, and pay a fine too. This is called payment imbalance. The fines can be from 2 to 5 times the imbalance payment.

What was Talanza’s role?

We designed a strategy for the imbalance charge in collaboration with a supplier representing various operators.

The supplier has first to pay the imbalance to the system. The next step is to get it back from the operators. We used a strategy so that the supplier gets back what he has paid and, in addition, has a financial fund that may be used to cover part of the next imbalance payment.

What did we achieve?

We established a more stable cash flow for the supplier who was able to recuperate the money he had paid out for the operators’ imbalances. This amounted to 150,000 US dollars.

Case study