The 2014-era deregulation of the México energy market created amazing growth opportunities for Mexican businesses; it also created significant energy commodity exposure. Mexican energy companies needed proven trading and risk management practices to enable them to meet challenges and succeed in the new market. Our client needed a commodity trading and risk management (CTRM) platform that could provide real-time, centralized reporting on energy positions, insight into the various elements of risk exposure, and visibility into profit and loss.
Due to the software’s comprehensive capabilities, proven past performance, easy adaptability to the Mexican Energy Market, and its support for all energy commodities in the client’s business – natural gas, LNG, refined fuels, and coal – ION’s Allegro platform was ultimately selected. As the commodity industry’s foremost Allegro experts, the client partnered with Essentia to both configure and deploy the CTRM as well as provide end-to-end hosting and cloud managed services.
A phased deployment strategy enabled a rapid, iterative roll-out of capabilities aligned to the client’s business plan. An initial six-month deployment of Allegro natural gas capabilities was followed by a second phase for the client’s liquefied natural gas (LNG) portfolio.
A third and fourth phase deployed the client’s coal, diesel and other petroleum fuel trading as well as advanced market simulation capabilities, showing the impacts of potential future currency exchange rates and commodity price changes.
This “stress testing” of the business against these risk factors provides powerful intelligence of potential risks to the business as well as future profit opportunities.
To ensure continuous business operations in the event of a major disaster, the Essentia and Allegro team configured the solution to feature sophisticated, cloud-based high availability capabilities.
As market prices, currencies, and other conditions change, the Allegro platform automatically provides the client with updated insight in real time throughout any trading day, ensuring that the client is optimally equipped to succeed in a dynamic market.
About the Client
Largest natural gas trader in Mexico
Downstream > Generation Supply and Trading
Refined Products Derivatives
Amazon Web Services (AWS)
Essentia provided offerings
Cloud Managed Services