Fuel prices: Saint-Gobain selects Planalytics GasBuyer to improve gas purchasing

It was announced 18 February 2003 that Saint-Gobain Corporation has licensed Planalytics(R) GasBuyer(SM), a web-delivered risk management application for purchasing and hedging natural gas.
Planalyti…

It was announced 18 February 2003 that Saint-Gobain Corporation has licensed Planalytics(R) GasBuyer(SM), a web-delivered risk management application for purchasing and hedging natural gas. Planalytics GasBuyer uses proprietary long-range climate forecasts and inventory change projections, weekly storage data, real-time NYMEX futures contract pricing, and advanced neural network technologies to analyse gas prices for each of the next twelve months. Based on weather forecasting data and how this will ultimately impact the market, the application determines if gas is currently “undervalued” or “overvalued” and then provides clients with daily buying, selling and hedging actions that reduce risk and take advantage of opportunities offered by rises and falls in prices. The tool“s year-ahead view of the market helps clients to address their gas needs gradually, proactively and cost-effectively while minimizing the negative effects of shorter-term price fluctuations. Planalytics GasBuyer helps clients reduce costs and minimize risk by identifying the best and worst times to buy natural gas. The application outperformed the market by 11% during the most recent six-month period. The average price of gas for clients following the GasBuyer“s suggestions was USD 3.848 per MMBtu for September 2002 through February 2003 futures contracts. This was USD 0.48 per MMBtu, or 11%, lower than the average NYMEX month-end settlement price of USD 4.328 per MMBtu during this same period.