At the beginning of the winter season each year, EMR works with customers to make sure suppliers and utilities have up-to-date emergency contacts at each plant. EMR also works with customers to make certain that their alternative fuel sources are ready for when they are needed during extreme cold weather situations. This involves making sure propane or fuel oil tanks are filled and the operations that use these alternative fuels are tested. This service helps to eliminate costly emergency fuel costs that could be incurred by the customer if their nominated volumes are exceeded and alternative fuel sources fail.

Manage the Risk

For one industrial customer that maintained a high level of pipeline transport, EMR provided a risk management assessment that led to savings of approximately $1 million a year, with minimal increase in risk to the customer. By more clearly identifying the clients needs, schedules for firm transportation and the availability of natural gas supply in the region, EMR was able to assess the real value of firm transportation versus other supply options that ultimately led to reductions in the amount of firm transportation held by the client.

Mitigate the Risk

EMR took a fresh look at the index pricing strategy that one client had been using for years. We reviewed recent changes in the market and recommended a pricing strategy that wouldn't be susceptible to regional price spikes resulting from hurricanes. The client has since saved up to $2 per MMBtu on a volume of approximately 3 million MMBtu's per year. The client's most significant savings occurred in the months immediately following hurricane Katrina when natural gas prices skyrocketed.

For more information about how EMR can help your business,
call Darrel Palmer at 816-883-1012.