Gas storage valuation software that shows its work
Five cross-validated valuation methods, calibrated to your facility's actual ratchets and contract terms — with the daily operating thresholds and hedge recommendations that turn the number into P&L.
Why storage owners outgrow single-number valuations
The problem
- Storage valuations arrive as a single number with no explanation of where the value comes from.
- Consultant models take weeks per run — re-pricing a deal term change means another engagement.
- Intrinsic-only views leave the extrinsic value of ratchets and daily optionality on the table.
- Operations and valuation live in different tools, so the desk never sees the thresholds that realize the number.
What changes with Valor Storage
- Value decomposed into locked seasonal spread, curve-reshaping upside, and daily trading optionality.
- Full stochastic re-valuation in minutes — change deal terms, re-run, compare side by side.
- Five cross-validated methods, from intrinsic to least-squares Monte Carlo, with disagreements explained.
- Daily inject/withdraw thresholds and nomination-ready schedules connected to the same valuation.
What it covers
Deal & facility valuation
Price storage leases, evaluate facility acquisitions, and benchmark reservation rates against modeled value — calibrated to working gas, rate curves, ratchets, fuel, and cycling terms.
Daily operations
Operating thresholds tell the desk exactly when to inject or withdraw, aligned to gas-day settlement cycles, with inventory and ratchet monitoring.
Hedging & risk
Monthly hedge recommendations with tenor-level sizing — hedge the seasonal spread on forwards while capturing daily optionality at cash.
Transparency & audit trail
Every calibration input, assumption, and parameter is disclosed. Valuations are versioned and reproducible — built for investment-committee and counterparty diligence.
Part of Valor Asset Management — valuation for storage, pipeline transport, and power generation. See recent engagements.
Common questions
How is gas storage valued?
Robust storage valuation combines several methods: intrinsic value locks the seasonal spread available in the forward curve today; rolling intrinsic captures value from re-hedging as the curve moves; and stochastic methods (spread-option models, daily operating-threshold simulation, and least-squares Monte Carlo) price the optionality of daily injection and withdrawal decisions. Valor runs these methods side by side and cross-validates them.
What inputs does a storage valuation need?
Facility parameters (working gas capacity, injection and withdrawal rate curves, ratchets, fuel charges, cycling limits), the contract terms being valued, and market data — forward curves, implied volatility from listed options, and basis to the hub that prices the facility.
How is this different from a consultant valuation?
The engine behind the number is a platform, not a spreadsheet: re-running with different deal terms takes minutes, the assumptions are fully disclosed, and the same engine produces the daily operating thresholds that realize the value after the deal closes.
Can we get one valuation without subscribing to the platform?
Yes. Storage valuation is available as a scoped engagement: you provide facility and contract parameters, we deliver the valuation report, operating playbook, and a walkthrough. Platform access is optional afterwards.
Put a number on your storage
Bring your facility parameters — leave with a value decomposition, operating thresholds, and a hedge plan.