Managing Assets and Reducing Overhead.
Asset management agreements (AMAs) have become more commonplace in the market due to the increased sophistication of natural gas trading and FERC capacity release rules. Transportation and storage holders have the ability to release their assets for outside management through a broad range of payment structures.
Depending on the underlying assets, an AMA may be structured through either a fixed fee arrangement or a sharing mechanism. If your assets are fully utilized and there is no optimization value, releasing assets via an AMA structure can still be a prudent decision. Elevation can manage your assets and reduce your internal overhead. For a more comprehensive discussion regarding asset management agreements, please contact us.