CASE STUDY:MITSUI & CO. COMMODITY RISK MANAGEMENT LTD. (MCRM LTD)

GLOBAL THOUGHT LEADERSHIP. DELIVERED

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THE BUSINESS CHALLENGE

Mitsui & Co. Commodity Risk Management Ltd. expanded its commodity business to include physical natural gas trading in the United States and required the current ETRM system to be configured to handle the new positions as per their internal risk policy. Leveraging on the existing system would not only allow Mitsui the fastest time to market but also leverage on the current business processes and decision support tools already in place.

After surveying the market and seeking the aide of external consultants MCRM Ltd faced a 2-3 month project to be able to build the necessary components to bring Physical Natural Gas into their current systems. MCRM Ltd sought the assistance of Principia Consulting’s Doug Gyani to bring his global thought leadership and industry knowledge to expedite and deliver the solution.

Leveraging on Best Practices & Industry Standard Knowledge Matrices MCRM went live with Physical NatGas Trading within a week.

THE SOLUTION

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THE PROJECT

Beginning with an assessment of the current state of system tools and understanding the requirements set forth by the business led to a “To-Be” plan which took into account the current reports, valuation indexes, and future curves needed for the business. Once understood the deployment was a matter of mapping the required curves, trading locations and trading tools to the system. This was achieved in record time based solely on the in-depth knowledge of the markets coupled with the frameworks that allowed simple importing of existing locations, curves and reports directly into the ETRM system.

THE DELIVERYThe project delivered to MCRM all US Natural Gas Trading points and respective valuation points within the Gulf Coast and North East Markets along with the risk parameters need to report and hedge risk in a complex multi-index environment. Physical pipelines and meters as well as the transportation contract templates required to ship natural gas were constructed alongside standard trade templates for the business to reduce operational risk and expedite the learning curve for the users. Leveraging on the natural strength of the ETRM system allowed for the deployment of real time as well as static reports for the business with no development effort. The project was capped off with hands on training sessions and the business was live within a week of the project commencement.

Unlike other consultancies which need to first learn our business – Doug was able to provide guidance and industry best practices day one. Leveraging on a library of knowledge and importable utilities, he was able to deliver all of our needs within days”– CORMAC MCCARTHY, HEAD OF RISK AT MITSUI & CO. COMMODITY RISK MANAGEMENT LTD. (MCRM LTD)

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“ Doug’s remarkable understanding of the subject matter and industry made the implementation process expedient and seamless” - Cormac McCarthy HEAD OF RISK AT MITSUI & CO. COMMODITY RISK MANAGEMENT LTD. (MCRM LTD)

GLOBAL THOUGHT LEADERSHIP. DELIEVERED.

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COMPANY PROFILEBuilt on the sole principle of providing the world’s leading consultancy services specifically tailored to meet the needs of the Energy Trading & Risk Management landscape; Principia Consulting offers its clients over 15 years of experience & knowledge, Industry Best Practices and Global Thought Leadership. Having engaged in projects with the industry’s largest and most dynamic Energy and Financial service customers globally, the principle consultants and partners of Principia bring a robust knowledge base of the Oil and Gas industry as well as the systems and solutions that have served as the backbone of the trading life-cycle within these organizations. With services ranging from System Selection and Project Implementation, through Transformation, we offer the benefit of experience; packaged in delivery frameworks designed to streamline our client’s business processes and lower overall cost and time to market.

OUR PHILOSOPHY

GLOBAL THOUGHT LEADERSHIP 

INTEGRITY

DEEP DOMAIN KNOWLEDGE

Completely adaptive and tailored to our client’s requirements; Principia’s core methodology affords our clients the most robust balance between knowledge and pragmatic solutions.

Principia consultants deliver industry tested business “Best Practices” customized to add maximum efficiency to our client’s workflows. Optimize efficiency, minimize risk.

A Fundamental Principle – Our Consultants have experienced the pros and cons of virtually every vendor in the E/C TRM space - offering unbiased views of the system landscape. We put our client’s needs above all else through open communication, honest feedback and complete transparency.

Each Subject Matter Expert brings deep domain knowledge within their specific discipline with an average of 7-10 years of practical industry experience. Our resources are industry veterans that once sat in the roles of their clients.