Structured products
Structured transactions

Essent Trading originates, structures and manages multifaceted energy products and services, including cross-composition deals, across the energy value chain. To maximise the value of our clients' portfolios we actively price and structure deals across commodities, markets and segments.

Our presence in key European and global energy markets allows us to structure exotic transactions encompassing the full range of energy commodities.

Gas
The European gas market has evolved considerably over the last ten years. Liberalised regional markets have emerged, interconnectivity between distribution systems has increased, national markets are deregulated, etc.. In the context of this evolving market, we have invested in relationships with long-term partners and built new relationships and innovative contractual arrangements with suppliers throughout Europe. As a result we have a gas portfolio that is more flexible and competitive, and we use this as the basis for developing structured client solutions.

RWE Group currently handles a 40 billion m3 (bcm) per year gas supply portfolio in Europe, operates gas pipelines of more than 23,000 km in length and gas storages with a capacity of 6.1 bcm. The merger between Essent and RWE Group gives Essent Trading access to an accelerated energy solution.

For more information see: www.excelerateenergy.com.

LNG
LNG allows Essent Trading to connect its core markets and customers in Europe with worldwide gas resources which are beyond commercially viable pipeline transportation. We are developing a broad-based European LNG portfolio in order to link gas corridors using spot, short-term and long LNG positions, providing us with greater flexibility and faster response times to changing market conditions.


Power
Power trading has evolved into a truly pan-European business thanks to increased market coupling and progress towards greater interconnectivity. Core to Essent Trading's competence is an asset trading and optimization capability. On the basis of this competency, we have built solid relationships across the spectrum of industry players including energy traders, municipals, wholesale and industrial clients, banks and other energy organisations. We offer a suite of products appropriate for each of these segments, such as indexed sales, load management and tolling flexibility, in addition to standard over-the-counter (OTC) products.

Coal
We are developing long-term bilateral trade weighted contracts for FOB sourcing of energy coal from a geographically and financially diverse base of suppliers. Positioned in the most liquid energy coal trading hub of ARA, Essent Trading is well placed to participate in the market and optimize its coal book flows.

Essent Trading tends to support medium-sized and small producers that have the potential to grow from a base of high-quality reserves. When appropriate, we also invest in energy coal infrastructure to assure supply via a range of financing and sourcing structures for our suppliers.

Shipping and logistics
Essent Trading's Shipping & logistics group manages the entire supply chain for a range of commodities such as coal, LNG and bio-energy, from source to end-use. We specialise in deep and short sea chartering, freight and inland logistics, and contracts with logistical service providers and storage facilities. Our solutions cover the entire logistics spectrum: from ship procurement to freight cost analysis, securing short- and long-term ship capacity, and dealing with quality, environmental and legal issues affecting the transportation sector.

We charter vessels for all bulk, liquid and gas cargoes on a global basis, as well as containerised services for ‘just in time’ requirements. This allows our Global Commodities desk (upstream origination) to develop and enhance short- and long-term sourcing and sales opportunities, driving our portfolio towards third party business. Arranging storage facilities for clients drives Essent Trading up the value chain.

Transportation services
Essent was quick to grasp the opportunities inherent in the process of deregulation, and as other European markets deregulate, Essent Trading reapplies its knowledge and experience to them. This process starts with wholesale gas trading, followed by the physical distribution of gas to end consumers. This approach is supported by storage contracts in many markets, and we are committed to developing gas transportation into a pan-European business. Source:

"To maximise the value of our clients' portfolios we actively price and structure deals across commodities, markets and segments"
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