Naftogaz is a vertically-integrated oil and gas company that’s engaged in the full cycle of exploration and development, production, exploratory drilling, transport, storage, and supply of natural gas and liquified petroleum gas to consumers. With the deregulation of the Ukrainian gas market in 2020, the company took the opportunity to become an active market participant.
As it did, it faced mounting challenges on multiple fronts. For example, it realized that in order to optimize its gas market trading, it had to increase control and efficiency of its sales operations – all while improving commercial risk management and the quality of its commercial decisions. Of key concern were the many manual and siloed production and business processes the company managed.
The need for optimization intensified because of Naftogaz’s commitment to the Oil and Gas Methane Partnership 2.0, a voluntary global industrial initiative to reduce methane emissions, and its adherence to Ukrainian policy, which is aligned with the European Union’s Green Deal to help further reduce greenhouse gas emissions.
It was a tall order. But that’s why Naftogaz partnered with Hitachi Energy. Today the company is implementing Hitachi Energy’s TRMTracker, an integrated Energy Trading and Risk Management (ETRM) system, as part of their digital transformation strategy. This system provides integrated deal capture, nomination, risk reporting, and back-office functionality in an integrated fashion to support straight-through-processing and establish a highly automated gas trade life cycle. The company can now manage its gas portfolio in real-time while considering commercial risks, with automated control over counterparty, contract, and dealer approval.