Save up to 30 minutes: Naftogaz improves the system for traders with Argus

The process of integrating ETRM with the Argus platform took only a month.
Naftogaz of Ukraine, in cooperation with its subsidiary Naftogaz Digital Technologies, integrated Argus services into the Energy Trading & Risk Management (ETRM) system in record time. The process of integrating ETRM with the Argus platform took only a month.

"This is an incredible speed and a great result for such a large company as Naftogaz," said Marina Kvashnina, Chief Information Officer of Naftogaz of Ukraine, Chief Executive Officer of Naftogaz Digital Technologies. – During integration, we primarily focused on the needs of businesses that wanted to free their employees of middle office (units responsible for planning, modeling, and risk management) from routine work and use an excellent analytical tool for traders in a single ETRM space".

"The integration of Argus platform with ETRM synchronizes the process of automatic transfer of prices and filling of data. Therefore, it greatly simplifies the lives of strategy analysts and business analysts who previously spent 30 minutes working on the day", said Svitlana Ivanchuk, Head of the Strategy and Business Analytics of Commercial Activities Section of Naftogaz of Ukraine.

All Naftogaz employees who work in the ETRM system (more than 70 people) have access to Argus prices. In addition, the tool helps to make forecasts for the sale/purchase of natural gas more accurate and build price curves for risk modeling and making appropriate forecasts.

Argus provides price data via the API (a particular protocol for the interaction of computer programs, which allows you to use the functions of one program within another), publishing them in regular reports of the pricing agency.

"Argus customers all over the world are increasingly switching to this type of data acquisition from year to year. It improves the efficiency and quality of data processing, significantly optimizes operational activities, eliminates the risk of error. It also allows providing digital data to all employees, without restriction within the framework of a particular function," said Irina Petrenko, Head of Argus in Ukraine.

Automatic loading eliminates the human factor. It also minimizes the risk of errors in calculations and the risk of inaccuracy when submitting reports to regulatory authorities. "Due to the automation of processes, productivity, speed, and quality of data processing increase. Employees no longer need to transfer numbers manually and spend time on additional data checks, which can be entrusted to the system, and use the free time to solve other work tasks," Irina Petrenko noted.

Argus Media Chairman and Chief Executive Officer Adrian Binks said: "We are pleased that Naftogaz has been able to integrate Argus data into their trading and risk management system. It will give their staff access to accurate, representative and comprehensive gas price information".

Take back, the first stage of the ETRM project was the implementation of the system for the front office (the department responsible for direct work with clients/customers), completed in September 2020.

The second stage was the implementation of the system for the back office (the unit responsible for interaction and mutual settlements, but not involved in direct work with clients/customers), ended in June of this year.

There are four expected stages of the system implementation in total.

For the implementation of ETRM back in May 2020, the TRMTracker system of the company PioneerSolutions LLC was chosen, which later became part of Hitachi ABB Power Grids. This solution was selected as the optimal one to meet the company's needs. As a result, ETRM can subsequently be introduced to trade electricity, oil, and petroleum products.

About companies

Argus is an independent media organization with almost 1,100 staff. It is headquartered in London and has 26 offices in its principal commodity trading and production centers. Argus produces price assessments and analyses of international energy and other commodity markets and offers bespoke consulting services and industry-leading conferences.

Companies in 140 countries worldwide use Argus data for physical index trade and as benchmarks in financial derivative markets and for analysis and planning purposes.

Argus was founded in 1970 and is a privately held UK-registered company. It is owned by employee shareholders, global growth equity firm General Atlantic and Hg, the specialist software and technology services investor.

Naftogaz Digital Technologies is the first internal IT-center in the public sector of Ukraine. The company's primary aim is to provide information technology services to Naftogaz and its subsidiaries. For more than three years, the in-house contractor has successfully implemented several projects on the SAP platform, including SAP S4 /HANA (for enterprise resource planning), SAP BPC (Business Planning & Consolidation) for consolidated financial reporting and business planning. SAP MDG (Master Data Governance) for company master data management. The Talent Management System (TMS) platform has been launched into commercial operation. The implementation of the project on automation of energy trading and risk management ETRM (Energy Trading & Risk Management) is in the final stage.

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