Distrigas Corporation - 1207 Words

Q1. As per the provided information the Gas Utility companies pays a base commodity charge of $.3359 plus a peak usage demand of charge that is $4.63 per Mcf multiplied by the total demand during the maximum take day in the last 12 months which is 240 in this case. The cost per MCF can be derived by the below formula (Commodity Base Charge * Total Demand) + (Peak Usage Demand Charge* High Peak in 1 day* months in year) This will translate into ($ 0.3359*30,700,000 Mcf)+ ($ 4.63*240*12) = $ 23,646,530 By substituting the appropriate values in the formula we arrive at a cost of $ 23,646,530. This cost is then divided by the total demand over 12 months of 30.7 Bcf or 30,700,000 Mcf to arrive at an average cost per Mcf of $ 0.7702 which†¦show more content†¦However, the proposal A for Distrigas would cost only $29,376,000, or savings of $252,140. The annual cost of Distrigas policy is $21,172,397.19. Distrigas strategy should be to maximize on its competitive rate and endeavor itself as a cost leader, promising speed delivery, reliability and meeting the right quantity when needed the most, all at most cost efficient rate possible. To be cost efficient it needs to operate economically such as storing the right amount of gas needed. It has to improve on its storage and deliver the gas in the best cost efficient using the right mode of transportation possible. The biggest threat could be when consumers like Boston Gas decide to build their own storage facilities and therefore start sourcing directly from the pipeline-gas providers, to be stored for usage during peak season. Q4. Proposal A: Slow Build up Strategy – In this proposal infrastructure will be built and machinery and trucks purchased to allow Distrigas to slowly build up inventories at the customer location. This strategy includes building a satellite tank which will serve as a reserve for the gas that is brought in by Alozean. It takes 250 days to build up inventories to satisfy peak demand. This model requires 6 trucks to carry the gas over the 250 day period. Field tanks will need to be built at the customer location in order to hold the gas that will service the peak demand and this will cost $Show MoreRelatedMultimodal Transport4849 Words   |  20 PagesL.P., †¢ ANR Pipeline Company — formerly Michican Wisconsin, †¢ Gas Transmission Northwest Corporation — formerly Pacific Gas Transmission, †¢ United Gas Pipeline Company, †¢ Maritimes Northeast Pipeline, †¢ National Fuel Gas Supply Corporation, †¢ Texas Gas Pipe Line Corporation, †¢ Viking Gas Transmission Company. LNG Importation/Export Terminals †¢ Distrigas Of Massachusetts LLC †¢ Dominion Cove Point LNG, †¢ Gulf Gateway Deepwater Port, †¢ TrunklineRead MoreFinancial performance of Exxon Mobil Corporation, Royal Dutch /Shell Group and BP Global6011 Words   |  25 PagesAbstract This project analyses financial performance and position by evaluating respective profit, loss and consolidation balance sheet of three worldwide oil companies Exxon Mobil Corporation, Royal Dutch /Shell Group and BP Global. The authors use three years (2002-2004) consolidated financing data of these companies as backup in the models to perform a comparative exercise and access the relative performance of financial accounting events. Vertical and horizontal analysis were used to evaluate