Price | £3,150.00 + VAT |
---|---|
Duration | 4 days |
Location | Virtual: EMEA/Asian Time Zone |
Available Dates |
The course is designed to give an overview of the LNG markets and the evolving trading and marketing business surrounding them. Attendees will come from all areas of the Natural Gas industry who wish to get a better understanding of the current situation and who wish to gain insights how these markets may evolve.
Session 1:
Derivatives: What is trading and why do companies trade. The major gas hubs. What is a gas derivative? What is the difference between forwards, futures, swaps, and options? Explains some trading terminology. How a futures exchange works. How traders use gas derivatives.
Simulations: 2 trading simulations where delegates will be able to trade futures, swaps, and forwards
Session 2:
Trading Best Practice: What is risk? The different types of risk - price, credit, operational, reputational. How risk can be managed successfully by a trader. Technical analysis. How risk is measured, what is VAR and how is it used. Trading lessons - common pitfalls.
Simulations: 2 trading simulations where delegates will be able to trade NBP, ZBR, PEG, TTF and NCG futures within a VAR trading limit.
Day 2
Session 3:
Time Spreads: What is spread trading/different types of spread. Principles of spread trading. What a forward curve is and market structure. Different types of market structure and what they signify. How traders use time spreads.
Simulations: 2 trading simulations where delegates will be able to trade NBP and TTF futures within a trading limit.
Session 4:
Pricing Exposures: What is physical LNG trading. Why trade physical LNG. Physical LNG trading issues. Factors that influence supply. Factors that influence demand. Natural Gas/LNG quality. Contractual considerations. Explains floating prices and benchmark prices. LNG price risks - oil v gas. Managing LNG price risks.
Simulations: 2 trading simulations where delegates will be able to trade JKM, TTF, Brent and Henry Hub futures.
Day 3:
Session 5:
Nat Gas Arbitrage: : Explains physical arbitrage utilising gas pipelines. Trading geographical spreads. Costs to move gas. Valuing pipeline capacity. Optimisation of pipelines.
Simulations: 2 trading simulations where delegates will be able to trade around pipeline capacity between THE and TTF markets.
Session 6:
Nat Gas Storage: What is storage? Why companies might want storage. The costs associated with storing natural gas. Valuing storage. Optimisation of storage. Types of market structure. How to hedge a storage play. Intrinsic and Extrinsic Value.
Simulations: 2 trading simulations where delegates will be able to utilise withdrawal and injection rights to store TTF and NBP gas and apply hedges to capture a storage play.
Day 4:
Session 7:
LNG Arbitrage: Explains physical LNG arbitrage. Contractual delivery terms. LNG cargo lifecycle. Time charter. Port and canal costs. Operational costs of arbitrage. Financial risks. When traders arbitrage. Netback calculation. Managing arbitrage price risks.
Simulations: 2 trading simulations where delegates will be able to trade American, European and Middle Eastern LNG cargoes, charter vessels and manage price risk exposures.
Session 8
LNG Hedging: Why hedge? Basis risk. Futures as hedging instruments. JKM swaps as hedging instruments. Hedging considerations. Types of hedging. A detailed example of hedging fixed price cargoes. A detailed example of hedging floating price cargoes. Futures or swaps? Dirty or imperfect hedging.
Simulations: Up to 3 trading simulations where delegates will be able to apply arbitrage and unwinding hedges and charter vessels as LNG cargoes price in/out.