LNG Trading and Risk Management – course outline
This online course provides a comprehensive overview of the LNG trading sector and LNG trading and risk management strategies.
Scope
This course provides a comprehensive overview of the LNG trading sector, including mass, volume and energy conversions; the LNG value train from liquefaction to regasification; transport logistics; the structure of LNG contracts; the concept of oil parity and the pricing of LNG; hub-related pricing; risk management models; the economics of LNG portfolio trading; price drivers and the impact of interfuel competition; and the role of sustainable LNG in the energy transition. Peter’s aim as a trainer is not just to present the course materials but to do so in a relaxed and enjoyable way that allows delegates to absorb the content of the lessons and to make the knowledge their own.
Delivery
The course is delivered over four days and is divided into 8 modules. Each module takes around 1.5 hours to complete, so around 3 hours per day of tuition and exercises (2 modules per day). Each day has a clear focus covering first, the LNG value chain; the pricing methodologies and market structure; trading and risk management; and finally emerging trends for the LNG market outlook. Each of the four days is sub-divided logically into sub-topics to facilitate retention of the knowledge imparted during the course.
Objectives
- Gain broad perspective of global LNG business from liquefaction to regas
- Understand how LNG long-term and short-term contracts are structured
- Master the calculations that you need to understand mass, volume and energy conversions relevant to LNG
- Understand the trading and pricing structures for LNG including oil parity, slope and coefficient, and hub-related pricing
- Be confident to negotiate prices relative to established benchmarks within contractual structures.
- Understand the concept of LNG portfolio management, optimization and risk
- Be aware of risk management and the basic structures for hedging LNG sales and purchases, and for locking in a trading margin.
- Confidently discuss the technical terms, concepts and buzzwords with your peers and clients
Topics Covered
- What are Gas and LNG?
- Basic calculations of mass/volume/energy
- The LNG Value Chain: from Liquefaction to Receiving Terminals
- LNG transportation logistics
- Drivers of gas and LNG prices
- LNG Contracts: Long Term, Short Term, spot
- LNG Pricing: Oil Indexed and Hub-related
- Slope and coefficient, S curves
- LNG market participants and portfolio players
- Basics of Hedging
- Hedge selection and instruments
- Portfolio risk
- Economics of LNG and Interfuel Competition
- Sustainable LNG and the Energy Transition
Who should attend?
Natural gas and LNG marketers, traders and trading analysts; energy portfolio strategists; industry planners; banking, finance execs; lawyers, accountants and other advisors; gas and LNG graduate trainees with IOCs and NOCs; power companies with exposure to gas prices; regasification terminal operators; gas end-users.
Course Director
Peter Stewart is a highly experienced analyst in the oil and gas markets. He is a director of the British Institute of Energy Economics and has written extensively for the Oxford Institute of Energy Studies and the Oxford Energy Forum. He runs the training and consulting firm Resource Economist Ltd, and has worked as associate with a number of consulting firms including IPA Advisory Ltd and he was chief economist at KBC Energy Economics. He has been an expert advisor to the energy ministries of Norway and Angola on the short-term oil and gas outlook and on oil trading. Peter has many years experience in the trading and pricing of oil and gas, having worked for nearly 20 years with the pricing agency Platts, in London, the Middle East and Asia. Peter is a qualified executive leadership coach. He has a relaxed and interactive tuition style, and seeks to maximize the learning experience of delegates through the use of coaching techniques.
For Course Details and PDF listing course modules please click on the link below:
LNG Risk Management – course outline
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