LNG Trading & Hedging (Including Simulated Trading)

This is a comprehensive three day course providing practical and hands-on trading experience in the global LNG market. It commences by providing a view of global LNG market developments. It
looks at the current supply and demand situation around key production and consuming areas
and the flows of international trade taking place. The session concludes with a look at the future possibilities for LNG trade. The focus then shifts to the practicalities of trading and managing price risk within the markets. The balance of Day One and Days two and three then look to bring the content to life as you play a series of LNG trading games using the simulator. This puts in to practice some of the delivered content, plus the further learning content interspersed through days 2 and 3. The course team are all ex-gas traders with a wealth of experience that they bring to both the theory and practice of this unique course experience.

Course Information

Price £2750.0 + VAT
Duration 3 days
Location London
Available Dates
2018-10-23 00:00:00.0  Register Now
2019-03-12 00:00:00.0  Register Now

Who Should Attend

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.

  • Gas Trading
  • Risk Management
  • Supply, Transport and Operations
  • Sales and Marketing
  • Energy Purchasing
  • Management and Financial Accounting
  • Strategic Planning and Economics

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

Day 1

Global LNG Market Developments

  • Current supply/demand picture
  • Trade flows
  • What's changing?
  • What's next?

Mechanics of shipping and operations

  • Regas process
  • Volume losses (boil-off gas)
  • The shipping markets
  • Chartering vessels
  • Vessel classes and terminals capability to receive vessels

Freight exercise & tutorial

Mechanics of trading

  • How is trade facilitated
  • Trading terminology
  • Market structure

Trading gas - Flat price gas simulation

Day 2

LNG Trading Opportunities

  • Arbitrage
  • Fixed vs floating pricing tutorial
  • Tenders
  • LNG swaps

Negotiation exercise

Risk management and forward curves

  • Constructing an LNG forward curve
  • Managing the risk within an LNG portfolio
  • Optimising risk vs reward

Simulation - Complex hedging tutorial

Managing LNG complexities

  • S-curves (types and peculiarities)
  • Brent (3;0;1) or (3;2;1) or other formulas for pricing
  • Different types of paper instruments
  • Paper hedging techniques
  • Hedging S-curve structures in LNG contracts

Day 3

Paper exercise - hedging using derivatives

Advanced trading and pricing strategies

  • Portfolio effect
  • Sophisticated hedging strategies
  • Pricing opportunities
  • Optionality

Options tutorial - Delta hedging gas hubs

  • What is delta?
  • Delta hedging gas hubs

LNG Trading Simulation

  • Managing existing positions
  • Speculating on physical cargos
  • Arbitrage and hedging of price exposure