Gas Markets & TradingGER/GMT

Who should attend?

  • This training provides a better understanding of the structure, the methods of operation, the uses and the impacts of gas physical, financial and paper trading.
Audience :
  • All personnel in the gas or associated industries needing to improve their knowledge and understanding of gas trading and pricing mechanisms.

Level : Proficiency

Course Content

  • GAS SUPPLY & DEMAND

      • Evolution of gas demand. Projections.
      • Gas reserves and production.
      • Gas producing countries. International supply projects.
      • Regional gas demands.
      • International trade. LNG trading.
  • LONG TERM CONTRACTS

      • Types of contracts.
      • Features of long term contracts.
      • Contractual quantities, nominations and Take-or-Pay.
      • Gas pricing: indexation principle.
      • Concepts of market value and cost plus.
  • SPOT & FORWARD MARKETS

      • Spot markets.
      • Forward contracts.
      • North American Hubs.
      • Spot markets in UK and continental Europe.
      • Price References and the role of reporting agencies.
  • FUTURES MARKETS

      • Features of gas Future contracts.
      • Exchanges and their organization: NYMEX, ICE.
      • Hedging using Future contracts.
      • Basis risk and hedging imperfections.
  • RISK MANAGEMENT

      • Swaps: principles, basics and characteristics.
      • Options (call, puts): principles, basics and characteristics.
      • OTC derivatives: caps, floors, collars.

Learning Objectives

  • Upon completion of the course, participants will be able to:
  • analyze the fundamentals of gas supply and regional demands,
  • review the different gas trading markets and types of transactions,
  • understand the basic structure of long term contracts,
  • comprehend the hedging techniques available for protection against fluctuations in prices.

Ways & Means

  • Examples of contracts.
  • Statistical data.