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Sessions
This course is not scheduled.
Who should attend?

Audience

    • All personnel in the gas or associated industries needing to improve their knowledge and understanding of gas trading and pricing mechanisms

Level

  • Proficiency
  • To provide a better understanding of the structure, the methods of operation, the uses and the impacts of gas physical, financial and paper trading
Learning Objectives
  • Upon completion of the course, participants will be able:
  • to analyze the fundamentals of gas supply and regional demands
  • to review the different gas trading markets and types of transactions
  • to understand the basic structure of long term contracts
  • to comprehend the hedging techniques available for protection against fluctuations in prices
Course Content

GAS SUPPLY AND DEMAND

0.25 day

  • 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

0.5 day

  • 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 AND FORWARD MARKETS

0.5 day

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

FUTURES MARKETS

0.5 day

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

RISK MANAGEMENT

0.25 day

  • Swaps: principles, basics and characteristics
  • Options (call, puts): principles, basics and characteristics
  • OTC derivatives: caps, floors, collars
Ways & Means
  • Examples of contracts
  • Statistical data