Essentials of Gas Trading and Risk Training Course
Course Highlights and Agenda
This course provides a comprehensive introduction to those looking to gain a better practical understanding of trading and risk mananagement activities with respect to the Natural Gas Industry. It will give a broad practical insight regarding the dynamics of the European gas markets, trading, products, risk management and the use of derivatives.
Scroll down for agenda
Agenda
Day 1
Markets and Infrastructure
Natural Gas
- Terminology & units
- Definitions
- Conventional and unconventional gas
- Gas quality
European Gas Market
- Supply-demand fundamentals & implications
- EU directives and regulation
- Major players & their roles
- Supply pipelines & sources
- Liquefied Natural Gas (LNG) supply & sources
- Liquidity & transparency
Country Cases – A brief look into:
- Germany
- Czech Republic
- Spain
- The Netherlands
- UK
Presentation and discussion of traded market status, trading activity & barriers to trade throughout
Infrastructure: Gas Pipelines – Definitions, Nominations and Balancing
- Types & definitions
- Nominations and balancing
- Case: UK
- Case: Italy
Infrastructure: Interconnectors & Cross-border Issues
- What & why
- European interconnectors
- The importance of IUK
Infrastructure: LNG Import Terminals
- What are they?
- Existing terminals
- New projects in construction and planned
- Capacity & anti-hoarding
Trading Capacity: Primary Market
- Tariffs
- Entry – Exit
- Access & availability
- Auctions
Trading Capacity: Secondary Market
- Capacity release
- Electronic bulletin boards
- Congestion and UIOLI
Infrastructure: Gas storage
- Types
- Necessity
- Europe’s storage picture
- Storage use for trading
Case Studies: Trading scenarios - delivery
Gas storage: Use for Trading
- Strategic and swing
- Storage use for trading
- How is it valued & traded
Group discussion of UK’s position on storage vs. other European countries
Day 2
Physical and Financial Trading
Gas Pricing and Contracts – Long and Short-Term
- Contract basics – LT & ST
- Pipeline gas supplies
- LNG supplies
- TOP, flexibility and other special terms
Why Trade and Role of Trading?
- Why do organisations trade gas?
- Trading functions and terminology
- Trading tactics
Physical Gas Trading
- OTC vs. Exchange
- Who trades
- Trading indices
- Spot vs. Forwards
European Gas Hubs
- What and where
- What makes a “good hub”
- Assessment of European hubs and activity
Trading LNG
- Terminal capacity
- LNG commodity – LT versus “Spot”
- Asia vs Atlantic
- Cargo diversions, swaps and arbitrage
Introducing Financial Trading
- Gas market development
- Forward curves
- Exchange markets
- Clearing
Fundamentals of Futures
- Purpose and use
- Terminology
- Futures and forwards
“Options” in a Nutshell
- Terminology
- Types and styles
- Spreads and straddles
- Sensitivities - The “Greeks”
- Valuing gas storage
Financial Swaps
- What are they?
- How are they used?
- Sellers and buyers
- Swaps market
Day 3
Risks and Risk Management
Arbitrage, Multi-Commodities and Spreads
- Arbitrage
- Gas and power spreads
- Effects of “Green”
- LNG import
Interactive session: Overview of trading risks
Risk and Exposure
- Definitions and context
- Risk profiles
- Risk strategies
Examining Price Risks
- Pricing drivers
- Volatility, seasonality and liquidity
- Forward curves
Credit and Counterparty Risks
- How does it arise?
- Who are you trading with?
- Credit risk valuation and mitigation
- Credit risk management
Basis Risk
- The basics of basis
- Time and location
- Basis differential
- Basis and European hubs
Case Studies: Trading Scenarios – risks
Measuring and Managing Risks
- Mark to market
- VaR (Value-at-Risk) and other methods
- Measuring is not managing
Hedging
- Terminology
- Basic strategies
- Some examples
Case Studies: Hedging – using futures and retail market
Current State of Gas Trading in Europe
- Overview of volumes and liquidity
- Consolidation of players
- Market developments
- What’s new
What You Will Learn
This intensive three-day programme will enable you to master:
- European gas market & infrastructure fundamentals
- Mechanisms of transit, transportation & UGS
- Key aspects of gas trading & gas hubs in European context
- Different parties and their roles
- The tension between security of supply and trading
- The new role of LNG imports in Europe
- Trading risks and risk management in the European gas markets
- The use & effectiveness of hedging
Reviews
"What I liked most about the course was the balanced information, learning the essentials and the course leader had extensive experience in the business."
"The instructor was extremely knowledgeable and has very good delivery skills."
"Content up to date, very good presenter. Detailed agenda and table of contents upfront…high quality. Very useful…perfect."
"…one of the best…(compared with other courses attended)"
