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About
LNG market has shown remarkable growth in the past decade. It was not just about production volume with 70% increase but huge amount of trading interest also flowed into market. Today a number of large trading firms actively participate in daily spot LNG market with some stretching into mid to long term LNG market competing with international energy majors. At the same time many utilities both in Europe and Asia have added more sophisticated trading activities to their traditional LNG import routine.
The course is designed to remind you of underlying characteristics of LNG as basis of market players’ behavior and to develop understanding of technicality around LNG trading from portfolio build-up to risk management.
The course is designed to remind you of underlying characteristics of LNG as basis of market players’ behavior and to develop understanding of technicality around LNG trading from portfolio build-up to risk management.
What will you Learn?
- How key features of LNG value chain impact the way LNG is traded
- We will go through typical trades that market players undertake daily and how value of optionality in physical trading is captured. How arbitrage opportunities are assessed and implemented.
- How risk management can be in place for LNG trading and need for various trading support functions.
Agenda
Module 1: LNG – VALUE CHAIN
This Module explains how LNG value chain flows from upstream to consumers. We will obtain this background as hint to know why LNG trading has unique complication
Key elements:
Module 2: MARKET STRUCTURE
We will then discuss market structure from geographical and pricing perspective. Also types of market players and their roles will be studied so that we will understand how market liquidity is created.
Key elements:
This Module explains how LNG value chain flows from upstream to consumers. We will obtain this background as hint to know why LNG trading has unique complication
Key elements:
- LNG production – on-shore/module/floating
- LNG ship class/fuel efficiency
- Regasification/ship shore compatibility
- Relevance to trading – why do we need to know all these?
Module 2: MARKET STRUCTURE
We will then discuss market structure from geographical and pricing perspective. Also types of market players and their roles will be studied so that we will understand how market liquidity is created.
Key elements:
- LNG pricing and basis
- Spot vs mid/long term contract
- Various market players
- Mechanism to create liquidity
Module 3 and 4: LNG TRADING
Day 2 discusses LNG trading business using scenario of starting LNG trading business. Setting up objectives, portfolio development and more specific trading strategies including typical products LNG traders watch and trade and various value of optionality. Mechanism of arbitrage will also be illustrated in these sessions.
Key elements:
Day 2 discusses LNG trading business using scenario of starting LNG trading business. Setting up objectives, portfolio development and more specific trading strategies including typical products LNG traders watch and trade and various value of optionality. Mechanism of arbitrage will also be illustrated in these sessions.
Key elements:
- Purpose of LNG trading - Speculation vs asset optimization.
- Building up portfolio – development of trading platform
- Role of origination
- Optionality value – quantity range, spec range, nomination timing
- Team components/necessary skill
- Price drivers - fundamental analysis, player dynamics
- Hedging tools
- What do traders trade? Flat price trade, basis trade, challenge to price curve
- Arbitrage economics/rolling intrinsic
- Role of Platts MOC – what does it do and why do traders participate?
Module 5: RISK MANAGEMENT/GOVERNANCE
We will discuss risk management and governance aspect. What are traders’ responsibility and what control needs to be in place. Adding to this, trading support, another important part of trading organization will be highlighted.
Key elements:
Module 6: CONTRACT
LNG deals are contractually captured by term sheets first and become binding in the form of Confirmation Notice defining commercial terms to supplement Master Sale and Purchase Agreement (MSPA). Long term commitment requires more detailed contract in the form of Sale and Purchase Agreement (SPA). We will talk about some typical issues in relation to these contracts.
Key elements:
Module 7: BLACK SWAN EVENT
LNG industry is time to time hit by black swan events such as recently Russia-Ukraine war and closure of Hormuz Straights. Is there anything you can do facing such events?
Key elements:
SUMMARY/Q&A
We will discuss risk management and governance aspect. What are traders’ responsibility and what control needs to be in place. Adding to this, trading support, another important part of trading organization will be highlighted.
Key elements:
- Passport to work
- DoA
- Control, Mark-to-market, traders’ breach of authority
- Trading support
Module 6: CONTRACT
LNG deals are contractually captured by term sheets first and become binding in the form of Confirmation Notice defining commercial terms to supplement Master Sale and Purchase Agreement (MSPA). Long term commitment requires more detailed contract in the form of Sale and Purchase Agreement (SPA). We will talk about some typical issues in relation to these contracts.
Key elements:
- MSPA/CN – question about timing of bindingness
- SPA - Conditions Precedent trick
- Dispute – typical disputes of LNG trading
Module 7: BLACK SWAN EVENT
LNG industry is time to time hit by black swan events such as recently Russia-Ukraine war and closure of Hormuz Straights. Is there anything you can do facing such events?
Key elements:
- Impact of black swan events – flat price impact and curve distortion
- Readiness – internal process to be in place
- Response/mitigation
SUMMARY/Q&A
Participants
Gas Trading
Risk Management
Supply, Transport and Operations
Sales and Marketing
Energy Purchasing
Management and Financial Accounting
Strategic Planning and Economics
Practical Information
Course fee: £1450
The course fee includes:
– Participation in 12-hours Virtual Module
– The Course materials in E-version
– Industry Certificate of IBH: 12 CPD hours
– Participation in 12-hours Virtual Module
– The Course materials in E-version
– Industry Certificate of IBH: 12 CPD hours
Payment options are available in two forms: bank transfer and card payment.
To be confirmed
Certificate
Demonstrate your new skills and gain a step up in your career with globally recognised CPD certifications.
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If you notify International Business House in writing or via email up to 30 days before the start date of the course, you will receive a full refund less an administration fee of 100£ of the course fee. In addition if you are unable to attend, the following cancellation charges will apply for written notice received:
If you are unable to attend a course, you are welcome to provide a delegate substitution, up to 24 hours prior to the course at no extra charge.
If you wish to transfer to a different course a 10% admin charge will be made if the transfer occurs between 10-29 days before the course.
If you fail to attend the course on which you are booked and have not given prior notice to International Business House then the course fee will remain payable in full.
This cancellation policy is necessary owing to the strict limitation on attendance numbers. IBH reserves the right to amend or cancel any course, course times, dates or published prices. Changes to course prices, times and dates will be advised 30 days before the course
- 14-29 days before the course: 50%.
- 1-14 days before: 100%.
If you are unable to attend a course, you are welcome to provide a delegate substitution, up to 24 hours prior to the course at no extra charge.
If you wish to transfer to a different course a 10% admin charge will be made if the transfer occurs between 10-29 days before the course.
If you fail to attend the course on which you are booked and have not given prior notice to International Business House then the course fee will remain payable in full.
This cancellation policy is necessary owing to the strict limitation on attendance numbers. IBH reserves the right to amend or cancel any course, course times, dates or published prices. Changes to course prices, times and dates will be advised 30 days before the course
IBH reserves the right to amend or cancel any course, course times, dates or published prices. Changes to course prices, times and dates will be advised before the course start date and any course already paid in full will not be subject to the increased price.
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Please send us to office@ibhouse.net the following information:
If you registered with accommodation IBH will also provide you with hotel booking confirmation. For more information about visa procedure please visit our website or call us +44 (0) 207 183 45 07. Should your visa application be declined, we will provide a full refund of the payment.
Please send us to office@ibhouse.net the following information:
- Your copy of passport
- Company name
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If you registered with accommodation IBH will also provide you with hotel booking confirmation. For more information about visa procedure please visit our website or call us +44 (0) 207 183 45 07. Should your visa application be declined, we will provide a full refund of the payment.
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Ted
Ted dedicated his entire career to oil and gas trading through his role mainly with two energy giants, Total and BP. His trading life being centered around Tokyo and Singapore over 30 years, he developed network throughout Asia and Midd le East and earned a reputation as respectable trader in the region.
His colorful carrier includes the days as energy futures specialist qualified as NFA’s
Series 3 Associated Person and his works for LNG upstream project in Indonesia for 4 years.
During 2015-2018 he served as Head of LNG Trading Asia and managed BP’s LNG trading book.
Ted currently works as independent consultant providing professional advice to clients with an interest in growing LNG trading activities.
His colorful carrier includes the days as energy futures specialist qualified as NFA’s
Series 3 Associated Person and his works for LNG upstream project in Indonesia for 4 years.
During 2015-2018 he served as Head of LNG Trading Asia and managed BP’s LNG trading book.
Ted currently works as independent consultant providing professional advice to clients with an interest in growing LNG trading activities.
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