COURSE: LNG Trading and Hedging
14 - 16 October 2020, ICE Education, London, UK
PROGRAMME:
DAY 1
Introductions
Global LNG market developments
- Current supply/demand picture
- Trade flows
- What is changing?
- What is next?
Mechanics of shipping and operations
- Regas process
- Volume losses (boil-off gas)
- The shipping markets
- Chartering vessels
- Vessels classes and sizes and terminals capability to receive vessels
Freight Exercise & tutorial
Mechanics of trading
- How is trade facilitated
- Trading terminology
- Market structure
Trading gas simulation – Flat Price Gas
Review of Trading simulation
DAY 2
Introductions
LNG Trading Opportunities
- Arbitrage
- Fixed vs floating pricing tutorial
- Tenders
- LNG swaps
Introduction to Negotiation Exercise
Negotiation Exercise & Review
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-curves structures in LNG contracts
DAY 3
Introductions
Paper exercise – hedging using derivatives
Advanced trading and pricing strategies
- Portfolio effect
- Sophisticated hedging strategies
- Pricing opportunities
- Optionality
Introduction to Options
- What is delta
- Delta hedging gas hubs
- Options tutorial
Introduction to LNG simulation
LNG Trading Simulation
- Managing existing positions
- Speculating on physical cargos
- Arbitrage and hedging of price exposure
Review
INSTRUCTORS HOW TO ATTEND REGISTER NOW
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