LNG Trading and Hedging

Training

In London

£ 2,750 + VAT

Description

  • Type

    Training

  • Level

    Intermediate

  • Location

    London

  • Class hours

    24h

  • Duration

    3 Days

  • Start date

    Different dates available

This is a comprehensive three day course providing practical and hands-on trading experience in the global LNG market. It is split into two distinct parts with day one providing an Introduction to the fundamental aspects of LNG trading, giving an overview of the LNG value chain and LNG pricing mechanisms. In addition, a look at the current supply and demand situation around key production and consuming areas and the flows of international trade takes place.
The first day concludes with a look at the future possibilities for LNG trade. Days two and three then look to bring the content to life as you play a series of LNG trading games using the simulator. This puts in to practice some of the delivered content, plus the further learning content interspersed through days 2 and 3.
The course team are all ex-gas traders with a wealth of experience that they bring to both the theory and practice of this unique course experience.

Facilities

Location

Start date

London
See map
9 Appold Street, EC2A 2AP

Start date

Different dates availableEnrolment now open

About this course

Gas Trading
Risk Management
Supply, Transport and Operations
Sales and Marketing
Energy Purchasing
Management and Financial Accounting
Strategic Planning and Economics

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Reviews

Subjects

  • IT risk
  • Global
  • Simulation
  • Market
  • Risk
  • Trading
  • Supply
  • Gas
  • Trade
  • Derivatives
  • Negotiation
  • LNG
  • LNG Markets
  • Trading gas simulation

Teachers and trainers (1)

Chris  Heilpern

Chris Heilpern

Trader

Chris Heilpern traded oil and energy in Europe, Africa, the Middle East and Asia during a career that spanned eighteen years. He has worked for an oil major, a top trading company, and investment banks. He has extensive experience in supply and trading for refining systems as well as the challenges of running proprietary physical trading books in Europe, Africa, and Asia. His experience was rounded out with several years of trading derivatives for investment banks in the Asia-Pacific region. Since leaving trading in 2008 Chris has taught finance and trading at top French business schools,

Course 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

LNG Trading and Hedging

£ 2,750 + VAT