LNG Trading and Hedging
Training
In London
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
Start date
About this course
Gas Trading
Risk Management
Supply, Transport and Operations
Sales and Marketing
Energy Purchasing
Management and Financial Accounting
Strategic Planning and Economics
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
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