This 1-day course sets out the basics of the gas value chain, including production, consumption, storage and transport, as well as gas markets, gas pricing and driving factors, but also price volatility and its implications. The tutor will cover the relevant fundamentals. Attention is given to sanctioning regimes, trading restrictions, price limits and pricing mechanisms due to the Russian-Ukraine war.

This course is suitable for any professional who wants to familiarise with the basics of natural gas and LNG and related markets, plus the related aspects of relevance. Hence, the course is targeted particularly at those who are considered starters/juniors in this field of expertise.

Programme

• The supply chain
  • Production, consumption, storage, transport & related capacities
  • Crude oil & refinery products, as well as natural gas & LNG
• Pricing
  • Oil & gas price formation
    • Two-sided pricing
    • Market liquidity
  • Oil & gas price driving factors
    • The subsitution-effect
    • Re-routing of flows
      • Dark fleet of vessels
  • Gas hubs and oil benchmarks & markers
    • Henry Hub (HH) and Title Transfer Facility (TTF)
    • Brent, West-Texas Intermadiate (WTI), Japan-Korea marker (JKM)
  • Price reporting
    • Price reporting agencies (Platts, Argus Media, ICIS Heren)
    • ACER’s LNG reference price publications
• Market developments & consequences
  • International regimes
    • Ban on maritime transportation
    • Ban on insurance
    • Price level limits
  • Exchange measures
    • Price volatility limits
  • Substitution-effect
    • LNG boost
    • Energy transition
      • Electricification & renewability
      • Hydrogen, wind, solar, nuclear
      • Bio-gas, biomass, biofuels
      • Impact on merit order
• Trading
  • Price volatility
    • Applicability
      • Risk quanitification
      • Impact on risk capital requirements
  • Bilateral deals
    • Credit support
      • Limits
      • Collateralisation
    • Brokerage services
    • Commodity trading firms and their altered roles
  • Exchanges
    • Clearing
      • Increased margin calls
        • Working capital impact (finance liquidity)
    • Market liquidity
      • Trading activity shift