LNG Commercial Management: Markets, Pricing, and Hedging Event, 13.Jan.2025

Introduction:

Liquefied Natural Gas (LNG) has become a critical component of the global energy landscape, with complex commercial dynamics, trading practices, and risk management strategies. This 10-day course aims to provide participants with a comprehensive understanding of LNG commercial management, focusing on LNG markets, pricing mechanisms, and effective hedging strategies. Participants will gain insights into the intricacies of LNG trading and the tools required to navigate this dynamic sector successfully.

Course Objectives:

• To introduce participants to the fundamentals of LNG commercial management.
• To provide an in-depth understanding of global LNG markets and their dynamics.
• To equip participants with the skills to analyze LNG pricing mechanisms and trends.
• To enhance participants' ability to develop effective risk management and hedging strategies.
• To enable participants to make informed decisions in LNG trading and investment.
• To foster collaboration and knowledge exchange among LNG industry professionals.

Course Outline:

Day 1: Introduction to LNG Commercial Management

• Understanding the LNG Value Chain: From Production to Consumption
• Overview of LNG Commercial Management and its Significance
• Key Players in the LNG Industry and Their Roles

Day 2: Global LNG Markets and Demand Dynamics

• Mapping Global LNG Markets: Key Importers and Exporters
• Factors Influencing LNG Demand and Supply
• Analyzing Long-Term and Short-Term LNG Market Trends

Day 3: LNG Pricing Mechanisms and Contract Structures

• LNG Pricing Benchmarks: Spot, Short-Term, and Long-Term Contracts
• Overview of LNG Pricing Indexation and Formulas
• Case Studies: Analyzing Different Pricing Mechanisms

Day 4: LNG Trading and Contract Negotiations

• Principles of LNG Trading: Physical and Virtual Trading
• Negotiating LNG Sales and Purchase Agreements (SPAs)
• Understanding LNG Contract Terms and Conditions

Day 5: Risk Management in LNG Commercial Activities

• Identifying and Assessing Risks in LNG Trading and Operations
• Mitigating Risks through Hedging and Risk Management Strategies
• Case Studies: Real-world Examples of Risk Management in LNG

Day 6: Financial Instruments and Hedging Strategies

• Overview of Financial Instruments: Futures, Swaps, Options
• Hedging Strategies for Price and Volume Risk Management
• Case Studies: Applying Hedging Techniques to LNG Scenarios

Day 7: LNG Portfolio Management and Optimization

• Building and Managing an Effective LNG Portfolio
• Optimization Techniques for Balancing Supply and Demand
• Utilizing Data Analytics for Portfolio Optimization

Day 8: LNG Market Fundamentals and Analytics

• Understanding Fundamentals Driving LNG Markets
• Analyzing LNG Supply and Demand Fundamentals
• Forecasting LNG Market Trends and Price Movements

Day 9: LNG Contract Performance and Disputes

• Ensuring Compliance with LNG Contracts and Obligations
• Managing Disputes and Resolving Contractual Issues
• Role of Arbitration and Mediation in LNG Disputes

Day 10: Future Trends in LNG Commercial Management

• Evolving Landscape of LNG Markets and Emerging Players
• Innovations in LNG Pricing and Trading Strategies
• Preparing for Future Challenges and Opportunities in LNG