Training Seminars  | 24 September

Training Seminar

LNG Trading & Risk Management

MARKET OVERVIEW

• Understand how regional LNG price setting mechanisms vary
• How does price arbitrage arise between regional LNG markets?
• What are the prospects for market arbitrage to  continue?
• How much divertible LNG is likely to develop by 2020?

PRICE AND VOLUME RISK MANAGEMENT

• Concepts of long and short , consequences of being long or short
• How can margins be protected in LNG transactions?
• Techniques for locking in margins using future and forwards
• How can basis risk between HH: NBP and Oil Linked prices be managed?
• Practical exercise: Putting theory into practice

MANAGING AND OPTIMISING A LNG PORTFOLIO

• Examples and case studies
• Master the best hedging strategies for your business

Training Seminar

Price Reviews in LNG Contracts

CONTRACTUAL CONSIDERATIONS

• What is the purpose of a price review clause? Retrospective adjustments and forward adjustments
• How are price review clauses generally constructed?
• Examples of price review clauses – good contracts and poor contracts
• How are price reviews triggered?  – Periodic reviews and specific reviews responding to a change in the market
• The need to demonstrate a change in price is warranted
• The types of solutions which are negotiated
• The last resort of arbitration and the process for final resolution