This month we take a look at what happened on 27th May in our article 'Did the Lights go out for you?' As always Derek has provided his own theory in our monthly cartoon.

LNG Economic Modelling

Training Dates

Did the Lights go out for You?

Oil Crisis

Cartoon

Sponsor

LNG Economic Modelling - A Four Day Course

Course objectives:
This four-day course is designed to provide delegates with an overview of the key issues in modelling LNG economics. The course includes an introduction to the LNG industry as a whole, detailed analysis of each link in the LNG chain and modelling strategies for these links, case studies of real-life LNG projects, exercises in modelling to reinforce the key commercial and strategic issues covered.

Course structure:
The morning of each day shall be used to establish a theoretical foundation both in terms of the industry and in terms of the application of economic models to those areas of the LNG Chain under review.

This will be followed in the afternoon with practical application of this knowledge though a series of economic modelling exercises as follows;

• LNG Economic Model Module 1 – The liquefaction terminal costs.
• LNG Economic Model Module 2 – The shipping costs.
• LNG Economic Model Module 3 – The regasification terminal costs.
• LNG Economic Model Module 4 – The LNG Trading Game

Course requirements:
The course has been designed to allow delegates with little of no prior knowledge of economic modelling or the LNG business, although clearly any knowledge of either area would be useful. The exercises will be based on Excel spreadsheets and therefore, while access to PCs will be provided, a general knowledge of Excel would be helpful, but not essential.

For more information click here.

All of our training courses can earn, participating solicitors, CPD points from the law society. Attendance at any of our events may also contribute to meeting accountancy CPD requirements under the terms of the ICAEW's CPD policy. Please visit www.icaew.co.uk/cpd for the ICAEW's CPD policy details.

Training Dates

Here are a list of training dates for July and September. Just click on the course title for more information or to book your place. These courses will be held at Templeton College in Oxford UK or Lord's Cricket Ground in London.

Did the Lights go out for you?

Duncan Jack, lecturer on the UK Electricity Markets Course, and lead consultant for the MJMENERGY TECCS Electricity service, looks at surprising recent events in the UK electricity market. 

27 May saw one of the most dramatic events in the modern Electricity Supply Industry. So significant, that the technical workings of grid control even made it into the national broadsheets. But there the speculation ended with so little mention in the evening’s radio and TV bulletins that the conspiracy theorists went into overdrive. 

The system has been unusually short over recent months counteracting the longstanding industry propensity to contract long by 1-2%. Commodity prices are high, perhaps this is driving the industry to run closer to the wind, and April saw the system at its shortest since NETA began in 2001. But crucially on the 27^th May there were no system warnings in place, not even our old favourite the NISM (Notice of Insufficient Margin), and the day began uneventfully. Margin, the main measure by which National Grid quantifies its ability to respond to system events was healthy and apparently well within their obligations as set out in the Security and Quality of Supply Standard (SQSS) and Grid Code.

Read more

Demand crisis

Consumer governments need to take immediate action to curb oil demand. More Saudi oil can only give temporary respite, as non-Opec supply falls.

The oil market is in crisis. Rampant demand for one product, diesel, is driving prices up, as refinery supply is unable to keep pace. But despite the threat to the global economy, governments seem unwilling to take the necessary action to curb diesel use. More crude supply from Opec can only provide temporary relief if oil consumption continues to rise. Producers and US politicians blame oil markets for rising prices, but this distracts from the fundamental problem — chronic underinvestment in the oil supply chain.

Read more

TECCS
The Energy Code Changes Service
The Subscription service that keeps you in touch with changes to the Uniform Network Code (UNC), The Balancing and Settlement Code (BSC) and the Connection and Use of System Code (CUSC)