Course Description
The UK gas trading market is the most liquid in Europe, and is known for its high volatility and sometimes extreme prices. The UK gas – trading and risk management one-day seminar provides a practical overview of the UK gas trading market and explores risk management strategies for gas market players. The course includes a review of key drivers in the UK gas market, and the popular gas trading exercise, which gives delegates a hands-on experience of gas trading. Risk management workshops provide practical applications of strategies to company positions.
Course Content
Hover over the Module Titles for more information.
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- How the gas market works
- Design principles
- Operating practicalities
- Regulation and rules
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- Power Generation
- Storage
- Swing
- Meeting Peak Demand
- New Projects
- LNG
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- Seasonal but unpredictable demand
- Role of weather, economic & social factors
- Limited supply flexibility
- Long pipelines, joint production, contract terms
- Balancing and storage
- Different operational regimes, high cost of storage
- Gas price behaviour
- Volatile, seasonal prices
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- Derivative contract that gives the holder right (but NOT the obligation) to buy or sell the underlying contract at the strike price.
- Call option
- The right to buy at the strike price
- Fixes maximum price
- Put option
- The right to sell at the strike price
- Fixes minimum price
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- Types of player
- Risks faced
- Inherent optionality
- Contracts
- Physical position
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- The purpose of this exercise is
two-fold:
- to enable the participants to think strategically about how to trade gas with a given gas supply and demand portfolio and,
- to give all the participants the opportunity to experience a gas trading environment via an ‘OTC’ market.
- The purpose of this exercise is
two-fold:
- Whilst we always allow time for questions during the course of the day, it always helps to have a discussion time at the end.Questions, discussion and close
The seminar is ideal for:
Risk managers and commercial operators | Traders and middle and back office staff | Commercial managers | Financial managers | Market analysts