This Introduction to Financial Hedging for LNG online interactive course is designed to allow participants to get an understanding of the basics of futures and options relevant to the LNG marketplace, and how these can be applied to an LNG hedging programme.
Participants are expected to have basic knowledge of the LNG value chain and be familiar with existing Sale and Purchase agreement terminology and existing pricing.
What are futures and options?
The course starts out with an exploration of futures and options, looking to understand what they represent and the relevant markets that are available for use in the LNG business. This section will also review why we may want to hedge and to look at the difference between physical and financial hedging.
Fundamentals of Futures and Options:
This section will look at the underlying fundamentals of Futures, namely bid and offer prices and valuations of the different futures markets including proxy hedging of oil indexed LNG prices.
Hedging using futures
Delegates will understand how to hedge the European, US and JKM and Gulf Coast LNG prices using examples, including spread hedging between markets. These will be done in the context of LNG cargoes, looking at the different calculations required.
Hedging using Options
The delegates will be taken through examples to demonstrate how the options may be used in the different markets from simple price caps or floors to the use of collars. The section will also give an overview of how to use options in trending markets.
The class is interactive and live.
Please check your local time:
@ 9:30 am in London
@ 12:30 pm in Dubai
@ 4:30 pm in Singapore
Course Duration: 2 Hours
2 CPD credits Industry Certificate