Course description
Face-to-Face Academy: LNG
The LNG Face-to-Face Academy is an engaging and interactive course that will help you understand how a trader extracts value and manages risk in an Oil Products portfolio.
Delivered over 3 days in a class room, it features engaging and interactive lectures coupled with a number of realistic physical trading simulations via our unique simulator, Ignite; giving you the opportunity to experience the psychological highs and lows of commodity trading.
Duration: 3 days
Course Dates: 1-3 October 2024
Timings: 9am-5pm GMT
Location: London, UK
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Upcoming start dates
Suitability - Who should attend?
Suitable for individuals working in organisations such as:
Trading companies, Banks, Brokers, Oil producers, Consumers, Refiners, Distribution companies, Government and Associated organisations.
Including roles in:
Back office, Accounts, Financial operations, Middle office, Trade control, Analysts and Front office, Juniors, Managers and Operations.
Outcome / Qualification etc.
By completing/passing this course, you will attain the certificate TwoTwoFive Certificate LNG and awarded 24 CPD points.
Training Course Content
Day 1
Derivatives
- What is trading and why do companies trade
- The major gas hubs
- What is a gas derivative
- What the difference between forwards, futures, swaps and options are
- Explains some trading terminology
- How a futures exchange works
- How traders use gas derivatives
Ignite simulations – 2 trading simulations where delegates will be able to trade futures, swaps and forwards
Trading Best Practice
- What is risk
- The different types of risk - price, credit, operational, reputational
- How risk can be managed successfully by a trader
- Technical analysis
- How risk is measured, what is VAR and how is it usedTrading lessons - common pitfalls
Ignite simulations – 2 trading simulations where delegates will be able to trade NBP, ZBR, PEG, TTF and NCG futures within a VAR trading limit
Time Spreads
- What is spread trading/different types of spread.
- Principles of spread trading
- What a forward curve is and market structure
- Different types of market structure and what they signify
- How traders use time spreads
Ignite simulations – 2 trading simulations where delegates will be able to trade NBP and TTF futures within a trading limit
Day 2
Price Exposures
- What is physical LNG trading
- Why trade physical LNG
- Physical LNG trading issues
- Factors that influence supply
- Factors that influence demand
- Natural Gas/LNG quality
- Contractual considerations
- Explains floating prices and benchmark prices
- LNG price risks - oil v gas
- Managing LNG price risks
Ignite simulations – 2 trading simulations where delegates will be able to trade JKM, TTF, Brent and Henry Hub futures
Arbitrage
- Explains physical arbitrage
- Contractual delivery terms
- LNG cargo lifecycle
- Time charter
- Port and canal costs
- Operational costs of arbitrage
- Financial risks
- When traders arbitrage
- Netback calculation
- Managing arbitrage price risks
Ignite simulations – 2 trading simulations where delegates will be able to trade American, European and Middle Eastern LNG cargoes, charter vessels and manage price risk exposures
Hedging
- Why hedge
- Basis risk
- Futures as hedging instruments
- JKM swaps as hedging instruments
- Hedging considerations
- Types of hedging
- A detailed example of hedging a fixed price cargoes
- A detailed example of hedging a floating price cargoes
- Futures or swaps?
- Dirty or imperfect hedging
Ignite simulations – Up to 3 trading simulations where delegates will be able to apply arbitrage and unwinding hedges and charter vessels as LNG cargoes price in/out
Day 3:
Storage
- What is storage
- Storage considerations
- Why companies might want storage
- The costs associated with storing LNG
- Valuing storage
- Optimisation of storage
- Types of market structure
- How to hedge a storage play
- Intrinsic and Extrinsic Value
Ignite simulations – 2 trading simulations where delegates will be able to store American LNG cargoes and apply hedges to capture the storage play
Team Dynamics
- How to extract value from a physical LNG portfolio
- Why speedy evaluation of opportunities is critical
- Why teamwork is important
- Applying all the trading concepts learnt across a portfolio
- Understanding the value of tenders
Ignite simulations – Working as a team, the delegates will apply all the trading concepts across a portfolio of LNG cargoes, trading spot cargoes, entering tenders, hedging, arbitrage, seeking storage opportunities and speculatively trading the futures markets with flat price and spreads positions.
Course delivery details
This Academy is a classroom based course in London, UK.
Why choose TwoTwoFive
Practice trading with IGNITE trading simulator
1,000s of individuals from 100s of companies trained over the last 10 years
Our trainers have a combined 100+ years of trading experience