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Essentials Of Gas Trading

Keep ahead with the latest market developments and learn the strategies to optimise your trading performance

Course Highlights

Understand the structure and operations of the UK and European gas markets
Clarify how the conceptual network works
Examine the mechanisms of transportation and transit
Determine the role of storage in gas trading
Understand the essential role of market hubs
Get to grips with the mechanics of gas trading
Analyse the fundamentals of long term and short term gas contracts
Review the latest developments in UK and European gas trading

For details of the course trainer, please download the course brochure

Booking Information

Dates	Prices	Book This Course	Discount
23 - 24 Feb 2009	£ 1899		-
22 - 23 Jun 2009	£ 1899		-

Course Programme

The Structure and Operation of the European Gas Market

An introduction to the trading and operational dynamics of the European gas market

Clarifying who are the main players and their roles
Examining the factors that drive gas price and influence volatility
- historical price curve
- weather fluctuations
- seasonal demand
- domestic competition
- effect of the interconnector
- EU Directives
- oil price
The role of liberalisation in the UK and the Continent

Role of Nominations and Balancing Programs

Need for a nominations and balancing regime
Overview of the UK network code
Explaining terminology in the code
- supply point
- the physical network
- entry point
- exit points
- LDZs
- exit zones
- NBP

Description of the UK Conceptual Network & Origins of Day Ahead and Within Day Trading

The role of Transco and Transco systems
Becoming a shipper
Shipper services
Non-daily processes
Before the day processes
Examining how balancing currently works:
- within day balancing
- after day balancing
Quantifying the real costs and typical imbalance penalties of the regime

Continental European Balancing Regimes - Clarifying and Comparison of How They Work

Description and comparison of balancing structures
Daily versus hourly
- Germany
- Netherlands
- France
- Belgium
- Italy
- UK
- others
Tolerances
Penalties
Availability of balancing tools

EU Transportation and Transit - Primary Market

Transportation in the primary market
EU transportation tariff structures
Cost of service tariff design
5 steps to designing transportation tariffs
Tariff pricing - use of distance based, zone, postage stamp or entry-exit tariffs
Access conditions
Status of international transit in the EU

Secondary Transportation Market and Basis Differential - Crucial Link of EU Transit

Capacity trading and the creation of a secondary market in capacity
Capacity release
Electronic bulletin boards
Basis differential - pricing of capacity in the secondary market
Role of transportation tariffs in establishing a secondary market and market hubs
EU Interconnector
UK entry capacity auctions
Continental EU secondary market

Trading Possibilities - The Essential Role of Market Hubs in the EU

Need for physical and notational market hubs
The essential ingredients of a liquid market hub
Assessment of EU market hubs
- NPB
- Zeebrugge
- Dutch TTF
- EuroHub - Bunde-Oude
- Italian PSV
- Baumgarten
- other possibilities

INTRODUCTION TO GAS STORAGE

The Role of Storage in EU Gas Trading

Examining the types of storage and nature of storage investment
Use of storage for trading purposes
Cost of storage
Review of UK storage and its links to trading
Valuation and pricing
UK storage auctions
EU storage pricing

THE MECHANICS OF GAS TRADING

OTC Trading - the informal gas market

Examining the uses and techniques of OTC trading using:
- forwards
- spreads
- swaps
- options
Comparing futures and forward contracts

Futures Trading

Outlining the purpose and use of futures trading
Futures terminology
IPE
The role of the London Clearing House
Hedging using futures

Assessing the Use of Trading Other Derivatives

The techniques and benefits of
- weather derivatives
- emissions trading

Main Factors to Consider in Developing Trading - Strategy, Support & Calculating Risk

Examining market evolution and determine how this will effect your strategies
The peculiarities of UK energy markets

Case Study : Examples of miscalculating the risks

Deciding on a workable trading strategy
Assessing and quantifying various types of risk
Identifying the roles and responsibilities of trading support

GAS CONTRACTS

Long Term Contracts

The nuts and bolts of gas contracts - outlining the basic requirements
Incorporating risk into the contract
Measuring the level of flexibility in a contract
Ensuring the contract avoids loop-holes

Short Term Contracts

Standardisation of terms
Weighing the benefits of OTC versus IPE trades
Extracting value from long term contract flexibility
Examining the impact energy spot markets have had on traditional take-or-pay contracts

Evaluating Developments in European Trading Experience

Trading opportunities in the UK and continent
Status of short term trading in the UK
Typical trading margins
Liquidity of continental short term trading
Overall assessment of EU access conditions
Comparison of hub liquidity