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Course Level
Introduction
Delivery Method
Live Instructor-Led Virtual Course
Professional Development Credit Hours
14
Pre-requisites
There is no pre-requisite for this course.

Faculty

Mary Jackson has over twenty-five years' experience in the energy industry. After university she began her career at BP, working in the information management group, before joining the Manufacturing, Supply and Trading department. She subsequently worked at Saladin as a consultant, working closely with clients throughout the world and providing consultancy advice on energy market analysis, trading and risk management. In several senior roles at Saladin, she managed the energy consulting team, ran the energy market information service and directed strategy for new software and information product development.

Since 2000, Mary has worked as an independent energy market consultant and she formed Kingston Energy Consulting with Nigel Harris in 2002. Kingston Energy provides consultancy services to companies involved in energy markets and trading. A key area of work has been the European natural gas market - Kingston Energy has researched and authored a well-respected report on European natural gas trading which has been published annually since 2004.

Mary has lectured regularly for Mennta Energy Solutions on energy markets, trading and risk management and is also a regular speaker and panel member at public conferences. She has written articles for industry publications including Harts Energy Markets, Energy Risk, Global Energy Business and Petroleum Review.

Nigel Harris is a director and principal consultant at Kingston Energy Consulting, which he founded with Mary Jackson in 2002. He has been helping energy traders to analyse and understand the markets for over 25 years, initially as a developer of market analysis software systems, and more recently as a consultant. At Kingston Energy Consulting, his main focus is on providing education and information transfer to participants in the energy trading business, through instructor-led classroom training, web-based training development, research projects, workshops, briefings and research-based report writing. In his work with Mennta Energy Solutions, he has created a library of new instructor-led and web-based courses on European gas and power markets and trading. In 2005, he worked with Mary Jackson to develop the popular Oil Trading Orientation course, which has since been presented at venues all over the world. He has also extensively revised and updated many existing courses on derivatives, hedging and risk management.  He regularly presents this material both at public venues and as in-house, often customised, courses. He is co-author of a series of highly regarded reports on European natural gas trading and has also contributed to reports on power markets and oil trading. In previous roles, he was a key member of the team that initially designed and developed Saladin's innovative Petroleum Analysis Workstation, a system that became an industry standard for historical price analysis during the 1990s and remained in use in the industry for two decades. During this period, he worked closely and extensively with oil and gas traders around the world to understand their information and analytical requirements. He also spent some years as an independent consultant, working mainly with software and information providers to help them better understand the oil and gas trading sectors.

Accreditations

NASBA: Mennta Energy Solutions is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org


CPD Certification Services: The CPD Certification Service works with Mennta Energy Solutions to ensure valuable knowledge is structured to complement the universal guidelines of Continuing Professional Development. Mennta Energy Solutions courses are approved by CPD at one credit per training hour.

NGLs Trading and Risk Management (VIRTUAL) - NGLT

Course Schedule

Date Time Location Price* Registration Deadline**
8-11 Jul 2024
Register 		10:00am-1:30pm (New York) / 15:00-18:30 (London)
 Zoom: Americas to Europe
 USD 2,275 (NGLT-VILTNA24-07)
 7 Jun 2024

*Prices do not include VAT, GST, or any other local taxes. All applicable taxes will be added to the invoice.
**Please register by the deadline to help us ensure sufficient attendance and avoid postponing the course.

Course Summary

NGLs Trading and Risk Management is a VIRTUAL classroom course presented by the energy training experts at Mennta Energy Solutions.

This workshop is ideal for non NGLs traders wishing to know more about the world of NGLs trading, or for delegates who are at the very beginning of an NGL trading career. Delegates will learn the key building blocks of knowledge for NGLs and their market fundamentals. From there we will look at the physical trading lifecycle, contracts, and strategies.Finally, delegates will be introduced to the derivatives markets.

This virtual solution is comprised of four live instructor-led sessions hosted on state-of-the-art training software with video, audio, chat, live polls, breakout sessions and much more!

Who Should Attend?

Class delegates include anyone who needs to know more about NGLs trading - everyone from support staff, analysts, accountants and management in the areas of trading, supply, risk management, credit, finance, contracts, IT, operations, transportation and storage.

Course Content

NGL Trading Fundamentals

  • Introduction to NGLs trading 
    • What are the traded grades?  The purity products (C2, C3, nC4, ic4, natural gasoline) & mixed products (Y grade, EP mix, LPG); their end uses
    • Who trades and why?   Different market participants & their objectives
    • How are NGLs traded?  Physical (spot/term contracts), derivatives (futures, swaps)
    • Trading terminology, e.g. long, short, spreads
    • Sources of trading profit
    • Measurement units & key physical properties
  • NGL supply chain & infrastructure
    • Natural gas processing & fractionation
    • Crude oil refining: distillation, cracking, isomerization
    • Pipeline infrastructure 
    • Shipping: tanker types & sizes
    • Road & rail transportation
    • Storage: types, purposes & key locations
    • NGL value chain economics, e.g. economics of gas processing, cracking and gasoline blending
  • Market fundamentals
    1. Supply
      • Global production
      • Supply drivers, e.g. ethane recovery/rejection
      • Supply trends
    2. Demand
      • Consumption
      • Key markets
      • Demand trends
    3. Trade flows
      • International & US domestic trade flows
      • Trade flow trends
  • Pricing
    • Key market centers/benchmarks, eg Mt Belvieu, ARA
    • Price drivers & behavior
    • Price linkages, e.g. natural gas, naphtha, RBOB/gasoline, petrochemicals
    • Volatility

 

Physical Market Trading

  • Physical trading deal lifecycle
    • Trade negotiations
    • Credit risk management & trading controls
    • Use of brokers
    • Pipeline & shipping operations
  • Key trading contract terms
    • Contract length – spot, term, forward
    • Price mechanisms
      • Fixed, floating
      • Key benchmarks for NGLs and related commodities
      • Assessing differentials
      • Pricing dates
      • Price reporting agencies
    • Quantity clauses
    • Incoterms
    • Delivery: where/when?
    • Credit terms
  • Trading strategies
    • Supply trading
    • Storage
      • Backwardation/contango
      • Trading around storage
      • Factors affecting curve structure
      • Storage valuation
      • Optimization & monetization of storage
      • Rolling storage & associated hedges
    • Locational arbitrage
      • Evaluation
      • Key opportunities
      • Analyzing arbitrage opportunities
      • Arbitrage assessment
      • Key factors, e.g. time value, freight costs, impact of forward price structure
    • Spread trading
      • Time/calendar spreads
      • Quality spreads, including crack & frac spreads, normal vs iso
      • Location
      • Disconnects between physical & paper pricing

 

Derivatives Market 

  • Sources of trading risk
  • Price risk exposure
  • Measuring price exposure
    1. Value at Risk
      • What is it?
      • How is it calculated?
      • How is it used?
  • Hedging
    • What is it?
    • Reasons to hedge
    • Who uses it?
    • Tactical vs strategic hedges
    • Risks of hedging
  • Futures trading & hedging
    • What are futures contracts?
    • Key contracts
    • How to trade futures
    • Mark to market/margining/cash flow
    • Futures price behaviour & linkage to physical market
    • Liquidity
    • Hedging using futures
    • Basis risk: what is it & how it can be managed
  • Swaps
    • What are swaps?
    • Swap indexation
    • How are they traded – OTC, brokers, exchanges
    • Different types, e.g. fixed for floating, float for float
    • Mark to market/clearing
    • How they settle
    • Hedging using swaps
  • Options
    • What are options?
    • How they are traded: exchange & OTC
    • Hedging using options
    • Delta hedging
  • Hedging scenarios
    1. Hedging inventory
    2. Hedging arbitrage trades

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