gas 200 structuring natural gas transactions
this course builds on the applied energy derivatives program , focusing on deal structuring opportunities particular to the natural gas markets . participants will develop insights into the economic inter - relationships between the physical operations ( pipelines , storage , generation , etc . ) and their synthetic financial counterparts ( basis , time spread and multi - fuel derivatives ) . emphasis is directed at identifying marketing opportunities that follow from these concepts . this is not an introduction to natural gas markets . accordingly participants are expected be familiar with the basic concepts of both the gas industry and derivatives .
participants attending this seminar will be able to :
* quantify the cash liquidity risk of futures margin requirements
* specify the terms of the futures contracts on nymex and kcbot
* structure a fixed price hedge using a futures contract
* take into account the implications of cash - futures basis in hedge design
* compare the benefits / risks of futures versus swaps
* decide between an efp or an efs to manage risk .
* recognize the advantages and risks of stack - and - roll hedges
* identify time spreads as a risk and opportunity and their relation to storage .
* arbitrage storage costs and create storage synthetically with time spreads .
* employ swing swaps / options to manage short term storage / transport risks
* profit from trading seasonal spreads and price curve shifts
* identify the options on time spreads embedded in storage
* coordinate injection / withdrawal timing with the price curve .
* identify the risks of locational basis and its relationship to transport costs .
* create synthetic transportation
* interpret basis quotes off the benchmark and derive non - benchmark basis
* recognize the optionality embedded in pipeline capacity
* utilize intentional imbalances to extract value
* use " park - and - loan " programs to make money
* sell " gas - by - wire " through tolling mechanisms
* buy or sell gas indexed to power or other energy prices
* calculate spark spreads using generating heat rates
* structure multiple - fuel hedges
* understand the optionality on spark spreads in gas - fired generation
* offer gas / power dispatch options to gas generators
michelle lokay
account director
transwestern commercial group
713 - 345 - 7932
gas 200
structuring natural gas transactions
this course builds on the applied energy derivatives program , focusing on deal structuring opportunities particular to the natural gas markets . participants will develop insights into the economic inter - relationships between the physical operations ( pipelines , storage , generation , etc . ) and their synthetic financial counterparts ( basis , time spread and multi - fuel derivatives ) . emphasis is directed at identifying marketing opportunities that follow from these concepts . this is not an introduction to natural gas markets . accordingly participants are expected be familiar with the basic concepts of both the gas industry and derivatives .
participants attending this seminar will be able to :
* quantify the cash liquidity risk of futures margin requirements
* specify the terms of the futures contracts on nymex and kcbot
* structure a fixed price hedge using a futures contract
* take into account the implications of cash - futures basis in hedge design
* compare the benefits / risks of futures versus swaps
* decide between an efp or an efs to manage risk .
* recognize the advantages and risks of stack - and - roll hedges
* identify time spreads as a risk and opportunity and their relation to storage .
* arbitrage storage costs and create storage synthetically with time spreads .
* employ swing swaps / options to manage short term storage / transport risks
* profit from trading seasonal spreads and price curve shifts
* identify the options on time spreads embedded in storage
* coordinate injection / withdrawal timing with the price curve .
* identify the risks of locational basis and its relationship to transport costs .
* create synthetic transportation
* interpret basis quotes off the benchmark and derive non - benchmark basis
* recognize the optionality embedded in pipeline capacity
* utilize intentional imbalances to extract value
* use " park - and - loan " programs to make money
* sell " gas - by - wire " through tolling mechanisms
* buy or sell gas indexed to power or other energy prices
* calculate spark spreads using generating heat rates
* structure multiple - fuel hedges
* understand the optionality on spark spreads in gas - fired generation
* offer gas / power dispatch options to gas generators
michelle lokay
account director
transwestern commercial group
713 - 345 - 7932