Physical Natural Gas Trading

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This highly interactive and intensive two-day physical natural gas trading class will provide the attendees with a comprehensive understanding and knowledge base of how gas is traded physically amongst major participants. EMI’s unique program delves into the details of the physical markets, operations and logistics, and distinct difference between physical and financial markets. The program focuses on making money for traders and saving money for buyers. Course attendees will be exposed to arbitrage (spread) trading as well as outright (long/short) trading opportunities. EMI will present approaches that work for physical trading as well as valuing and relating natural gas back to the wellhead. Finally the program will end with a very exciting, simulated trading exercise, showing the value of the New York Mercantile Exchange as a remarkable and powerful tool to manage and create transactions

What You Will Learn

  • Learn about supply and demand for natural gas in various geographic areas of the U.S.
  • Explore physical gas markets, pricing information, operations, and contracts
  • Gain knowledge about futures, swaps, options, and Over the Counter markets
  • Become familiar with trading techniques, terminology, hedging, and physical trades
  • Develop expertise in management of market exposure and price risk
  • Improve your negotiation skills
  • Natural gas supply and demand
  • Cost of natural gas from the wellhead to the burner tip
  • Discussion of various pricing mechanisms
  • Physical gas markets and pricing
  • Operations and logistics
  • Comparison of physical and financial trading
  • Arbitrage/spread trading
  • Physical outright (long/short) trading
  • Approach to trading physicals
  • Simulated trading session

Who Should Attend

This course if specifically designed for people working in:

  • Gas Trading
  • Risk Management
  • Supply, Transport and Operations
  • Sales and Marketing
  • Energy Purchasing
  • Management and Financial Accounting
  • Strategic Planning and Economics
  • Analysis