As natural gas demand grows, traditional LNG trade flows and pricing mechanisms are being challenged. New trends such as increasing appetite for spot LNG, and the transition in Europe from oil-indexed to hub-based pricing, are shifting the competitive landscape both regionally and globally.
Essential training for both newcomers to LNG and those wanting to refresh their knowledge, this one-day course provides current insights into pricing, shipping and supply/demand. With a close look at regional differences and developments, as well as a global overview, it’s a cost-effective option for anyone looking to enhance their understanding of the market.
08:30REGISTRATION AND REFRESHMENTS
Introduction to LNG Markets and Pricing
Global LNG Markets – Introduction to markets in Asia, the Middle East and Atlantic Basin
LNG Pricing Structure Overview
Practical LNG Pricing and Risk Management
LNG Trade flows
16:15Trading & Shipping Exercise
The exercise will give participants a better understanding of shipping types and costs, cargo routes, shipping market trends and developments
17:00End of course
The third train is set to be commissioned from Cheniere’s US Sabine Pass export plant in Louisiana in the coming months. The first year of US Sabine Pass exports, the first in recent history out of the Lower 48 states, comes at a time when margins in spot trading have become razor-thin and optimising is a key strategy for portfolio sellers. While the output from the first two trains has not had a broad impact on the LNG market, the increase of destination-free, flexible volumes is expected to change trade flows, particularly as the LNG market grows longer in supply and more shipping flexibility is required. Since the start-up of Train 1 in late February, Shell has lifted pre-commercial cargoes from Train 1, while commissioning cargoes have been sold by Cheniere Marketing, Cheniere’s trading subsidiary.
The start-up of Train 2 in August also added more commissioning cargoes to the spot market. Royal Dutch Shell has a 20-year, take-or-pay free on board (FOB) tolling agreement for Train 1 volumes with US-based Cheniere, the operator of Sabine Pass, which will formally start later in November. Spain’s Gas Natural Fenosa is the long-term offtaker for Train 2, South Korea’s KOGAS for Train 3 and India’s state network operator GAIL for Train 4. The US Department of Energy (DOE) has published the FOB prices submitted by Cheniere for exports from February through August. The prices show FOB ranging from $3.12/MMBtu FOB to $5.60/MMBtu. The FOB prices are from the point of loading and do not include shipping costs. They range from $3.12/MMBtu to $5.60/MMBtu which would have offered little room to make a margin into Asia compared with the ICIS East Asia Index (EAX). But at times of low prices and narrow margins, companies such as Shell instead have already optimised US supply to deliver cargoes to nearby locations and swap out other supply to cover contractual obligations elsewhere.
Out of the 30 cargo loadings analysed by ICIS, two-thirds of the deliveries were destined for the Americas: Argentina, Brazil, Mexico and Chile. Other cargoes went to Kuwait, Dubai, Jordan and one vessel with a Sabine Pass cargo traveled through the Panama Canal to China to fulfil a long-term position. The cargoes either supplied trading houses with short positions from tenders selling on a spot basis to companies such as Argentina’s ENARSA or Mexico’s utility CFE, or were sent as part of term supply agreements, such as Shell’s long-term agreement with the consortium members of Chile’s GNL Chile in Quintero.
To find out how these key market developments will now change the face of the global LNG trade dynamics, save your seat for the ICIS Global LNG Markets and Pricing training course, as we delve into market fundamentals, including LNG shipping, supply/demand, regional differences and pricing mechanisms.Save your seat for this course now to get a 10% discount »
Ed Cox is Editor of ICIS’ Global LNG portfolio and previously headed up the daily ICIS European gas report, ESGM. Ed has over 10 years of experience within the energy and petrochemical markets, working within different departments of ICIS.
Ed studied Modern Languages at the University of Oxford and has also worked within the financial industry
Ben Wetherall is the Head of Gas & LNG at ICIS and is responsible for overseeing the company’s natural gas and LNG markets pricing benchmarks and market analysis. He has worked closely with the LNG trading community to provide price reference points and market intelligence which has supported the growth of trade. He previously edited ICIS Global LNG Markets and has published research on LNG short-term trading and pricing. Prior to joining ICIS in 2010, Ben worked as a consultant for Gas Strategies where he provided commercial advice on upstream, pipeline and LNG projects in Europe, Russia and Asia. He also worked as a country risk analyst for IHS Global Insight, and has monitored over 10 elections in Europe and the CIS for the Organisation for Security and Cooperation in Europe.
Roman has a background in LNG of over 10 years. He started his career in the energy sector as a business development manager, energy for King & Spalding with special reference to gas-to-ower project in Russia. He has worked as an LNG broker on both shipping and product for E.A. Gibsons. He is currently affiliated with University of Cambridge, Energy Policy Research Group. His most recent study Economics of LNG Trade: the economics of inter-basin arbitrage trade 2010-2014 was published in January 2016. He is currently involved in research on development of hybrid approach to LNG derivatives trade. At ICIS, Roman edits the LNG Markets Daily and overseas the daily price assessments across Asia-Pacific region.
Ruth Liao is Americas editor for LNG at ICIS and responsible for price assessments, news coverage and analytics for North and South America. Her coverage can be found in LNG Markets Daily, Global LNG Markets and the LNG analytics platform LNG Edge. Ruth has been an editor with ICIS since 2011 and joined the LNG editorial team in 2012. She is a graduate of The University of Texas at Austin with a bachelor of journalism and has worked at daily newspapers in Arizona and Oregon. She has most recently spoken at the North American Gas Forum in Washington, DC, the Houston 2025 and Beyond conference in Houston and the ICIS China LNG Supply/Demand and Investment Opportunities training in Shanghai.
|Training Course||Course Price|
|Global LNG Markets & Pricing||$1,100 / €1,100|
Please note the fees above do not include VAT.
Discounts will be given when booking for more than one delegate or more than one course.
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