Natural Gas Physical and Financial Markets
January 25, 2022 | Online :: Central Time
“Very helpful, patient, and made course material easy to understand for someone new to the industry like myself.” –New York Power Authority
“This was the perfect introduction to Physical & Financial Markets. I learned so much, and it got me excited to learn even more.” – Williams
This course will present an overview of physical and financial natural gas markets. Attendees will review natural gas market basics, including terminology, concepts, and the mechanics of physical natural gas trading and go in-depth on the role of NYMEX Natural Gas Futures Contract in determining the value of physical natural gas. The agenda will also cover gas indices, fixed price, and physical basis deals, and we will address major trends on how sellers and purchasers price physical natural gas. Attendees will gain an understanding of where to find price information, what affects prices, and the role of the natural gas index publishers. They will leave the course with the ability to assess the importance of liquidity in physical natural gas markets and review considerations used to determine whether or not to hedge. The course will discuss the role of FERC, the Commodity Futures Trading Commission (CFTC), states, and other participants in regulating natural gas markets. The course will conclude with a discussion regarding where natural gas markets are headed.
The intent is for participants to be able to apply the information learned the first day they return to their jobs. Hands-on activities will be included throughout the day.
Learning Outcomes
- Discuss an overview of physical and financial natural gas markets and their key differences
- Explain the role of NYMEX Natural Gas Future Contract in determining the value of physical natural gas
- Review natural gas market basics (terms, concepts, mechanics of physical natural gas trading)
- Express where physical natural gas can be bought and sold
- Discuss gas indices, fixed price, and physical basis deals
- Address major trends on how sellers and purchasers price physical natural gas
- Describe where to find price information and what affects prices
- Explain the role of the natural gas index publishers
- Assess the importance of liquidity in physical natural gas markets
- List the major players of physical natural gas markets
- Review considerations used to determine whether or not to hedge
- Describe the role of FERC, the Commodity Futures Trading Commission (CFTC), states, and other participants in regulating natural gas markets
- Discuss where natural gas markets are headed
Tuesday, January 25, 2022 : Central Time
8:45 – 9:00 a.m.
Log In & Welcome
12:30 – 1:15 p.m.
Lunch Break
9:00 a.m. – 5:00 p.m.
Course Timing
Introduction
Geopolitics and Social Media
Where are natural gas prices headed?
Crude oil, NGL, and gas production effects
Gas processing and pipeline constraints
U.S. exports to Mexico and global markets by LNG companies
Other Drivers of Natural Gas Prices
Weather
Storage
Infrastructure constraints
Physical & Financial Natural Gas Markets
Regional gas markets
NYMEX Natural Gas Futures Contract at the Henry Hub
Global natural gas benchmarks
Kinds of Transactions
Forwards
NYMEX and ICE look-alike futures
- Contract specifications
- Key differences
Clearing
Liquidity
Comparing forwards and futures
Physical Natural Gas Pricing and Indexes
Fixed price deals
Daily index prices
Monthly index prices
Price reporting agencies (Platts, NGI, Argus, ICE)
How indexes are calculated
Physical Natural Gas: Buying and Selling
Where can physical natural gas be bought and sold
How and when indexes are used to price gas
What is Bidweek?
- What happens during Bidweek
- Settlement of prompt month NYMEX Gas Futures contract
Daily gas (next day gas), Intraday (same day gas), and Weekend gas
Buying and selling physical gas using index, fixed price, and physical basis
Pricing long-term sale and purchase of gas
Firm and interruptible pipeline transportation nominations
Natural Gas Basis
What is basis?
Using basis when buying and selling gas
Natural Gas Market Basics & Terms
Bulls and Bears
Going Long and Shorting the Market
What buying and selling futures means
Open Interest & CFTC Commitments of Traders Report
Hedging with Physicals and Futures
What is hedging
Hedging and risk management
Financial hedges
To hedge or not to hedge- and how much?
Long Hedgers and Short Hedgers—determining your natural position
Hedging for natural gas producers and purchasers with examples
Hedging with Natural Gas Options
Definition of options and why they are popular
Anatomy of an option
Buying and selling options
Call options vs Put options
Hedging with gas options
Speculating with options
Example of how to hedge with options
Using Natural Gas Swaps to Hedging Basis
Why hedge basis?
Defining swaps
Basis swaps
Index swap
Swap dealers
Key differences between futures and swaps and related costs
Natural Gas Markets: Regulatory Perspectives
Who’s watching the natural gas markets for manipulation?
FERC, CFTC, States, and ISOs and RTOs
What gets FERC’s attention in the natural gas markets?
How FERC performs oversight and surveillance of the natural gas markets
FERC’s hotline and its role in preventing market manipulation
Fines and penalties
Tom Russo, Principal, Russo on Energy LLC
Tom Russo is an Energy and Environmental expert with unique FERC regulatory skills in siting hydropower, natural gas and liquefied natural gas infrastructure, NEPA environmental impact assessment and in how energy markets, prices and physical/cybersecurity affect infrastructure investments.
Prior to founding Russo on Energy LLC in May 2015, Mr. Russo worked for over 30 years as a Manager and Sr. Energy Industry Analyst at the Federal Energy Regulatory Commission (FERC). During that time, he amassed experience in hydropower licensing, NEPA environmental impact assessment of energy projects, business process reengineering, and natural gas and crude oil market oversight. Mr. Russo thoroughly understands the Natural Gas Act, Natural Gas Policy Act, Federal Power Act and Energy Policy Act as they apply to natural gas and hydroelectric projects.
He is very active in hydropower and natural gas matters and writes an Energy and Environmental column for the Natural Gas and Electricity Journal. He also co-authored for the R Street Instiute entitled “Ebbing the flow of hydropower red tape.”
Mr. Russo is a native of Brooklyn, New York. He earned a credential as a Certified Information Systems Security Professional (CISSP) in 2010. He also graduated with a MBA in Finance from the George Washington University and a MS in Biology from the University of Alabama.
We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.
IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
You will receive a meeting invitation will include a link to join the meeting.
Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
- You will need to join the appropriate meeting at the appropriate time.
If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.
Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ
If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event
| Event | Standard Rate | Attendees | |
|---|---|---|---|
| Single Connection - Natural Gas Physical and Financial Markets | US $ 895.00 | ||
| Pack of 5 connections | US $ 3,580.00 | ||
| Pack of 10 Connections | US $ 6,265.00 | ||
| Pack of 20 Connections | US $ 10,740.00 | ||
| Call us at 303.770.8800 if you have any specific questions on the volume discounts | |||
| * all other discounts do not apply to license packs | |||
This event has the following related events: | |||
| Introduction to the Natural Gas Industry, Infrastructure and Regulations | US $ 895.00 | ||
| Pack of 5 connections | US $ 3,580.00 | ||
| Pack of 10 Connections | US $ 6,265.00 | ||
| Pack of 20 Connections | US $ 10,740.00 | ||
By registering I indicate I agree with EUCI's privacy policy and understand I may receive emailed reports, articles, event invitations and other information related to products and services from EUCI and any of our business partners. I understand I may unsubscribe at any time by clicking the link included in emails.
Take advantage of these discounts!
- Attend the Course and Introduction to the Natural Gas Industry, Infrastructure and Regulations and pay US $ 1,695.00 per attendee (save US $ 95.00 each)
Cancellation Policy
Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before December 17, 2021 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800
