Natural Gas Physical and Financial Markets

Natural Gas Physical and Financial Markets

May 24, 2022 | Online :: Central Time


“The Natural Gas Markets Course was informative and gave a good foundational understanding to the industry. The instructor, Tom Russo, is an industry expert who provided a deep dive look into the materials.” – Department of Energy

“Tom was an excellent instructor. He was clearly very knowledgeable about the industry and natural gas dynamics and really took the time to explain complicated concepts in-depth to the class by starting at a baseline and building onto more advanced topics. Would recommend this course to others!” – CAISO

“Very helpful, patient, and made course material easy to understand for someone new to the industry like myself.” –New York Power Authority

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, May 24, 2022 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:30 – 1:15 p.m.
Lunch Break

9:00 a.m. – 5:00 p.m.
Course Timing



  • 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 & 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 & 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 and what causes it
  • 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 & 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, President, Russo on Energy, LLC

Tom Russo is an Energy and Environmental expert with unique FERC regulatory skills in oil, 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 the natural gas and crude oil markets and its regulation by the FERC. Mr. Russo thoroughly understands the Natural Gas Act, Natural Gas Policy Act, and Interstate Commerce Act which are applicable to natural gas and oil pipeline transportation.

Mr. Russo is also an adjunct professor at the George Washington University’s Elliott School of International Affairs. He teaches Global Energy Markets and Global Energy Security to undergraduate and graduate students. He actively conducts independent research on oil, natural gas, and power matters and writes an Energy and Environmental column for the Climate & Energy Journal.

Online Delivery

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 RateAttendees
Single Seat - Natural Gas Physical and Financial MarketsUS $ 895.00
Pack of 5 SeatsUS $ 3,580.00
Pack of 10 SeatsUS $ 6,265.00
Pack of 20 SeatsUS $ 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 seat packs

This event has the following related events:

Introduction to the Natural Gas Industry, Infrastructure & RegulationsUS $ 895.00
Pack of 5 connectionsUS $ 3,580.00
Pack of 10 ConnectionsUS $ 6,265.00
Pack of 20 ConnectionsUS $ 10,740.00

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Take advantage of these discounts!

  • Attend the Course and Introduction to the Natural Gas Industry, Infrastructure & 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 April 22, 2022 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

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EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 0.7 CEUs for this course.

Requirements for Successful Completion of Program

Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

Instructional Methods

PowerPoint presentations, group discussions, and active participation.

Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 8.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Beginner/Intermediate
Delivery Method: Group-Live presented online due to COVID-19
Advanced Preparation: None

CpeEUCI 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.

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