Natural Gas Markets

This course provides participants with an overview of the Natural Gas markets with a focus on market risk management. The course starts by explaining the role of the different participants before considering the market’s different demand and supply characteristics. The third part of the course looks at the theory and practice of forward price formation. The final part of the course presents a series of consumer and producer derivative risk management solutions.

Course Objectives

By the end of the course, the participant will be able to:

• Describe the main motivations for each of the market participants
• Explain the physical supply chain for natural gas
• Outline how prices are formed within the natural gas market
• Describe a number of price risk management techniques

Suggested Prerequisites:

• Participants should understand simple financial concepts such as present value and have a basic knowledge of derivative instruments (forwards, futures, options and swaps).
• No prior knowledge of energy markets is assumed.

Program Level:Intermediate

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 7