 08.30-17.00 |
Understanding Natural Gas and LNG Pricing
Rationale: Gas is increasingly important as a main clean fuel of the
future, and brings with it exposure to the complexity of its pricing,
particularly as it becomes more international and often more subject to
market forces and deregulation from earlier approaches.
This full day, interactive workshop aims to improve understanding of
the many possible ways to model natural gas and LNG pricing. Not
just to, from and via the host country Turkey and further Levant & East
Mediterranean region but also to the strongly linked activity and pricing
in the Middle East and more distant markets in the Americas and the
Far East. It often an overly complex subject when first approached, but
the important modes and specific features of gas pricing will be worked
through, including:
- Fixed prices, indexation and reference pricing
- Take or pay, and send or pay
- Should gas be priced v. crude oil? How? Why? Alternatives.
- Function of a hub and effect on pricing
- Forward and futures markets
- Calculating netbacks and destination selection
- How to construct a gas price, the components, swing and load factor
- LNG pricing
- Pipeline transportation
- Associated gas, interruptible gas
The bigger picture will also be addressed, where pricing is a
key issue including:
- Why are big volume, long distance pipelines are so difficult to agree,
finance and build?
- How do you market the gas from the latest big and huge finds?
- Is there a regional price: if not, why not?
- Put into context – local, regional, transportation factors
- How does the region link into other pricing?
- What encourages and what inhibits LNG?
- Study specific examples – Southern Corridor, Cyprus, Turkey as a hub
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