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Introduction to the Natural Gas Industry,
Click Here to register ($895 for either course, $1695 for both)
Two program: Introduction to the Natural Gas Industry,
Natural Gas Physical and Financial Markets:
Introduction to the Natural Gas Industry, Infrastructure and Regulations
January 24, 2022 | Online
This course will present an overview of the natural gas industry and related natural gas liquids (NGLs) and shale oil infrastructure so attendees can gain a comprehensive understanding of the gas industry and markets. We will discuss natural gas terminology, measurements, and conversions and review the basics of natural gas production, gathering, operations, and markets. This program will provide an in-depth understanding of natural gas processing plants, pipelines, storage, LNG peak shaving plants, LNG Import and Export terminals, and local distribution companies (LDCs). It will also address important components of natural gas transportation, including regional costs of firm and interruptible pipeline transportation, nominations, balancing, and section 4 and 5 ratemaking proceedings on natural gas pipeline transportation.
The intent is that participants will be able to apply the information learned the first day they return to their jobs. Hands-on activities will be included throughout the day.
MONDAY, JANUARY 24, 2022
9:00 a.m. – 5:00 p.m. Central Time
Natural Gas Industry History & Overview
Supply, Demand, and Prices
The Natural Gas Value Chain Overview
Underground Natural Gas Storage
Other Gas Storage Options
Natural Gas Pipelines
FERC Gas and Electric Coordination
Re-plumbing the Pipelines—Challenges
Local Distribution Companies (LDCs)—Gas Utilities
FERC Rate Making on Pipeline Transportation
LDCs and Asset Managers
Natural Gas Industry Challenges
Natural Gas Physical and Financial Markets
January 25, 2022 | Online
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.
TUESDAY, JANUARY 25, 2021
9:00 a.m. – 5:00 p.m. Central Time
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
Physical & Financial Natural Gas Markets
Regional gas markets
NYMEX Natural Gas Futures Contract at the Henry Hub
Global natural gas benchmarks
Kinds of Transactions
NYMEX and ICE look-alike futures
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?
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
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?
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