Introduction

This course examines the key factors influencing gas market dynamics and pricing, covering supply and demand drivers, infrastructure challenges, and regional market structures. Participants will gain insights into price-setting mechanisms, trading platforms, and the impact of regulatory and geopolitical factors on natural gas markets.

Objectives

• Understand the fundamentals of gas market dynamics, supply, and demand.
• Learn about the structure of regional and global gas markets.
• Analyze price-setting mechanisms, contracts, and trading practices.
• Explore the influence of infrastructure, regulation, and geopolitics on gas pricing.
• Gain insights into future trends in gas markets, including LNG growth and renewable integration.

Who Should Attend?

This course is ideal for:

• Gas traders, analysts, and market strategists.
• Policy makers and regulatory professionals in energy.
• Project managers and engineers in the gas and LNG sectors.
• Recent graduates interested in natural gas markets and pricing.

Course Outline

Day 1: Fundamentals of Gas Markets

• Introduction to Global and Regional Gas Markets
  • Key natural gas-producing regions and major global importers
  • Overview of pipeline gas and liquefied natural gas (LNG) trade
• Supply and Demand Dynamics in Gas Markets
  • Factors influencing gas supply: production, reserves, technology
  • Drivers of demand: industrial, residential, power generation, and transportation
• Role of Infrastructure in Gas Markets
  • Importance of pipelines, storage, and LNG facilities
  • Challenges in transporting and storing gas compared to oil

Day 2: Gas Market Structures and Trading

• Overview of Regional Market Structures
  • Comparison of North American, European, and Asian markets
  • Influence of market liberalization and regional supply contracts
• Gas Trading Mechanisms and Platforms
  • Spot vs. long-term contracts, and their roles in pricing stability
  • Overview of major trading hubs: Henry Hub, NBP, TTF, JKM
• Types of Gas Contracts and Pricing Structures
  • Take-or-pay contracts, indexed contracts, and hub-based pricing
  • Analysis of price linkages to oil and alternative price-setting models

Day 3: Gas Pricing Mechanisms and Benchmarks

• Fundamentals of Gas Pricing Mechanisms
  • Key benchmarks and indices: Henry Hub, TTF, JKM, and others
  • Calculating and understanding hub-based pricing and regional differences
• Role of LNG in Global Gas Pricing
  • Pricing and trading of LNG and its impact on global gas markets
  • LNG supply contracts: spot, long-term, and short-term flexibility
• Impact of Market Dynamics on Price Volatility
  • Factors contributing to price volatility: seasonality, supply disruptions, and demand shifts
  • Case studies on volatility caused by geopolitical events and natural disasters

Day 4: Regulatory and Geopolitical Influences on Gas Markets

• Influence of Regulatory Frameworks on Pricing
  • How regulation shapes market dynamics, tariffs, and pricing strategies
  • Role of national and regional regulatory bodies in gas market oversight
• Geopolitical Impact on Gas Market Stability
  • Impact of geopolitical events on global gas supply and pricing
  • Case studies on significant events: Russia-Ukraine conflict, Middle East tensions
• Environmental Policies and Energy Transition
  • Role of natural gas as a transition fuel and its impact on demand
  • Overview of carbon pricing, emissions targets, and renewable integration

Day 5: Future Trends and Case Studies in Gas Markets

• Case Studies in Gas Market Dynamics
  • Analysis of recent developments in global gas pricing and supply disruptions
  • Lessons learned from market adaptations to fluctuating supply-demand dynamics
• Future of Gas Pricing in a Low-Carbon World
  • Trends in decarbonization, hydrogen integration, and renewable gas
  • Exploring the impact of LNG growth and market liberalization on pricing
• Final Project: Gas Market Strategy and Pricing Analysis
  • Participants develop a pricing strategy and market analysis for a hypothetical gas company, addressing regional dynamics, contract structures, and regulatory challenges
• Preparing for Future Market Changes
  • Techniques for adapting to evolving price mechanisms and regulatory shifts
  • Leveraging market intelligence and analysis to make informed decisions