Post-deregulation
natural gas markets have evolved rapidly.
The emergence of financial products and concepts create new
approaches to managing risk.
The great liquidity and depth of financial products available
in natural gas necessitate a thorough understanding of these
financial technologies and how they allow for more sophisticated
management of physical assets such as gas storage and pipelines.
The Program
Participants
in this seminar need to have a firm working understanding of both
exchange-traded and OTC energy derivatives.
The program builds on this knowledge, exploring how these
financial concepts can be applied to physical and market structures
specific to the gas industry.
Alone or in combination, futures, swaps, basis spreads, EFPs,
triggers, time spreads, and numerous other tailored OTC structures
provide unique solutions to common and less common industry
problems.
Such structures decompose risks into more efficiently
manageable components.
Possibilities are further extended through multiple-fuel
structures: e.g. selling “gas by wire”; tolling by leasing
generating capacity or synthetically using financial methods.
Also emphasized is the value of optionality embedded in the
ownership and operation of energy assets—pipeline, storage, or
generation.
The Practical
The teaching
method emphasizes applications and not abstract theory.
The focus is on devising the best possible solution for addressing a
customer’s needs. In this regard,
the emphasis is on the pragmatic, drawing on an optimal mix of physical and
financial methodologies.
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At
the conclusion of this program participants will be able to:
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Understand
the issues facing power providers and merchant power
plants
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Evaluate the differences
between firm power, non-firm power and financially firm energy
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Review
the proposed power master agreement definitions
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Utilize
fixed transmission rights and contract for differences to manage
locational marginal–zonal pricing risks
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Understand
the evolving process of developing a power price curve and the use
of Spark Spreads to develop long term price curves
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Explain
how swaps, options and other financial tools aid in structuring
unique deals for both consumers and generators
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Apply
financial products to: improve risk management techniques; monetize
dispatch flexibility and enhance physical plant investments
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Explain
and apply mult-fuel techniques to power plants
and create innovative multi-fuel deal structures
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