How Natural Gas is Bought and Sold

May 22-23, 2008 - CenterPoint Energy - Houston TX

Who Should Attend

• Industrial and commercial marketers that deal with end users who buy large volumes of gas or are transportation customers
• Entry level gas supply marketing professionals
• Anyone interested in an overview of the gas buying and selling process

This 1-1/2 day workshop covers the physical and financial aspects of the gas buying and selling process.  It will address topics including evolution and history of the natural gas industry as it relates to gas purchasing; basic knowledge and terms (firm vs. interruptible transportation, GISB, etc.); gas supply and transportation issues (capacity release, price differentials at various pricing points, imbalances, nominations, confirmations/allocations, penalties, cash-outs, force majeure); and risk management (NYMEX, futures, options, swaps).

Day 2 covers various gas purchasing scenarios and the processes involved in developing a supply portfolio based on the parameters given in each scenario. The workshop wraps up with a tour of  a gas trading floor.

Instructional Team
Dan Conrath of Risk Management, Inc. RMI will be the primary instructor covering the financial aspects of the class. RMI is a highly regarded consulting services company specializing in providing risk management services to public utilities and other businesses that have price risk exposure. They offer consulting and brokerage services to assist clients in determining the need for and means of controlling or reducing price risk. RMI brings over 25 years experience in tailoring risk management packages to a company's specific needs.

Michael Hansen, SGA Consulting Services, a leading industry consultant and subject matter expert will cover the physical aspects of the buying and selling process.

Highlights

• Evolution of gas purchasing in the natural gas industry
• Basic knowledge of terms used when buying and shipping natural gas
• Gas supply and transportation issues
• Introduction to risk management
• Using futures, options and swaps
• Supply portfolio strategies
• Trading floor tour

SGA Contact:  Pat Downey

Sponsored by the following SGA Committees:

Gas Supply Marketing and Transportation Services
Commercial Marketing
Industrial Marketing