Gas/LNG
Oil collapse fails to dent zeal for hub-based gas pricing
In recent years, European buyers of natural gas have pushed strongly in favour of contract pricing based on the continent's gas hubs, rather than more traditional formulas linked to the price of oil. Given the huge drop in crude prices, has this stance…
Oil indexation battle continues despite oil collapse
Europe’s utilities are still pushing for hub-based natural gas prices amid the recent collapse of crude oil
Rolling back the frontiers
Dr Igor Koprivnikar, member of energy trading and supply group Gen-i’s management board responsible for trading, talks exclusively to Energy Risk
Quant ideas: Building a better LNG forward curve
A robust suite of liquefied natural gas (LNG) forward curves is an important prerequisite for the proper valuation and risk measurement of LNG portfolios. This article provides an overview of effective methods for constructing long-term LNG forward price…
Oil, weather and Ukraine boost European gas volumes
2014 saw rising activity in Europe's exchange-traded and OTC gas markets
US natural gas hedge fund shuts down
Roaring Fork says poor liquidity in energy derivatives foiled its trading strategies
TrailStone's Silbert says the best is yet to come
TrailStone chief executive David Silbert never expected to embark on a career in commodities, but the company he founded in April 2013 is now the talk of the industry, writes Mark Pengelly
Official support fails to help Japan LNG contract
The launch of a new forward contract linked to liquefied natural gas (LNG) had been welcomed by the Japanese government amid hopes it might help local buyers manage their risk. But the contract has failed to take off - a sign of the challenges involved…
LNG market participants shun Japanese forwards
Non-deliverable forwards on liquefied natural gas were launched by the Japan OTC Exchange in September, but the contracts are suffering from a lack of participation and concerns over pricing
European gas trading has bright future, panel says
Natural gas is staging a comeback in Europe after being squeezed out by coal during the past few years, according to a panel of market participants who spoke at Energy Risk Summit Europe
European gas trading boosted by uncertain outlook
Volatility in European natural gas is soaring due to upheaval in Ukraine and an unusually high amount of gas in storage, prompting a rise in hedging and financial trading
US utilities invest in shale gas wells as long-term hedges
Florida Power & Light becomes latest US utility to pursue acquisition of natural gas production assets as risk management strategy
EC's Ristori worries about energy security post-Ukraine
The EC's director-general for energy expresses fears about Europe's continued reliance on Russia for energy imports amid the crisis in Ukraine, in an exclusive interview with Energy Risk
Natural Gas House of the Year: Koch Supply & Trading
With a swift launch in European gas and global LNG, oil heavyweight Koch Supply & Trading becomes a global player in natural gas
European gas hubs stand to benefit from crisis in Ukraine
Escalating tensions between Russia and the West over Ukraine have taken energy market participants by surprise. With the potential for tougher sanctions, industry observers believe one outcome could be an acceleration of Europe's shift away from oil…
There is plenty of life left in US natural gas
Sluggish prices and low volatility have provided US natural gas traders with few opportunities for trading profits in recent years. But as the past winter shows, it’s too early for them to switch off their computers and retire to the golf course, writes…
PetroChina recruits BAML natural gas trader
Rapidly growing US unit of Chinese state energy giant PetroChina expands into financial natural gas trading with new hire
Classic cutting edge: Swing options and the quest for valuation
Energy Risk presents a classic paper on swing options pricing by Patrick Jaillet, Ehud Ronn and Stathis Tompaidis, which was first published in 1998. It introduced the so-called binomial forest method, which was influential in the development of pricing…
Cutting edge: Valuation and optimal hedging of storage contracts in incomplete gas markets
In this paper, Magnus Wobben, Tilman Huhne, Yuri Ivanov and Sebastian Hanneken examine the impact of market incompleteness on the valuation of gas storage contracts. In contrast to prior research, their proposed valuation framework accounts for the…
Asian LNG buyers seek more flexible terms
Countries including Japan and India are venting their frustration at the hefty premiums and inflexible terms they face in the global liquefied natural gas market. While there are signs things are beginning to change, participants say any further shifts…
Onset of hub-based Asian LNG pricing likely to be slow
LNG importers hoping for quick move to flexible pricing mechanisms will be disappointed, say market participants
Senior JP Morgan energy trader departs
London-based head of European gas and power trading said to leave for BTG Pactual
Experts at the heart of global energy markets
E.ON has combined its trading and gas supply businesses to create E.ON Global Commodities, one of the world’s leading participants in the international wholesale energy markets
