8:30 – 9:00 a.m.
Continental Breakfast
9:00 – 9:30 a.m.
Day 2 Review
9:30 – 10:15 a.m.
End Use Markets: Propane
Get a closer look at the retail propane industry – the types of end users, regional differences and the challenges for their suppliers. This session delivers crucial propane information such as:
- Propane – overview of the customer base.
- Seasonality – who pays for storage?
- Industry profile – top players and how the MLP structure
has affected this business. - Supply cost management – key to profitability; overview
of a decision tree model to analyze use of physical storage
vs. swaps in managing price. - Class Exercise: Propane Price Outlook
10:15 – 10:45 a.m.
Refreshment Break
10:45 – 11:30 a.m.
International Trade –
Overview of the Waterborne LPG Business
Overview of the Waterborne LPG Business
Typical global trade patterns for LPGs have changed in recent years. In this session learn:
- Future forecast and potential impact on global markets.
- Shipping cost elements and how they affect arbitrage
analysis for spot cargoes. - Why Mont Belvieu is the global clearing market for LPG.
11:30 a.m. – 12:30 p.m.
Tips of the Trade – Pricing, Contracting
and Risk Management
and Risk Management
Knowing how NGLs and LPGs are priced is essential to a comprehensive understanding of this business. This last sesson wraps up the course with an overview of:
- What types of contracts are typical in this business.
- Online trading systems.
- Mid-office systems typically used by NGL companies
to manage contracts and track trades. - Risk management – the key to success (discussion of
the NYMEX contracts for olefins).
12:30 p.m.
Course Adjourns