Day 3 • Friday, May 18, 2012
8:30 – 9:00 a.m.
Continental Breakfast
9:00 – 9:30 a.m.
Review of Previous Sessions
9:30 – 10:15 a.m.
End Use Markets: Propane
Get a closer look at the "retail" (commercial, industrial, and residential) 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 and how U.S. propane markets are different from the rest of the world.
- Market Seasonality – the big risk in managing propane profitability in this sales channel.
- Industry profile – top players and how the MLP structure has affected this business.
- Supply cost management – overview of the process of analyzing the use of physical storage vs. financial swaps in managing prices for winter supply.
- Class Exercise: Propane Price Outlook – develop a view of propane prices for the balance of the year using fundamentals.
10:15 – 10:45 a.m.
Refreshment Break
10:45 – 11:15 a.m.
International Trade – Overview of the Waterborne LPG Business
Typical global trade patterns for LPGs have changed in recent years. The expansion of the Panama Canal and forecast increases in U.S. supply are also changing these markets. In this session learn:
- How the global LPG market is balanced "on the water".
- The future forecast for "waterborne" LPG and its potential impact on global markets.
- Overview of how international prices are set.
- Shipping cost elements and how they affect arbitrage analysis for spot cargoes.
- Why Mont Belvieu is the global clearing market for LPG.
11:15 a.m. – 12:00 p.m.
Tips of the Trade – Pricing, Contracting and Risk Management
Knowing how NGLs and LPGs are priced is essential to a comprehensive understanding of this business. We'll wrap up the course with this overview of:
- Price forecasting – understanding price drivers for each of the NGL products.
- 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 – overview of options for managing price risk.
12:45 p.m.
Course Adjourns