LNG TRADING AND RISK MANAGEMENT: WORKSHOP; ADVISORY SERVICES; FORWARD CURVE MARKET DATA
2. LNG risk management, trading, hedging, valuation and optimization services:
Sample risk and trading advisory work conducted for LNG clients
Long term contract (SPA) and Asset optimization framework
Designed optimization framework to enhance operational decision such as profit maximizing annual delivery plans; optimal inventory management; analysis of 3rd party trading and arbitrage opportunities
Development of benchmarks for LNG business
Alternative approaches for measuring value creation / performance of LNG business; risk-adjusted performance measurement of operational decisions; analysis of accounting vs. economic perspectives
Risk System Capabilities Assessment
Mark-to-market and market risk exposures; intra-month risk profile; P&L calculation assumptions; incorporation of physical assets into financial risk profile; credit risk measurement and reporting; treatment of contractually embedded optionality
Analysis of option value from the perspective of liquefaction tolling customer to deliver cargoes to multiple destination markets; Identification of key model inputs, data requirements, and alternative calculation engines; Research destination option valuation approaches taken by LNG trading organizations
Communications / Transparency
Prototype a one-page management daily summary report that incorporates key financial and operational positions, credit risk exposures, profitability, physical inventories, etc.
Gas Inventory Optimization Trading Analysis
Reconstruction and analysis of optimization program using daily prices and transaction level data; revenue attributable to alpha (managerial skill / control) and beta (market factors)
Pricing and hedging oil-linked and gas-linked SPAs and medium-term contracts
Volumetric and financial risk exposures to market forward curves. Ratable hedge strategy, valuation and risk reporting. Optionality embeeded such as index-choice (rainbow options), destination/sourcing (best-of ; worst-of), extension clauses and others.
3. FORWARD CURVE MARKET DATA SERVICE
LNG Forward Market Wire (Forward Price Curve data subscritpion offered by Capra Energy)
Capra Energy, in cooperation with Black Swan Risk Advisors, leverages its proprietary methodology and market relationships to develop and validate its LNG forward curves.
Capra Energy's LNG forward market curve service provides independently validated long-term forward price, volatility and correlation curves for the major LNG markets.
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