LPG Trading -Workshop 26 - 27 November 2008, Moscow, Russia

Information
Programme

LPG Trading

26 - 27 November 2008, Moscow

The LPG market is currently supply driven and while prices are rising along with other energy costs, LPG is becoming increasingly competitive compared with oil although not always in comparison with natural gas. LPG is likely to become increasingly competitive in comparison with oil. This is because of a potential surplus of building up from two sources. The first is the supply of product from LNG related projects and the second is the growth of refining capacity.

The aims of this course are to develop tools for operating in this sector in the context of these developments.

The comprehensive program examines:

The supply chain – marketing, market drivers and storage tactics
Market developments – projects, regional trends and key international markets
The shipping sector – looking at the international market including North Sea developments
Pricing in the chemical sector – the industry which generally sets the ‘floor’ to LPG prices
Shipping and commodity contracts
LPG trading – in particular a workshop centred around the North Sea
LPG disposal study – strategies

Day 1. 26 November 2008 (Wednesday)

Introduction
• Overview of the programme, definition, units, conversion ratios, professional jargon

Market Developments
• Regional trends and key international markets
• Global LPG supply/demand balances and project developments
• International pricing

Marketing and Market Drivers/Supply Chain
• Seasonality/ Weather
• Supply Chain Economics
• Supply Packages in Downstream Markets
• Using Health and Safety to Support Market Development
• Inventories
• Market Factors

Storage Tactics
• Characteristics, extracting value
• Inbound and outbound logistics
• Procurement
• Infrastructure

The LPG Shipping Market - Economics and Contracts
• International trade developments
• Shipping supply and demand
• The structure of the shipping sector, who does what;
• Rate determinants
• Commercial contract decisions and economics

Supply Chain Workshop

Day 2. 27 November 2008 (Thursday)

Shipping Case Study

Commodity Contracts - Clauses and Disputes, Sales Tactics
• Incorporated and express terms
• Practical suggestions
• Contracts in a typical trade
• Using posted prices and indices
• Selling and buying in varying market circumstances
• Dispute Resolution

LPG Pricing in Chemicals and Case Study
• Demand for LPG as a petrochemicals feedstock, the impact of the chemicals sector on pricing, pricing versus other feedstocks, calculations of the comparative values/yields in petrochemical cracker.

An LPG Physical Trade: Workshop
This Case study involves the participants in the ‘real time’ development of various trading positions around the North Sea involving changing supply, sales and prices as the case develops.

LPG Disposal Study- Strategies
This is a complex study requiring the development of business plans and evaluations by an ‘LPG Team’ working in the context of the parent companies core oil strategies. The participants are charged with outlining the development options, selecting a strategy and its next best alternative, specifying the key risks/reward balance at each stage of the process and identifying main competitors and assessing their possible reactions. The delegates are able to use many of the elements discussed in the course.

Delegate's fee is £1250 and includes:

Participation in the Workshop
Handout materials
Simultaneous translation (English/Russian)
Lunches and coffee-breaks during the workshop