Managing Natural Gas and LNG Weather Exposures with Weather Derivatives | January 30

Wednesday January 30,  2024

9 AM Houston | 10 AM New York | 3 PM London | 5 PM Athens | 6 PM Doha | 7 PM Dubai | 11 PM Perth/Singapore

Panel:

Graeme Wildgoose, Manager, LNG & Natural Gas Advisory, Europe Middle East and Africa, Poten & Partners

Nicholas Ernst, Managing Director, Weather Derivatives, BGC Group
 

Weather directly impacts revenues and profitability of companies in the natural gas and LNG industries.  Primary effects are from unexpected weather changes, which alter gas/LNG demand, pushing companies into long and short positions in their supply portfolios.  Weather events also shift global gas/LNG balances, with this tightening and loosening influencing gas/LNG price levels.  US Gulf Coast to Asia LNG vessel routeing is also affected by rainfall effects on Panama Canal transits.

Weather derivatives are a tool to hedge corporate exposure to unexpected temperature and rainfall impacts.  By identifying a company’s specific weather exposures, and structuring options which pay out against predetermined events using objective measurements, gas/LNG companies can mitigate weather risk to their revenues.

Poten & Partners is part of the BGC Group.  BGC Group’s weather derivatives desk handles a majority of the world’s over the counter (OTC) weather derivatives.

Join us as we discuss how to manage natural gas and LNG weather exposures with weather derivatives.  In this webinar, we will explore:

• Temperature, gas demand, revenue and price effects to illustrate the consequences of weather on the natural gas and LNG industry.
• Explain the practical use of weather derivatives to manage natural gas and LNG commercial exposures from weather events, through five weather derivative case studies which are actual transactions that have been implemented.