This course will explain what is meant by the term LNG Arbitrage and some of the things traders involved in these markets need to consider. The course contains the following chapters: what is physical arbitrage? An introduction to vessel chartering. Costs/benefits of transporting LNG. When do traders arbitrage LNG? Complexities of LNG arbitrage. Hedging an arbitrage transaction.
After completion of this course you will understand:- what in meant by the term arbitrage; freight considerations and delivery terms; risks and opportunities of moving LNG; the difference between fixed and floating priced cargoes; what is meant by “Arbitrage Hedging”; how traders use derivatives to manage price risk on physical deals.
Approx. 90 mins