Past event: How to Manage Natural Gas Storage Assets for Maximum Profits and Minimal Risk Seminar

A One-Day Classroom Seminar (CPE Approved)

Recent trends in the marketplace and the increased pace of liberalisation have joined to raise interest in natural gas storage in both traditional and new market participants. This seminar provides a practitioner's view of the fundamentals necessary to balance cost vs. benefit, the daily optimization and the practical exploitation of sometimes hidden storage opportunities. The role of liquidity and liberalization will be discussed as well as how to exploit storage assets under less than fully liberalized or liquid markets. The workshop will cover the basic pros and cons of various storage analytical models without demanding any prerequisite analytical skills. This seminar is taught by one of the industry's foremost storage management experts, who pioneered many of the techniques commonly used today. In addition, he has delivered this workshop multiple times at the largest European gas forum in Amsterdam.


What You Will Learn

  1. What is the single most important benefit of storage ownership
  2. How storage assets can create their own liquidity where there is none
  3. When it is not appropriate to use storage
  4. Why is managing storage so different from other gas facilities and resources
  5. Why you might be overpaying for natural gas storage assets
  6. The role of analytics in storage management and optimization
  7. Alternative methods for storage valuation and management
  8. The laws of diminishing returns - as applied to natural gas storage
  9. Why liquidity matters so much
  10. Why volatility is your friend
  11. Hands on practical examples works

Your Instructor - Houston

Soli Forouzan

Soli Forouzan is President of Mind Span, Inc., an Energy Trading Risk Management and Asset Optimization consulting firm based in Houston. Prior to holding this position he was the Chief Risk Officer for PG&E Energy Trading, overseeing all trading in electric power, natural gas and other fuels for the third largest energy trading organization in North America. In that and other occasions he oversaw the middle office functions for complex, multi-commodity wholesale energy books. Soli's career spans over 20 years in the energy industry, during which time he traded one of the largest natural gas storage asset portfolios in the industry. Mr. Forouzan has been a Chartered Financial Analyst (CFA) since 1987 and is a frequent speaker at energy industry forums on the subjects of trading risk management and asset optimization.

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Seminar Agenda

8:30 am.to 9:00 am - Registration

Fundamentals of Asset Arbitrage

  • Defining speculation vs. market making vs arbitrage
  • Storage utilization and arbitrage
  • The "psychology" of arbitrage
  • Managing storage for energy supplies vs. profits
  • Why storage is different from other energy assets
    • - Hidden or "embedded" values in storage
    • - Contingent or path-dependent behavior of storage
  • Maintaining a profit & loss or "risk" book for storage
    • - The long and short of it
    • - Multiple meanings of "delta"

Practitioner's Tricks of the Trade
  • Storage analytics
    • - Different methods for valuing storage
    • - The "practical" differences amongst the methods
    • - Why you should value storage the sameway that you plan to manage your storage
    • - Extrinsic vs. intrinsicvalue of storage
  • Why some companies may be overpaying for storage
  • Practitioner's guide to exercising storage options
    • - Why you have to first kill some options in order to create new ones
    • - Things analytics models don't tell you
    • - "Loading" the gun vs. pulling the "trigger"
  • Why analytics are not perfect
    • - The art vs. the science of storage utilization
    • - Operations vs. analytics models- why they are equally important
    • - Managing storage like a game of chess

Examples and Hands on Practice
  • High cycle vs. low cycle storage
    • - The laws of diminishing returns
  • Liquidity and volatility
    • - Fuels for the storage engine
  • Management organization foroptimal storage results

3:30 pm End of Workshop


Venue

Homewood Suites by Hilton Houston Near the Galleria
2950 Sage Rd, 77056
Houston, TX, USA

Who Should Attend this Seminar

This is a basic course for the novice and those relatively new to storage optimization. No prior experience or math knowledge is assumed.

Among those who will benefit from this seminar include energy and electric power executives; attorneys; government regulators; traders & trading support staff; marketing, sales, purchasing & risk management personnel; accountants & auditors; plant operators; engineers; and corporate planners. Types of companies that typically attend this program include electric utilities; power marketers; banks & financial houses; industrial companies; accounting, consulting & law firms; municipal utilities; government regulators and electric generators.

Prerequisites and Advance Preparation
This seminar requires a basic understanding of the natural gas industry. A knowledge of options and/or hedging techniques is helpful but not required. No advance preparation is required before the seminar.

Program Level
Basic level. This fundamental course begins with basic material and then proceeds to the intermediate level.

Delivery Method
Group-live.


Hotel and Seminar Information

This seminar will be held at the hotel listed below or can be conducted on-site at your facilities. The seminar will start promptly at 9:00 AM and will finish at 3:30 PM. The program includes continental breakfast, lunch, and coffee/cookie breaks. Attendees also receive a professionally produced seminar manual that can serve as a valuable office reference. Dress is casual for all seminars

Homewood Suites by Hilton Houston Near the Galleria

2950 Sage Road
Houston, TX 77056
Telephone: (713) 439-1305
View Seminar Location Website

Because of the diversity of hotels found in the area, we will not be holding a block of sleeping rooms with one particular hotel.
Event details
Organizer : PGS
Event type : Training Course
Reference : ASDE-4638