What is the Impact of Hubs on LTG?

July 7, 2017 9:10am

What is it about?

  • How can the hub based pricing agreements be used to manage risk in your portfolio?
    • If hub minus prices give the buyer a guaranteed margin and eliminate volume risk, are hub minus prices fair and reasonable in allocating contractual risk?
  • Analysing the current situation in Europe on the changing gas pricing formation, away from oil-indexation to gas-to-gas market pricing?
  • Dominant hubs in Europe (TTF and NBP):
    • What is the total volume trade and how to incorporate this in discussions when renegotiating your contracts?
  • Why and how hubs will change the relationship between historic suppliers in europe and buyers?
  • Why would a seller want a hub minus contract in a liquid hub when it can sell on that hub without a discount?
  • Can you negotiate a price below the hub price?
  • With LNG glut coming and Brexit taking place, what do you expect to become a flaw in Atlantic and Pacific LNG pricing?
  • Which conditions were triggering the upward trend observed on PSV in terms of tradability/liquidity?
  • How would you determine whether you use NBP or TTF for indexation of LNG contracts?
    • What criteria would you be considering?
  • Why is VTP influencing other hubs even though it does not have the same kind of liquidity and churn?
  • Do hubs follow oil prices to any degree?
  • Decline of Dutch volumes will impact the relative market share of sellers supplying EU. Will TTF price depend more on Norway and Russian suppliers?
  • What is a physical flow requirement to maintain a successful, influential hub?