What is the Impact of Hubs on LTG?

July 7, 2017 9:10am

Patrick Heather
Senior Research Fellow
The Oxford Institute of Energy Studies

Katya Zapletnyuk
European Gas Markets

Dr. Wolfgang Peters
Managing Director
The Gas Value Chain Company GmbH

Sybren de Jong
Manager Strategist Market Modelling

  • 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?