Gas Trading
Gas trading today is a dynamic process that involves the buying and selling of natural gas through both physical and financial markets. In the physical realm, actual delivery of natural gas takes place based on negotiated contracts. On the financial side, participants engage in trading various instruments like futures and options without the need for physical delivery.
Gas prices are influenced by factors such as supply and demand, geopolitical events, weather conditions, and regulatory changes. The advent of liquefied natural gas (LNG) has globalized the gas trade, allowing for efficient transportation across regions.
Trading Process
The gas trading process involves a series of steps, encompassing both physical and financial aspects. Here is an overview of the typical gas trading process:
- Market Analysis
- Risk Management
- DContract Negotiation (Physical Trading)
- Financial Trading
- Trade Execution
- Transportation and Logistics (Physical Trading)
- Clearing and Settlement
- Market Monitoring
- Regulatory Compliance
- Post-Trade Activities
- Booking and Documentation
- Cargo Packaging and Labeling
- Customs Clearance
- Transport to Port
- Port Operations
- Vessel Departure
- Voyage
- Customs Clearance at Destination
- Inland Transportation
- Delivery to Consignee