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The practical business value of derivatives for LNG players.
Number: 68
Author(s) : SATTAR J.
Summary
In the LNG business there is an unseen, less understood, parallel world layered on top of the physical world of cargo movements. This is the world of energy derivatives.
Derivatives enable companies to achieve a measure of revenue certainty. Derivatives act as ashock absorber for corporate earnings, because they translate a floating price exposure into a fixed price exposure.
The conceptual basis for a derivatives contract is that it is an exchange of risk between two parties with opposing price views.
Using derivatives contracts is not speculation when you have an underlying physical position – it’s sensible risk management.
Futures and options are standardised exchange traded derivatives which are used by LNG industry participants.
Available documents
Details
- Original title: The practical business value of derivatives for LNG players.
- Record ID : 30034681
- Languages: English
- Subject: Figures, economy
- Source: 21st International Conference & Exhibition on Liquefied Natural Gas (LNG2026)
- Publication date: 2026/02/05
Links
See other articles from the proceedings (66)
See the conference proceedings
Indexing
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Themes:
LNG and LPG;
Cryology, gas processing: economics and statistics - Keywords: LNG; Measurement; Standardization; Energy; Liquid; Performance; Management
-
Bridging business risk and process safety: the ...
- Author(s) : TANABE M.
- Date : 2026/02/05
- Languages : English
- Source: 21st International Conference & Exhibition on Liquefied Natural Gas (LNG2026)
- Formats : PowerPoint, PDF
View record
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Lowering LNG project capital cost through large...
- Author(s) : DRUCKER A., STRITTMATTER C., MAYER M., MASANI K.
- Date : 2026/02/05
- Languages : English
- Source: 21st International Conference & Exhibition on Liquefied Natural Gas (LNG2026)
- Formats : PowerPoint, PDF
View record
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Changing dynamics of project financing, and opt...
- Author(s) : BHARDWAJ M.
- Date : 2026/02/05
- Languages : English
- Source: 21st International Conference & Exhibition on Liquefied Natural Gas (LNG2026)
- Formats : PDF
View record
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Navigating a volatile LNG market: Be the captai...
- Author(s) : PULSFORD W.
- Date : 2026/02/05
- Languages : English
- Source: 21st International Conference & Exhibition on Liquefied Natural Gas (LNG2026)
- Formats : PowerPoint, PDF
View record
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Portfolio impact of the new LNG supply wave.
- Author(s) : DUNCAN D., SPINKS O.
- Date : 2026/02/05
- Languages : English
- Source: 21st International Conference & Exhibition on Liquefied Natural Gas (LNG2026)
- Formats : PowerPoint, PDF
View record