Guide to Pricing and Risk Management in the LNG Market
09 Jun 2015
Trading in Commodities differs from other asset classes in that in most cases the products are physically delivered. This introduces a number of risks. This paper focuses on the financial exposure of specifically LNG deals and how to hedge it. The LNG market is interesting as it is a market that is currently in flux. At this time of writing there is no global spot market for LNG but there are moves (admittedly slowly) in this direction.