European Gas & LNG Analyst Mastery PDF Notes

Goal: Build deep macro + structural understanding

1. Evolution of European Gas Markets (1960s → Today)

2. Gas Market Liberalization (UK NBP Model)

3. EU Energy Packages (1st, 2nd, 3rd Energy Package)

4. Unbundling: TSO vs Supplier vs Trader

5. Key Market Participants (Producers, Utilities, Traders)

6. European Gas Value Chain (Upstream → LNG → Retail)

7. Russian Gas Dependency (Pre-2022 Structure)

8. UK vs Continental Europe Market Differences

9. Gas vs Power Market Linkages

10. Role of Storage & LNG in Energy Security

👉 Lab 1: Map European Gas Flows (Russia, Norway, LNG)

Goal: Understand flows = pricing power

1. European Pipeline Network Architecture

2. Major Pipelines: Nord Stream, Yamal, TAP

3. Interconnectors & Cross-Border Flows

4. LNG Terminals Across Europe

5. Regasification Process & Economics

6. Gas Storage Types (Salt Caverns vs Depleted Fields)

7. Storage Economics (Injection/Withdrawal Cycles)

8. Bottlenecks & Congestion Pricing

9. Maintenance, Outages & Flow Disruptions

10. Infrastructure Geopolitics

👉 Case Study: Nord Stream pipeline disruption

Goal: Core trading knowledge

1. Gas Hub Concept & Evolution

2. NBP Market Structure

3. TTF as Europe Benchmark

4. PSV (Italy), THE (Germany) Overview

5. Hub Pricing Mechanics

6. Bid-Ask Spread & Market Liquidity

7. Volume vs Liquidity vs Volatility

8. Hub vs Oil-Indexed Pricing

9. Forward Curve Structure (Contango vs Backwardation)

10. Seasonal Pricing Dynamics

👉 Lab 2: NBP vs TTF Spread Analysis

Goal: LNG = global arbitrage engine

1. LNG Supply Chain (Liquefaction → Shipping → Regas)

2. Major LNG Exporters (US, Qatar, Australia)

3. LNG Contract Structures (Long-term vs Spot)

4. Destination Flexibility & Portfolio Trading

5. JKM Pricing

6. TTF vs JKM Arbitrage

7. Floating Storage Economics

8. LNG Shipping Constraints & Costs

9. Reload Terminals & Re-export

10. Europe’s LNG Dependence Post-2022

👉 Case Study: Europe replacing Russian gas with LNG

Goal: Make trader/analyst desk-ready

1. Spot vs Forward Markets

2. OTC vs Exchange Trading (ICE, OTC brokers)

3. Seasonal Spreads (Summer/Winter)

4. Storage Arbitrage Strategies

5. Swing Contracts & Flexibility

6. Basis Trading (NBP vs TTF vs PSV)

7. Spread Trading Strategies

8. Volatility & Price Drivers

9. Trade Structuring Basics

10. PnL Mechanics in Gas Trading

👉 Lab 3: Build Gas Spread Strategy

Goal: High-value niche skill

1. LNG Cargo Economics Breakdown

2. Delivered Ex-Ship (DES) vs FOB Pricing

3. Shipping Optimization Models

4. Cargo Diversion Decisions

5. Reload & Re-export Arbitrage

6. Atlantic vs Pacific Basin Arbitrage

7. Portfolio Optimization for LNG Players

8. Time Charter vs Spot Shipping

9. Freight Market Dynamics

10. LNG Optionality & Flexibility Value

👉 Simulation: LNG Cargo Destination Optimization

Goal: Institutional-grade risk understanding

1. Market Risk (VaR, Greeks in Energy)

2. Stress Testing (Extreme Scenarios)

3. Credit Risk in Trading Counterparties

4. Collateral & Margining (Cleared vs OTC)

5. Operational Risk (Logistics, Scheduling Failures)

6. Liquidity Risk

7. Wrong-Way Risk in Energy Markets

8. Hedging Strategies (Futures, Options)

9. Risk Reporting & Governance

10. Case: 2022 European energy crisis

Goal: Mandatory for London roles

1. REMIT Overview

2. Market Manipulation & Insider Trading in Energy

3. MiFID II in Energy Trading

4. EMIR

5. Clearing & Reporting Requirements

6. EU Energy Transition Policies

7. Carbon Pricing & EU ETS

8. Gas vs Power Regulatory Differences

9. Compliance in Trading Firms (BP, Shell, etc.)

10. Audit & Surveillance Systems

Goal: Your unfair advantage 🔥

1. Gas Demand Drivers (Weather, Industry)

2. Heating Degree Days (HDD) Modeling

3. Storage Level Analytics (Inventory Impact)

4. Flow Data Analysis (ENTSOG)

5. LNG Tracking (AIS Data)

6. Time Series Modeling (ARIMA basics)

7. Price Forecasting Techniques

8. Correlation (Gas vs Power vs Carbon)

9. Dashboarding (Power BI/Tableau)

10. Building Analyst Reports

👉 Lab 4: Demand Model (Weather + Storage)

Goal: Domain + Tech bridge (your strength)

1. ETRM Overview & Architecture

2. Trade Lifecycle (Front → Middle → Back Office)

3. Deal Capture (Physical vs Financial)

4. Scheduling & Nominations

5. Risk & PnL Reporting

6. Settlement & Invoicing

7. Systems: Openlink Endur

8. Systems: Allegro / Aspect

9. Data Models in Energy Trading

10. Integration with Market Data (ICE, Brokers)

👉 Lab 5: Model Trade Lifecycle in ETRM

Goal: Move toward senior roles

1. Supply-Demand Modeling (Europe)

2. Scenario Planning (War, Weather, Policy)

3. LNG Capacity Expansion Outlook

4. Decline of Russian Pipeline Gas

5. Energy Transition Impact on Gas

6. Hydrogen & Future Fuels

7. Long-Term Price Forecasting

8. Strategic Positioning (Trading Firms)

9. Market Intelligence Reporting

10. Case Study: European Gas Demand Outlook