Understanding the value of Flex Terms in LNG Deals

Understanding the Value of Flexibility in LNG Trades | Lacima Webinar Flexibility can represent a significant source of value in liquefied natural gas (LNG) contracts - but how do you measure it, understand its drivers, and account for it when valuing complex LNG deals? In this webinar, presented by Lacima in collaboration with EEX, Martin Ogden and Chris Strickland explore how quantitative analytics can help LNG market participants understand, quantify and manage the value of flexibility embedded in structured LNG trades. Using a practical LNG contract example, the webinar demonstrates how different contractual options interact to influence deal value, how market volatility and price correlations affect the value of flexibility, and why understanding the full value of a deal requires more than looking at its current profit or loss. In this webinar, you’ll learn about: Valuing structured LNG deals: How to model complex LNG contracts, including pricing formulas, shipping economics and contractual flexibility. Key drivers of flexibility value: The impact of price volatility, correlations between gas markets, deal volumes and portfolio effects. Compound options: How combining contractual options can create additional value, even when an individual option has little or no standalone value. Intrinsic vs. extrinsic value: Why an LNG deal with a negative current value can still have significant expected value over time. Understanding risk exposures: How valuation sensitivities, including Greeks such as Delta, help explain the factors driving deal value. Scenario analysis: How changes in market conditions and volatility can affect the value of structured LNG contracts. Value distributions and risk-reward: Why understanding the range of potential outcomes is essential when assessing LNG deal value. Portfolio considerations: How individual contracts, contractual flexibility and hedging decisions interact within a broader LNG portfolio. The webinar illustrates why accurately valuing flexibility is increasingly important for LNG traders and commercial teams negotiating complex contracts, evaluating trading opportunities and managing market risk. About Lacima Lacima provides energy and commodity analytics software to support confident decision-making across trading, valuation, optimisation and risk management. Its solutions help market participants analyse individual deals and portfolios across energy and commodity markets. Learn more about Lacima: https://lacimagroup.com/ #LNG #EnergyTrading #RiskManagement #EnergyMarkets #LNGTrading