Glossary of terms used in the trading of oil and gas, utilities and mining commodities.

Trading of oil and gas, utilities and mining commodities has moved from being a contract-focused specialist activity to occupy a more centre stage role in the strategies of companies in these sectors. Energy market liberalisation, carbon markets, increased participation from investment banks and hedge funds, and greater interplay between physical, future, over the counter and exchange traders markets, have all added to the scope and complexity of commodities trading and risk management. This growth and dynamism brings with it a growing and changing language. Cross-commodity trading is also a new reality—from oil, gas, LNG, CO2 allowances, to coal, basic and precious metals and uranium—requiring familiarity with trading terminology among a wider range of professionals. Our glossary provides a comprehensive guide to the many expressions used. Like any guide to language it is, at times, intriguing and fascinating. An outsider coming across terms such as 'butterfly spread' and 'contango' might be forgiven for mistaking the world of energy trading for a summer meadow or an exotic dance. On the other hand, terms such as 'crack spread', 'slamming' and 'brown out' are likely to bring them firmly back down to earth.

In cooperation with the world’s largest natural gas producer, OAO Gazprom, we operate a second business sector, Natural Gas Trading, in addition to the exploration and production of oil and gas. We supply the German and European gas markets through several joint ventures. The biggest of them is WINGAS GmbH & Co. KG. For years, this company has achieved increases in sales that have consistently beaten average market growth. The long-distance network of WINGAS TRANSPORT, which is over 2,000 kilometers long, connects the natural gas markets in Germany and Western Europe with the natural gas infrastructure that stretches through Eastern Europe and the Russian Federation all the way to the gas wells in Siberia. In October 2007, BASF and Gazprom completed an exchange of company shares, which increased Gazprom’s interest in WINGAS GmbH & Co. KG from previously 35 to 50 percent less one share. In view of the continuing growth in joint tasks and to support the ever intensifying cooperation, WINGAS opened its own local office in Moscow in 2007.

European Gas Trading 2009

European gas trading volumes continued to grow in 2008 and the first half of 2009, especially in the Dutch and German markets. The UK market saw a slow-down during the financial crisis, and physical gas deliveries fell in almost all regions during winter 2008-09 as industrial demand declined.With the third legislative package now decided, Europe’s energy market regulators and transmission system operators are moving ahead with important new initiatives.Infrastructure projects are receiving a boost from national and EU responses to the curtailment of Russian gas supplies in January 2009.

Antonio Brufau opens Canada's first liquefied natural gas terminal !
Chairman Antonio Brufau today officially opened the Canaport LNG terminal in Canada, marking the completion of the first of ten key projects outlined in the company's 2008-2012 Strategic Plan. Brufau was accompanied by Kenneth Irving, Chairman of Irving Oil, and Shawn Graham, Premiere of New Brunswick. The terminal, built in association with Irving Oil, is the first of its kind to be built on the east coast of North America in 30 years and the first ever to be built in Canada. The 1 Bcf per day facility will provide supplies of natural gas to homes, businesses and industry in Canada and the northeast US. Repsol is the managing general partner of Canaport LNG with a 75% stake. Repsol has contracted for 100% of the plant's capacity. Repsol began selling gas in Northeast of the US in 2008.

Natural Gas
EDF Trading is a major participant in the European and US gas markets with a network of physical assets. It is active in offshore production, transportation, storage, and wholesale trading and has the ability to transact across all markets and offer customised products and complete solutions. Its assets include gas storage facilities, a large portfolio of long-term gas contracts, regasification capacity in Europe and the USA and LNG supply agreements. EDF Trading operates on all of Europe’s gas trading hubs in Belgium, France, Holland, UK, Germany, Switzerland, Spain, Italy and Ireland. EDF Trading is a leader in the wholesale natural gas markets for North America. It offers a full service, natural gas marketing operation with expertise in all segments of the natural gas industry.