In this episode, we dive into Liquified Petroleum Gas trading. What is LPG used for, where is it produced and how has the market developed since the advent of shale?
How is trading LPG different from other commodities and what does it herald for other fuels? What is its role in the energy transition and what is its future?
Speaking to our host Paul Chapman on this episode is Jack Nugent. Jack brings a unique perspective. From his early days in LPG broking, to living and working in both Europe and Asia as an LPG trader, he later co-founded his own successful LPG trading company. Jack is the CEO and Founder of Tradavex, a consultancy that helps organizations bridge the interface between technology and business.
Key Talent Takeaways
LPG Traders’ Skill Sets Are Highly Relevant to LNG and Emerging Gas Markets
LPG traders possess a unique mix of expertise across cargo, freight, and derivatives, which is increasingly relevant to LNG trading. As LNG markets mature, traders with experience in LPG—who are accustomed to balancing shipping, storage, and contracts—are well-suited to navigate LNG’s evolving trade flows and develop spot and derivative markets.
LNG is Following the LPG Market Maturity Curve
LNG markets are undergoing the same transition that LPG experienced—moving from regional and opaque to global and highly liquid. As LNG infrastructure, storage, and logistics improve, trading strategies will shift from event-driven volatility to long-term trend-based positioning. Companies in the gas sector should recruit professionals who understand how to build market depth and liquidity in a transitioning commodity.
The Role of Shipping and Storage in LNG and Gas Trading is Expanding
Like LPG, LNG markets rely heavily on efficient shipping and storage. The expansion of VLGCs in LPG mirrors the growth of LNG carriers (LNGCs), and traders must develop expertise in charter-party negotiations, freight risk management, and supply chain optimisation. Companies are increasingly integrating shipping teams within their trading houses, meaning talent with logistics and chartering experience will be in high demand.
Technology Will Be a Competitive Edge in LNG and Gas Markets
The collapse in data storage costs and advances in AI and predictive analytics are transforming how gas markets operate. As LNG and gas trading become more data-driven, firms must hire professionals who can bridge the gap between commodities trading and technology—including expertise in real-time market data, AI-driven trading strategies, and digital platforms.
Future Talent Must be Positioned for Emerging Gas and Hydrogen Markets
LNG and gas trading expertise will be highly transferable to hydrogen, ammonia, and other low-carbon gases as these markets develop. Companies should invest in talent now to understand pricing mechanisms, develop new supply chains, and create liquidity in these emerging gas markets. Traders with experience in early-stage commodity markets, such as LNG’s early spot market, will be particularly valuable.
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