ENERGY / OUR BUSINESS
Physical Energy Trading
Liquefied natural gas, thermal coal, refined petroleum products and fertilizers for utilities, industrial users and distributors.
What we trade
Physical energy and commodity markets
LIQUEFIED NATURAL GAS (LNG)Spot and term cargoes for power producers and import terminals, on a delivered ex ship (DES) or free on board (FOB) basis.
THERMAL COALSteam coal for power generation and industry, specified by calorific value, sulfur and ash content.
REFINED PETROLEUM PRODUCTSEN 590 diesel (10 ppm sulfur), jet fuel and other middle distillates.
FERTILIZERSGranular urea (46% nitrogen) and other nitrogen products.
CRUDE OILFor refiners, on a transaction-specific basis.
Origin, specification, quantity, delivery basis and delivery window are agreed for each transaction. We do not quote from inventory lists.
How we act on a transaction
Principal or arranger, stated in writing
We state our capacity in writing before terms are negotiated.
AS PRINCIPALTrade Science buys and resells under back-to-back sale and purchase agreements. Title passes through Trade Science, and we are the contracting party to both buyer and seller.
AS ARRANGERTrade Science represents a named principal under a written mandate and discloses that role to every party.
- Requirement
- Verified supply
- Commercial terms
- Contract
- Payment instrument
- Lifting
- Discharge
We coordinate vessel arrangements, nominations, independent inspection, cargo documentation and insurance with terminals, storage facilities, shipowners and surveyors through to discharge.
Representative structures
The kind of transactions we work on
These illustrate the structures our desks work on. They are not a record of completed transactions, and counterparties are not disclosed.
LNG · DELIVERED EX SHIP (DES) · AFRICACargo program for a power utility, delivered ex ship against a documentary letter of credit, with independent quantity and quality survey at discharge.
THERMAL COAL · SOUTH AMERICACargoes for a thermal power producer, specified and priced on calorific value, with load-port inspection and a documentary letter of credit.
UREA · COST AND FREIGHT (CFR) · BRAZILGranular urea for agricultural distribution, shipped cost and freight against a documentary letter of credit.
Risk controls
Identify, allocate, control
Physical transactions carry counterparty, product, documentary, payment, logistics and delivery risk. Our controls include:
COUNTERPARTIESCorporate verification, know-your-customer (KYC) and sanctions screening of companies, beneficial owners, banks and vessels.
PRODUCTIndependent quantity and quality inspection at load and discharge.
PAYMENTBank-issued instruments: documentary and standby letters of credit, with credit insurance where available.
DOCUMENTS AND INSURANCEDocumentary requirements set in the contract and the payment instrument; cargo insurance according to the delivery basis.
CONTRACTClearly defined title, risk-transfer and delivery provisions.
The aim is not to eliminate commercial risk but to identify it, allocate it in the contract and control it through execution.