Set the foundation for a deeper understanding of the energy and financial markets.

Energy Glossary

The Pavilion Energy glossary covers common terms and abbreviations from the oil, power, petrochemicals, nuclear, gas, coal and metals markets and industries.


The purchase and sale of identical assets in different markets to take advantage of price differentials.


At-The-Money • The situation where the strike price of an option equates to the market price.


Bill of Lading • A shipping document issued by the carrier to the consignee stating the details of the cargo that is carried. It has generally three purposes; 1) A document of Title, 2) Evidence of the contract of carriage, 3) A shipment receipt.


A term used when the spot price is lower than the futures price with the market expecting prices to decline over time.

Basis Risk

The risk that results from trading an underlying product against another underlying index.


Barrel • A standard measurement of crude oil.


A negative market sentiment where the the trend is believed to be declining and the value of securities decreasing.


A determined standard or level of performance where measurable aspects of an asset or output can be assessed against.


An agreement between two parties on a given set of contractual terms, mandating them to fulfill their obligations.


ICE BrentBrent is the leading global price benchmark for Atlantic basin crude oils. It is used to price two thirds of the world's internationally traded crude oil supplies. 


A positive market sentiment where the trend is believed to be climbing and the value of securities increasing.


The process of refuelling a vessel.

Carbon Footprint

The carbon emitted by a firm into the atmosphere through the activities it has carried out.


Cost, Insurance and Freight • An international commerce term (incoterm) which sets out the seller's obligation where he or she will cover the cost, insurance and freight obligation of the cargo from the point of export to the discharge port and bear any risks associated with it until the point where the cargo is loaded on board the vessel.


CME Group • A company that owns large derivatives, options and futures exchange in Chicago and New York City using its CME Globex trading platforms.


A collar is a financial hedging tool that protects the user against large losses but limits large gains. The simultaneous purchase of the put and call option offsets the premiums paid by purchasing the call or put option.


A term used when the spot price is higher  than the futures price with market expecting prices to increase over time.

Crack Spread

The price differential between crude and its products derived from the process of cracking.

Dated Brent

Dated Brent • Platts Dated Brent is a benchmark assessment of the price of physical, light North Sea crude oil. The term "Dated Brent" refers to physical cargoes of crude oil in the North Sea that have been assigned specific delivery dates.


The elimination of or decrease in carbon footprint.


A remuneration that a shipper pays to the owner for delays incurred due to failure to load or discharge within the stipulated contractual time.


Delivered Ex Ship • An international commerce term that mandates the delivery of the cargo from the seller to the buyer at an agreed port of arrival. The buyer bears the all the costs and risks involved in transporting the goods until arrival.

Dry Dock

A narrow basin where ships will berth and water is subsequently drained out so that maintenance can be carried out.


Platts Dubai • Dubai is the primary pricing reference for crude oil delivered from Middle East Gulf.


Deadweight Tonnage • A unit of measurement for the weight that a ship will be able to carry which includes passengers, ballast, cargoes etc.

Exchange Traded

Products that are traded through a platform which governs and tracks the trade.

Fair Value

The agreed-upon sale price of assets in a transaction between a willing buyer and seller, with the assumption that both parties entered the arrangement freely and with sufficient.


Forward Freight Agreement • A financial hedging contract that allows shipowners, charterers or market participants to hedge against volatile freight rates.


Free On Board • An international commerce term used to determine whether and at which point the seller or buyer assumes the risk from the shipment of the cargo.


Forward Contract • A contract between two parties that Involves the agreement of contract terms on the current date for delivery payment at a specific future date.


Amount paid to the shipper for bringing the cargo from the point of origin to the point of destination.


Futures Contract • A derivative contract, usually traded on the exchange, where it mandates the contract holder to transact the underlying asset at a given date and price in the future.

Gasoil Barges



The act of reducing the risk of and adverse price movement in the underlying asset by offsetting its position.


Henry Hub • Henry Hub is a natural gas pipeline located in Erath, Louisiana, that serves as the official delivery location for futures contracts on the New York Mercantile Exchange (NYMEX).


Intercontinental Exchange • A company that owns the exchange for financial and commodities markets and it offers services like clearing, futures, equity options exchanges and OTC, credit and equity markets.

IMO 2020

International Maritime Organisation 2020 regulations • The lowering of the  global fuel sulphur cap for marine fuels from the current of 3.5% to  0.5%, implemented by the International Maritime Organisation effective of 1 January 2020.


International Swaps and Derivatives Association • A document commonly used to govern the transaction in OTC trades.


In-The-Money • The situation where the strike price of the option is in a more favourable position as compared to the market price.


Japan Customs-cleared Crude/Japan Crude Cocktail • The Japan Customs-cleared Crude (JCC) is the average price of customs-cleared crude oil imports into Japan (formerly the average of the top twenty crude oils by volume) as reported in customs statistics; nicknamed the "Japanese Crude Cocktail.




Japan Korea Marker • Platts Japan Korea Marker is the LNG (Liquefied Natural Gas) benchmark price assessment for spot physical cargoes delivered ex-ship into Japan, South Korea, China and Taiwan. It is now the leading Asia benchmark for LNG pricing.


Know Your Customer • The process of obtaining client's information for onboarding decision making.


The process of converting gas into the the liquid state for the ease of transportation.

LNG Bunkering

The process of refuelling a vessel with LNG as the fuel source.

Location Spread

The price difference between the same underlying based on different locations. For instance, East-West spread which is the price spread of fuel oil between Asia and Europe (Sing 380 vs 3.5 Barges)

Long Form

Long Form Confirmation • A document used in replacement of ISDA in the case whereby the clients wants to do trades for a short duration of time.


The measure of the product's value at a specific point of time, that can change over a course of time before its settlement date.

Market Making

A market player who has a large market influence in which they are able to set the prices based on the market supply and demand.


Million British Thermal Units • A measurement commonly used in the pricing of gas contracts.


Market-on-Close • An order executed at, or immediately following, the close of the trading day. Traders will deploy a MOC order upon the investor's decision to sell or purchase a financial instrument at the final price dealt upon market closure.


Metric Ton • A common measurement for crude oil products, equating to 1000 kilogrammes.


National Balancing Point (UK) • NBP is a virtual trading location for the sale and purchase and exchange of UK natural gas. It is the pricing and delivery point for the ICE Futures Europe (IntercontinentalExchange) natural gas futures contract. It is the 2nd most liquid gas trading point in Europe.


New York Mercantile Exchange • A company that offers energy products and services that was subsequently acquired by CME Group in 2008.


The process of acquiring customers and verifying customer details prior to delivering a product or service to them.


A financial instrument that allows the user to hedge the physical position of the underlying asset. The user has the right, but not the obligation, to exercise the option on the predetermined date in order to protect their margins.


Over-The-Counter • OTC are traded between two parties without having the need to go through an exchange or intermediary. The parties manage the risks and terms as set out in the ISDA contract.


Out-of-The-Money • The situation where the strike price of the option is in a less favourable position in comparison to the market price.


Parent Company Guarantee • A form of security required by clients where the parent company of a contractor guarantees the contractor's performance, in the case of a default of a contract by the latter.


Potential Future Exposure • It is used in the determinant of the potential future risks at a given period, calculated based on a set level of confidence. PFE is generally used to govern the risk exposed in relation to credit terms.


S&P Platts • A provider of energy and commodities information and a source of benchmark price assessments in the physical commodity markets.


Piped Natural Gas • Natural gas that is delivered to the end users through the use of a pipeline network.

Producer Hedging

Producers taking an offsetting position to prevent an adverse movement in the underlying asset.


The hedging of risk using a different pricing index. E.g. Hedging fuel oil based on Brent instead of Fuel Oil pricing.


The process of converting liquefied natural gas back into its gaseous state at atmospheric temperature.


Equipment that is retrofitted to the ship's exhaust to remove the particulate matter from the exhaust steam.

Seasonal Spread

The price difference between the same underlying based on different seasons. For instance, the prices of gas during the winter months against the the price during summer months where demand varies

Sing 180

Singapore 180 CST • Sing 180 CST is the benchmark assessment that reflects the price of high sulphur fuel oil with 180 CST for Asia Pacific. Typically use as pricing in relation to gas or power contracts in Asia.

Sing 380

Singapore 380 CST • Sing 380 CST is the benchmark assessment that reflects the prices for bunkers in Asia Pacific.

Sing Gasoil

Singapore Gasoil • Singapore Gasoil is the benchmark assessment for fuel that reflects the price used for heating purposes and machinery in the industrial sectors in Asia Pacific.

Sing Kero

Singapore Jet Kerosene • Singapore Jet Kerosene is the benchmark assessment that reflects the prices for fuel used by the airline industry in Asia Pacific.

Sing Mogas

Singapore Gasoline • Singapore Gasoline is the benchmark assessment that reflects the prices for fuel used by automobiles in Asia Pacific.

Specification Spread

The price difference between the same underlying based on different specifications. For instance, the prices difference of High Sulphur Fuel against Low Sulphur Fuel Oil.


Ship-to-Ship Transfer • Refers to the transferring of cargo between ships alongside one another instead of transfering of cargoes following the load and discharge on shore.

Sulphur Content

The amount of sulphur present and subsequently released from the combustion of fuel oil.


It is a financial instrument that allows users to hedge their positions by exchanging their floating prices for a fixed price with over a specific period of time.

Systematic Risk

Refers to the risk inherent to the entire market or market segment. This type of risk is both unpredictable and impossible to completely avoid. It cannot be mitigated through diversification, only through hedging or asset allocation strategy.

Time Spread

The price differential between two identical assets which have different settlement dates.

Unsystematic Risk

Refers to the uncertainty inherent in a company or industry investment and can be reduced through diversification.


US Gulf Coast • US Gulf Coast 3% residual fuel oil assessment is a benchmark assessment that reflects the price of high-sulphur fuel oil at five locations within the Houston Ship Channel of Texas.


Very Low Sulphur Fuel Oil • A blend of fuel between High Sulphur Fuel Oil (HSFO) and Gasoil that produces sulphur content that is in compliance with the 0.5% sulphur fuel cap.


West Texas Intermediate • WTI is a benchmark in oil pricing, named after a grade of crude oil. It is the underlying commodity of New York Mercantile Exchange's oil futures contracts.

3.5 barges

Rotterdam 3.5% Barges • Rotterdam 3.5% Barges is the benchmark assessment that reflects the price of bunkers for Northwest Europe

Energy Conversion Calculators

Approximate conversion factors
Natural Gas (NG) and Liquified Natural Gas (LNG)
To Billion Cubic Metres NG Billion Cubic Feet NG Million Tonnes Oil Equivalent Million Tonnes LNG Trillion British Thermal Units
From Multiply by
1 Billion Cubic Metres NG 1 35.3 0.90 0.74 35.7
1 Billion Cubic Feet NG 0.028 1 0.025 0.021 1.01
1 Million Tonnes Oil Equivalent 1.11 39.2 1 0.82 39.7
1 Million Tonnes LNG 1.36 48.0 1.22 1 48.6
1 Trillion British Thermal Units 0.028 0.99 0.025 0.021 1
1 Million Barrels Oil Equivalent 0.15 5.35 0.14 0.11 5.41
Natural Gas (NG) and Liquified Natural Gas (LNG)
To Tonnes LNG Cubic Metres LNG

Cubic Metres Gas

Cubic Feet Gas Metric Million British Thermal Units Barrels Oil Equivalent
From Multiply by
Tonnes LNG   2.222 1,300 45,909 53.38 9.203
Cubic Metres LNG 0.450   585 20,659 24.02 4.141
Cubic Metres Gas 7.692 x 10-4 0.0017   35.31 0.0411 0.0071
Cubic Feet Gas 2.178 x 10-5 4.8 x 10-5 0.0283   0.0012 2.005 x 10-4
Metric Million British Thermal Units 0.0187 0.0416 24.36 860.1   0.1724
Barrels Oil Equivalent 0.1087 0.2415 141.3 4,989 5.8