LNG Contracts and Price Negotiation

What are the Goals?

By the end of this LNG Shipping Economics & Freight Cost Calculations training course, participants will be familiar on the following:

• Determine the LNG Shipping Industry Value Chain.
• Understand LNG Terminal Types, Facility and infrastructure
• Identify LNG Applicable Rules, Regulations, Codes and Standards
• Recognise Key Components of the LNG Chain
• Revise LNG Contracts: Fundamental’s elements
• Demonstrate Elements in a Purchase and Sale Agreement
• Practice Negotiation to resolve oil and gas disputes
• Discuss International LNG Shipping Documentations
• Differentiate LNG Supply and Demand Balance
• Identify Global LNG Shipping Considerations
• Value LNG and Domestic Gas Value Chains
• Express Spot and Short-Term Markets
• Understand Custody Transfer Requirements
• Propose FSRU- The vital component in LNG
• Measure FSRU CAPEX, OPEX and Chartering
• Differentiate Between the demand for LNG transport & the supply of LNG transport
• Demonstrate Geographic Distribute LNG molecule supply and demand
• Assess Average freight rates by propulsion technologies
• Discuss Example for the Calculation of the shipping price (Freight Rates)
• Recognise LNG as a fuel and ship design configurations
• State LNG trading route development Asia Pacific regions

Who is this Training Course for?

• LNG Commercial Managers
• LNG Vessel negotiators
• LNG Project Managers or Engineers
• LNG Commercial Managers
• Maritime Legal Counsels or Advisors
• Vessel Operation Managers
• LNG Business Risk Managers
• LNG Business Development Managers
• LNG Contract Managers
• LNG Sourcing / Purchasing Managers
• Corporate Strategy Managers
• Energy Regulators & Investor Relations
• LNG FSU Owners, Managers, Operators
• LNG suppliers, traders and distributors
• Offshore Vessel and FPSO Owners and Operators

Daily Agenda

Day One: Overview of LNG Business

• What is LNG?
• LNG Terminal Types, Facility and infrastructure
• Liquefaction Terminals (Export)
• Regasification Terminals (Import)
• Broad Terminal Operations
• Introduction to LNG Business Best Practices
• LNG Applicable Rules, Regulations, Codes and Standards
• Introduction to SIGTTO Guidelines
• International Code for The Construction & Equipment of Ships Carrying Liquefied Gases in Bulk (IGC CODE)
• Introduction to ISO/TS 16901:2022 (risk assessment in the design of onshore LNG installations)
• Key Components of the LNG Chain
• Gas field
• Liquefaction plant
• LNG carriers
• Receiving and regasification terminals
• Storage

Day Two: LNG Trading Legal System and Contractual Laws

• LNG Contracts: Fundamental’s elements
• Elements in a Purchase and Sale Agreement
• Contract formation
• Contract terms
• Interpretation of contract terms
• Challenges in LNG Contracts
• Remedies for breach of contract
• Negotiation to resolve oil and gas disputes
• Operational Impact
• International LNG Shipping Documentations
• Bill of Lading
• Hague Visby Rules
• Time Charters
• Contracts of Affreightment (COA)
• Contract of carriage
• Bearer bill
• Order Bill
• Bill of Exchange
• Commercial Invoice
• Letter of Credit
• Insurance Certificates

Day Three: LNG as A Commercial, Domestic Fuel Source for Industry

• LNG Supply and Demand Balance
• Global LNG Shipping Considerations
• LNG and Domestic Gas Value Chains
• Elements of a Gas Master Plan
• Structuring an LNG Project
• LNG Project Development Phases
• LNG Reference Market Price
• Oil Indexed Price Formula
• Spot and Short-Term Markets
• LNG and Gas Contracts
• Preliminary Agreements
• Domestic Gas Sales Agreement
• LNG Sale and Purchase Agreement
• Miscellaneous Agreements
• Financing an LNG Export Project
• Risk Management and LNG Business
• Types of Risk in LNG

Day Four: LNG Flow Measurement, Custody Transfer & FSRU Operation

• Custody Transfer Requirements
• Applications of Flowmeters
• Meter Factor
• Proving Systems (Direct, Indirect, Master Meter, Volume, Displacement)
• Custody Transfer Skids
• Flow Computers and Communication
• Temperature and Pressure Measurements
• LNG Cargoes Specification
• LNG Quality Specifications
• Global LNG Specifications Guide
• FSRU- The vital component in LNG
• Port and Marine Infrastructure
• Global FSRU Fleet
• FSRU CAPEX, OPEX and Chartering
• Main FSRU Technology options
• FSRU Designs
• FSRU Services
• FSRU Projects

Day Five: Methodology to Estimate Medium-Term LNG Freight Rates

• The Difference Between the demand for LNG transport & the supply of LNG transport
• Geographic Distribute LNG molecule supply and demand
• Average freight rates by propulsion technologies
• Calculation of shipping demand
• Calculation of shipping supply
• Global fleet of LNG ships
• Determination of the price equilibrium and freight rates
• Example for the Calculation of the shipping price (Freight Rates)
• LNG as a fuel and ship design configurations
• LNG trading route development Asia Pacific regions
• Qatar EU Long Term Deal
• China-Qatar Gas Deal