LNG Commercial Management

What are the Goals?

By the end of this training course, participants will be able to:

• Gain better understanding of the dynamics of the entire LNG value chain
• Understand LNG production, storage, transportation and distribution
• Understand the LNG Pricing Issues, Structures, for exports
• Distinguish various sales, marketing terms and conditions
• Understand the various terms in LPG sales and purchase agreements
• Learn economic evaluation benchmarks and determine return on investments

Who is this Training Course for?

This training course is suitable to a wide range of professionals but will greatly benefit:

• Business Development managers
• Corporate Planning professionals
• Geoscience & Engineering professionals
• Supply Planners & Scheduling professionals
• Government regulators
• Law professionals
• Tax & Finance advisors
• Auditing personnel  
• Compliance officers
• Equity analyst and Bankers
• Joint Venture officers
• Negotiators and Contracting professionals
• Trading professionals

Daily Agenda

Day One: Setting the Introductory LNG Scene in Energy Industry    

• Introduction to the LNG Industry
• Exploration, development and LNG production, shipping, importation
• Cost and value drivers; shareholder expectations
• The value chain: from wellhead to burner tip
• Players: governments, NOCs, IOCs, banks and insurers, etc.
• Natural Gas Value Chain
• Exploration and production
• Processing and Production
• Sales gas transmission
• Underground storage
• Distribution
• Sales gas and product specifications
• Global Production
• Where and who are the producers of LNG
• Projects currently under development
• Global Markets
• Where and who are the users of LNG
• Projects currently under development
• Gas Conditioning Processes
• Excess water removal
• Contaminants removal
• NGL separation

Day Two: Essential Logistics of LNG 

• Nitrogen Rejection Processes
• Cryogenic process
• Absorption process (using lean oil or solvent) Membrane separation
• Adsorption process (activated carbon) Storage System
• LNG Transportation Logistics
• Vapour recovery system LACT unit
• Sampling
• Natural Gas Transportation
• Pipeline components
• Compressor stations
• Metering stations
• Valves
• Control stations
• Pipeline Operations
• Basics of gas pipeline
• Gas flow measurement
• Liquefied Natural Gas (LNG)
• Why LNG a growth industry
• Compression & Refrigeration
• Transportation of LNG
• Major LNG Exporting nations
• Major Importing nations   

Day Three: LNG Pricing Structures for Exports, Marketing and Project Risks 

• LNG Sales, Marketing and Trade
• Price disparity in different regions
• LNG Benchmarks
• Major changes in LNG business
• LNG Pricing Structures and Price Dynamics
• Natural Gas Prices
• Regional Pricing Disparity
• Pricing Structures Key To Future Of LNG Exports
• Oil Linked LNG Pricing
• Business Sector
• Industry and market Structure
• Natural gas demand
• Natural gas supply
• Economics of the natural gas plants
• LNG Expanding Market
• LNG as land transport fuel
• LNG as marine transport fuel
• Key Project Risk and Value Identification
• Understanding the fundamental commercial drivers for project success
• Identification of key project risks (from a commercial perspective) and mitigation strategies
• Reserves definitions and reserves certification
• Completion and cost overrun risks
• Cost linkages to oil and gas prices
• Maximizing Profitability of Gas Plant Assets
• Business Evaluation and Profitability Analysis
• Return on Investment Analysis
• Selection Criteria of Best Return on Investment
• Portfolio Management
• The performance strategy— integrated gas plant
• The successful information strategy
• Operations strategy 

Day Four:  LNG Project Financing and Project Management  

• Gas Plant Project Management
• Project Management Overview
• Industry Perspective
• The Project Management Process
• Project Controls & Quality Controls
• Quality Assurance
• Commissioning and Start-up
• Dispute Prevention & Arbitration
• Disputes
• Arbitration and expert determination
• Commercial Structures
• Alternative Commercial Structures
• Complexity of integrating requirements
• FOB versus DES sales
• LNG Project Financing Essentials
• Financial structures in LNG
• Investment decision making
• The key value drivers in LNG financing
• Overview of LNG Financing Options
• Balance financing
• ECA and multilateral agency funding
• Capital markets
• Asset based financing
• Project financing and structured recourse financing

Day Five: LNG Agreements, Regulations and Future Trends 

• LNG Agreements
• Overview of the contractual Terminology
• Stakeholder analysis and drivers
• Upstream Agreements
• LNG Supply Purchase Agreements SPA
• EPC Contracts
• LNG Shipping arrangements/agreements
• LNG regasification Terminal Agreements
• Fiscal and legal regimes worldwide
• Production sharing arrangements
• Regulations
• The history of regulations
• The market under regulation
• The environmental impact
• The Future Trends in Natural Gas Trends
• Trends in LNG markets
• Latest changes and movements in LNG trading
• The impact of shale gas
• Hubs vs. oil for price setting
• Market shifts in importation and liquefaction
• Mid and small-scale LNG
• Benefits of Floating LNG Business
• Wrap-up and Summary