The 5-Day Mini MBA on Understanding The Dynamics of the LNG Industry

Introduction

LNG is natural gas (predominantly methane) that has been converted to liquid form for ease of storage or transport. It takes up about 1/600th the volume of natural gas in the gaseous state. It is odourless, colourless, toxic and non-corrosive.  LNG is the most energy-efficient fossil fuel— it offers important energy saving benefits when it is used instead of oil or coal. It is also a source of hydrocarbons for petrochemical feedstock and a major source of elemental sulphur. Its popularity as an energy source is expected to grow substantially in the future because LNG can help achieve two important energy goals for the twenty-first century— providing the sustainable energy supplies and services needed for social and economic development and reducing adverse impacts on global climate and the environment in general.

The LNG processing and transportation in refrigerated compressed tanks are highly capital intensive and dynamic. To achieve maximum effectiveness, managers and professionals must continually expand their business knowledge and sharpen their skills.

This 5-day Masterclass LNG Industry training course will highlight the added value of Liquefied natural gas (LNG) business from Wellhead to the burner tip.

This training course will feature:

• The fundamentals of LNG, production, transportation, pricing and it's business economics
• Global supply-demand, global production, global market dynamics
• Analysis of technical, commercial, contractual business transactions
• LNG Sales, Marketing and Trading
• Understanding Upstream agreements
• Understanding LNG Sales & Purchase Agreements
• Understanding LNG Shipping arrangements
• Understand LNG Project Financing and Project Management    
• Technical and economic success factors in business to support strategic initiatives; to mitigate risk, and to direct operational decision making

Objectives

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

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

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practice. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This training course is suitable for 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

Course Outline

Day 1: Setting the Introductory LNG Scene in the 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

• Where and who are the producers of LNG

• Projects currently under development

• Where and who are the users of LNG

• Projects currently under development

• Excess water removal

• Contaminants removal

• NGL separation

• Global Production

• Global Markets

• Gas Conditioning Processes

Day 2: Essential Logistics of LNG

• Nitrogen Rejection Processes

  • Cryogenic process

  • Absorption process (using lean oil or solvent) Membrane separation

  • Adsorption process (activated carbon) Storage System

• Storage tanks

• Vapour recovery system LACT unit

• Sampling

• Natural Gas Transportation

• Pipeline components

• Compressor stations

• Metering stations

• Valves

• Control stations

• Basics of gas pipeline

• Gas flow measurement

• Why LNG a growth industry

• Compression & Refrigeration

• Transportation of LNG

• Major LNG Exporting nations

• Major Importing nations

• Pipeline Operations

• Liquefied Natural Gas (LNG)

Day 3: LNG Sales, Marketing and Project Risks

• LNG Sales, Marketing and Trade

  • Price disparity in different regions

  • LNG Benchmarks

  • Major changes in the LNG business

• Business Sector

• Industry and Market Structure

• Natural gas demand

• Natural gas supply

• Economics of the natural gas plants

• Where and who are the users of LNG

• Projects currently under development

• 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

• Global Markets

• Key Project Risk and Value Identification

Day 4: 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

• Alternative Commercial Structures

• The complexity of integrating requirements

• FOB versus DES sales

• Financial structures in LNG

• Investment decision making

• The key value drivers in LNG financing

• Balance financing

• ECA and multilateral agency funding

• Capital markets

• Asset-based financing

• Project financing and structured recourse financing

• Commercial Structures

• LNG Project Financing Essentials

• Overview of LNG Financing Options

Day 5: LNG Agreements, Regulations, and Future Trends

Competency Description: As a manager, you need to prepare proper agreements and implement them successfully

• 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

  • Floating and niche LNG concepts