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LNG PROJECT AND VALUE CHAIN ECONOMICS

COURSE OVERVIEW & LEARNING OUTCOMES

The relative abundance of natural gas resources (vs. oil) has propelled many resource-rich countries to promote domestic access to their energy resources as foundational strategy to meeting their electricity needs and growing the industrial sector. But because the investments required to develop these gas resources are very significant, many have adopted LNG export (and to an extent, LPG development) as reasonable option for securing the necessary financial resources underpinned by long-term LNG offtake contracts. Typically, a portion of the gas will be allocated to the domestic market, the rest to the liquefaction plant.

This training course covers the gamut of the LNG value chain. It describes the developmental steps of a typical LNG export project, exposes participants to LNG contracts, pricing and project economics and finance. It also helps participants appreciate the challenges unique to monetizing gas resources through LNG or LPG.

TARGET PARTICIPANTS

  • Commercial Analysts, 

  • Gas Development Engineers, 

  • Facility Engineers, 

  • Project Finance personnel, 

  • Development Planners, 

  • Planners,

  • Economists, 

  • Gas Resources Policy Formulators/ Regulators, 

  • Investment Analysts, 

  • Managers and Directors of Gas Projects,

  • Energy Policy Administrators.

EXAMPLE MODULES

  • World Energy Trends and Global Demand and Supply Outlook

  • Global Gas Fields and Gas Resources Landscape

  • Overview of Natural Gas Markets and Gas Demand/Supply Outlook.

  • Overview of the Chemistry of Natural Gas and LNG and LPG Technical Jargons

  • Natural Gas and Value Chain 

  • Overview of Natural Gas Composition and Processing

  • Unique features of LNG Project Development 

  • LNG Technology o Floating LNG (FNLNG)

  • LNG (and LPG) Project Development Phases o FEED

  • EPC Contractor Bidding and Selection 

  • Final Investment Decision (FID) 

  • EPC Key Success Factors

  • Environmental and Social-Economic Impacts- Achieving Social License to Operate

  • Specific Safety and Security Considerations for LNG and LPG

  • LNG Costs

  • Dynamics of the LNG Market – Spot and Short Markets

  • Commercial Structure and Contracts including Destination Clauses

  • LNG Pricing 

  • Netback Pricing 

  • Reference Market Price 

  • Price Indexation 

  • Oil Index Pricing 

  • Price re-openers

  • Liquefied Petroleum Gas – LPG

  • LPG Markets (Domestic)     

  • LPG Pricing

  • Challenges to LPG commercialization in the domestic market

  • LNG and Gas Contracts

  • Upstream Contractual Structures 

  • Preliminary Agreements 

  • Domestic Sales Agreement 

  • LNG Sale and Purchase Agreement 

  • Miscellaneous Agreements

  • Financing LNG Export Project

  • Project Finance Structure

  • The Financing Process and Funding Sources

  • Impact of Market Shifts on Project Finance

  • Risk Management and LNG Business

  • Local Content in Gas (LNG/LPG) Development Projects 

  • Developing an Effective Local Content 

  • Implementation of Local Content 

  • Stakeholder Engagement in Local Content 

  • Ancillary Infrastructural Development 

  • Managing Expectations 

  • Comparison of Local Content Policies 

  • Challenges

  • LNG/LPG Import Projects 

  • Key Considerations in LNG Import Project Development 

  • Import Commercial Structuring 

  • Commercial Agreements

  • Financing Import Terminals and FSRUs

DURATION

5 Days

LOCATIONS:

Accra,
Kigali,
Dubai,
London,
Houston.

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