LNG Commercial Structuring and Operations
28 -30 March 2012, Perth - Australia
23 - 26 April 2012, Istanbul - Turkey
24 - 27 September 2012, Madrid - Spain
At a glance:
Why LNG Commercial Structuring and Operations?
Buiding confidence operating in strategic scenarios
Workshop Programme
Direct Benefits
Register or Contact us
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Download the brochure for Perth
Download the brochure for Istanbul
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Why LNG Commercial Structuring and Operations?
Establishing an LNG project requires a systematic approach to building confidence in LNG supply and market off take.
This workshop is about learning the practical steps and skills to creating a viable LNG chain and managing operations to realise value.
Through this workshop, those responsible for developing projects and those who have to operate them will understand each others\' practical challenges, improving the operability of future projects and capabilities of the project operators.
Building confidence operating in strategic scenarios
1. Commercial requirements for a viable LNG chain
1.1 The LNG chain
Review of pre-reading on the basic structure of the LNG chain and functions of each step. Who are the participants and what are their roles.
Essential differences from pipeline gas
1.2 Business risks in the chain
Put yourself in the position of each of the players in the chain and identify their business risks:
>> what does each party worry about in relation to their own performance and dependence on others in the chain?
1.3 Business models, how the chain is put together to justify finance
Overall view of the process and criteria to be met from point of the lender
Building credibility as a seller, and as a buyer
Detailed aspects for each element
Principal agreements in the chain and the risks that need to be addressed in each
Typical project schedule for LNG project development with parallel maturation of different streams
Different business models used and how risks are allocated in each:
• upstream/gas sale/liquefaction/ships/LNG sale
• gas purchase/re-gas/ships/LNG purchase
** REAL-LIFE EXERCISE** Structuring commercially the elements in the chain
Upstream and downstream teams separately address their briefs to define their requirements and options as either sellers or buyers:
• reserves, aggregation of volumes, gas gathering, access to liquefaction, ships
• buyers, transmission/distribution/re-gas/ships
Buyers and sellers meet to agree basic parameters of the deal in HOA
2. Linking the elements through contracts
2.1 Contracts in the chain
The principal agreements that create the chain (gas supply, LNG sales and purchase, re-gasification services and gas sales) are described through the lenses of their purpose and the risks they address.
**REAL-LIFE EXERCISE** Completing the chain
Upstream and downstream teams finalise their positions and negotiate the key terms of the sale and purchase of LNG (volumes, timing, ramp rate, ToP) and agree the conditions precedent enabling them to proceed to FID.
3. From contracts to a commercial operation
3.1 Business processes defined in agreements
How to derive processes defined in LNG chain agreements e.g. quantities, scheduling and delivery, invoicing and payment, FM
Mapping rights and obligations to processes
Developing integrated procedures with responsibilities allocated
**REAL-LIFE EXERCISE** Planning for operations
Teams work through their suite of gas sales and purchase agreements based on the deals previously put in place to extract some key processes and build integrated procedures in two main areas:
• Scheduling Deliveries
• Quantities management
3.3 Organisational implementation and staff planning for commercial operations
Matching procedures and the organisation.
Testing and embedding procedures, training staff and anticipating change
Recording and accessing to data, information and experience from administering commercial agreements.
4. Managing commercial operations
**REAL-LIFE EXERCISE**Long term contracts
Teams will manage ADP and quantities through a simulation of three years of deliveries as seller or buyer. The three years will incorporate a range of realistic events to be handled and the quantities correctly accounted.
4.1 Short term trade, optimising performance
Development of global LNG trade and the emergence of spot sales and arbitrage
New entrants and business models
Different risks of trading spot cargoes
Direct Benefits
>> Helping you achieve commercial excellence in your LNG operations to optimise value.
During this workshop, participants will appreciate the scale of commercial challenges that LNG projects face, from structuring through to Final Investment Decision (FID) and beyond.
As participants will understand that excellence to commercial operations is essential to securing and maintaining project value, you will learn:
1. To create operating procedures and systems from their commercial arrangements
2. To manage operations when things are or are not going according to plan
3. To explore every step of the agreement negotiation process
4. To implement the agreements effectively.
5. To understand the challenges faced by every party in the process.
>> Gas Strategies’ Value Sharing
We bring our hands-on experience from the vast majority of LNG projects worldwide to this workshop, transferring practical and real value to your role and to your organisation.
Register or Contact us
If you would like to register or just want to know more, you can:
- Email: orders@gasstrategies.com
- or call us on +44 (0)20 7332 9950
Download the Brochure
>> Download the workshop's brochure here
Workshop dates and location
28-30 March 2012, Perth - Australia
23 - 26 April 2012, Istanbul - Turkey
24 - 27 September 2012, Madrid - Spain