LNG Industry Foundations: Project Structure and Commercial Aspects (LIF2)
The commercial arrangements across the LNG value chain provide the structure that links together the stakeholders involved, their roles and responsibilities, the commercial structures and the risk and reward balance. In this course, you will learn what is required to develop an LNG project, including the timescales and the costs involved at the various stages of development. You will be introduced to the contract terms, economics and the pricing formulae used to evaluate the project. You will also learn the importance of financing and the need for long term LNG SPAs to underpin the investment.
This is the second part in the LNG Foundations series and users are advised to take the following course first, or have equivalent knowledge:
LNG Industry Foundations: Physical Characteristics and Processes (LIF1).
You will learn to:
- Point out all of the stakeholders involved in an LNG project in terms of their drivers for being in the project, their influence on how the project might develop and their concerns about the risks involved.
- Differentiate the commercial structures and how they determine the roles and responsibilities and the risk reward balance.
- Identify the stages of project development from feasibility study to construction.
- Identify the range of contracts required and their interdependence across the value chain, recognizing the importance of the LNG Sales and Purchase Agreement (LNG SPA).
- Recognize the importance of the price formulae in LNG contracts and the regional difference between prices and price formulation.
- Recognize the importance of financing in developing multi-billion dollar LNG projects including the requirements for long term contracts to underpin the investment.
Practice exercises and self-assessment quizzes are included to help reinforce key topics introduced throughout the course.
A comprehensive final test will be given at the end of the course.
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