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Course Level
Introduction
Delivery Method
Classroom Instructor-Led Course
Professional Development Credit Hours
16
Pre-requisites
There is no pre-requisite for this course.


Faculty

Malcolm Johnson has more than 30 years experience at Shell in the natural gas/LNG sector. He was Strategy and Planning Manager in the United Kingdom and Germany during the period of gas liberalisation in Europe. Malcolm has been involved in the development of a number of LNG projects including over 13 years on the Sakhalin LNG project from its inception to final investment decision involving the full range of commercial activities including governance, marketing, LNG contract negotiations and technical/ commercial interface management. He has also provided commercial advice on the Elba LNG receiving terminal expansion, floating LNG, LNG contracts and project development assurance. He is a recognised subject matter expert on commercial LNG matters. Malcolm is now a Director of eMJay LNG Limited providing expert advice and consulting services to the natural gas/LNG industries.


Accreditations

NASBA: Mennta Energy Solutions is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

CPD Certification Services: The CPD Certification Service works with Mennta Energy Solutions to ensure valuable knowledge is structured to complement the universal guidelines of Continuing Professional Development. Mennta Energy Solutions courses are approved by CPD at one credit per training hour.

BAC: Mennta Energy Solutions is pleased to be endorsed by the BAC for Independent Further Education as a Short Course Provider. Endorsement covers courses delivered in the UK only.

GARP: Mennta Energy Solutions is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits.

North American Overview of the LNG Value Chain (CLASSROOM) - LNG1NA


Course Summary

This course provides a comprehensive overview of the LNG value chain from upstream supply, liquefaction, shipping and regasification of LNG. The course is designed for LNG professional involved in commercial, business development and other activities requiring an in-depth knowledge of gas and LNG. The focus is on the intergrated nature of the LNG value chain and the implications for the various contractual arrangements with particular emphasis on North America and its role in the global LNG business.

What Will You Learn?

  • What is involved in developing an LNG project
  • The LNG value chain and the investments required
  • The processes involved in the value chain and their commercial impact
  • The importance of gas quality and upstream supply issues
  • Impact of economies of scale
  • The specialised nature of LNG projects
  • The different technologies and their commercial impact
  • The interaction between upstream GSA and LNG SPA
  • The specialised nature of LNG ships
  • How shipping fits in the value chain
  • Alternative shipping arrangements/options
  • The main Shipping/charter Agreements and their implications
  • How a regasification terminal operates
  • Who the key stakeholders in an LNG project and their drivers
  • How an LNG project is developed
  • Commercial issues impacting LNG projects across the value chain
  • The main Agreements in an LNG project and how they are structured and progressed
  • Analysis of the main agreements (GSA/gas transportation/LNG SPA)
  • The different business models in project development
  • The economic impact of the commercial terms in the main agreements
  • Financing structures and lender requirements
  • A global view of LNG supplies by region with focus on North America
  • Competitiveness of North American LNG
  • Where the key LNG markets are and their characteristics
  • How LNG is priced and regional differences
  • The specialised nature of LNG trading
  • The differences between trading oil and LNG
  • Short term vs long term trading

Who Should Attend?

Commercial managers and business developers requiring an in-depth knowledge of the LNG business in North America and its relationship to global LNG developments

Professional personnel interacting with LNG supplies, markets and trading e.g. finance, legal, marketing and those who need to understand the various sectors of the value chain and how they interact.


Course Content

The LNG Value Chain

Overview of the LNG Value Chain

  • The components of the value chain
  • The integrated nature and the implications for LNG project development

Technical Process overview

  • Upstream supplies and the different types of gas sources
  • Unconventional gas supplies (shale/cbm)
  • Importance of gas quality
  • LNG storage requirements
  • LNG liquefaction processes
  • Comparison of process technologies
  • New technologies (floating LNG)
  • Shipping technologies and special nature of LNG vessels
  • Cost comparison versus pipeline
  • Shipping capacity and delivery capabilities and limitations
  • LNG regasification and processes involved
  • Terminal operations
  • Offshore regasification

LNG project development

  • Project phases
  • Requirements at each phase
  • Project Milestones and reviews
  • Importance of integration across the value chain during project development
  • Timetables
  • Cost implications and value generation

Commercial Structures

  • Alternative Commercial Structures
  • LNG Contract chain Contractual arrangements and timing
  • Complexity of integrating requirements
  • Commercial implications of alternative structures
  • FOB versus DES sales
  • Tolling arrangement

LNG Agreements

  • Overview of the contractual terminology
  • Stakeholder analysis and drivers
  • Agreement structure map
  • Upstream Agreements
  • LNG Supply Purchase Agreements SPA
  • EPC Contracts
  • LNG Shipping arrangements/agreements
  • LNG regasification terminal arrangements/agreements
  • Financing options and arrangements
  • Comparative business models, US versus traditional LNG projects

 Overview of natural gas/LNG Supply demand

  • Evolution of the LNG business
  • Relative size of LNG versus pipeline supplies

LNG Supplies

  • Global LNG supplies
  • Regional supplies - Asia, Middle East and Atlantic Basin
  • US/Canada supplies
  • Status/Regulatory process (DOE/FERC/MARAD) for LNG projects
  • US LNG business model
  • Issues arising from LNG exports versus domestic market
  • Key success factors
  • Constraints on new project developments

LNG Markets

  • Overview of Natural gas consumption
  • Growing importance of LNG
  • Regional Market overview
  • Asia, status, market characteristics, drivers and energy policies
  • Europe, market characteristics, drivers and energy policies
  • North/South America
  • Overview of North American Gas scene, structure
  • North America resource base -
  • Historical development of North American Gas business
  • North American pipeline network
  • US Energy policies

LNG Trade

  • Trading patterns
  • Pipeline versus LNG
  • Portfolio trading
  • Arbitrage opportunities
  • Constraints on LNG trading
  • LNG pricing basis/principles
  • Types of trade (long term versus short term)
  • Impact of regulations
  • Diversions/swaps and arbitrage

LNG Future Trends

  • Growth potential
  • New technologies
  • New frontiers
  • New players
  • Trading and commoditisation
  • Constraints on new project developments

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