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Gas, LNG and Power - Operations, Technology, Commercial, Contracts, Project Economics and Risk Management

Who should attend: 

Gas, LNG and Oil supply chains organisations personnel responsible for technical, procurement, engineering, exploration, geoscience, commercial, risk management, contract, legal, finance and economics.

Officials in national and state oil and power companies; ministries of energy, finance, etc
5 days
Course aims: 
  • Comprehensively covers the operations, technical and commercial perspectives of all segments of the gas and LNG gas supply chain through from gas field development, liquefaction processes, shipping, re-gasification, storage, and finally to its supply into a gas distribution networks.
  • Develop participants understanding of natural gas industry agreements, including sales and purchase, transportation, and production related services.
  • Help participants gain understanding of gas industry service and support contracts, and the process for contractor selection.
  • Will introduce participants to the basics of project economics and risk analysis and decision theory, progressing to the finer points of economic modelling in the international arena.
Course outline: 
  • Characteristics - density and purity of LNG, gas as a ‘commodity’, infrastructure, role of governments
  • Transmission - pipelines, shipping, sizes and distances, when to liquefy?
  • Manufacture and handling of LNG - low temperature issues, economies of scale, safety
  • The LNG Project - key factors in success, competitive forces, options for players and newcomers
  • Future trends - Africa’s situation, integration in US and Europe, 21st century as the ‘century of gas’.
  • Commercial issues - relationship of market load to reservoir characteristics, project feasibility
  • analysis, selection of the most appropriate contract
  • Contract formulation - take-or-pay thresholds, accounting, transportation agreements, tariffs, reserving pipeline capacity
  • Contract administration - force majeure impacts on take-or-pay, measuring gas quality, gas delivery procedures for multiple pipeline users, preparing invoices.
  • Introduction to economics and risk analysis
  • Project management fundamentals
  • Energy project economics and measures of performances
  • Project ranking - how to choose the best alternative
  • Cash flow - including the effects of taxation, production sharing, depreciation, inflation
  • Economic indicators - net present value, rate of return, payback, profit-to-investment ratios
  • Risk analysis - probability, expected value, decision trees, value of information, sensitivity analysis, Monte Carlo analysis, reserves distributions, portfolio analysis
  • Fiscal analysis - government take, fiscal regimes worldwide, example analyses.
  • Further development decisions & economic cut off
  • Preparing convincing project proposals
  • Post project appraisal