Gas/LNG Contracts: Structures, Pricing & Negotiation (Johannesburg, South Africa - October 22-26, 2018)

  • ID: 4497206
  • Conference
  • Location: Johannesburg, South Africa
  • 5 Days
  • Infocus international
  • Conference Dates: October 22-26, 2018
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Overview

Due to the complex geopolitical nature of gas/LNG sourcing and long term nature of gas transactions between i buyers and sellers, it is commercially prudentfor those involved in this process to know the global gas/LNG supply 1 situation, available methodologies for price determination, contract structure and negotiation techniques. Any misjudgement in any of these areas could result in wrong sourcing decisions, significant adverse financial consequences and legal liabilities.

This course has, therefore, been designed to enable the professionals in the gas sector and gas advisory services to make right sourcing decision, construct gas/LNG contracts and negotiate from a position of strength and knowledge in order to gain a competitive edge in the process.

The course aims:

- To highlight the global spread of gas/LNG sources with their strengths and weaknesses
- To explain the underlying principles and provide hands on experience of formulation of Gas/LNG Sales and Purchase Agreement (GSPA)(SPA) and Gas Transportation Agreement (GTA) between buyers, sellers and transporters of natural gas and LNG
- To explain the principles and provide working knowledge of pricing of natural gas and LNG in a competitive gas market with reference to other competing fuels and under gas to gas competition and determination of transportation tariff. The course contains detailed references to open access system, regulatory control and entry/exit methodologies, for transportation tariff determination
- To acquaint the participants of the current developments in international LNG and gas trading activities in Europe, USA, Middle East, Atlantic and Mediterranean basins and Asia Pacific region with specific reference to unconventional gas sources such as shale gas
- To analyse the commercial and geopolitical aspects of gas transit across international boundaries, the comparative position of transportation by LNG and pipeline, GTL and CNG by ship, floating versus onshore liquefaction and regasification terminals (FSRU, SPV etc.)
- To provide a comprehensive guide to contract negotiation techniques
- To explain the fundamentals of hub linked gas trading, spot markets and arbitrage

Course Highlights

- Global gas/LNG market and market structure
- Current gas/LNG trading activities in Europe, USA, Asia Pacific, Atlantic and Middle East region
- Principles and formulation of gas/LNG Sales and Purchase Agreement (GSPA)(SPA) and Gas Transportation Agreement (GTA)
- Contract terminology and construction - operational, commercial and legal basis of gas, LNG and Gas Transportation Contracts
- Gas/LNG pricing strategy and price indexation in a competitive gas market
- Contract negotiation - best practice techniques

Key Learning Objectives

- Background knowledge to facilitate gas/LNG sourcing decisions
- Understanding current trends of the gas organisation structure
- Knowledge of the underlying reasons for gas contract terms and conditions
- Sufficient knowledge enabling construction of gas, LNG and gas transportation contracts
- Expertise for contract negotiation
- Techniques of gas/LNG pricing in a competitive market
- Understanding of operation of trading hubs, spot and arbitrage
- Knowledge of transportation tariff determination methodologies

Course Certificate

Upon the successful completion of this course, you will receive a Certificate of Attendence bearing the signatures from both the Exper Workshop Leader and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

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Day 1
Module 1 - Gas/LNG Industry Overview Exercise - Daily demand to contract volumes
Module 2 - Gas/LNG Contract - Principles and Contracting Options Discussion - Role of Conditions Precedent
Module 3 - Gas/LNG Contracts Principles Exercise - Contact volumes & payments
Module 4 - Gas/LNG Contract Elements Discussion - Causes of failure to perform

Day 2
Module 5 - Explanation Key of Gas/LNG Contract Articles Exercise - Reconciling actual with contract volumes and payments
Module 6 - Development of Gas/LNG Contract Articles and Model GSPA Discussion - Assembling team with required expertise
Module 7 - LNG Contract Principles and Model SPA Exercise - Practical aspects of payments
Module 8 - Model LNG Contract - Examples Discussion - Issues arising at interface between gas and LNG supply contract Exercise - Likely disputes and potential amounts at issue

Day 3
Module 9 - Shipping and Risk Mitigation Exercise - Differences between FOB and CIF
Module 10 - High Pressure Gas Transmission Discussion - Public policy and allocation of risk
Module 11 - Flexibility Mechanisms for Gas and Related Contracts Exercise - Available mechanisms for flexibility
Module 12 - Gas/LNG Contract Negotiation - Principles and Techniques Exercise - Preparation of negotiation plan

Day 4
Module 13 - Gas/LNG Pricing Exercise - Commercial implications of local and international pricing
Module 14 - Economic Evaluation and Financial Modelling Discussion - Keeping sight ofjudgement
Module 15 - Gas Pricing Methodology Exercise - Selling HH priced gas into Asia or Europe
Module 16 - Transportation Tariff Exercise - New pipeline tariffs estimation

Day 5
Module 17 - Gas/LNG Trading
Module 18 - Exercise on Gas/LNG Sales/Purchase Strategy Group Discussion - Considerations underlying LNG production and sales strategy
Module 19 - Exercise on Gas/LNG Chain Contracting, Pricing and Key Terms
Module 20 - Project Finance and Risk Sharing

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Who Will Attend

Energy professionals of:

  • Sourcing/Purchasing
  • Legal/Contracts
  • Commercial
  • Finance
  • Negotiation
  • Pricing
  • Marketing
  • Trading
  • Corporate Strategy
  • Sales/Business Development
  • Project Finance
  • Investor Relations

From sectors:

  • Natural gas E&P
  • Gas/LNG trade
  • shipping
  • transmission
  • distribution
  • Government agencies
  • Gas based power generation
  • Gas/LNG related project finance
  • asset management
  • hedge funds
  • equity/fixed income
  • Petrochemical
  • Gas pipeline and high pressure transportation
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ADDRESS

Johannesburg
South Africa

Venue to be announced shortly.

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