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International natural gas and LNG markets: Pricing and competitive drivers

Energy Institute

Summary

Price
£1,800 inc VAT
Study method
Classroom
Duration
2 days · Part-time
Qualification
No formal qualification

Location & dates

Location

Address
W1G 7AR
United Kingdom
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Overview

Variable energy drivers in the three main gas consuming markets (Asia, Europe and North America) result in different price indexation preferences in regional pipeline gas and LNG sale and purchase agreements. The divergence in gas prices in these three markets, influenced by shale gas supply in North America and growth in LNG infrastructure, has driven a growth in short-term and medium-term LNG trading and cargo redirections in recent years fuelling more competitive markets.

Through a series of presentations, case studies and exercises delegates are provided with the necessary commercial and technical information with which to analyse gas and LNG markets and pricing.

Description

Day one: Natural gas and LNG supply chains, markets and upstream issues

• Three distinct natural gas markets: Asia, Europe and North America

• Major gas pipeline supply chains: North America, Europe and China

• LNG supply chains spanning the globe

• The increasing impact of LNG in regional gas market

• Long-term versus short-term strategies for buyers and sellers

• Arbitrage and swap opportunities in LNG trading

• Contractual relationships along the supply chains

• Operating in both sellers’ markets and buyers’ markets

• Economics of upstream gas supply to liquefaction projects

• Production profiles, reserves and process losses

• Factors influencing capital and operating costs of gas supply chains

• Flexibility of destination: FOB, ex-ship and re-routing

• Gas and LNG storage, hubs and gas specifications

• Cost of supply and break-even prices

• Competitive issues: LNG versus pipeline gas

Day two: Competition, pricing, financing and contractual issues

• Gas-to-power, gas-to-liquids and gas-to-petrochemicals

• Competition between gas, coal, nuclear and renewables

• Spark spreads and competing fuels for power generation

• Value differences in gas specifications and natural gas liquid components

• LNG shipping vessels and economies of scale

• Impact of Boil-off in LNG transport and storage

• LNG ship ownership versus chartering

• LNG netback pricing, cost deductions and profitability

• Gas price indexation and pricing reopener clauses in long-term agreements

• Financing and risk issues for large-scale gas export projects

• Key gas sale and purchase agreement (SPA) terms

• Mitigating and exploiting price volatility

• Regional impact of exports of North American gas indexed to Henry Hub pricing

• Minimising the impact of contract breaches

• Regional market drivers that prevent global LNG pricing

Who is this course for?

This course is designed for a multi-disciplined audience with some prior basic knowledge of the natural gas industry. It is focused on establishing value and cost components of the supply chain segments from gas producers through to gas consumers. The knowledge and industry insight provided by the course is of value to economic and commercial analysts, risk managers, gas traders, gas portfolio managers, gas strategists, contract, finance and legal professionals.

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Legal information

This course is advertised on reed.co.uk by the Course Provider, whose terms and conditions apply. Purchases are made directly from the Course Provider, and as such, content and materials are supplied by the Course Provider directly. Reed is acting as agent and not reseller in relation to this course. Reed's only responsibility is to facilitate your payment for the course. It is your responsibility to review and agree to the Course Provider's terms and conditions and satisfy yourself as to the suitability of the course you intend to purchase. Reed will not have any responsibility for the content of the course and/or associated materials.

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