LNG ECONOMICS and MARKETS

A Four Day Seminar

LNG is now a vital part of the global gas business, linking previously unrelated regional gas markets and enabling global gas price arbitrage. However, many uncertainties face the LNG industry as new projects compete for recession-hit demand, the development of shale gas threatens future demand projections, and financing difficulties delay project completions. Understanding the costs and value of LNG is crucial to optimizing LNG operations and purchasing in changing markets.

Course Objectives
This four-day course is designed to provide delegates with an overview of the key issues in LNG economics and markets. The course includes an introduction to the LNG industry as a whole, detailed analysis of each link in the LNG chain, case studies of real-life LNG projects, review of each of the major LNG markets, and exercises in economic modelling to reinforce the key commercial and strategic issues covered. The course is designed to give delegates a deeper understanding of the key drivers of cost and value of LNG throughout the LNG supply chain.

Course Structure
The course is an interactive mix of lectures, case studies, and exercises to encourage delegates to test knowledge gained in practical applications. Days 1 and 2 focus on the costs of LNG, exploring issues of commercial and contractual structure, economics, upstream production, liquefaction and shipping. Days 3 and 4 focus on the value of LNG, considering potential markets for LNG, short-term trading and arbitrage, regasification, and means of accessing markets.

Lectures and case studies in the mornings are followed by exercises in the afternoons, building up a step by step economic model of an LNG project.

• LNG Economics and Markets Exercise 1 – Production and Liquefaction
• LNG Economics and Markets Exercise 2 – Shipping
• LNG Economics and Markets Exercise 3 – Regasification
• LNG Economics and Markets Exercise 4 –

  The LNG Trading Game:

  As a great way of consolidating the learning programme, delegates take part in the LNG Trading Game. Held during the afternoon of Day 4, this popular game introduces an element of fun offering the chance for demonstrations of financial skill and dynamism.

  Delegates are allocated to one of five businesses which are either sellers or buyers of LNG each having specific portfolios of gas supplies and customers. The delegates are then able to trade LNG spot cargoes to meet the requirements of the market.

  Good risk strategy, market understanding and teamwork will gain the advantage offering a real-world simulation in a safe setting.

  The LNG Trading Game

Course requirements
The course has been designed to allow delegates with little of no prior knowledge of economic modelling or the LNG business to benefit, although clearly any knowledge of either area would be useful. The exercises will be based on Excel spreadsheets and therefore, while access to PCs will be provided, a general knowledge of Excel would be helpful, but not essential.

Download course outline (1.4MB) pdf

• Introduction to LNG Modelling and Liquefaction

  • 09:00 – 09:30 Registration and coffee
  • 09:30 – 09:45 Introduction to course
  • 09:45 – 10:30 Session 1 – An introduction to the LNG chain
  • 10:30 – 10:45 Coffee break
  • 10:45 – 11:45 Session 2 – LNG commercial structure
  • 11:45 – 12:45 Session 3 – LNG pricing and markets
  • 12:45 – 13:45 Lunch
  • 13:30 – 14:30 Session 4 – Overview of LNG economics and modelling
  • 14:30 – 15:00 Session 5 – Introduction to Upstream and Liquefaction issues for Exercise 1
  • 15:00 – 15:15 Tea break
  • 15:15 – 17:00 Session 6 – Exercise 1 – Briefing and and work in syndicate groups on modelling the liquefaction terminal
  Day 1 – An Introduction to LNG Modelling and Liquefaction

• Project Structure and Shipping

  • 09:15 – 09:45 Session 1 – Feedback from Exercise 1 – Liquefaction
  • 09:45 – 10:45 Session 2 – LNG projects and producers
  • 10:45 – 11:00 Coffee break
  • 11:00 – 12:00 Session 3 – Upstream
  • 12:00 – 13:00 Session 4 – Liquefaction
  • 13:00 – 14:00 Lunch
  • 14:00 – 15:00 Session 5 – Shipping
  • 15:00 – 15:15 Tea break
  • 15:15 – 17:00 Session 6 – Exercise 2 – Briefing and work in syndicate groups on modelling shipping costs
  • 19:00 – Late Course Dinner in Oxford
  Day 2 - Project Structure and Shipping

• LNG Terminals and Supply

  • 09:15 – 09:45 Session 1 – Feedback from Exercise 2 – Shipping
  • 09:45 – 10:45 Session 2 – Receiving terminals and storage
  • 10:45 – 11:00 Coffee break
  • 11:00 – 11:45 Session 3 – LNG markets overview
  • 11:45 – 12:45 Session 4 – LNG markets – Asia-Pacific
  • 12:45 – 13:45 Lunch
  • 13:45 – 15:15 Session 5 – Exercise 3 – Briefing followed by work in syndicate groups on modelling regasification terminal costs
  • 15:15 – 15:30 Tea break
  • 15:30 – 16:00 Session 6 – Feedback on Exercise 3 – Regasification
  • 16:00 – 17:00 Session 7 – LNG markets – Europe, part 1
  Day 3 - LNG Terminals and Supply

• Pricing and Trading

  • 09:15 – 10:00 Session 1 – LNG markets – Europe, part 2
  • 10:00 – 11:00 Session 2 – LNG markets – Americas
  • 11:00 – 11:15 Coffee break
  • 11:15 – 12:15 Session 3 – Short-term trading
  • 12:15 – 12:45 Session 4 – Briefing for Exercise 4
  • 12:45 – 13:45 Lunch
  • 13:45 – 15:15 Session 5 – Exercise 4 – LNG Trading Game
  • 15:15 – 15:30 Tea break
  • 15:30 – 16:00 Session 6 – Exercise 4 continued
  • 16:00 – 16:30 Session 7 – Discussion and close
  Day 4 - Pricing and Trading

• Oxford: 7th - 10th December 2010

We reserve the right to change the venue, dates and programme at our discretion.

(overnight accommodation is not included in this price.)

Overnight Accommodation not required three nightsfour nights     Dates: 7th December 2010 - Oxford   

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