Course description
Overview of LNG Project Agreements and Trends is a VIRTUAL classroom course presented by the energy training experts at Mennta Energy Solutions.
This course will look at the context of the LNG Sales and Purchase Agreement (SPA) in relation to other Agreements in an LNG project. The purpose and parties involved will be outlined for GSA/PDA/SPA/shipping arrangements and terminal agreements. The timescale, stages of negotiation, risks and mitigations will be detailed. We will also dive into the role of the LNG SPA in the commercial environment and its relevance as the LNG industry is changing.
This virtual solution is comprised of two live instructor-led sessions hosted on state-of-the-art training software with video, audio, chat, live polls, competitive quizzes, breakout sessions and much more! See recorded demonstrations here. The program will also include self-study assignments to maximize the time with the instructor.
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Content
Prerequisite to Session 1 Self-Study Assignment: 30 Minutes On-Demand
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Overview of LNG Project Agreements and Trends Pre-Study
- Introduction to agreements in an LNG project
- Introduction to the SPA
- Operating provisions of the SPA
- Quantity and Force Majeure provisions in the SPA
- SPA contract pricing
- Master Sales Agreement and Trends in LNG SPAs
Virtual Instructor-Led Session 1: 2 Hours
- Overview of the Agreement structure – the interrelationship between the Agreements
- Basic description of the Agreements (GSA/PDA/SPA/shipping arrangements, terminal Agreements) – outline of purpose and parties involved
- Drivers of the various parties as these relate to an LNG SPA
- Stages of negotiation and their relevance (LOI/HOA/SPA) – timescales involved
- Risks and mitigations across the value chain
- Exercise
- Identification of risks and mitigations
Virtual Instructor-Led Session 2: 2 Hours
- Negotiating drivers for buyer and seller – who are the buyers/sellers? Trends and developments where portfolio players are becoming buyers and sellers
- Recap of main LNG SPA provisions (If we can we assume that they will have covered this just prior to the session then this can be about issues arising as questions from the delegates)
- LNG SPA in various commercial structures (JV sales, development of LNG portfolios and US LNG sales) –
- Role of LNG SPA in project financing and impact on investment
- Long term versus short term (LNG SPA versus MSA). The need for common terms and conditions to facilitate short term trades.
- LNG trading – what is required – liquidity in the value chain, emergence of new players. Role of shipping. Constraints to trading
- Market drivers – the role of LNG in the major consuming markets (Asia/Europe/Americas), pricing signals and impact on LNG diversions
- Exercise
- Provisions of an LNG SPA