This module is designed to give an over view of the natural gas and LNG industries and to cover some of the important fundamental issues that later modules will be built upon. It will also introduce some of the specialized technical terms and jargons which exist with all industries. This module will also introduce the various units of measurements that are used in the LNG industry worldwide.
(a) What is LNG and how does it fit into the global natural gas industry?
- LNG reserves.
- LNG extraction and production.
- International and local transportation of gas and LNG.
(b) Background to the LNG industry.
- History of LNG.
- LNG key player.
- Key differences between natural gas /LNG & oil.
(c) Sources and properties natural gas and LNG.
- Natural gas and LNG definitions and composition.
(d) Production and processing of LNG.
(e) Main uses of Natural gas and LNG.
- The residential, commercial and industrial markets.
(f) Conversions; LNG and natural gas, natural gas/ LNG and other energy sources.
(2) Production to shipping
This module introduces the concept of the value chain, its economics and a detailed discussion of the first parts from gas production through to LNG Shipping.
(a) LNG Value chain introduction
- Economics of the LNG value chain.
- Cost issues.
- Production of natural gas liquids and liquid.
(b) Exploration, production and transportation of gas to the Liquefaction plant.
- Tax and loyalty
- Production sharing and service agreements.
- The liquefaction ‘train’.
- Economics of scale.
- Liquefaction plant operations.
- Floating Liquefaction (FLNG) and small-scale Liquefaction plants.
- Introduction to LNG shipping.
- The LNG Fleet
- Drivers of growth.
- Key plays in LNG.
- LNG finance.
- Freight calculations.
(e) LNG safety and environmental issues.
(3) Regasification of LNG to End users.
- Elements of regasification terminal
- Optimizing regasification design and operations.
- Land base and floating.
- Safety, environmental .
(b) Transportation from regasification terminal to end users.
- LNG in different types of markets.
- LNG as the only form of gas supply.
- LNG as a small element of a predominately pipelines supply market.
- LNG and pipeline supply as approximately equal suppliers.
- LNG in liberalized gas markets and third Party Access Issues.
(b) End-user issues.
- Combined Cycle Gas Turbine (CCGT) power plants .
- LNG as a ship`s fuel.
- Industrial Users
- Domestic and commercial users
- Sales contracts to end-users and the ability to align these with LNG contract.
- LNG as a, ‘floating pipeline’.
- Differing Legal systems.
(d) LNG value chain: Conclusion.
(4) LNG markets, Supply and Damand:
The purpose of this module is to provide an understanding of the issues impacting the market for LNG worldwide and the specific issues relating to the global supply and demand for LNG.
(a) LNG in the context of global demand for energy.
(b) The global supply of LNG and it principal outlets.
(c) Geographical over view of markets.
- main suppliers.
- main buyers.
- changing patterns and emerging markets.
- new markets and new trade routes.
(d) Supply security issues.
- gas and LNG in a carbon constrained world.
- diversity of supply and flexibility of destinations.
- producers’ dilemma: expert vs domestic demands.
(5) LNG pricing and Trading:
The purpose of this module is to provide an understanding of the issues impacting the market for LNG globally and the specific issues relating to the global pricing of LNG.
(a) Principles of gas and LNG pricing.
- Pricing requires in the various global markets.
- cost components.
- gas price indexation.
- pipeline gas vs LNG prices.
(b) Long term vs Short term prices.
(c) LNG and gas trade.
- How LNG and pipeline gas compete.
- How LNG can compliment pipeline gas.
(d) Trade barriers.
(e) Differences between long term and short term trading.
- emerging LNG spot trade.
(f) The evolving dynamics of LNG trading.
(g) Short term LNG contracts and master sales agreements.
(h) Global trade practices.
(i) Risk management.
(j) Payments security and gurantees.
LNG projects, contracts and future trades.
The purpose of this module is to provide an understanding of the ways that LNG projects are structured, the main contract that under pin: