INTRODUCTION TO THE COURSE
Liquefied Natural Gas (LNG) plays an increasingly pivotal role in the global energy landscape, offering cleaner, more efficient energy alternatives and helping countries meet sustainability goals. LNG is natural gas cooled to approximately –160°C, allowing it to be transported and stored in liquid form. It supports a broad range of applications—power generation, transportation, petrochemical feedstock, and more—while reducing greenhouse gas emissions compared to other fossil fuels.
The LNG Commercial Management training course delivers a comprehensive understanding of the LNG business—from production and liquefaction to trading, marketing, and sales agreements. Designed for professionals involved in commercial strategy and operations, this 5-day training course explores the commercial, contractual, and economic drivers of the LNG value chain and provides the tools needed to mitigate risks, seize growth opportunities, and make informed decisions.
This LNG Commercial Management training course will highlight:
- LNG fundamentals: production, liquefaction, transportation, and global distribution
- Global LNG market dynamics, supply-demand drivers, and regional disparities
- LNG pricing structures, issues, and their implications on exports
- Commercial and legal aspects of LNG Sales and Purchase Agreements (SPAs)
- Key success factors in LNG sales, trading, and marketing strategies
- Strategic and financial evaluation of LNG investments and return metrics
- Risk mitigation tools and decision-making processes in LNG operations
COURSE DETAILS
Objectives
By the end of this LNG Commercial Management training course, participants will be able to:
- Understand the entire LNG value chain and its commercial significance
- Analyze the global LNG supply-demand outlook and market competitiveness
- Evaluate LNG pricing models and regional pricing disparities
- Navigate the key clauses in LNG sales and purchase agreements
- Interpret marketing, trading, and negotiation strategies in the LNG business
- Conduct economic analysis to assess project feasibility and investment return
- Understand commercial risk factors and apply mitigation strategies in LNG deals
Training Methodology
This LNG Commercial Management training course will utilise a variety of proven management learning techniques to ensure maximum understanding, comprehension and retention of the business tools, techniques and best practices presented. The daily workshops will be highly interactive and participative. Participants will learn by active participation throughout the programme using programme materials, case study exercises, quizzes, training videos and discussion of business cases issues in their organizations.
Who should Attend?
This KC Academy LNG Commercial Management training course is suitable to a wide range of professionals but will greatly benefit:
- Business Development Managers
- Corporate Planning Professionals
- Geoscience & Engineering Professionals
- Supply Planners & Scheduling Professionals
- Government Regulators
- Law Professionals
- Tax & Finance Advisors
- Auditing Personnel
- Compliance Officers
- Equity Analyst and Bankers
- Joint Venture Officers
- Negotiators and Contracting Professionals
- Trading Professionals
DAILY AGENDA
DAY 1: Setting the Introductory LNG Scene in Energy Industry
- Introduction to the LNG Industry
- Exploration, Development and LNG Production, Shipping, Importation
- Cost and Value Drivers: Shareholder Expectations
- The Value Chain: From Wellhead to Burner Tip
- Players: Governments, NOCs, IOCs, Banks and Insurers, etc.
- Natural Gas Value Chain
- Exploration and Production
- Processing and Production
- Sales Gas Transmission
- Underground Storage
- Distribution
- Sales Gas and Product Specifications
- Global Production
- Where and Who are the Producers of LNG
- Projects currently under Development
- Global Markets
- Where and Who are the users of LNG
- Projects currently under Development
- Gas Conditioning Processes
- Excess Water Removal
- Contaminants Removal
- NGL Separation
DAY 2: Essential Logistics of LNG
- Nitrogen Rejection Processes
- Cryogenic Process
- Absorption Process (using lean oil or solvent) Membrane Separation
- Adsorption Process (activated carbon) Storage System
- LNG Transportation Logistics
- Vapour Recovery System LACT Unit
- Sampling
- Natural Gas Transportation
- Pipeline Components
- Compressor Stations
- Metering Stations
- Valves
- Control Stations
- Pipeline Operations
- Basics of Gas Pipeline
- Gas Flow Measurement
- Liquefied Natural Gas (LNG)
- Why LNG a Growth Industry
- Compression & Refrigeration
- Transportation of LNG
- Major LNG Exporting Nations
- Major Importing Nations
DAY 3: LNG Pricing Structures for Exports, Marketing and Project Risks
- LNG Sales, Marketing and Trade
- Price Disparity in Different Regions
- LNG Benchmarks
- Major Changes in LNG Business
- LNG Pricing Structures and Price Dynamics
- Natural Gas Prices
- Regional Pricing Disparity
- Pricing Structures Key To Future Of LNG Exports
- Oil Linked LNG Pricing
- Business Sector
- Industry and Market Structure
- Natural Gas Demand
- Natural Gas Supply
- Economics of the Natural Gas Plants
- LNG Expanding Market
- LNG as Land Transport Fuel
- LNG as Marine Transport Fuel
- Key Project Risk and Value Identification
- Understanding the Fundamental Commercial Drivers for Project Success
- Identification of Key Project Risks (from a commercial perspective) and Mitigation Strategies
- Reserves Definitions and Reserves Certification
- Completion and Cost Overrun Risks
- Cost Linkages to Oil and Gas Prices
- Maximizing Profitability of Gas Plant Assets
- Business Evaluation and Profitability Analysis
- Return on Investment Analysis
- Selection Criteria of Best Return on Investment
- Portfolio Management
- The Performance Strategy— Integrated Gas Plant
- The Successful Information Strategy
- Operations Strategy
DAY 4: LNG Project Financing and Project Management
- Gas Plant Project Management
- Project Management Overview
- Industry Perspective
- The Project Management Process
- Project Controls & Quality Controls
- Quality Assurance
- Commissioning and Start-up
- Dispute Prevention & Arbitration
- Disputes
- Arbitration and Expert Determination
- Commercial Structures
- Alternative Commercial Structures
- Complexity of Integrating Requirements
- FOB vs. DES Sales
- LNG Project Financing Essentials
- Financial Structures in LNG
- Investment Decision Making
- The Key Value Drivers in LNG Financing
- Overview of LNG Financing Options
- Balance Financing
- ECA and Multilateral Agency Funding
- Capital Markets
- Asset based Financing
- Project Financing and Structured Recourse Financing
DAY 5: LNG Agreements, Regulations and Future Trends
- LNG Agreements
- Overview of the Contractual Terminology
- Stakeholder Analysis and Drivers
- Upstream Agreements
- LNG Supply Purchase Agreements SPA
- EPC Contracts
- LNG Shipping Arrangements / Agreements
- LNG Regasification Terminal Agreements
- Fiscal and Legal Regimes Worldwide
- Production sharing Arrangements
- Regulations
- The History of Regulations
- The Market under Regulation
- The Environmental Impact
- The Future Trends in Natural Gas Trends
- Trends in LNG Markets
- Latest Changes and Movements in LNG Trading
- The Impact of Shale Gas
- Hubs vs. Oil for Price Setting
- Market Shifts in Importation and Liquefaction
- Mid and Small-Scale LNG
- Benefits of Floating LNG Business
- Wrap-up and Summary
Certificate
- On successful completion of this training course, KC Academy Certificate will be awarded to the delegates.