By attending this highly-interactive and practical energy training course you will:
- Gain a thorough understanding of the current state of the global gas and LNG industries
- Develop an in-depth understanding of the issues that will influence the future development of the LNG industry
- Identify the issues that are promoting or constraining the development of a globally-traded market in LNG
- Recognise the key skills needed in the future LNG environment
- Gain a detailed understanding of three ‘hot topics’ that are critical to the industry today.
Who should attend
This course is intended to be applicable to both those who are new to the LNG industry and are seeking to build skills and knowledge as well as more experienced staff seeking to gain a deeper understanding of today’s key issues.
- Sales and marketing professionals
- Business developers in the gas and LNG industries
- Fuel procurement executives
- Strategists and analysts
- Energy and LNG shipping traders
- Shippers, ship owners and operators
- Equipment and service suppliers
- Regulatory and governmental staff
- Bankers and investors
- Lawyers
Course Background
On each day there will be a ‘hot topic’ session. This session will focus on an issue of change or uncertainty which impacts the current or future LNG market and the possible outcomes and their effects. These sessions will be interactive and will draw the entire group into the discussion. The precise structure of these sessions may vary depending on the number of participants on the course and their level of experience and seniority in the industry but could include:
- Preparing and delivering presentations on the topic from information provided by the course leader,
- Mock court-room sessions where participants are asked to support or oppose a particular point of view and present ‘evidence’ to the group,
- Performing analyses of simplified data to gain a deeper understanding of the subject,
- Drawing on the participants’ own knowledge and experience to supplement information provided to get a broader view,
- Group discussions of the hot topic of the day.
In every case, however, the intention is to use an interactive format to develop and enhance the participants’ understanding of the topic and, as appropriate, to understand that there are several possible outcomes and what are the drivers and consequences of each.
In addition to the hot topics, there will be a case study session each day. These sessions will have participants playing different roles within a single overall structure. This structure will be that of a new project seeking to establish a corporate entity to export recently discovered gas as LNG which it will then market.
There will also be some shorter exercises to illustrate specific issues.
All our courses are available in-house.
Day 1
On day one, the scene is set by taking an in-depth look at the gas industry globally. To begin with, there is a review of the natural gas industry – both pipeline and LNG. It then goes on to look at how LNG, some 8% of the global gas industry, interacts with the pipeline gas industry, specifically where it is complementary and where the two compete.
As well as the “hot topic” session, day one sees the start of the extended LNG exercise.
The Global gas Landscape
A review of the current Natural Gas industry in each of the following regions: Asia/Pacific, Europe, North America, Central and South America and Africa.
The session will look at:
- The Major Players in each region and their strategies
- Supply & Demand – globally and regionally
- Pricing trends
Hot topic 1
The US gas industry and how it is affecting the rest of the world – a move from gas importer to gas exporter?
The Role of LNG in the global gas industry
An analysis of the role that LNG plays within the global natural gas industry and that of the industry’s players. The role of LNG in the various regional and national markets can vary dramatically from being the sole source of supply to that of a minor participant in a pipeline-dominated supply scene.
This session will cover:
- The strategies of the world’s major LNG companies
- Volumes – supply & demand
- Pricing
- The effect of the global recession and its aftermath
Case Study: Introduction to the extended case study and first session
This session will introduce the participants to the case study of the export of LNG from the fictional country of “Africania”. Working in small teams, the participants will be assigned roles in a mock negotiation to establish the structure of a joint venture for LNG exports.
Day 2
Day two examines the stresses and strains affecting the LNG industry today. As well as the recession caused by the global banking crisis, the industry is at something of a crossroads with no guarantee that the strong growth seen in the period up to 2007 will continue. This day takes an in-depth look at several of the critical issues that will determine the development of the world’s LNG industry.
The fault lines in the Landscape
The landscape for the global gas and LNG industries is far from smooth. Indeed, there are several fault lines along which fractures could occur. This session reviews some of the fundamental issues which have the potential to make a profound impact on the LNG industry and what their effects might be.
The issues to be investigated will be:
- What is the ongoing role of the North American gas market for LNG?
- The role of gas in a low carbon economy
- Supply Costs for new projects
- Global price disparities
Hot topic
Australia as the new Qatar; can it deliver?
Having examined the current position of LNG globally and the potential problems that it faces, the course now turns to look at the possible paths going forward that the industry might take.
- New and existing players
- New and existing markets
- New market examples
- New price markers?
- New contract structures?
Case Study: Second session
In this session the “Africania LNG” project will move into the marketing phase with the project seeking to make longterm sales of LNG to underpin the financing of the project. Again, working in small teams, the participants will examine various sales opportunities and by examining the risks and rewards of each, make choices regarding the sales strategy for the project.
Day 3
Key Skills in the New Environment
- Obtaining and using contract Flexibilities
- Volumes
- Locations
- Duration
- Moving gas between markets
- Quality issues exercise
- Understanding Risks
Hot topic
Will there ever be a truly traded market for LNG?
Strategic Choices for the Key Players
Examine the strategies and issues for each of the main types of player in the LNG industry:
- Existing suppliers
- New suppliers
- IOCs/IGCs
- Existing Buyers
- New Buyers
- Other players eg infrastructure providers, service providers etc
Case Study: Third session
In this session the participants will be faced with the issues surrounding the sale of a small volume of additional LNG from the “Africania” project. This extra volume has arisen from a ‘de-bottlenecking’ of the original LNG facilities. The participants will be faced with a variety of options for marketing these volumes and will again have to evaluate the risks and rewards of each to maximise the prospects of the project.
Conclusion
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Bill Sooby
Bill Sooby worked for Shell for 17 years in their LPG, aviation, and Gas and Power divisions.
From 1997 to 2007 he was the LNG supply manager for Shell’s European gas and power businesses. Since then he has been working as an independent consultant to the LNG industry.
He has experience of structuring and completing large complex commercial deals in the LNG business involving foreign governments and joint venture partners. He negotiated supply contracts with LNG suppliers in Oman, Nigeria and Qatar and with large end-users of gas in Southern Europe (eg power plants) for the supply of gas sourced from LNG.
Since leaving Shell in Autumn 2007, Bill has consulted on LNG business issues including the availability of divertible and spot cargoes, projecting future pricing in the various regional markets for LNG, the relative attractiveness to suppliers of potential new LNG terminals in Europe and the value of potential LNG arbitrage opportunities. He has also carried out training activities including for a MSc course at the CASS Business School in the City of London.
Bill is a Chartered Engineer and has a degree in Physics from Oxford University and a MBA from Henley Management College.
Courses run by this instructor
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