LNG Project and Value Chain Economics

Program Overview

This program provides a comprehensive understanding of the Liquefied Natural Gas (LNG) Value Chain, covering its elements, economics, and optimization techniques. The program is designed for professionals from various disciplines within the LNG industry seeking a broader perspective or specialized knowledge.

Program Outline

Degree Overview:

Liquefied Natural Gas (LNG) has provided international mobility to natural gas, which now provides around 25% of the world primary energy. Being the cleanest fossil fuel natural gas/LNG consumption is forecasted to grow in all future scenarios. Recent market disturbances make a deep understanding of LNG Value Chain Logistics and Economics even more essential to ensure security of energy supplies sustainably and profitably. This course starts with a concise introduction to the LNG business. Thereafter, the elements of the LNG value chain are described, and their individual economics analysed. A Business Activity Model along the value chain will be developed and discussed in depth, covering the following key processes: Buy Gas -> Transport Gas -> Liquefy Gas -> Sell LNG/Products -> Ship LNG -> Regasify LNG The integrated chain economics will then be developed and quantified. A hands-on group workshop/exercise developing the economic case of a full-size Liquefaction project will be carried out, considering the forecasted cash flows throughout the project life, the location of the plant, its markets, project sensitivities and profitability assessment. Excel based tools/models (LNG Liquefaction project development NPV analyses, Shipping Freight Calculations and Economics) will be provided to the participants for these exercises and their future personal use.

Target Audience:

Technical, Operational, Shipping, Commercial, Project and Governance professionals already active in a specific section of the LNG Value Chain will directly benefit in developing a wider and deeper perspective on how the LNG VALUE CHAIN operates and can be optimised. Managers (Projects, Technical, Financial, Legal and Governance) less familiar with the specifics of the LNG Industry will also benefit from this course, as they will get the required background to be set sharper targets, suitable performance indicators, and governance and performance assessment guidelines for units engaged in the chain.

You Will Learn:

At the completion of this training the participants will:

• Understand how the LNG Value Chain operates, bound by the relevant Contracts and Agreements
• Learn the basic economic parameters (operating, capital costs, financing, profitability) of each major element of the value chain
• Appreciate the complexity of the value chain, and the associated opportunities and risks
• Develop quantitative Project evaluation skills

Outline:

• Overview of Natural Gas & LNG Industries
• Natural gas & LNG business
• Deep dive into the elements of the LNG Value Chain
• LNG Value Chain Economic Concepts/Elements
• Economics of the LNG Value Chain
• Liquefaction projects
• LNG project shipping
• Exercises:
• Freight Calculations
• Hands-on DCF Calculations
• Project Calculations
• DCF/NPV Modelling
• Integrated Project Economics Workshop
• Quantifation & Optimization of Value Chain Economics
• Integrated value chain economics
• Shipping cost calculations
• Freight optimization exercise
• Optimizing the value chain
• LNG bunkering, trucking
• Planning, Managing Value Chain Performance
• Risk identification, assessment, management
• Business/project performance management
• LNG outlook and Energy Transition

Other:

• This course is also available upon request as a private, on-site seminar.
• The course is taught by Aydin Esener.
• The course is offered in an In-Classroom format.
• The course is offered in London.
• The course costs $5,585.00.
• The course dates are December 2nd - 6th, 2024.