International LNG Contracts - Commercial Factors and Negotiations - LNG5 

CPE Credits Awarded: 40
Categories: The Natural Gas Industry , LNG

Date Register by Date Duration Venue Price Register
26 Jun 2017 19 May 2017 5 Days Oxford, UK Country: gb
£ (GBP) 3,295.00+20%VAT (course fee only)
26 Jun 2017 19 May 2017 5 Days Oxford, UK Country: gb
£ (GBP) 4,165.00(course fee+20%VAT & accommodation)

Gold CourseLNG Sales and Purchase Agreements (SPAs) generally take much longer to negotiate than equivalent pipeline gas contracts. This is not surprising in view of the very large sums of money and risks involved and the long life of the Agreement (typically 20-25 years). This five-day course will give you a deeper understanding of the commercial and contractual issues involved as well as identification of risks and how to mitigate them. The main focus of the course will be on the SPA itself but will also include the relationship of the SPA to other agreements in the LNG Project from gas field to buyer’s reception and vaporisation facilities.

During the negotiation sessions delegates will have the opportunity to test their understanding of the issues involved and apply the knowledge gained during this course.

What you will learn

  • The overall structure of LNG projects, contractual risks and how to mitigate them
  • The detailed construction of the LNG Sales and Purchase Agreement and its clauses
  • The location of the main markets for LNG and how they affect the pricing clauses in the SPA
  • Challenges and risk mitigation in financing LNG projects. (The Financing Agreement)

Manager’s ROI

On completion of this course your employees will be able to:

  • Play a major role in the negotiation of LNG Sales and Purchase Agreements in a multi-cultural environment
  • interact more effectively and productively with colleagues involved in other, related parts of the gas business
  • conclude good, profitable agreements much more quickly and cost effectively

  • Potential members of LNG negotiating teams
  • Staff who will have a substantial interaction with negotiating teams
  • Commercial and technical personnel with at least two years experience of international pipeline natural gas sales agreements who wish to extend their knowledge to LNG agreements
  • Personnel from government, regulatory and fiscal authorities who wish to widen their knowledge of contractual and commercial issues in LNG SPAs
  • Personnel with substantial experience in the natural gas industry who wish to broaden their knowledge of LNG
  • Delegates who have previously attended the NG5 course - International Gas Contracts - Commercial Factors and Negotiations - and wish to extend their knowledge to LNG agreements

Understanding the natural gas business, contractual relationships within it and the role of LNG

  • Types of contracts  and reasons for F.O.B., ex ship and other forms of contracts
  • Financing LNG projects and role of gas sales and purchase agreement
  • Gas specification issues arising within sellers’ operations and between buyers and sellers
  • Gas specification issues at offloading destination
  • Metering and consideration of "boil off" gas
  • Destination and re-export consideration
  • Role of the Gas Sales Contract in the LNG Chain

The relationship between buyer(s) and seller(s) ie SPA

  • The parties and place of incorporation
  • Recital
  • Contract terminology and definitions of terms used
  • Applicable law
  • Dispute resolution, arbitration, Force Majeure
  • Initial supply period
  • Annual delivery programme
  • Seller’s obligations. Buyer’s obligations
  • Transfer of title, custody and risk
  • Quantities
  • Measurement, sampling and analysis
  • Compatibility and specifications of LNG vessels
  • Loading and unloading procedures
  • Pricing provisions
  • Invoicing, payment and taxes
  • Waivers
  • “Off spec” gas
  • Grounds for termination
  • Take or Pay, Make Up, Carry Forward gas etc
  • Warranties, Guarantees, Liabilities
  • Additional clauses

Faculty

Mr Les Priestley

Testimonials

If you have attended a past course please provide us with some feedback.

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