Optimizing Gas Pricing & Sales Strategy Training

Optimizing Gas Pricing and Sales Strategy Training

Description

Natural gas is rapidly becoming ‘the fuel of choice’ in many countries. At the same time it is one of the world’s most capital-intensive industries. As such, participants in the natural gas industry must confront the central issue of the ability to mobilise the investment required to undertake project development. The solution to this question turns strategies for (1) Marketing and (2) Pricing. Marketing is viewed in terms of balancing demand with supply. Pricing considerations include both the energy value of gas as a commodity as well as costs for processing, transportation and storage. Approaches to both issues vary regionally according to the role that natural gas plays in relation to alternative sources of energy.
This 3-day course will cover the essence of establishing good practices in gas marketing and pricing from both the technical and commercial perspectives through specific understanding of the current gas market structure and mastering the gas/LNG pricing strategies in a competitive global gas market reinforced with real world gas/LNG case studies learning.

Objectives

  • ESTABLISH good practices in gas marketing and pricing from both the technical and commercial perspectives
  • GAIN a thorough understanding of the current gas market structure
  • MASTER and APPLY the gas/LNG pricing strategies in a competitive global gas market
  • MANAGE a good balance between the supply and demand of natural gas in a competitive global market
  • RECOGNISE the importance of the physical integration of the Gas Industry or what is referred to as the Gas Chain
  • UNDERSTAND various approaches for pricing natural gas and SELECT the most cost effective one aligned with your organization goals
  • MAXIMIZE your practical experience by participating in simulations on gas price negotiation
  • MINIMIZE transportation and storage cost of natural gas while fulfilling the contract specifications for gas delivery

Who Should Attend?

The course is designed for oil & gas professionals involved in gas/LNG production, purchase, transportation and sales including:
  • Gas/LNG negotiators
  • Government regulators
  • Contract executives, specialists & managers
  • Purchasing executives & managers
  • Commercial executives & managers
  • Business development executives & managers
  • Project executives & managers
  • Financial executives, managers and controllers
  • Gas/LNG buyers, sellers, distributors and traders
  • Gas/LNG project investors and advisors

 

Course Outline

 

DAY 1
Commercial Consideration in Natural Gas Development
Day 1 focuses on the first principles of developing and marketing Natural gas. This includes analysis of project risk criteria and the need for co-ordination among policy-makers, suppliers, purchasers, transporters and lenders. There is one over-riding concern at each stage – balancing demand with supply. A fundamental step in understanding the Gas Industry is to recognise the importance of the physical integration of the Gas Industry or what is referred to as the Gas Chain.
Contemporary gas markets are characterised by the use of value adding strategies at each segment of the Gas Chain.
Development of Natural Gas
1.1 First Principles of Natural Gas Development
• Understanding the Gas Chain
• Project Development Stages
1.2 Managing Development Risks
• Completion Risk
• Market Risk
• Political Risk
1.3 Role of Governments
• Legal Framework
• Prescriptive v. Light-handed Regulation
1.4 Analysis of Project Feasibility
• Economic Yardsticks – Rate of Return, Pay-out, etc
• Cash-flow Analysis
1.5 Final Investment Decision
• Design & Construction
• Key Commercial Agreements
• Financing
[Exercise] : Upstream Project Financial Analysis Commercial Issues
2.1 Natural Gas Markets
• Market Characteristics
• Global Gas Trade
2.2 Gas Marketing Strategies
• Fuel v. Feedstock
• Supply Security
2.3 Competing Fuels
• Energy Conversions
• Handling & Storage
• Price Volatility
• Environmental Issues
2.4 Natural Gas Sales & Purchase Agreements
• Contractual Formats
• Key Terms & Trade-offs
[Exercise] : Calculating Energy Equivalent Fuel Prices
DAY 2
Options for Pricing Natural Gas
Day 2 focuses on the variety of approaches for pricing Natural Gas. The sales price of the gas can be one of the most intricate commercial issues in the utilization of natural gas. Producers and Buyers have fundamentally different approaches for determining the price according to the duration of the sales contract and whether the gas is delivered by pipeline or as LNG. These differences are highlighted in the simulation on price negotiation.
Gas Pricing
3.1 Long-term Contracts
• Indefinite Price Formula
• Alternative Fuel References
3.2 Spot Contracts
• Pricing Hubs
3.3 LNG Supply Contracts
• Atlantic Basin
• Pacific Basin
3.4 Price Indexation & Adjustments
• Inflation
• Changes in Commodities
3.5 Price Re-negotiation
• Periodic Reopener
• Market Changes & Economic Hardships
• Arbitration
[Exercise] : Gas Pricing Formula for Pacific Basin LNG
Negotiation Simulation
4.1 Using Financial Models
• Production Costs & Revenue
• Discount Rate
• Contract Duration
4.2 Project Evaluation
• Target Rate of Return
• Competing Fuel Cost
4.3 Indicative Prices
• Base Price
• Point of Delivery
4.4 Adjustments Between Price and
Delivery Obligations
• Minimum Bill
• Firm vs. Interruptible
[Exercise] : Cost of Power Generation from Natural Gas
DAY 3
Costs and Value of Transportation & Storage
Day 3 brings the transportation and storage of Natural Gas into the discussion. Transportation and storage arrangements add value because these services allow the seller and purchaser to meet contract specifications for gas delivery. These activities involve the use of interconnected facilities including processing plants, high pressure pipelines, LNG carriers and storage terminals.
Natural Gas Transportation
5.1 Transportation Access & Costs
• Access Regimes
• Transportation Obligations
• Transportation Tariffs
5.2 Natural Gas Transportation Agreements
• Dedicated Pipelines
• Open Access Systems
5.3 LNG Charters
• Long-term Charters
• Spot Cargoes
[Exercise] : 2-Part Pipeline Tariff, and LNG Charter Rates
Natural Gas Delivery & Storage
6.1 Storage Access & Costs
• Integrated v. Stand-alone
• Storage Tariffs
6.2 Multi-User LNG Terminal Agreements
• Services
• Contract Conditions
6.3 Natural Gas Storage Agreements
• Services
• Contract Conditions

Investasi dan Fasilitas Training

  • Harga : (dilampirkan dalam Brosur penawaran)
  • Fasilitas : Certificate, Training kits, USB 8 GB, Lunch, Coffe Break, Souvenir, City Tour
  • Untuk peserta luar kota disediakan transportasi antar-jemput dari Bandara/Stasiun ke Hotel (berlaku bagi perusahaan yang mengirimkan minimal 2 peserta)
  • Quota minimum Running 2 peserta ( jogja ), 3 Peserta ( Solo, Semarang) Quota minimum Running 3 peserta (Jakarta , Bandung dan Surabaya ) –  ( Untuk Manado, Bali , Batam, Pontianak, Balikpapan dan Lombok Quota minimal 4 peserta)

 

Permintaan Brosur penawaran Training ( Waktu dan Tempat) silahkan Menghubungi kami

Catatan :

  • Pelatihan ini dapat di-customized sesuai kebutuhan perusahaan Anda bila diselenggarakan dalam bentuk In-House Training. Untuk permintaan In-House Training dengan jenis topik lainya, silahkan mengirimkan ke alamat email yang tercantum di web kami.
  • Request Training. Jika anda membutuhkan informasi pelatihan yang belum tercantum pada website ini, atau anda ingin memberikan usulan materi yang sesuai dengan tingkat kebutuhan perusahaan anda, silahkan mengirimkan ke alamat email dibawah ini.
  • Bila tidak ada tanggal dan waktu atau yang tercantum sudah kadaluarsa didalam artikel mohon tanyakan kepada kami untuk jadwal terbarunya.

 

Lokasi Training Pilihan : di Yogyakarta, Jakarta, Bandung, Bogor, Surabaya, Malang, Bali, Lombok, Balikpapan, Makassar, Medan, Batam, Riau, Pontianak, Semarang, Solo, Manado, dan Kota-kota lainnya  (dengan harga dan minimal kuota yang berbeda)

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