COURSE DIRECTOR:

Robin Chatterjee BSc BEng MBA CIMA

International Business Consultancy Ltd
Course Programme
1 Introduction to International Gas Trade and Contract
Structure in the Gas Chain
2 Gas/LNG and Gas Transportation Contracts
3 Model Gas/LNG and Gas Transportation Contracts
4 LNG Shipping, Risk Mitigation, Different Types of Contract
and Contract Negotiation
5 Gas/LNG Pricing and Pipeline Transportation Tariffs
6 Gas/LNG Contracting Strategy and Pricing; Key Aspects of
Project Finance
This brochure has been produced using environmentally friendly paper sourced from
sustainable forests and is chlorine free
FUNDAMENTALS OF
Legal agreements and commercial mechanisms in the gas
and LNG value chains, from exploration and production to
shipping, transportation and trading
"Provides detailed knowledge of key agreements
and negotiation tactics,
helping you avoid costly pitfalls"
"Demystifies the entire value chain, with
contractual, pricing and finance strategies to
give you the competitive edge"
DELIVERED BY DISTANCE LEARNING OVER 12 WEEKS
Supported By:
CPD
21
hours
CEUs
2.1
Enquiries tel:
+44 (0)20 7017 4237
Visit: www.ibc-academy.com/glcp
+1 (646) 957 8929
Commences:
26
th
June 2012
Apply by
11
th
May 2012
to SAVE
100/ US$160
SAVE up to 40% and improve performance
with cost-effective tailored in-company courses
for groups call +44 (0)20 7017 4455
or email ct@informa.com
Scan with smartphone
QR reader app
New starters, recent recruits and graduates
Experts working on a temporary basis in the industry
Specialists needing a wider understanding
Professionals working alongside the industry
Employees moving into a new area of specialisation
IDEAL
FOR:
Personnel innatural gas exploration, production andtrading needing to understand contracts
and pricing mechanisms
Professionals ingas transmission, LNG shipping, distribution andpower generation
Legal practitioners wishing to increase or update their knowledge, or specialise in a new sector
Analysts andstrategists inproject finance, asset management or investment research
Commercial, contract andproject managers looking to improve their negotiation techniques
Engineers andtechnicians seeking an insight into the contractual framework of gas/LNG operations
Government advisors, policy makers, economists andregulators
Solicitors
Regulation
Authority:
100%
of CPD
requirements
GAS & LNG
CONTRACTS
& PRICING
Tel: +44 (0)20 7017 4237 / +1 (646) 957 8929
The complex geopolitical nature of gas and LNG sourcing, and the long term nature of gas contracts between buyers and sellers means it is essential to
understand commercial and legal issues.
A solid grasp of the principles of global gas and LNG supply, available techniques for price determination, prevailing contract structure and
agreement negotiation techniques is crucial to be able to provide contract safeguards for the future. Misjudgement in any of these areas could result in
unwise sourcing decisions, with significant adverse financial and legal liabilities.
This 12-week distance learning course has the information you need, enabling professionals in the gas sector and gas advisory services to:
Develop their industry knowledge to a high level
Make astute sourcing decisions
Construct and interpret gas/LNG and gas transportation contracts
Negotiate from a position of strength and gain a competitive edge
Delivered by part-time distance education, the six detailed modules:
Highlight the global spread of gas/LNG sources with their relative strengths and weaknesses
Explain the underlying principles and provide practical knowledge of formulation of Gas/LNG Sales and Purchase Agreements (GSPA) and Gas
Transportation Agreements (GTA) between buyers, sellers and transporters of natural gas and LNG
Demonstrate the principles and provide working knowledge of the pricing of natural gas and LNG in a competitive fuel market, and determination of
transportation tariffs
Analyse current developments in international LNG and gas trading activities in regions around the world
Evaluate the commercial and geopolitical aspects of gas transit across international boundaries, and compare different modes of liquefaction,
transportation and regasification
Provide a comprehensive guide to contract negotiation techniques
Examine the fundamentals of hub linked gas trading, spot markets and arbitrage
The dynamic blend of downloadable study materials, expert tutorial support plus peer interaction via a dedicated online forumwill enable you to
gain a thorough, hands-on understanding of the key contracts and mechanisms used in gas and LNG value chains, from exploration and production,
to transport, shipping and pricing. Join over 2,500 students who study by distance learning annually with us.
I look forward to connecting with you online during the course.
Dear Colleague,
Robin Chatterjee
Course Director
COMPANIES THAT HAVE ALREADY BENEFITED FROM IBC ACADEMYS ENERGY TRAINING PROGRAMMES INCLUDE:
Acergy Services Ltd Aegean Energy SA Alberta Department of Energy A. P. Moller Maersk Alldeco S R O Ariel Reinsurance BG Group BHP Billiton BOC
Gases Boskalis Offshore BP British Pipeline Agency Ltd CB&I Chevron Texaco Conoco Phillips Daewoo Nigeria Ltd. Industry Canada E.ON Ruhrgas
JOGMEC Enereco Fugro Ltd Gaslink Nigeria Ltd Gasunie Germanischer Oil & Gas Helix Energy Solutions BV JP Morgan Chase Lion Petroleum Pty. Ltd.
MR Offshore Navigation Maersk Oil National Grid Plc Nexen Petroleum Oil Spill Response Ltd. OPEC Oryx Oil Company Ltd Petrasco Petrobras Petron
Corporation Phoenixtide Offshore Nigeria Ltd Pipeline Integrity Engineers Principia Qatar Gas Qatar General Petroleum Corporation Saudi Arabian Texaco
Inc Schlumberger Shell Petroleum Songa Offshore SE SPT Group Statoil Asa Subsea 7 Suez-Tractebel Total E&P Validus Reinsurance Ltd.
Robin Chatterjee BSc BEng MBA CIMA
Robin Chatterjee has spent the last 14 years advising some
of the largest oil and gas majors engaged in E&P, gas
transportation, distribution, LNG importation and cross
country gas trade. He has negotiated LNG purchase
contracts in Qatar, Yemen and Malaysia among many other
countries, as well as structuring and negotiating Gas Sales
and Purchase Agreements and Transportation Contracts in
Vietnam. He also has experience negotiating international Gas Purchase and
Transportation contracts with overseas JV partners in the Indian gas sector.
Robin has advised on international gas transit (including Iran to India,
Turkmenistan to India via Afghanistan and Pakistan, previous subsea pipeline
from Oman to India and Russia to South Korea), gas contracts, gas transportation
tariff strategy, regulatory issues and gas prices in India, Bangladesh, UK, Europe,
Egypt, Nigeria, Pakistan, North African and Gulf Countries.
Prior to present training and consultancy work, Robin spent 25 years at the
corporate headquarters of BG Group Plc in the UK, working in corporate finance
amongst other divisions. He specialised in transportation tariffs, gas pricing, gas
deregulation, international contracts, purchase of international oil and gas assets
and financial strategy of British Gas in the UK and worldwide.
Robin is widely respected in the international gas sector as a successful
strategist, negotiator and speaker at global forums. He conducts numerous
gas/LNG courses and is a regular presenter at international conferences.
Robin has a degree in engineering, a Master of Business Administration (MBA)
and further qualifications from the Chartered Institute of Management
Accountants (CIMA), UK.
COURSE DIRECTOR HOW DOES THE COURSE WORK?
The course starts on Tuesday 26
th
June 2012 which is the first day that course
access will be available.
Modules are released one every two weeks over the 12 weeks of the course.
Each student receives their own username and passwordto access our secure
site and materials can be accessed from wherever they have an internet
connection. The modules can be downloaded as PDF files and saved to a
computer or printed out if students want to study whilst on the move. The same
site gives access to the course director led tutorial forum.
Once a student has completed the study of each module they then sit an
online test in order to check their understanding. All tests must be passed by the
end of the course. Those who successfully complete all six tests will be awarded
a certificate of completion from IBC Academy for CPD purposes.
ADVANTAGES OF DISTANCE LEARNING
Increasingly, we all face more pressures in our business lives. Finding time to
attend courses of any kind can be very difficult and well meant plans are often put
aside indefinitely.
Distance learning can be the solution to your training needs. You can enjoy the full
benefits of studying, whilst still in employment using this freedom and flexibility
to study around your other commitments.
IBC Academy delivers high quality training to the
ports, logistics, energy, environment and safety
industries, assisting individuals and organisations to
achieve goals by developing skills, knowledge and
performance. We address the growing need for
professional training in specific industry areas by providing open and in-house
learning and training solutions, delivered by leading industry experts.
www.ibc-academy.com
DELIVERED BY
Module One
Introduction to International Gas Trade and
Contract Structure in the Gas Chain
Gas industry overview
- Gas/LNG measurement units and conversion factors
- Technical aspects of gas/LNG chain and definitions and the
current state of global gas and Liquefied Natural Gas (LNG) trade
- Comparison between different means of gas transportation by
pipeline, LNG, Compressed Natural Gas (CNG) and Gas to
Liquids (GTL)
- Brief profile of gas trade of some of the significant gas trading
nations
- Gas/LNG market structure and gas industry regulatory issues
Gas/LNG contract
- Background, contract types and basic principles
- Upstream exploration and production
- Concessions, Production Sharing Contracts, royalties and
taxes, service and buy back
- Feed Gas Contract
- LNG Sales and Purchase Agreement (SPA)
- Gas Sales and Purchase Agreement (GSPA)
- Gas Transportation Agreement (GTA)
- Tolling Contract and Spot Purchase Agreement
- Supply and Depletion Contract
- Interdependence of contracts in the gas/LNG Chain
- Contract aim risk mitigation and commercial value
- International examples of LNG/Gas Sales and Purchase
Agreement
Gas contract terminologies used and their derivation
LNG contract terminologies and calculations used
Module Two
Gas/LNG and Gas Transportation Contracts
Contracts in the gas and LNG chain rationale behind
gas/LNG contracts, operational, commercial, legal.
General sequence of activities in the performance of gas
and LNG contracts
- Flow charts
- Checklist of articles for inclusion in gas, LNG and
transportation contracts
Explanation of contract clauses
- Gas contract operational and commercial clauses
- LNG contract structure and summarised contents
- Legal clauses covering force majeure, dispute resolution,
termination, liabilities and indemnities
- Gas transportation contract
Module Three
Model Gas/LNG and Gas Transportation
Contracts
Current trends in LNG/gas contracts worldwide
Model Gas Sales and Purchase Agreement
Model LNG Sales and Purchase Agreements
Model Gas Transportation Agreements
Specific provision
- Price reopener clause current trends
- Dispute resolution, sole expert, arbitration, reconciliation,
available international forums
Side letters
- Payment security mechanism
- Step in rights
- Change in contract provision
Module Four
LNG Shipping, Risk Mitigation, Different Types
of Contract and Contract Negotiation
Shipping agreements
- CIF, FOB, time charter, bareboat and contract of affreightment
- Commercial implications of financing LNG ships, share of risk
to different parties
Risk mitigation
- LNG/gas contract risk allocation matrix, mitigation measures
Ancillary gas/LNG contracts
- Spot, tolling and depletion contracts
Gas/LNG contract negotiation principles and techniques
- Contract negotiation stages, Memorandum of Understanding
(MOU), Heads of Agreement (HOA), SPA and GSPA
- Contract law and legal significance
- Balance of power, mutuality, interpersonal orientation, Best
Alternative to a Negotiated Agreement (BATNA), resistance
point
- Contract negotiation stages
- Profile of a successful negotiator, effect of culture on negotiation
Contract negotiation case studies
- Based on experience of four gas/LNG and gas transportation
contracts
Module Five
Gas/LNG Pricing and Pipeline Transportation
Tariffs
General principles of gas/LNG pricing and pipeline
transportation tariff determination
- Global spread of prices and trends
- Pricing principles and main drivers globally
- Current international pricing trends
Local Distribution Company (LDC) pricing mechanism
- Commercially justifiable price chargeable by an aggregating
LDC
Different pricing bases
- Gas price setting cost plus criteria and net back market value
criteria
- Price based on imputed value, opportunity cost
- Price pooling criteria
- Gas pricing based on usage load factor
Economic evaluation and financial modelling
- Distinction between cost of service and discounted cash flow
methods
Gas/LNG pricing methodologies and price indexation
LNG pricing options and strategies
Gas/LNG pricing strategy in a mixed market situation
Transportation tariff
- Tariff determination methodology Discounted Cash Flow
(DCF) and Cost of Service (COS) based
- Revenue target and cost recovery methodologies
- Capacity and commodity based tariff
Gas/LNG trading
- Spot, arbitrage and swaps - model for arbitrage pricing
- Example of LNG sales and purchase and gas transportation tariff
determination
Module Six
Gas/LNG Contracting Strategy and Pricing; Key
Aspects of Project Finance
Exercise on gas/LNG sales/purchase strategy
- Considerations underlying LNG production and sales strategy
- Contracting and pricing in the gas/LNG chain and key contract
terms
- LNG Sales and Purchase Agreement (SPA)
- Gas Sales and Purchase Agreement (GSPA)
- Gas Transportation Agreement (GTA)
Exercise for the construction of Heads of Agreement
- Project commencement date
- Commissioning
- Conditions precedent
- Default liabilities
- Force majeure conditions
- Gas/LNG sales price estimate in the chain
Transfer pricing
- Producing field to liquefaction terminal
- Liquefaction terminal to regasification terminal
- Regasification terminal to gas trader
- Gas trader to end consumer
- End consumer price to include gas transportation tariff
Project financing
- Criteria for financing capital projects
- Risk sharing
Apply online at www.ibc-academy.com/glcp
COURSE SYLLABUS
Enrolment to this Course is subject to the IBC Academy Distance LearningTerms and Conditions at
www.ibc-academy.com/IBCADLTC. Your attention is drawn in particular to clauses 3, 4 and 13 of the
terms and conditions which have been set out below:
3. TAXES The fees stated are exclusive of any applicableVAT, sales, service or similar taxes (which will
be charged, where applicable, at the appropriate rate as at the date of invoice). Where payment is
subject to a withholding tax the student will apply the reduced rate under the appropriate double tax
treaty, if applicable, and agree to provide IBCAwith a certificate of tax deduction within three months
of payment. If a certificate of tax deduction is not provided within three months, you will become
immediately liable to pay the outstanding amount.
4. PARTICIPANT CANCELLATIONPOLICYYou may cancel your place on the Course by giving notice
in writing to the Course Administrator up to (and including) 7 days fromthe date IBCAconfirms your
acceptance to the Course in accordance with Condition 1 and you will not be liable for the payment of
any fees and any fees already paid to IBCAfor the Course will be refunded. If IBCAreceives your notice
of cancellation 8 days or more fromthe date IBCAhas confirmed your acceptance to the Course you
will still receive a refund of your fees already paid to IBCA, subject to payment by you to IBCAof a
175 cancellation fee to cover administrative costs (which shall be payable immediately upon your
cancellation), provided such notice of cancellation is received by IBCAbefore the first day of the
Course. IBCAregrets that no refunds can be given for any cancellation notice it receives on or after
the first day of the Course and, in such circumstances, the full fees remain payable by you to IBCA.
13. DATAPROTECTIONANDCALL MONITORINGPersonal data supplied is subject to the Data
Protection Act 1998. The personal information shown on the application form, and/or provided by
you, will be held on a database and may be shared with companies in the Informa Group in the UK
and internationally. This information may be used for direct marketing purposes. If you do not wish
your details to be available to companies in the Informa Group, please contact the Database Manager,
tel: +44 (0)20 7 017 7077, fax: +44 (0)20 7 017 7828, email: integrity@iirltd.co.uk. Occasionally your
details may be obtained from, or made available to, carefully selected external companies for
marketing purposes. If you do not wish to receive details about their products and services, please
contact the Database Manager. Registered in England No.1835199. VAT registration number GB 365
4626 36. IIR Ltd. Registered office: Mortimer House, 37-41 Mortimer Street, LondonW1T 3JH, UK.
Telephone calls to IIR Ltd may be recorded or monitored to check the quality of the service provided.
INTERESTED IN AN
IN-COMPANY OR
CUSTOMISED DELIVERY
OF THIS COURSE?
This course can be delivered
directly to your company or
organisation by distance learning
or instructor led workshops whilst
including a range of additional
benefits to meet your specific
business objectives:
Customised delivery -
additional company focused
content, case studies and
examples
Blended learning -
incorporating workshops, online
tutoring, additional assessment
and skills training
Flexibility - scheduled to suit
your requirements
Support - dedicated staff
providing required progress
reporting
To find out more about the
benefits of Corporate Training and
how distance learning can be a
cost effective means of achieving
your training goals, telephone
+44 (0)20 7017 4455
or email ct@informa.com.
TERMS AND CONDITIONS
OTHER COURSES:
Oil & Gas MBA (with Middlesex
University)
LNG
Oil & Gas Agreements
Offshore Field Development
Exploration & Production Logistics
Pipeline Engineering
Oil & Gas
FPSOs
Global Energy
Petroleum Economics
Marine Drilling
Nuclear Power
Subsea Engineering
Project Management
Renewable & Alternative Energy
For a full list of our other training courses
visit us online at
www.ibc-academy.comor email
ibc-academy@informa.com
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5. How did you hear about the course?

Course Code
FLR2264
FUNDAMENTALS OF
GAS & LNG CONTRACTS & PRICING
DELIVERED BY DISTANCE LEARNING OVER 12 WEEKS
Commences 26
th
June 2012
I
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C
A
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S
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/
K
R
/
S
D
/
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Upgrade
your
understanding
in just
12 weeks
Online: www.ibc-academy.com/glcp
Email: sarah.dicken@informa.com
Tel: +44 (0)20 7017 4591
Fax: +44 (0)20 7017 7861
Mail: ATTN: Sarah Dicken
IBC Academy
6
th
Floor, 29 Bressenden Place
London
SW1E 5DR
UK
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Signature Date
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Fundamentals of Gas & LNG Contracts & Pricing
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th
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th
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FLR2264HA101