Global LNG markets, pricing and competition
21–22 April 2008
London, UK
LNG remains one of the fastest growing sectors of the energy industry with many new suppliers and buyers entering the market since the turn of the century. This diversification, coupled with technological developments that have facilitated economies of scale along the long and complex LNG supply chain, mean the economic criteria for establishing value for LNG buyers and sellers have changed in recent years.
The emergence of profitable short-term LNG trading opportunities has opened up a new dimension to the traditional long-term supply contracts. Variable energy drivers in the three main gas consuming markets (Asia, Europe and North America) result in different price indexation preferences in regional LNG sale and purchase agreements. The development of a global LNG reference price seems unlikely and the economics of LNG supply vary according to regional market specifics and volatility in those markets lead to fluctuating arbitrage opportunities.
Shipping, distance to market and economies of scale are important in determining the netback LNG price that a supplier can secure. The industry is capital intensive and cost inflation of key materials has placed upward pressure on the cost of new infrastructure. The sellers' market that has persisted since 2003 is expected to continue in the short-term as final investment decisions on new capacity are delayed. However, short-term oversupply in specific regional markets cannot be ruled out and the economics of both buyers' and sellers' markets are relevant. Break-even prices are critical for profitability and for securing equity and debt finance in the face of competition from pipeline gas.
This course is focused on the technical and commercial issues, but does not shy away from the key and, in some cases, complex, technical and technological issues which hold the key to extracting value from LNG. Through a series of presentations, case studies and exercises delegates are provided with information with which to analyse the economics of LNG supply. This information should help them to identify the key commercial issues in buyer – seller commercial negotiations.
For full details, visit:
http://www.energyinst.org.uk/training/804LNG.pdf
Posted by Online Data on Monday, April 07, 2008 10:51
Location London, UK
Category Training Courses
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