Natural Gas & LNG Contract Development Training in Mumbai

27th-28th September 2018 Mumbai

Course Description

Contract Management Masterclass - Natural Gas & LNG Contract Development - Case Studies of Global and Indian Gas & LNG Contracts

Highlights of Training Program on Gas and LNG Contracts 

The gas supplies currently constitute 6.5% share in total energy basket in India. During last 5 years, gas supplies have grown by about 7% to 8% where LNG imports have played a dominant role in total supplies. LNG imports have been the major growth engine for the gas supplies as domestic production declined sharply during 2011-2017. Government is pushing to increase the share of gas in energy from the current 6.5% to 15% during the next 5 to 10 years time horizon. Accordingly, the utilization of natural gas needs to be enhanced. Also, Hon’ble Prime Minister has called for reducing 10% import of oil. Such objective creates a better opportunity for increasing share of Gas in energy by other States too. The state of Gujarat has 2 major gas hubs at Hazira and Dahej which account for handling about 80% of total gas supply in the country from Bassein offshore gas production & LNG Imports at Dahej & Hazira LNG terminals. The LNG suppliers at existing LNG terminals on West Coast at Dahej, Hazira, Ratnagiri & Kochi are likely to increase further. New LNG terminal at Ennore by IOCL, Mundra by GSPC and FSRUs at Jaigarh (H-Energy) & Jafrabad (Swan Energy) are under construction.  The new terminals will further add LNG import and regasification capacity by 20-25 MMTPA over and above the existing capacity of 30 MMTPA. The share of Gas use will further increase with the completion of new LNG terminals. As India is poised for a gas-based economy, it would be important to learn the supplies of gas from incremental domestic production, LNG imports from new sources and pipeline imports and how the contract development to procure LNG/Gas at the competitive price could be made feasible for the Indian market as the market highly prices sensitive. Thus, it is essential to negotiate an LNG import contract which is suitable for the Indian market.

Benefits to attendees

India currently imports 20 million tons of LNG and half of it comes from the spot and short-term contracts. The LNG imports are likely to increase to about 35 to 40 MMT during next 5 years once the new LNG terminals are built and made operational both on West and East Coast. While Indian companies have signed LNG imports with Qatar, USA, Australia and Russia on the `long term basis, it would be pertinent to understand the LNG and gas contract & price dynamics for imports of LNG and gas both on long-term and spot basis in future to procure LNG at the competitive and affordable price. Also, the seminar will highlight on the understanding volatility of global LNG prices and modalities of capturing LNG price indexation in Contract.

The program is designed to share the global and Indian gas & LNG contracts and pricing mechanism for the current and future LNG and Gas importing companies. The seminar would also discuss the policies and pricing of Gas & LNG in India, its affordability and to replace oil by imported LNG and gas.

Target Audience

The target audience would be executives from LNG and Oil & gas producing, importing, marketing & pipeline companies. The other sectoral officials who could gain maximum benefits are the gas consumer sector companies like Power, Fertiliser, petrochemicals, City-gas, glass and Ceramics, Iron & Steel. Also, the service sector, financial sector, equipment suppliers, LNG shipping companies from India and Asia Pacific countries would get an overview of India’s growing appetite for the Gas and LNG sector

For Registration Call us at +91 9370139939 or Email us on hema@marcepinc.com


 

 

Training Agenda

2-Day Training Agenda for Contract Management Masterclass - Natural Gas & LNG Contract Development - Case Studies of Global and Indian Gas & LNG Contracts

Day One
Global Dynamics of Gas & LNG Contracts (09.30-13.00)
  • Global status of Oil and Gas dynamics its relevance to Geopolitics
  • Global  Gas production and supplies
  • Global Gas Trade - LNG & piped gas
  • Future of gas markets
  • Why are gas markets different from oil?
  • Geopolitics of oil and gas markets
Status of Global Gas and LNG Supplies & Contracts (14.00-17.00)
  • Difference between pipeline Gas & LNG Supply Contracts
  • Condition precedents in LNG & gas sales contract
  • Long-term, Medium term, short term and Spot LNG supply contract
  • Why long term, short term & spot LNG contracts
  • Drafting of LNG/Gas supply contract
  • Contractual clauses of the contract
  • Facilities of buyer and supplier’s
  • Specifications & Quality
  • Force Majeure, Liquidated Damages, 
  • Quality assurance, Warranty, 
  • The issue of amendments, 
  • Performance security, 
  • Payment, Letter of credit, Price clauses
  • Termination of Contracts
  • Amendments and Waivers
  • Applicable Law
Day Two
Negotiating & Managing Gas and LNG Supply contract (09.30-13.00)
  • Negotiating a Gas/LNG Contract
  • Key requirements of negotiating a Gas & LNG supply contract
  • Gas and LNG price in Contracts 
  • Discussion on Details of Pricing Clause in Contracts
  • Price reopener in LNG Contracts.
  • Performance of the contract
  • Developing a schedule of Deliveries
  • Exercising Flexibilities of supplies-upward and downward
  • Managing Force Majeure
  • Take or Pay & Supply or pay & Managing Take or Pay
  • Legal provisions Contract Performance 
  • Termination of contract
  • Contract Arbitration & appointment of the arbitrator
  • Legal jurisdiction of contracts
  • Contract Review
Case Studies for contracts for Gas and LNG (14.00-17-00)
  • Indian Scenario for Domestic Gas Supply
  • Indian Scenario for LNG imports
  • Scenario for transnational pipeline imports of gas
  • Price affordability of Energy imports & supplies
  • Salient features of Indian LNG Contracts – Case Study
  • Global LNG Contracts – China, Japan, Korea, Pakistan-Case Study

For Registration Call us at +91 9370139939 or Email us on hema@marcepinc.com



Course Director

Course Director: Dr. S. C. Sharma Global Natural Gas & LNG Expert Formerly Officer on Special Duty (Energy & Climate Change) to Government of India Group General Manager (Corporate Planning), ONGC Member, G-20 Energy Sustainability Group Member & Convenor, G-20 Clean Energy Ministerial Estimated India's position on Sustainability & INDCs for submission at Climate Summit (COP15) Presently conducting specialized training courses in Singapore, Kuala Lumpur, GCC, China, Seoul. etc.
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