LNG Business
and SPA Negotiating Workshop
Duration:5 DAYS
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Workshop Details
During this 5-day program, participants learn the fundamentals of the LNG business from gas supply to markets and the essential elements of negotiating a successful LNG Sales & Purchase Agreement (SPA).
During the LNG Business phase of the workshop, participants will learn the full LNG value chain including the technology, operations, market, financing, legal agreements, and commercial transactions that impact the integration of gas supply, liquefaction, transportation, receiving terminals and end markets. The learning format is a combination of lectures, class discussion and a stimulating LNG “business game.” The benefit of this course design is that participants learn the full extent of the LNG business in a challenging and interactive way.
During the SPA Negotiation phase of the program participants will learn the practical aspects of negotiating successful LNG SPAs including the essential terms of an LNG SPA from both the buyer’s and seller’s points of view. Then negotiating teams, playing the role of either buyer or seller, will engage in active negotiations using the “Getting to Yes” negotiation process.
The program will include two Business game workshops.
Coral: The LNG Business Game:
A major gas discovery has been made in the Republic of Coral, an island Republic off the North Coast of Australia, and your team has been assigned the challenging job of commercializing it. You have been told that the most compelling markets for gas are in China, Japan and the West Coast of North America. This means that you must build an LNG facility and organize to transport and deliver the LNG to international clients to achieve your overall goals. In the process you must consider all aspects of the project including commercial, technical, legal, project management, government affairs, partner relationships and financing. Your team will compete with other teams during the sessions to achieve the most attractive project and you will make a presentation of your decisions and overall performance at the end of the program.
Sinbad: The LNG Negotiation Workshop
The setting for the mock negotiations is a fictitious island republic, Sinbad, off the coast of Oman in the Indian Ocean. A major gas field, with greater than 14 TCF of confirmed gas reserves, has been discovered on this island republic. LNG feasibility studies have been completed and financing is available provided satisfactory SPA agreements can be obtained from creditworthy customers. One significant contract has been secured and now one or two more are needed. Potential customers have been identified in both Asia Pacific and the Atlantic Basin. Participants will be divided into an even number of teams, with half the teams representing LNG sellers and the other half representing LNG buyers.
The Negotiation Process
During the lectures participants will learn the “Getting to Yes” negotiation process, which was developed at Harvard University, as a joint undertaking of the Law and Business Schools. It is generally referred to as the process of “positive negotiation” or “side-by-side problem solving”. You will then apply this process and your natural negotiating skills to the negotiation of the commercial terms of an LNG SPA.
WORKSHOP LOCATIONS
- PERTH, AUSTRALIA: JUNE 21-25, 2010