Midstream/Downstream Gas Business

This virtual offering focuses on the midstream and downstream sectors of the natural gas value chain with emphasis on technical concepts, commercial analysis, and global natural gas markets. A major part of the learning is achieved through team participation in a challenging gas business game where the participants must present their team’s analyses and recommendations to their peers and mentors at the end of the week.

Additional information

Program Type

Location

Dates

October 11 – 14, 2021

$2,100

Who Should Attend

This program will benefit management, administration, and specialists (technical, financial, legal, regulatory, and governmental) at all levels of gas industry experience who wish to broaden their knowledge of the business environment and “best practices” of the natural gas business, focusing on the midstream and downstream sectors of the gas value chain with emphasis on technology, commercial issues and markets.

Lecture Content

Gas Industry Overview: Market Structures and Analysis

Gas components and their properties; measurement of gas volume and heating values; conversion of gas-to-gas liquids; conversion to barrels of oil equivalent; pricing of crude oil, natural gas and coal on the basis of heating value; major conversion factors. Structure of the gas value chain; regional gas markets in key world markets; analysis of gas market opportunities; five major gas-pricing formulations.

Surface Production and Gas Processing Facilities and LPG / Ethylene Markets

Surface facilities design; overview of gas processing systems to recover NGLs; liquid separation processes; LPG fractionation options; compression; metering; the international market for LPGs; ethylene processes and markets.

Gas Pipeline Transportation Systems

Overview of pipelines in the gas system; pipeline design: pipe sizing and compression; capital costs and pipeline economics; project cost estimating; structure of pipeline tariffs; project examples.

LNG Systems and Transportation

Overview of LNG projects in the gas system; LNG technology: LNG plants, liquefaction, ship design, operations, and LNG re-gasification units; LNG project feasibility: capital costs, economics, risk, financing, markets; LNG plant design: gas reserves to support a plant, contract prices, contracting; examples of recently completed and planned projects.

Gas-Fired Power Plants

Overview of the power value chain; power system fundamentals and terminology; traditional and combined-cycle, gas turbine power systems; technology: plant design, fuel efficiency, available packages; IPP project structure; project feasibility: capital costs, comparative economics; power market structure: traditional, merchant and tolling plants; fundamentals of power pools; rate structure, supply reliability, examples of recent and planned projects.

Load Balancing and Underground Gas Storage

Measuring market demand variations: load factors; options to manage load swings with pore, cavern, and LNG storage systems; typical capacity and delivery profiles of storage system; capital and operating costs; integration into the supply system; design of load balancing tariffs.

Gas Distribution

Overview of the gas distribution systems; design and construction of distribution systems; classes of customers and load factors; competition from other fuels; character of gas supply; structure and regulation of local distribution companies (LDCs); setting customer rates; case studies.

Ammonia, Methanol, and Gas-to-Liquids Projects

Overview of the processes of converting gas to marketable products including ammonia, methanol and gas-to-liquids fuels; local and world markets for ammonia and methanol; capital, operating, and transportation costs of ammonia and methanol; market and netback prices; overall project economics; examples of recent projects.

Industry Regulation, Deregulation, and Convergence

The nature of regulation in the energy sector; history and current state of the gas industry deregulation process at the wholesale and retail markets: U.S., Europe, and elsewhere; effect of deregulation on the structure of the industry; convergence of gas and power.

Gas Sales Contracts

Typical terms in gas sales contracts; price-volume; risk allocation; from gas contracts to tariffs; indexing; re-openers; typical contract examples.

Measuring Financial Performance

Review of financial statements: income statement, balance sheet, cash flow and shareholders’ equity; capital and operating costs; measurements of financial performance; benchmarking; utility accounting methods; taxation; the accounting and audit process.

Workshop

Midstream/downstream Gas Business Simulation Game: Cosmos

This business game is an integral part of the learning process. Participants, divided into teams, make real-life technical, financial, and market decisions that commonly confront managers in the international gas business today. Team performance is measured on a financial basis and is catalyzed by healthy competition. The challenging International Gas Business game takes place in “Cosmos”, an island republic in East Africa. Gas and condensates are expected to be discovered in the offshore blocks. The teams are asked to evaluate gas processing, transportation, and marketing options of gas and gas-liquids along the midstream and downstream segments of the value chain.

Simulation Sessions:

  • Introduction to Project Simulation Scenario; Analysis of Gas Pipeline Development Options
  • Analysis of Gas Processing Facility Alternatives
  • Evaluation of LNG Export Alternatives and Power Plant Development
  • Evaluation of Petrochemicals Market Opportunities
  • Integrated Project Development Decision
  • Team Presentations and Summary of Gas Simulation Game Results