LNG Business Fundamentals

Introduction

Global energy business is constantly shifting. Energy prices hike and dive, they send shock-waves across the industry and affect businesses and projects. The Liquefied Natural Gas (LNG) business is a technological response to such dynamics. Here, to make good project decisions, we need to first understand the fundamentals of the business and the markets. Adam Smith once described the market as where “individual ambition serves the common good”.

This GLOMACS training course introduces the audience to the fundamentals of value creation in the LNG business. It highlights the role of technology as the driving force and discusses the insights from the business domain. Using concepts from economics of LNG business and dynamics of the energy markets, we build models that supports prudent business decisions. Our focus would be on key insights that support major decisions in LNG business.

This training course will highlight:

• Global energy markets and regional distinctions
• The economics of energy and the role of LNG business
• Value creation in LNG projects: from net-back pricing to project dynamics
• Risk and uncertainty in capital-intensive LNG business
• Models that support prudent economic decisions in LNG projects

Objectives

To succeed in the LNG industry is to create value. The ventures are capital-intensive and have uncertain outcomes. While there are technical complexities, the energy commodity markets supply information about the industry trend and the overall activity of its participants. This leads to insights that support good business decisions. Good project decisions often lead to value creation.

At the end of this training course, you will learn to:

• Understand the challenges of the energy industry and the LNG business.
• Appreciate the business dynamics and value drivers in LNG business.
• Gain insights from market dynamics to support LNG project appraisals.
• Apply the understanding to support technical and economic decisions.

Training Methodology

The sessions include lectures, discussions, and guided real-world practice. The aim is to develop problem-solvers and effective decision makers rather than merely conveying information.

Organisational Impact

The main challenge in the LNG business is in prudent managerial decision making. The firms should be able use technical and business insights to find (and invest in) valuable ventures. This course trains individuals that

• Increase organization’s capabilities in analyzing and evaluating LNG ventures.
• Possess knowledge and skills to draw insights from market dynamics and combine them with their technical understanding.
• Are effective in enhancing the LNG value chain.
• Have an overview of the energy business and the appeal of the LNG projects.
• Support the prudent decision-making process.
• Open doors to follow-up opportunities in the energy landscape

Personal Impact

Gaining knowledge about the business fundamentals of LNG (and value creation in general) enhances one’s skills in decision making and further opens one’s perspectives. This is because these skills lead to enhancing the value of the person in an organization. The set of skills and knowledge that this course offers prepares individuals for a more effective role within the process of project appraisals and investment in the energy business. This course

• Increases personal capabilities in analyzing and evaluating LNG ventures.
• Enhances the knowledge and skills in assessing the value creation potentials of opportunities.
• Make the individual effective in enhancing the LNG value chain.
• Trains individuals that can address the challenges and opportunities in LNG market.
• Leads to identification of potential value creating opportunities and increases the value of the individual to the firm.
• Trains individuals to be effective decision makers in LNG business.