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Schedules Introduction Objectives Training Methodology Organisational Impact Personal Impact Who Should Attend? Outline
Course Schedule
Date Venue Fees
24 - 28 Jul 2023 Dubai - UAE $5,950
04 - 08 Dec 2023 Dubai - UAE $5,950
Course Description

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.

Who Should Attend?

The material in this course will be useful to managers and decision makers in the LNG business. The course is also relevant to analysts, engineers, and consultants that support the process of decision making. Professionals interested in the practice of net-back pricing, uncertainty analysis, and risk management also find this course useful.

This training course is suitable to a wide range of professionals including:

  • Managers and decision makers involved in value creation for the energy business.
  • Commercial staff who would like to gain in-depth knowledge of the LNG business.
  • Decision makers involved in financing and investment.
  • Analysts interested in market insights that support project decisions.
  • Researchers and practitioners who aim to broaden their knowledge of the business.
Course Outline

DAY 1

An Overview of the Energy Industry

While natural gas markets are regional, the LNG markets are global. We start by introducing the participants to the fundamentals of the oil and natural gas industry. We further discuss principles of value creation.

  • The evolution of energy industry
  • Energy price changes from the supply and demand dynamics
  • Energy commodity markets: crude oil, natural gas, and the role of LNG
  • LNG as a midstream business
  • Technical challenges of LNG projects

DAY 2

Value Creation in LNG Business

According to Adam Smith, markets are “an obvious and simple system of natural liberty”. Our decisions cannot ignore the core features of the LNG business.

  • Energy commodity markets and price differences
  • The value chain for LNG projects
  • Price trends and insights for business decisions
  • Value drivers in LNG projects
  • Lessons learned from the oil and gas industry: cost and benefit estimation.

DAY 3

Uncertainty and Risk in LNG Projects

Most project values are sensitive to price changes. We discuss the common uncertain features of the energy projects and then show analytics that supports this understanding.

  • The foundation of value creation in uncertain conditions
  • Principles of valuation: Comparisons across time (time value of money)
  • Principles of valuation: Comparisons across levels of risk (risk premiums)
  • Measures of value: from net-back pricing to net cash flows.
  • Sensitivity analysis in project appraisals
  • Tutorial: LNG project cash flow modeling in spreadsheets

DAY 4

Business Analytics Applied to LNG Projects

We discuss tools that support business models. We further use the power of computers (MS Excel® and its add-ins) to support decisions.

  • Modeling uncertainty in natural gas prices
  • Risk, and the upside opportunity: integrating technical and commercial aspects.
  • Tools of risk management: insurance and hedging using market instruments
  • Tornado diagrams, simulation studies, and decision trees to support LNG business.
  • Tutorial: Applying business analytics tools to spreadsheet LNG cash flows

DAY 5

Analytical tools and future trends

In the final day of the course, we discuss the emerging trends and more analytical tools to implement the concepts.

  • Cost estimation and analysis of cash flows
  • The geo-politics of energy and price shocks
  • Behavioral aspects of financial decisions: the past challenges in LNG projects
  • Heuristics and biases in management decision making.
  • Energy and the environment
  • Concluding remarks
Certificates
  • On successful completion of this training course, GLOMACS Certificate will be awarded to the delegates
  • Continuing Professional Education credits (CPE) : In accordance with the standards of the National Registry of CPE Sponsor, one CPE credit is granted per 50 minutes of attendance
Providers and Associations

Endorsed Education Provider

  • Quality Logo

GLOMACS is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org

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