Introduction

The LNG (Liquefied Natural Gas) industry is a dynamic and rapidly evolving sector of the energy market. Effective negotiation of LNG contracts and pricing is crucial for success in this industry. This 5-day training program is designed to equip participants with the knowledge and skills necessary to excel in LNG contract and price negotiations. Whether you are a seasoned professional or new to the LNG market, this program will provide valuable insights and strategies to enhance your negotiation capabilities.

Objectives

At the end of this 5-day training program, participants will:

• Understand the LNG Industry: Gain a comprehensive understanding of the LNG industry, including its supply chain, market dynamics, stakeholders, and regulatory considerations.
• Master LNG Contracts: Explore various types of LNG contracts, key contract terms and conditions, and effective risk allocation strategies.
• Pricing Expertise: Acquire in-depth knowledge of LNG pricing mechanisms, pricing formulae, price review mechanisms, and negotiation techniques related to pricing.
• Negotiation Skills: Develop negotiation skills and techniques essential for successful LNG contract and price negotiations, including building trust, identifying BATNA, and applying negotiation tactics.
• Case Studies: Analyze real-world case studies of successful LNG negotiations, challenges, and dispute resolution mechanisms.
• Stay Updated: Stay informed about emerging trends in LNG contracts and pricing, and gain insights from industry experts.

Target Audience

This training program is ideal for professionals, managers, and executives working in the LNG industry or those looking to enter the field. The target audience includes:

• Energy industry professionals involved in LNG procurement, sales, or operations.
• Contract managers and legal professionals dealing with LNG contracts.
• Financial analysts and traders working in the energy sector.
• Government officials and regulators overseeing the LNG market.
• Entrepreneurs and business leaders exploring opportunities in the LNG industry.
• Anyone interested in gaining a deep understanding of LNG contracts and price negotiation.

Program Outline

Day 1: Introduction to LNG and Market Dynamics

• Overview of the LNG industry
• LNG supply chain and value chain
• Market dynamics and trends
• LNG players and stakeholders
• Regulatory and environmental considerations

Day 2: LNG Contract Structures and Terms

• Types of LNG contracts (SPAs, HOAs, tolling agreements, etc.)
• Key terms and conditions in LNG contracts
• Risk allocation in LNG contracts
• LNG contract negotiation strategies
• Drafting effective LNG contracts

Day 3: Pricing Models in LNG Contracts

• Overview of LNG pricing mechanisms (Oil-indexed, Henry Hub, JKM, etc.)
• Pricing formulae and benchmarks
• Price review mechanisms and adjustments
• Contract price negotiations

Day 4: Negotiation Skills and Techniques

• The art of negotiation
• Principled negotiation vs. competitive negotiation
• Building rapport and trust in negotiations
• BATNA (Best Alternative to a Negotiated Agreement)
• Tactics and counter-tactics in LNG negotiations

Day 5: Case Studies and Advanced Topics

• Case study analysis of successful LNG negotiations
• Challenges and disputes in LNG contracts
• Dispute resolution mechanisms
• Emerging trends in LNG contracts and pricing
• Guest speaker session: Industry expert or negotiator's perspective