Dentons Rodyk Academy Workshop: LNG and Gas to Power

Dentons Rodyk Academy Workshop: LNG and Gas to Power

Synopsis

Introduction

The development of the global LNG market and the commoditisation of hitherto expensive floating storage technology (both FSUs and FSRUs) have provided an impetus for a modern twist on power projects, allowing power stations to accept gas from international LNG cargoes.

This workshop seeks to give insights and a better understanding of power generation from LNG and gas.

Issues

Singapore already operates an LNG receiving terminal to provide gas for local use, including power generation, as well as creating a regional LNG hub.

Other countries like Myanmar, Thailand and Bangladesh are exploring the option of LNG imports, in order to meet a growing demand for power generation, both in terms of:

• new regasification terminals connected to the existing gas network to cover natural gas shortages (arising from limited local resources and increased demand); and
• gas to power, where a regasification terminal is directly connected to an existing or new build power station.

The LNG supply chain is of high value and complexity, with a number of industry specific features. The development of a successful LNG project requires a number of different specialist disciplines, including construction, land acquisition, commodity trading, gas transportation, HSE, shipping, etc. There is also a range of operational restrictions which needs to be considered in the structuring of any project, especially where a Floating Storage and Regasification Unit solution is adopted.

Key Objectives

The objectives of this workshop include:

• Improving the understanding of the fundamentals of the LNG supply chain;
• Capacity building in project structuring through an understanding of international best practices in relation to the key risk allocation and bankability positions; and
• Providing an overview of the key project agreements required for an LNG import project.

Target Audience

The target audience for this workshop are the key commercial decision makers working on LNG import projects, the development of new power generation capacity, or the operation of power stations connected to the existing gas network.

Modules

The workshop will be divided into three sessions of approximately one hour duration each:

Session 1: Introduction to LNG

• History of the development of the industry and regasification terminals globally
• The LNG supply chain
• LNG specification
• LNG trading (spot cargoes, failure to take/deliver)

Session 2: Key project agreements

• LNG pricing (indexation, price reviews)
• LNG sale and purchase agreements (quantities, annual programme, delivery, credit support, invoicing)

Session 3: Gas to Power

• Different project structures (e.g. integrated projects, Gas Hub)
• Construction risk and finance interface
• LNG supply and scheduling (boil-off, minimum send out/dispatch)

Speakers

David Tennant, Partner, London
Humphrey Douglas, Partner, London
Tan Joo Thye, Senior Partner, Singapore
John Dick, Partner, Singapore

Programme:

08:45 a.m. - Registration and breakfast
09:10 a.m. - Opening address by Regional CEO Mr Philip Jeyaretnam, SC
09:15 a.m. - Presentation I (Understanding regional drivers for LNG)
09:25 a.m. - Presentation II (Introduction to LNG)
10:25 a.m. - Break
10:35 a.m. - Presentation III (Key project agreements)
11:35 a.m. - Presentation IV (Gas to Power)
12:35 p.m. - Closing and Q&A
12:45 p.m. - End of session