Contractual Framework of Gas Sale - Purchase & Transportation

GER/CGT

Who should attend?

  • This training provides participants with the fundamental features and structures of natural gas long-term sales contracts and transportation agreements.
Audience :
  • Professionals, involved in natural gas trading, who need to negotiate or implement natural gas contracts.

Level : Proficiency

Course Content

  • LONG-TERM NATURAL GAS SALES CONTRACTS

      • Primary issues about long-term gas agreements.
      • Main natural gas agreements.
      • Analysis of the main articles of long-term agreements:
      • Commercial:
      • duration: depletion contract, supply contract, peak shaving, seller's nomination and interruption,
      • quantity: ACQ, DCQ, MDQ, swing factor, excess gas and take-or-pay,
      • quality: technical specifications, acceptable limits and non-conformity penalties,
      • price: indexation, market value and net-back value,
      • delivery point: place, measure, frequency, precision and flexibility,
      • Responsibility: force majeure, transfer of rights, expert, arbitration and applicable law.
      • Operational:
      • installation, counting system and analysis, obligation of information, confidentiality, invoicing and payment,
      • entitlement, risk and general disposals.
      • Recent evolution of natural gas long-term contracts: short-term contracts and tolling agreements.
  • NATURAL GAS TRANSPORTATION AGREEMENTS

      • Main principles of natural gas transportation agreements.
      • Analysis of the main articles:
      • delivery point/redelivery, specifications,
      • quantity and capacity booking (delivery commitment, booked capacities profile and transportation obligation),
      • tariff structure (ship-or-pay, fix or variable pricing),
      • quantities allocation and procedure, gas delivery procedures, quality settlement and removal schedule,
      • duration, force majeure, tie-in deposit and general dispositions.
      • Recent evolution of gas transportation agreements.

Learning Objectives

  • Upon completion of the course, participants will be able to:
  • identify the main articles of long-term natural gas agreements,
  • explain the keys points of the commercial clauses,
  • evaluate the principles of natural gas pricing and transportation.

Ways & Means

  • Examples of contracts.
  • Case studies on contracts.
  • Simulation of negotiation.