Liquefied Natural Gas Economics


Who should attend?

  • This training provides an overview of the economic and contractual aspects of the LNG (Liquefied Natural Gas) value chain.
Public :
  • This training is beneficial to professionals from the oil, gas or power industries or from the banking, insurance, and consulting sectors who need to understand LNG activities and their economic stakes.

Level :Knowledge

Prerequisite :
  • Familiar with Excel spreadsheet tool.
  • A basic knowledge of natural gas.
  • A basic understanding of the economics of the natural gas chain.

Course Content


      • Natural Gas uses, reserves, supply and demand.
      • New outlets for LNG (retail LNG).
      • International gas trades and importance of the LNG.
      • Evolution of the LNG trading and pricing.
      • Main LNG markets: America, Europe and Asia (mature markets: Japan and South Korea and emerging markets: China, India…).
      • Risks for the different LNG actors: liquefaction, shipping, portfolio players, buyers…
      • Unconventional gas and its impact on LNG markets.

      • LNG: properties and specifications.
      • Design of the different parts of the LNG chain.
      • Liquefaction plants, LNG tankers, regasification terminals.
      • Main projects of LNG terminals in the world and their exploitation.
      • Capital expenditures and operating costs.
      • Economic evaluation of a LNG project.
      • Business structures of LNG projects:
      • Classical “Buy/Sell” model.
      • Processing model.
      • New trends in the LNG industry:
      • Floating concepts: FLNG, FSRU.
      • Small scale LNG.

      • Main features and important articles in LNG contracts.
      • LNG pricing: price formulae, indexation and net-back value.
      • Tolling agreements.
      • Impact of gas markets liberalization and third-party access to regasification terminals.
      • Coexistence between long-term contracts and short-term contracts.

Learning Objectives

  • Upon completion of the course, participants will be able to:
  • evaluate the economics of each part of the LNG value chain,
  • analyze the basic structure of LNG contracts,
  • identify the main LNG markets and their evolution,
  • evaluate the profitability of investments in the LNG industry.

Ways & Means

  • Quizzes.
  • Videos.
  • Examples of contracts.
  • Exercises on LNG contracts.
To French entities : IFP Training is referenced to DataDock ; you may contact your OPCO about potential funding.
Please contact our disabled persons referent to check the accessibility of this training program :