CM19
Course Contents
Module 1: Gas and LNG Value Chain and Contract Framework
Key Topics
- Gas and LNG value chain, participants, and commercial interfaces
- Gas sales, transportation, processing, and tolling agreements
- LNG sale and purchase, terminal use, and shipping agreements
- Long-term, medium-term, spot, and master trading structures
- Contract hierarchy, definitions, and interpretation principles
- Conditions precedent, term, renewal, and contract commencement
- Contract governance, roles, and lifecycle responsibilities
Module 2: Quantity, Delivery and Operational Risk Allocation
Key Topics
- Annual and daily quantities, tolerances, and flexibility rights
- Take-or-pay, make-up gas, and carry-forward mechanisms
- Nominations, scheduling, lifting programmes, and delivery windows
- Gas and LNG quality, specifications, testing, and measurement
- Title, risk transfer, and FOB versus delivered supply terms
- Off-specification products, rejection rights, and remedies
- Force majeure, hardship, and change-in-law risk allocation
Module 3: Pricing, Payment and Financial Protection
Key Topics
- Gas and LNG pricing structures, indices, and adjustment formulas
- Oil-linked, hub-linked, hybrid, and netback pricing approaches
- Price review, reopening triggers, and renegotiation procedures
- Invoicing, payment, currency, tax, and late-payment provisions
- Credit support, guarantees, letters of credit, and security
- Quantity flexibility, diversion rights, and commercial value
- Audit rights, records, reconciliation, and financial controls
Module 4: Negotiation and Contract Administration
Key Topics
- Negotiation planning, objectives, authority, and fallback positions
- Term sheets, heads of agreement, and clause risk assessment
- Obligation registers, key dates, notices, and approval controls
- Contract administration for nominations and delivery performance
- Amendments, waivers, variations, and formal change control
- Performance monitoring, KPIs, reporting, and early warnings
- Commercial, legal, operations, shipping, and finance interfaces
Module 5: Claims, Disputes, Compliance and Contract Closeout
Key Topics
- Breach, indemnities, liability limits, and contractual remedies
- Claims preparation, notices, evidence, and mitigation measures
- Suspension, termination, and consequences of contract default
- Expert determination, mediation, arbitration, and litigation
- Sanctions, anti-bribery, trade controls, and compliance duties
- Destination flexibility, resale, diversion, and cargo cancellation
- Case study: negotiating and managing a gas or LNG contract
