LNG Commercial & Contracting Structures Training Course

Overview Objectives Audience Methodology Contents Certificate FAQ's

Course Overview

LNG commercial and contracting structures define how natural gas is liquefied, transported, sold, delivered and paid for across international markets. These structures are central to project financing, supply security, portfolio flexibility and risk allocation between sellers, buyers, project developers, shippers and terminal operators. Professionals involved in LNG must understand how sale and purchase agreements, tolling arrangements, shipping terms, terminal access, pricing formulas and delivery obligations interact across the full LNG value chain.

This course provides participants with a practical understanding of the commercial models and contract structures used in LNG projects and trading activities. Professionals can review these structures through our oil and gas training courses or master the commercial negotiations via our procurement and supply chain training courses portfolio. Participants will learn how to compare FOB, DES and tolling models, interpret key LNG contract clauses, understand pricing and review mechanisms, evaluate flexibility rights and manage commercial risks. The programme also strengthens negotiation awareness and contract-structuring capability for participants involved in LNG supply, offtake, project development, trading, finance and portfolio management.

Learning Objectives

By the end of this course, participants will be able to:

Explain the global LNG value chain and main commercial participants.
Compare LNG Sale and Purchase Agreement (SPA), tolling, terminal and shipping structures.
Interpret FOB, DES, DAP and other marine delivery arrangements.
Assess price formulas, indexation models and formal price review mechanisms.
Evaluate volume flexibility, destination restrictions, diversion rights and optionality provisions.
Identify credit exposures, performance guarantees, force majeure and default risks.
Review key clauses affecting LNG project bankability and asset value.
Support the negotiation of practical LNG commercial structures.

Target Audience

This course is designed for LNG commercial managers, contract managers, business development professionals, legal advisers, project developers, gas marketing personnel, LNG traders, supply and portfolio managers, shipping coordinators and finance professionals involved in LNG transactions.

It is also highly suitable for government officials, regulators, investment professionals, terminal operators, gas buyers, utility representatives, project managers, engineers and technical professionals who need to understand the commercial and contractual foundations of LNG projects, trading and portfolio decisions.

Training Methodology

The training will be delivered through instructor-led presentations, facilitated discussions, contract examples, commercial case studies and practical group exercises. Participants will review LNG project structures, pricing examples, contract clauses, delivery terms, risk-allocation scenarios and negotiation situations.

The programme will also include clause interpretation, pricing calculations, commercial model comparisons and group workshops. Practical templates and checklists will help participants evaluate LNG agreements, compare transaction structures and understand how contract terms influence commercial value and operational flexibility.

Course Contents

Module 1: LNG Value Chain and Commercial Models

Key Topics

Comprehensive LNG value chain from gas supply source to regasified market
Upstream gas production, liquefaction, shipping and regasification links
Roles of sellers, buyers, aggregators, portfolio players and traders
Comparative analysis of integrated project, merchant, tolling and portfolio models
Long-term, medium-term, spot and Master Sale Agreement (MSA) structures
Project financing requirements, offtake security and bankability needs
Key commercial drivers of global LNG investment and market access

Module 2: LNG Contract Structures and Delivery Terms

Key Topics

LNG Sale and Purchase Agreement (SPA) structure and core purpose
Liquefaction tolling agreements and terminal use agreements
Free on Board (FOB), Delivered Ex-Ship (DES), Delivered at Place (DAP) and ex-terminal delivery models
Title transfer, risk transfer and delivery point issues
Annual Contract Quantity (ACQ) and delivery programme basics
Cargo scheduling, lifting windows and operational coordination protocols
Shipping logistics, chartering, demurrage and berth availability risks

Module 3: Pricing, Indexation and Value Mechanisms

Key Topics

Oil-linked (Brent, JCC), gas hub-linked (Henry Hub, TTF) and hybrid LNG pricing models
Pricing formulas: slopes, constants, floors, ceilings and price cap concepts
Key benchmark references: Henry Hub, JKM, TTF and NBP
Netback pricing, freight adjustment and destination value optimization
Price review triggers, price reopening clauses and negotiation processes
Taxes, customs duties, currency issues, invoicing and payment mechanics
Calculating the economic value of flexibility, diversion rights and optionality

Module 4: Risk Allocation, Performance and Flexibility

Key Topics

Take-or-pay (ToP), ship-or-pay and make-up cargo rights
Downward Quantity Tolerance (DQT) and Upward Quantity Tolerance (UQT) flexibility rights
Destination restrictions, diversion rights and cargo optimization
LNG quality specifications, off-spec cargo handling and testing procedures
Force majeure, operational hardship and change-in-law provisions
Credit support mechanisms, parent company guarantees and letters of credit
Default remedies, suspension rights, termination clauses and liability limitations

Module 5: Negotiation, Governance and Portfolio Strategy

Key Topics

Preparing LNG negotiation objectives, boundaries and fallback positions
Term sheets, Heads of Agreement (HOA) and binding commitments
Clause-by-clause risk review and internal approval governance
Sanctions compliance, import/export controls and responsible trading practices
Dispute resolution: expert determination, mediation and international arbitration
Global portfolio optimization: managing supply, markets and shipping assets
Practical capstone workshop: structuring and negotiating an LNG supply deal

Classroom Session

Dubai

09 - 13 Nov 2026

$5,600

Dubai

18 - 22 Jan 2027

$5,600

Cape Town

15 - 19 Mar 2027

$5,600

Dubai

10 - 14 May 2027

$5,600

Geneva

16 - 20 Aug 2027

$5,950

Dubai

22 - 26 Nov 2027

$5,600

More Schedules

Online Session

Duration: 2 Hrs X 8 Days

Starting Date

16-Nov-2026

$3,000

Starting Date

06-Apr-2027

$3,500

Starting Date

17-Aug-2027

$3,500

Starting Date

23-Nov-2027

$3,500

More Schedules

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Certificate

Upon successful completion of this training, participants will receive a PROMISE Certificate of Completion.

Certificate

Upon successful completion of this training, participants will receive a PROMISE Certificate of Completion.

This Program has been approved for 25.00 HR (General) recertification credit hours toward aPHR , aPHRi , PHR®, PHRca®, SPHR®, GPHR®, PHRi and SPHRi recertification through HR Certification Institute® (HRCI®)

testimonials

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An exceptional learning experience. This stands out as one of the most comprehensive and well-structured courses I have encountered in my career.