An Interactive 5-Day Training Course
LNG Business Fundamentals
An emerging global gas market
Course Overview
Global energy business is constantly shifting. Energy prices hike and dive, they send shock-waves across the industry and affect businesses and projects. The Liquefied Natural Gas (LNG) business is a technological response to such dynamics. Here, to make good project decisions, we need to first understand the fundamentals of the business and the markets. Adam Smith once described the market as where “individual ambition serves the common good”.
This GLOMACS training course introduces the audience to the fundamentals of value creation in the LNG business. It highlights the role of technology as the driving force and discusses the insights from the business domain. Using concepts from economics of LNG business and dynamics of the energy markets, we build models that supports prudent business decisions. Our focus would be on key insights that support major decisions in LNG business.
This training course will highlight:
- Global energy markets and regional distinctions
- The economics of energy and the role of LNG business
- Value creation in LNG projects: from net-back pricing to project dynamics
- Risk and uncertainty in capital-intensive LNG business
- Models that support prudent economic decisions in LNG projects
Training Objectives
To succeed in the LNG industry is to create value. The ventures are capital-intensive and have uncertain outcomes. While there are technical complexities, the energy commodity markets supply information about the industry trend and the overall activity of its participants. This leads to insights that support good business decisions. Good project decisions often lead to value creation.
At the end of this training course, you will learn to:
- Understand the challenges of the energy industry and the LNG business.
- Appreciate the business dynamics and value drivers in LNG business.
- Gain insights from market dynamics to support LNG project appraisals.
- Apply the understanding to support technical and economic decisions.
Who should Attend?
The material in this course will be useful to managers and decision makers in the LNG business. The course is also relevant to analysts, engineers, and consultants that support the process of decision making. Professionals interested in the practice of net-back pricing, uncertainty analysis, and risk management also find this course useful.
This training course is suitable to a wide range of professionals including:
- Managers and decision makers involved in value creation for the energy business.
- Commercial staff who would like to gain in-depth knowledge of the LNG business.
- Decision makers involved in financing and investment.
- Analysts interested in market insights that support project decisions.
- Researchers and practitioners who aim to broaden their knowledge of the business.
About Saudi Glomacs
At Saudi GLOMACS, we specialize in delivering world-class training courses in Saudi Arabia and across various international locations. Our training courses are tailored to meet the unique demands of Saudi Vision 2030 and the Human Capability Development Program, focusing on empowering Saudi citizens and enhancing workforce skills. We offer diverse courses spanning leadership, management, engineering, and technical disciplines to cultivate expertise and drive professional growth. Our flexible learning options—whether in-person, online, or in-house—ensure accessibility and convenience for individuals and organizations alike.
With over 30+ years of experience through the GLOMACS global network, we are committed to delivering innovative, results-driven training solutions. Our expert instructors combine industry knowledge with dynamic teaching methods, fostering practical skill development and long-term career success. By choosing Saudi GLOMACS, you're investing in personal excellence and contributing to the Kingdom’s sustainable economic growth and vision-driven transformation.
Training Outline
DAY 1: An Overview of the Energy Industry
While natural gas markets are regional, the LNG markets are global. We start by introducing the participants to the fundamentals of the oil and natural gas industry. We further discuss principles of value creation.
- The evolution of energy industry
- Energy price changes from the supply and demand dynamics
- Energy commodity markets: crude oil, natural gas, and the role of LNG
- LNG as a midstream business
- Technical challenges of LNG projects
DAY 2: Value Creation in LNG Business
According to Adam Smith, markets are “an obvious and simple system of natural liberty”. Our decisions cannot ignore the core features of the LNG business.
- Energy commodity markets and price differences
- The value chain for LNG projects
- Price trends and insights for business decisions
- Value drivers in LNG projects
- Lessons learned from the oil and gas industry: cost and benefit estimation
DAY 3: Uncertainty and Risk in LNG Projects
Most project values are sensitive to price changes. We discuss the common uncertain features of the energy projects and then show analytics that supports this understanding.
- The foundation of value creation in uncertain conditions
- Principles of valuation: Comparisons across time (time value of money)
- Principles of valuation: Comparisons across levels of risk (risk premiums)
- Measures of value: from net-back pricing to net cash flows.
- Sensitivity analysis in project appraisals
- Tutorial: LNG project cash flow modeling in spreadsheets
DAY 4: Business Analytics Applied to LNG Projects
We discuss tools that support business models. We further use the power of computers (MS Excel® and its add-ins) to support decisions.
- Modeling uncertainty in natural gas prices
- Risk, and the upside opportunity: integrating technical and commercial aspects.
- Tools of risk management: insurance and hedging using market instruments
- Tornado diagrams, simulation studies, and decision trees to support LNG business.
- Tutorial: Applying business analytics tools to spreadsheet LNG cash flows
DAY 5: Analytical tools and future trends
In the final day of the course, we discuss the emerging trends and more analytical tools to implement the concepts.
- Cost estimation and analysis of cash flows
- The geo-politics of energy and price shocks
- Behavioral aspects of financial decisions: the past challenges in LNG projects
- Heuristics and biases in management decision making.
- Energy and the environment
- Concluding remarks
Certificates
- On successful completion of this training course, GLOMACS Certificate will be awarded to the delegates
- Continuing Professional Education credits (CPE) : In accordance with the standards of the National Registry of CPE Sponsor, one CPE credit is granted per 50 minutes of attendance
Accreditation
GLOMACS is registered with NASBA as a sponsor of Continuing Professional Education (CPE) on the National Registry of CPE Sponsors. NASBA have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.
All Training Seminars delivered by GLOMACS by default are eligible for CPE Credit.
Providers and Associations
Sessions in international locations
Online Sessions
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