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Experts discuss Global Gas/LNG Markets,

Pricing, Contracts and Legal issues
The 4th Workshop on Global Gas / and Trends: Shifting Patterns trends and legal review
LNG Markets, Pricing, Contracts & • Gas / LNG Pricing Methodologies • Contractual and legal issues –
Legal Issues was organised by • Gas / LNG Price Trends and International Experience and
Resonance Energy on April 27-28, Setting a “New Normal” level Indian perspective
2017 in New Delhi. DEW Journal • LNG contracts – understanding • Gas / LNG Sourcing – Indian
was media partner to the event. The the contract structures and stakeholders’ Forum - New
workshop was organised in
THE KEY AREAS DISCUSSED
the context of the recent
• Global Gas/Liquefied Natural Gas markets and Trends: Shifting Patterns
developments in the global
• Gas/Liquefied Natural Gas (LNG) Pricing Methodologies
LNG markets wherein there
• Gas/Liquefied Natural Gas Price Trends and Setting a “New Normal” level
have been considerable
• Understanding the LNG contract structures, trends and legal review
changes taking place in the
• Contractual and legal issues – International Experience and Indian
global LNG markets - an
perspective
increase in short-term trading
• Gas / LNG Sourcing – Indian stakeholders’ Forum - New strategy of LNG
of LNG, buyer contractual
end users coming together and enhancing bargaining power.
flexibility and FOB contracts
which have led to almost 30%
of LNG being traded under
spot and short-term contracts,
with trading done by
aggregators playing a far more
significant role. The basic aim
was to bring together the
stakeholders on one platform
to create a knowledge forum
for deliberating the trends in
the global and Indian gas/LNG
markets and strategic
preparedness needed to
meet the challenges of the Inaugural Session: L to R: Dr. Basudev Mohanty, Member PNGRB; S. Ravishankar, Director, Resonance
Energy; Dr. BS Negi, Former Member, PNGRB; Mr. Rajeev Chandok, Director Finance, Natural Fertilisers
changing and dynamic Limited; Mr. Pankaj Wadhwa, Sr. Vice President Finance, Petronet LNG Ltd.
environment.
The workshop format
enabled detailed presentation
and discussion on a particular
topic so the participants get an
in-depth understanding of the
subject. The workshop
sessions were handled by
eminent speakers sharing
their knowledge and
experience with the
participants. The key themes
of the Workshop included:
• Global Gas / LNG markets Mr. Anil Joshi, Sr. VP, GSPC LNG addressing the audience.

May 2017 DEW JOURNAL 19

dewjournal.com
strategy of LNG end users
coming together and enhancing
bargaining power.
The workshop received a good
response from the industry. There
was a total participation of 40 senior
invitees and delegates including 8
speakers, representing 15
companies. The gathering was
welcomed by Mr S.Ravishankar,
Director, Resonance Energy. The
Inaugural key notes were delivered
by Dr Mohanty, Member, PNGRB, Mr
Rajiv Chandok, Director -Finance,
NFL and Mr Pankaj Wadhwa, Sr VP,
Petronet LNG Limited. The key note
speakers spoke on the regulatory
perspective, consumer perspective
and supplier perspective, which set
the tone for the business sessions
of the workshop. Dr. B.S.Negi,
Managing Director, Resonance
Energy elaborated on the the various
business, policy and legal issues
facing the industry and how the
programme has been structured to
cover all the key aspects of LNG
market Dynamics which will be of
immense value to the participants.
The sessions were well
structured and practically oriented
delving deep into each of the topics
and elicited lot of interest and
questions. Some of the key
highlights of the business
Mr. Rajeev Mathur, MD, Mahanagar Gas Ltd. addressing the audience
20 DEW JOURNAL May 2017
sessions are detailed below.
The first session had the
theme - Global Gas / LNG markets
and Trends: Shifting Patterns -The
session was delivered by Mr
S.Ravishankar, Director,
Resonance Energy and Mr Pankaj
Wadhwa, Sr Vice President,
Petronet LNG Ltd. The speakers
highlighted the major trends in the
Global Oil, Gas and LNG markets
and how the LNG industry has now
embarked on a period of further
change, with over 200 MMTPA of
new LNG export capacity under
construction or under approval
process, at a time when the
expected rapid LNG demand
growth in Asia appears to be
slowing. The absorption of this new
supply will affect, not only trade-
flow patterns, but also pricing
dynamics, competition with other
gas supply channels and
potentially other fuels. Key to this
change is US LNG, with buyers
becoming more selective about
what they want and what terms they
are ready to accept. The current
trends in Indian LNG market was
also discussed during the session.
The session on “Gas / LNG
Pricing Methodologies”, was
presented by Mr S.Ravishankar,
tracing the history of Gas / LNG
News
pricing worldwide, the indexation
methodologies in various markets
like US, Europe and Asia, Oil
Indexation and its history and also
how the price and business cycles
have undergone various changes
over the years. It was also
highlighted that the current
downward trend in oil and LNG
prices has been continuing for
about 3 years since 2014 in the
context of the emergence of shale
oil and gas from the US and the
market is caught in a continued
spell od downward trends.
The pricing session was
followed by a presentation on “Gas/
LNG Price Trends and Setting a
“New Normal” level” by Mr Rajeev
Mathur, MD, Mahanagar Gas Ltd.
The session coverage was
comprehensive taking the
participants through the latest
trends in the global LNG markets
and the “New Normal” that is seen
in recent times in terms of pricing,
contracts and portfolio. The speaker
also highlighted the fact that the new
LNG suppliers are facing high costs
and are reluctant to abandon a
business model in which they have
confidence but new supplies from
US is changing the complexion. Oil
indexation is under further attack
with US LNG selling at HH indexed
pricing formula and now the
sellers and buyers are forced
to adopt different pricing
policies and secure more
flexibility in the LNG contracts.
The trends in price indexation,
contract durations and buyer
portfolios in recent years were
also discussed. New trends
like gas and hybrid indexation,
contracts with flexible
provisions like price reopener
and destination flexibility have
come to stay.
News dewjournal.com

Mr Sumanto Basu, Legal Expert, covered the basics of Gas and LNG
contracts with detailed analysis of contractual provisions, traditional
and US contracts, portfolio contracts and the changing trends in
contracts in terms of negotiation of flexibilities. The session also
covered legal issues associated with administering contracts and how
negotiation and defining the various key provisions upfront is so important

After detailed discussion on
markets and prices during first day,
the workshop focussed on
Contracts and Legal issues on
second day. Mr Sumanto Basu,
Legal Expert, covered the basics of
Gas and LNG contracts with
detailed analysis of contractual
provisions, traditional and US
contracts, portfolio contracts and
the changing trends in contracts in
terms of negotiation of flexibilities.
The session also covered legal
issues associated with
administering contracts and how
negotiation and defining the
various key provisions upfront is so
important. Dr B.S. Negi presented
various case studies in the Gas /
LNG contracts and also discussed
interesting aspects of India’s Qatar
and Iran negotiations of the past.
This was followed by
discussion on “India’s Sourcing
Options” which was deliberated by
Dr BS. Negi. The discussion also
revolved around various
technologies like LNG by Road and
LNG as a transport fuel, which has
immense future potential.

Acquisition of high-quality broadband WAZ

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Acquisition of high-quality broadband WAZ seismic data over 71,000
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May 2017 DEW JOURNAL 21