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BAC

ACCREDITED

LEVEL: INTERMEDIATE TO ADVANCED 18-22 JUNE 2012: LAGOS, NIGERIA

GAS MONETISATION

IN NIGERIA

Equip yourself with the tools to work within the Nigerian gas industry

BY ATTENDING THIS COURSE YOU WILL:


Understand the implications of the Nigerian Gas Master Plan Position yourself in Nigerias gas industry Evaluate the financing of gas projects in Nigeria Take part in group exercises to pinpoint win-win outcomes for all industry players Network with key industry players and make long-standing business contacts

OVERVIEW:
Experts from the gas industry in both Nigeria and abroad will equip you with essential skills and tools for working in the ever-changing Nigerian gas industry. Key features of the programme include: Gas fundamentals Nigeria Gas Master Plan - objectives & challenges Development of the Nigerian power sector End of gas flaring in Nigeria Nigerian gas legislation Financing gas projects in Nigeria Harnessing natural gas for domestic & export projects Practical exercises on achieving win-win outcomes for all industry players

WHO SHOULD ATTEND:


Executives who are active in any aspect of Nigerias gas and power industry and who need to gain a thorough understanding of the challenges and opportunities that exist. This includes: Upstream, midstream & downstream gas industry professionals Gas reserve holders Government officials Commercial & marketing managers Project developers Strategists, planners & analysts Executives from power generating companies Gas producers, buyers & industrial users Bankers, lawyers & energy consultants

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GAS FUNDAMENTALS WHAT IS NATURAL GAS? COMMON TERMS & MEASUREMENTS


Gas composition & treatment
Hydrocarbon components Inerts & contaminants & how to deal with them Typical gas treatment plant schematic Why is gas considered to be a clean fuel? Gas reservoir types & their significance for commercialisation Associated Gas (AG) & Non-Associated Gas (NAG) reservoirs Why it is important for timing, pressure maintenance, costs, legal framework Non-conventional sources of gas Coal Bed Methane Gas hydrates Tight gas shales

GLOBAL SUPPLY OF NATURAL GAS


Gas reserves, production & trends
Global gas reserves by country Global gas production by country Reserves/production ratio Nigerian gas reserves & distribution Reserve growth Gas associated & non-associated with oil production & its impact Reserves/production ratio

THE GLOBAL DEMAND FOR GAS


Recent historic growth trends in gas demand Global gas demand/supply geographic imbalance Gas consumption by country and consumption Gas consumption by sector & consumption trends
trends Petrochemicals Power Heating Vehicle fuel The emergence of a global reference price for natural gas through international trade The establishment of futures contracts (ICE, NYMEX & JCC contracts) Gas price volatility & causes Impact of price signal from consuming countries to producing countries Effects of changes in legislation

CONNECTING THE SUPPLY TO THE MARKET


Pipeline development LNG
Europe & Russia History of LNG Growth in global movements in LNG, statistically & geographically Impact of LNG in setting global prices GTL History of GTL Recent growth Emergence of vertically integrated global gas companies able to manage gas portfolios on an inter-regional scale

CYCLE TIME FROM RESERVOIR TO MARKET


Importance of price signal to justify investment
Investment risks & returns

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NATURAL GAS VALUE CHAIN


Movement of gas from producer to consumer

GAS MONETISATION
THE CURRENT SITUATION IN NIGERIA & THE GAS MASTER PLAN NATURAL GAS RESERVES
Historic gas reserves additions (NAG &
AG) Ownership & control by operating company

IN NIGERIA
PHYSICAL DEVELOPMENTS
Projects plans & initiatives Infrastructure blueprint
Central Processing Facilities (CPFs) Transmission Physical principles of aggregation Commercial principles of aggregation The proposed CPF model Implication for LPG development Accretion model for industrial clusters around CPFs Capital requirements of plan & funding proposals Foreign Direct Investment (FDI) assessment National Content for goods & services

GROUP EXERCISE
What are the critical success factors for the Nigerian Gas Master Plan and how do you ensure they are achieved?

CURRENT USES OF NATURAL GAS IN NIGERIA BY MARKET SECTOR



Power LNG Industry Projected development growth by sector

EXECUTION IS EVERYTHING END OF GAS FLARING


Nigeria in the global perspective History Anti-flaring legislation & why it has been Will gas flaring end? Will the end of gas flaring significantly
ineffective

DEVELOPMENT OF THE POWER SECTOR


Current situation
Generating capacity History Investment profiles Power generation: social-economic factors Comparison with rest of world Importance of power in National Content competitiveness Power distribution grid Plans for Nigeria - outline & challenges Emergence of Independent Power Plants (IPPs) - will they save the day? Impact of power sector reform Private/Public Partnerships (PPPs)

TRANSPORTATION INFRASTRUCTURE
Pipelines and ownership West Africa Gas Pipeline (WAGP) LNG

NIGERIAN GAS MASTER PLAN OBJECTIVES



Reserves growth Domestic initiatives International commitments Pipeline grid Power

POWER CASE STUDIES


IPP development by IOCs PPPs with external funding

increase gas for the domestic market? The importance of pricing Analysis of the real cost of flaring Community issues Economic & contractual issues of capturing flared gas and supplying it to a domestic market Cost of treatment Pipeline specifications (pressure, temperature, constituents) Delivery obligations Length of term of contract Delivery shortfalls Dispelling the myth that flared gas is free

CHALLENGES TO ACHIEIVING GROWTH PLAN


Supply/demand balance Reserves availability Infrastructure

CASE STUDIES: flArE dOwN


Saudi Arabia Angola Cameroon Equatorial Guinea

World Bank led initiatives

DEVELOPMENT OF THE NIGERIAN GAS GRID



Gathering Processing Transportation & distribution The role of the aggregator Envisaged timetable & investment profile

Participants at a CWC School for Energy course

CASE STUDy: INfrASTrucTurE lEd MONETISATION Of GAS AlGErIA

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LEGISLATION
History of oil & gas legal framework in
Nigeria Emerging legislation: Upstream gas bill Downstream gas bill Pipeline & distribution legislation Key aspects of legislation Levers that will drive investment

DOMESTIC GAS OPPORTUNITIES CHEMICAL CONVERSION OF GAS



GTL Methanol Ammonia & fertilisers Petrochemicals

ECONOMICS & INVESTMENT DECISIONS THE ROLE OF GAS IN A CARBON CONSTRAINED WORLD
Comparative emissions by fuel type Global emissions by country Outlook for change CASE STUDIES

FINANCING OF GAS PROJECTS IN NIGERIA



Types of finance Pros & cons of financing types The financing process Risk assessment & mitigation Equator principles Debt capacity of Nigerian banks

LPG/NGL PROJECTS
Challenges & opportunities in the
domestic market

COMPRESSED NATURAL GAS (CNG)


Benefits & challenges CASE STUDIES: frOM dEvElOpING cOuNTrIES

ECONOMICS
Economic measures of merit (KPIs) Impact of fiscal terms on economic analysis Importance of the value chain & Creating a gas pricing framework that Demand versus supply driven pricing
boosts domestic use projects establishing transfer prices

CASE STUDy: lNG fINANcE

FOSTERING INVESTMENT IN GAS PROJECTS IN NIGERIA


Role of the government in creating an
enabling environment Developing a bankable project Traditional sources of finance in the power sector Financing issues for smaller companies

EXPORT LED PROJECTS LNG PROJECTS IN NIGERIA


Overview of LNG in Nigeria - opportunities
& challenges

DECISION MAKING IN TIMES OF UNCERTAINTY


Impact of rising raw material prices on Impact of volatile energy prices on project Impact of volatility on energy exporting What are mid cycle prices?
nations sanction project sanction

CASE STUDy: NIGErIA lNG Technology Investment costs & need for economic
incentives to Greenfield developments

GTL
Escravos GTL

GROUP EXERCISE
The infrastructure blueprint is critical to the success of the Gas Master Plan. How will Nigeria successfully compete in the world capital market to attract the investment required to achieve its implementation?

GROUP EXERCISE
CASE STUDy: SOuTh AfrIcA
Future Vision: Imagine Nigeria Vision 20-20-20 has been achieved. How will the steps taken in the Gas Sector contribute to achieving its success and what might be the contribution through the multiplier effect to each of the points on the 7-point agenda?

GAS PIPELINES
West African Gas Pipeline

THE NIGERIAN GAS MASTER PLAN: STATUS & OUTLOOK DEVELOPMENT OPPORTUNITIES IN THE GAS SECTOR LPG MARKET CHALLENGES & OPPORTUNITIES
Market opportunities Market challenges Developmental issues along the value
chain

COURSE ROUND UP & CLOSE

GROUP EXERCISE
What is the right balance between domestic and export projects? What is the criteria for making that assessment?

STRIKING THE RIGHT BALANCE BETWEEN EXPORTS & THE DOMESTIC SECTOR
Why more gas is being exported at
present

An excellent course for anyone in the oil & gas industry in Nigeria. This is the most useful course I have attended.
Daniel Ekhaifo, Senior Economist, NIGERIA LNG LTD

Training for the competitive edge

EDUCATION B. Science: London School of Economics M. Science: Imperial College Diploma: Imperial College COURSES Gas Monetisation in Nigeria PORTFOLIO AREA Gas & LNG

MARTIN HUTCHISON
Martin Hutchison began his career with Phillips Petroleum Company in London and worked in the UK and USA as a geophysicist, progressing through seismic modelling, data processing, interpretation and Research & Development. Following assignments to management positions in the UK in Economics and Capital Budgeting, ICT, Mergers & Acquisitions, Hutchison was once again posted to the USA to lead Corporate Risk Management and subsequently Mergers & Acquisitions groups, before being appointed as President and General Manager for company operations in Venezuela, where he was also elected as chairman of the International Oil Committee, a body representing upstream investors. While in Venezuela he served on the boards of the Venezuelan American Chamber of Commerce and Industry and Ameriven, a multi-billion dollar integrated heavy oil project. From Venezuela Hutchison was appointed as President and General Manager for Phillips Petroleum Companys interests in Core Venture 1, Riyadh, Saudi Arabia. Hutchison has recently served as the Managing Director and on the board for Brass LNG Ltd, Nigeria on secondment from ConocoPhillips. Martin Hutchison is currently working as an independent consultant supplying strategic support to the global energy industry. Martin Hutchison also leads CWC School for Energys successful course Gas Monetisation in Nigeria, which is run twice a year in Nigeria.

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Email: baraujo@thecwcgroup.com Tel: +44 20 7978 0067 Fax: +44 20 7978 0099

Training for the competitive edge

CWC School for Energy 2011. All rights reserved. Regent House | Oyster Wharf | 16-18 Lombard Road | London SW11 3RB |UK

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