SpeciFic progr a mm eL a rge gaS projectS courSe

Mastering the process from concept to realisation

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T +31 (0) 50 524 83 00F +31 (0) 50 524 83 01E info@energydelta.nlI www.energydelta.org

SpeciFic progr a mm eL a rge gaS projectS courSe

The global outlook for natural gas in the coming decades implies a substantial growth driven by economic and environmental considerations. To deliver the gas will require massive investments in gas pipeline or liquefied natural gas (LNG) projects. Such projects combine large upfront investments with long pay-back periods. And, often, they cover long distances and cross many national borders.

Such investments require analysis of key long-term business drivers, including the outlook for supply chains and markets, delivery of alternatives and economic feasibility. each investment decision has a great many as-pects, including the interface with governments, joint venture partners and other stakeholders, practical alliance and partnership consider-ations, and the structuring of the project. a broad range of risks also need to be identified and managed, from typical project and business uncertainties to geopolitical threats.

For the most part, major gas projects are conceived as standalone corporate vehicles to build, own, f inance and operate. they will enter into a complex legal framework of commercial contracts and concessions. consequently many competencies are required to manage the interests of all parties involved in the context of their differing objectives. the standalone nature of most projects also implies that external f inancing must be raised in the f inancial and capital markets. the financial interests of lenders must be balanced with the objectives of f inancial and strategic investors.

Why the Large Gas Projects Course?the one-week Large gas projects course (Lgpc) has been designed especially for senior managers and professionals who are involved in major gas infrastructure projects and who are looking for in-depth insight into the processes involved, from identification to execution. the course fuses academic thinking with substantial practical experience. as such, it offers both the theoretical framework and the pragmatic skil l sets required for deciding on major investments from strategic, economic, and financial points of view. Fundamental

business concepts of risk and finance are taught and their relevance in the gas business explored. given the increasingly competitive nature of the global gas markets, proper decision-making for large projects will be more than ever a key factor.

More specifically...upon completion of the course the participant will have insight into:• Theidentificationofthekeyeconomicand

(geo)political drivers that define a project’s business case and comparison with alternative projects.

• Thestructuresandstrategiesformeetingthecorporate objectives of each of the parties involved.

• Theprojectset-upincludingtheroleandposition of each individual player, the legal and regulatory framework, the geopolitical context, the business and economic situation, and so forth.

• Theassessmentoftheproject’seconomicfeasibility, including evaluation of the life cycle costs and the commercial performance.

• Anappraisalofinherentprojectuncertaintiesand ways to manage or hedge the main risks.

• Anassessmentoftheabilitytoraiseproject finance in the international capital markets from banks, development agencies and financial investors such as private equity funds.

• Theimportanceofadequateprojectmanage-ment, the different steps in the development of a project and the interaction between the relevant disciplines required to control and monitor the various stages of a project.

• Theinterdependencyandinteractionbetweenstakeholders and external parties of influence that may have a critical impact on successful project finalisation and operation.

• Anunderstandingofthekeysuccessfactors, the risks and the causes of failure and delay.

a lthough the focus of the Lgpc is on large, international projects, many elements of this course are also perfectly applicable to smaller-scale projects.

Your profile You are a high potential professional who operates in the gas industry or a related area and deals with large-scale projects. You have 5-10 years of relevant experience in one or more areas of project management and organisation or financing. a lso, you have a working knowl-edge of the gas industry, f inancial principles and how to apply such principles. You also have a good command of the english language.

The programme structurethe course aims to be intellectually stimulating and requires all participants to contribute. the programme is structured to include all of the steps of an actual major gas project develop-ment cycle. main headlines include the key elements of a business case focusing on fundamental project feasibility and sustain-ability and the practical processes of converting concepts and aspirations into an operational multi-bil lion dollar gas project. Key topics are:• ProjectDevelopment• ProjectIdentification• FrameworkofConcessionsand Legal agreements• EconomicandFinancialDimensionsof investments• FinancingLargeProjects• MarketEntryStrategiesandCompetitive positioning• ProjectExecutionandManagement

Sharing the Energy of Knowledge.

1. Prologue: Introducing Large Gas Projects worldwide | The main characteristics of major gas projects are identified as well as the dynamic trends that will challenge future large-scale international development. 2. Project Development | The elements of a project business case are investigated in terms of ‘project as a process’. This session is used to create a road map for the content of the course. 3. Project Identification | Further insight into corporate strategic motivations behind major gas project investments and how they cascade down to specific project selection and objectives. 4. Framework of Concessions and Legal Agreements | Identification and further exploration of the legal ‘cement’ that binds the crucial elements of a major project together. 5. Economic and Financial Dimensions of Investments | Explanation of the key concepts of economic and financial feasibility of project investments.6. Financing Large Projects | Exploring aspects of project finance including assessment of debt service capacity, sources of finance, and strategies to mitigate the main credit risks.7. Market Entry Strategies and Competitive Positioning | Examining the decisions needed in gas marketing. 8. Project Execution and Management | Looking at the key project planning process and principles.

the programme in more detail

“...complete coverage of issues of successful development of major gas projects...”

Gordon Summers and Jan Prins, key lecturers

the Lgpc consists of three elements:• Interactivelecturesbyexperts,discussions, small exercises and the introduction of models and tools.• Acasestudy,workedoutbygroupsofthree to six participants. each group may eventually propose a different solution to the same problem, which will trigger new discussions and personal opinions.• Plenaryfeedback.

The educational partners Key lecturers of this programme are mr gordon Summers, former Vice-president middle east/gulf region at Shell gas & power, and mr jan prins, former Head of global energ y & project Finance at a BN a mro. to guarantee both high quality and a varied programme they are supported by a carefully selected group of leading experts from the gas industry.

Your roleto stimulate your learning process, you will be asked to play an active role during the course. You will be working on a comprehensive case study based on a real-life cross-border gas pipeline project. it will be used to demonstrate and stimulate a discussion on the key themes of the lectures and offer material to test relevant economic models and tools.

Certification upon successful completion of the course the participant will receive a certificate on behalf of the university of groningen.

Locationthe course will take place in a central location in the Netherlands. please check our website w w w.energ ydelta.org for specific details.

“W hy managers should take this particular course? Well , we believe EDI is the only institute in Europe that provides a programme that of fers such a complete coverage of all issues that surround the successful development of major gas projects . The course gives the participants a bird ’s eye view of the things that can go wrong and should go right in such multi-billion dollar undertakings. Basically, the course is aimed at avoiding delays in development and financing , cost overruns and shortfalls in operational performance – all at a time when gas projects are becoming increasingly more complex, not just financially, but also legally, technically and, of course, geopolitically. This course gives participants a comprehensive insight into what the issues and risks are that they may encounter and how they can approach them. And all this in a relatively short period of time – just one, intensive, week .”

Gordon Summers, key lecturer Large Gas Projects CourseJan Prins, key lecturer Large Gas Projects Course

T +31 (0) 50 524 83 00F +31 (0) 50 524 83 01E info@energydelta.nlI www.energydelta.org

About Energy Delta InstituteEnergyDeltaInstitute(EDI)isaninternationalenergybusinessschool,withaprimaryfocusonnaturalgas.EDIwasfoundedin 2003 by N.V. Nederlandse gasunie, gasterra B.V., oao gazprom and the university of groningen. The energy community hascometoappreciateEDIbothasaplatformofknowledgeexchangebetweenpartnersandparticipantsalike.Thechangingenergy world is forcing energy companies to innovate in order to stay competitive. in addition, the energy sector is confronting the possibility of a growing shortage of qualified personnel in the coming decades. The sector has only one choice: to invest in knowledge.

EDI’smainobjectiveistocontributetotheprofessionaldevelopmentofcurrentandfutureenergymanagers.EDIcoordinatesresearch projects and organises training programmes with a focus on the economic, management, legal and geopolitical aspects of the energy business.

Sharing the Energy of Knowledge.