Gas Processing Contracts and Negotiations
Price: $895.00
CEUs: CPE Credits: 7.5 hrs.
Course Level: Basic
Agenda: 8:30 AM - 5:00 PM
This course is for anyone wanting to acquire a more nuanced understanding of gas processing agreements. It is appropriate for new hires in the processing arena, but also perfect for executives and mid-level management, accounting personnel, and our division order staff. The course is ideal for mid-stream companies, and companies considering developing midstream assets. End users of natural gas will gain invaluable knowledge and become familiar with key strategies for successfully negotiating a natural gas contract. View printer-friendly PDF of course outline.
8:00 – 8:50 AM
Gas and NGL Marketing
Historical regulated times
Restructuring
Deregulation
8:50 – 9:30 AM
Gas Marketing
Market factors
Cash, index, hedging
Historical and future prices
9:30 – 10:30 AM
NGL Marketing
Markets, transportation, fractionation
Historical pricing
Indices
10:30 – Noon
Processing Agreements
Historical processing and agreements
Historical, current and future players
Historical and current margins
Historical and current thru puts
1:00 – 2:00 PM
Styles of Agreements
Standard allocated P.O.P. deals
Fixed fuel and recovery P.O.P. deals
Keep whole and fee deals
Discussion of evolution of processing deals and economics
2:00 – 3:00 PM
Contract Terms and Language
Pricing, term, delivery point
Pressures, quality specs, economics
Measurement, force majeure, testing
3:00 – 4:00 PM
Accounting and Negotiations
Plant settlement statements
Negotiating fees and percentages
Customer relations and strategies
4:00 – 5:00 PM
Class Exercises
Calculating allocated gallons of NGLs
Shrinkage and fuel calculations
Accounting settlement calculations
Calculating wellhead values
Calculating plant margins
