contract structure and risk control in lng regasification
TRANSCRIPT
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BY HIMADRI BANERJI
EX CEO RELIANCE ENERGY
MD ECOURJA
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 1
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CONTENTS
THE CHANGING PARADIGM : NON RECOURSEFINANCING A REALITY IN LNG REGASIFICATION PROJECTS
EVOLVING PROJECT CONTRACT STRUCTURES FOR R-LNG
RISK ALLOCATION AND ISSUES IN LNG IMPORTTERMINALS
LESSONS IN RISK MITIGATION & CONTROL : CASE STUDY
ON PETRONET LNG LTD DAHEJ TERMINAL
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 2
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Non recourse Financinga reality in LNG Import terminals
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 3
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Until the 1990s, the industry was largely financed on the back of state-to-state agreements
among strong national counter-parties with the active involvement of high investment
grade-rated major oil companies and equivalently rated utilities
!he projects implemented over the past decade have seen an increasing reliance on limited
recourse finance, but with high or medium investment grade countries on either end of the
Non recor!e F"n#nc"n$
# re#%"' "n LNG I()or er("n#%!
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore1st to 4th July July 2013 4
"ignificantly, the only large project during the period not fitting that approach or benefiting
from structural supports to achieve that result, #igeria #$%, was developed from sponsors&
own equity funds
'ven those that were implemented using project finance for the most part involved a critical
combination of host government&s supports and undertakings on the supply and offtake
ends and the integration into the overall financing of multilateral agency or e(port agency
credits
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Non Recor!e F"n#nc"n$# Re#%"' "n LNG Re$#!"*"c#"on Ter("n#%!
!he emergence of a new type of $#% buyers has stressed the need to adapt the
finance structure of this capital-e(tensive industry
)eveloping markets such as *ndia and +hina represent the largest potential for the
$#% business while 'uropean nations, apan, orea and !aiwan&s consumption have
stabili.ed for the last couple of years
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Presented by Dr. Himadri Banerji at the LNG Terminals and Distribution IBC AsiaSingapore 1st to 4th July July 2013 5
investment grade major oil companies and equivalent rated utilities, new LNGinvestments rely on below investment grade entities to ensure sufficient long-
term revenues to support a multi-billion dollar investment chain. the non
recourse financing
T+e "!!e! r#"!e, ' +"! !"#"on #re co()on,e, ' +e #))ro#c+ e"n$ #.en o/#r,!
+e *"n#nc"n$ o* +e ,"**eren "n-conr' co()onen! o* +e c+#"n0 +e LNG )or 1 "()or
er("n#% 1 re$#!"*"c#"on n" #n, !or#$e on +e one +#n, #n, +e ,"!r""on ne/or.
#n, )o/er )%#n! on +e o+er +#n,2 /"+ +e e()+#!"! e"n$ )%#ce, on +e )r"3#e !ecor2
IPP! #n, C%e#n Ener$' De3e%o)(en
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E3o%3"n$ Pro4ec Conr#c Srcre
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1st to 4th July July 2013 7
Merchant
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E3o%3"n$ Pro4ec Conr#c Srcre
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 8
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E3o%3"n$ Pro4ec Conr#c Srcre!
Perone Koc+" LNG
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1st to 4th July July 2013 9
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E3o%3"n$ Pro4ec Conr#c Srcre
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 10
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E3o%3"n$ Pro4ec Conr#c Srcre
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 11
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RISK ALLOCATION AND CONTROL IN
LNG IMPORT TERMINAL
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore1st to 4th July July 2013 12
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RISK ALLOCATION AND CONTROL INLNG IMPORT TERMINAL
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore1st to 4th July July 2013 13
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KEY RISK ISSUES
I "! o*en !#", +# +e e!!en"#% c+#r#cer"!"c o* )ro4ec *"n#nce "! +e
(e+o,o%o$' o* r"!. ",en"*"c#"on #n, !!e6en r"!. #%%oc#"on #n,
conro%
RISK ALLOCATION AND CONTROL IN
LNG IMPORT TERMINAL
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore1st to 4th July July 2013 14
7e*ore ener"n$ "no # ,"!c!!"on o* +e *"n#nc"n$-!)ec"*"c #!)ec! o* LNGRe$#!"*"c#"on Ter("n#%!2 " "! /or+/+"%e re3"e/"n$ +e 3#r"o!
co()onen e%e(en! o* +e R-LNG c+#"n *or( +e )er!)ec"3e o* r"!.
#n#%'!"!.
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LNG Re$#!"*"c#"on Ter("n#% Pro4ec R"!. M""$#"on M#r"8
T')e o* R"!. R"!. A%%oc#e, o M""$#"on
M#r.e R"!.!
-O**-#.e
- P#'(en5
Pro4ec Co51O**-#.er
O**-#.er1G#r#nor
S"#%e #$ree(en!
Cre," En+#nce(en
Tec+no%o$' EPC Conr#cor
Con"n"n$ S))or
RISK ALLOCATION AND CONTROL INLNG IMPORT TERMINAL
-
- F#c"%"' De!"$n &Per*or(#nce
- D#(#$e
Pro4ec Co5
2
In!r#nce
F"n#nc"#%
- Inere! R#e
- In*%#"on
- F8 F%c#"on
Pro4ec Co5
Pro4ec Co5
Pro4ec Co5
He,$"n$2
Force M#4ere Pro4ec Co5 In!r#nce!
7#c. o #c. c%#!e! o*
A$ree(en!Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore1st to 4th July July 2013 15
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5Pro4ec Iner,e)en,enc'
;5Con!rc"on R"!.< De%#'! "n con!rc"on
< Co!-O3errn!
< Per*or(#nce e%o/ $#r#nee,
RISK ALLOCATION AND CONTROL INLNG IMPORT TERMINAL
=5U)!re#( S))%' R"!.
< In!**"c"en Re!er3e!
< F#"%re o* S))%'
>5Do/n!re#( M#r.e R"!.< L#c. o* M#r.e De(#n,
< Co()e"n$ Fe%!
< Do/n!re#( 7'er Cre," R"!.
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 16
)#r#(e er!
< M#er"#%! #n, L#or Co! #n, A3#"%#"%"'
?5 O)er#"n$ R"!.
< O)er#or )er*or(#nce
< E6")(en *#"%re!
< Incre#!e, o)er#"on#% co!!
< L#or A3#"%#"%"' @e5$52 !e#*#rer!
< Re$%#or' 1 Le$#% Re$"(e
B5 Cre," & P#'(en R"!.
< R"!. o* Non-P#'(en
< LNG or G#! O**#.er Cre,"/or+"ne!!
< C+#rerer Cre,"/or+"ne!!
5 L"6","' R"!.
< Co!-o3errn!
< In3o"ce #n, c#!+-*%o/ ("!(#c+e!
< Co(("!!"on"n$ #n, r#()-) )er"o,!
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RISK ALLOCATION AND CONTROL INLNG IMPORT TERMINAL
5 Force M#4ere< Un*ore!ee#%e r"!.
< Ac! o* Go,
< Iner-,e)en,enc' o* *orce (#4ere c%#!e! +ro$+o LNG S))%' C+#"n
< Force M#4ere C%#!e! *re6en%' no #c.-o-#c.
5 Po%""c#% R"!.
< Go3ern(en#% !))or *or )ro4ec
< Per(""n$ #n, A+or"#"on!
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 17
< Ro%e o* S#e "n S))%'2 Tr#n!)or#"on #n, O**#.e
5 Le$#% R"!.
< 7re#c+ o* conr#c #n, non-)er*or(#nce
< En*orce#"%"'
< Conr#c#% #("$"' or !"%ence< D"!)e re!o%"on
< De3e%o)e, 3!5 De3e%o)"n$ Re$%#or' En3"ron(en
5 Gener#% Econo("c R"!.
< LNG #n, G#! De(#n, #n, S))%'< LNG Ve!!e% De(#n, #n, S))%'
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CASE STUDY IN RISK ALLOCATION AND CONTROL IN
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 18
INDIAS FIRST PETRONET LNG IMPORT TERMINAL AT DAHEJ
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PLL +#! een )ro(oe, ' *or PSU o"% & $#! co()#n"e! 3"5 ONGC2
GAIL2 IOC #n, 7PCL /"+ e#c+ o* +e( +#3"n$ ;5> e6"' !#.e5
G# De Fr#nce @GDF #n, A!"#n De3e%o)(en 7#n. @AD7 +#3e
#n, >5; !#.e "n +e co()#n' /"+ +e re! +e%, ' "n!""on#%
Pro*"%e Perone LNG L,55#n R-LNG Co()#n'
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 19
"n3e!or! #n, $ener#% )%"c5
PLL +#, co(("!!"one, # > MMTPA LNG re$#!"*"c#"on )%#n # D#+e42
G4#r# "n A)r"% ;= #n, %#er e8)#n,e, +e c#)#c"' o MMTPA "n
J%' ;
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T+e o)er#"on! o* +e co()#n' #re $o3erne, ' +e )ro3"!"on! o*
# !er"e! o* #$ree(en! !c+ #!
S))%' )rc+#!e #$ree(en @SPA /"+ R#!G#!2 ##r2
T"(e C+#rer A$ree(en @TCA /"+ M"!" OSK
Pro*"%e Perone LNG L,55#n R-LNG Co()#n'
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 20
2
Por O)er#"on! Ser3"ce A$ree(en @POSA /"+ #
S"n$#)ore con!or"(2
G#! S))%' Prc+#!e A$ree(en @GSPA /"+ +eo**#.er!2 #n, P#'(en Secr"' Mec+#n"!(5
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PLL !orce! LNG *ro( R#!G#!2 ##r n,er # ;> 'e#r SPA2
*or /+"c+ )r"ce! /ere %".e, o # *"8e, )r"ce o* J#)#n C!o(! C%e#re,
@JCC cr,e "n +e )er"o, A)r"% ;=-Dec ;5
In +e !!e6en )er"o, J#n ;-Dec ;?2 LNG )r"ce! /"%% $r#,#%%'
"ncre#!e o $e %"n.e, /"+ +e recen cr,e o"% )r"ce! #n, /"%% e3en#%%'
e *%%' "n,e8e, o recen cr,e o"% )r"ce! /"+ # *%oor #n, c#)5
Pro*"%e Perone LNG L,55#n R-LNG Co()#n'
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 21
E8ce) ,r"n$ Force M#4ere e3en!2 PLL "! co(("e, o ' LNG *ro(R#!G#! # +e conr#ce, 6#n"'5
For r#n!)or"n$ LNG o "! )%#n2 PLL +#! enere, "no TCA /"+ M"!"
con!or"(2 /+o +#3e ,e)%o'e, +ree ,e,"c#e, LNG !+")! *or +eco()#n'
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Lon$-er( co(("e, R-LNG *ro( +e D#+e4 )%#n "! !o%, o GAIL2
IOC & 7PCL "n +e r#"o B:?:2 +ro$+ +e GSPA5
Ter(! #n, con,""on! o* GSPA #re co-er("n! /"+ +# o* SPA5
T+e o**#.er! +#3e #.e or )#' %"#"%""e! o PLL #n, +e %#er +#!
Pro*"%e Perone LNG L,55#n R-LNG Co()#n'
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 22
5
9+"%e +e O&M o* +e re$#!"*"c#"on
)%#n "! ,one ' Perone LNG
M#r"ne !er3"ce! #re n,er#.en ' PSAM#r"ne2 S"n$#)ore5
P#'(en! o R#!G#!2 !+"))er!2
O&M #$en #n, ,e !er3"c"n$ #re
$o3erne, 7' )#'(en !ecr"'
(ec+#n"!(
De!cr"e, %#er
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PLL "! #o o co(("!!"on > MMTPA
$reen*"e%, re$#!"*"c#"on er("n#% # Koc+" "n
M#rc+1A)r"% ;?5
T+e co()#n' +#! SPA o* 5== MMTPA /"+
E88on Mo"% *or "! )co("n$ Koc+" er("n#%
#n, +#! GSPA /"+ o**#.er! *or +e !#(e
Pro*"%e Perone LNG L,55#n R-LNG Co()#n'
T+e co()#n' "! #%!o !e"n$ ) # >
MMTPA $reen*"e%, re$#!"*"c#"on
er("n#% # G#n$#3#r#( @An,+r#
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 23
6#n"' on +e #c. o #c. #!"!5
7e!",e!2 +e co()#n' "! #%!o e8)#n,"n$ +e
c#)#c"' o* "! D#+e4 er("n#% *ro( MMTPA
o > MMTPA @D#+e4 P+#!e III )ro4ec5
Por5
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Dr"n$ ;-;2 PLL re)ore, # ne
)ro*" o* R!5 > crore on #n
o er#"n "nco(e o* R!5 ;; crore
Pro*"%e Perone LNG L,55#n R-LNG Co()#n'
Presented by Dr. Himadri Banerji at the LNGTerminals and Distribution IBC Asia Singapore
1st to 4th July July 2013 24
9+"%e +e co()#n' re)ore, # ne
)ro*" o* R!5 = crore on #n o)er#"n$
"nco(e o* R!5 ;?; crore "n M ;;-
? @A)r"%-Dece(er ;; #! )er
n#,"e, con!o%",#e, re!%!
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CASE STUDY IN RISK ALLOCATION AND CONTROL IN
INDIAS FIRST PETRONET LNG IMPORT TERMINAL AT DAHEJ
Pro*"%e o* Pro(oer!
E8ce%%en Tr#c. Recor,T/o o o* For "n L"! o* To) Forne > Co()#n"e!
No E8)er"ence "n LNG
P#ren co()#n' G#r#nee! E8en,e, o Perone
Tec+n"c#% P#rner!
G#! D Fr#n GDFGDF "n LNG 7!"ne!! o3er *"3e ,ec#,e!
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 25
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PLL R"!. Conro%
R#! G#! #! LNG S))%"er
9e%% E!#%"!+e, S))%"er o* LNG
CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
Perone LNG +#! o)"on o #.e e6"' "n R#! G#! II SPV
E8)er"ence o* Tr#n!)orer
M"!"
NYKK%"ne
SCI
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 26
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Pro4ec De3e%o)(en R"!. M#n#$e(en
In""#% Pro4ec De3e%o)(en T"(e M"n"("e,5
CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
ro ec n#nce o!re #! #! #r#n ee! o en er! $ 3en '
S)on!or!
F#!er M#r.e T"e U)! #n, +ence Co((erc"#% Co(("!!"on"n$
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 27
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Con!rc"on R"!. M#n#$e(en
F"8e, Co!2 F"8e, T"(e EPC Con!rc"on Conr#c o re)e, con!rcor
#*er IC7 or $%o#% ",,"n$
CASE STUDY IN RISK ALLOCATION AND CONTROL INDAHEJ PETRONET LNG IMPORT TERMINAL
C#! F o/! ence Con!rc"on S!#"ne /" Len er G#r#nee! $"3en
' !)on!or!
Sr"n$en Per*or(#nce G#r#nee! A3o",e, Con!rc"on #%"'2 De%#'!
#n, O3er Rn!
Len,er En$"neer"n$ Mo M#c,on#%,
PMC ' Fo!er 9+ee%er
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 28
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Co(("!!"on"n$ o* G#! O**-#.e F#c"%""e!55G#r#nee, ' GAIL
R#! G#! II )%#ce, o** !+ore EPC conr#c on J5 R#' McDer(o #n,
on!+ore EPC conr#c on M"!" C+"'o,#5
CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
H#3e e8)er"ence "n "%,"n$ LNG Tr#"n! *or ADG#! #n, O(#n LNG
Ve!!e% O/ner! P%#ce conr#c! *or "%,"n$ !+")! on D#e/oo
S+")'#r,!F"8e, T"(e2 *"8e, )r"ce /"+ LD o* ; *or ,e%#'! ec #n,$#r#nee! $"3en *or ,e%"3er' o* !+")! "n "(e5
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 29
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O)er#"on#% R"!. M#n#$e(en
9+# #re O)er#"on#% R"!.!
CASE STUDY IN RISK ALLOCATION AND CONTROL INDAHEJ PETRONET LNG IMPORT TERMINAL
# re o er or( or ro ce o )ec c# on!
He#3' *#"%re! o* E6")(en
S#*e' #n, Acc",en!55
H##r,! o En3"ron(en #n, Co((n"'
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 30
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/'2!*#% *" +/#!/$ 3242) !/ +/55U#*!*'"
PLL Risk Control
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 31
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R"!.!:
5 Co! o* O&M 7e'on, 7,$e F"n#nc"#% Pro4ec"on!
;5 D"!r)"on! "n S))%' o* LNG o rn P%#n?5 D"!r)"on! "n O**-#.e
=5 C#!+ F%o/ Inerr)"on! #n, Pen#%"e!
CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
Conro%
Tec+n"c#% Ser3"ce A$ree(en !"$ne, /"+ GDF *or
O&M S)er3"!"on #n, Tr#"n"n$ o* O)er#or! #n,
M#"nen#nce S#** o* Perone LNG *or # )er"o, o* ? 'e#r!5
GDF #%!o #.e! e6"' "n Perone LNG S)ec"#% O&M Re!er3e Cre#e, *or C#!+ re6"re(en! *or ?
Mon+! O&M #n, Ve+"c%e C+#rer H"re *or ? Mon+!5
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Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 32
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LNG S))%' R"!. M#n#$e(en
LNG !))%' #!!re, +ro$+ S))%' Conr#c /"+ R#! G#! II
S))%' #!!re, *ro( Tr#"n! #n, ; /+o!e #3#"%#"%"' +#! een
5> #n, r#"n No ?R#! G#! +#! #cce!! o ; ; S6 K( /or%,! %#r$e! Non
A!!oc"#e, $#! *"e%,! "n ##r
CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 33
Re!er3e! cer"*"e, ' SSI #n, NSAI
In c#!e o* !+or*#%% S#e o* ##r o $"3e #,,""on#% $#! *"e%,!5
R#! G#! II +#! een !))%'"n$ n"nerr)e,%' LNG o Kore# G#!
*ro( >5
R#! G#! #%!o !))%"e! !+or er( !)o LNG o GDF
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CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 34
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CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
Perone LNG M#r.e R"!.!
O+er !orce o* !))%' o* G#! )#r%' o**!e ' De(#n, S))%' G#)
Lon$ Ter( O**-#.e A$ree(en! /"+ L#r$e Con!(er!
Iner(e,"#e O**-#.er! +#3e G#! S#%e A$ree(en! /"+ %#r$e)o/er #n, *er"%"er c!o(er!
Pr"ce ne$o"#e, /"+ RAS G#! o (#.e )r"ce #**or,#%e o
,o/n!re#( !er!5
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 35
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CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
Re3ene R"!. o* PLL
Lon$ er( GSPA
Re$#!"*"c#"on C+#r$e Srcre, o (ee #!e %e3e% c#!+ *%o/! *or
O&M #n, o+er!
Re$#!"*"c#"on C+#r$e! o e re3"e/e, e3er' +ree 'e#r! *or
"n*%#"on
LNG Co!! #! P#!! +ro$+ o Iner(e,"#e O**-#.er!
Presented by Dr. Himadri Banerji at the LNG
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CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
Inere! R#e #n, Fore"$n E8c+#n$e R"!.
Inere! R#e R"!. F"8e, Inere! R#e! on Lo#n! o e re!e e3er' +ree
'e#r!
6 ' !))or #$ree(en / o # er! e
!er3"ce co()onen n,er Ann#% T#.e or P#' %"#"%"'o e !er3"ce, on re$%#r #!"!5
Fore"$n E8c+#n$e R"!.
E8c+#n$e r#e *%c#"on! %"n.e, o +e LNG co!! #%!o
)#!! +ro$+ o o**-#.er!5 A%% %on$ er( %o#n! ,eno("n#e, "n R)ee! o #3o", #n'
("!(#c+ /"+ +e R)ee #!e, re$#!"*"c#"on c+#r$e!5
Presented by Dr. Himadri Banerji at the LNG
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CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
Po%""c#% Force M#4ere R"!.!
Go3ern(en #c"on!1Re$%#"on! #**ec"n$ )ro4ec5 Po%"c' En3"ron(en5
E8en o* Go3ern(en conro%
T+r! $"3en ' Go3ern(en o* In,"# o ,e3e%o) LNG Ter("n#%! o r",$e+e De(#n,-!))%' $#)5
F#3or#%e *"!c#% )o%"c' o* Go3ern(en o* In,"# *or encor#$"n$"n3e!(en! "n LNG !ecor5
LNG "()or! n,er O)en Gener#% L"cen!e5
Lo/ c!o(! ,' o* > on LNG "()or!5
C!o(! ,' on c#)"#% "()or! *or LNG er("n#%! re,ce, o ;5 N"% e8c"!e ,' on re$#!"*"e, LNG5
Pro3"!"on! "n GSPA! *or re!or"n$ !#! 6o "n c#!e o* C+#n$e "n L#/5
Presented by Dr. Himadri Banerji at the LNG
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CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
Non-Po%""c#% Force M#4ere R"!.!
E3en! no n,er +e conro% o* )ro4ec )#r"c")#n! @#c! o*Go,2 e)",e("c! !r".e! ec
D#(#$e or *#"%re o* )ro4ec *#c"%""e!5
Non-+#r(on"#"on o* *orce (#4ere ,e*"n""on! #cro!!
conr#c! @e5$5 LNG SPA 3"!--3"! GSPA5
Co()re+en!"3e Pro)er' D#(#$e In!r#nce Co3er#$e *orPro4ec
7!"ne!! Inerr)"on In!r#nce! o co3er *"8e, co!!
Terror"!(2 O**!+ore & on!+ore %"#"%""e! In!r#nce Co3er!
7#c. o 7#c. Force M#4ere C%#!e! #cro!! )ro4ec conr#c!
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 39
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CASE STUDY IN RISK ALLOCATION AND CONTROL INPETRONET LNG IMPORT TERMINAL
Fn,"n$ R"!.! o Pro4ec
Non-#3#"%#"%"' o* !**"c"en *n,! o co()%ee +e Pro4ec
Pro(oer $#r#nee, !+or er( %o#n! con3ere, "no %on$ er(
%"("e, recor!e )ro4ec *"n#nc"n$ *#c"%""e! on )ro4ec co()%e"on5
S+#re+o%,er! 1 S+#re S!cr")"on A$ree(en! !"$ne, ' For
!)on!or!2 GDF #n, AD7 *or B>5; e6"'5
IPO co()%ee, *or +e #%#nce e6"'5
Presented by Dr. Himadri Banerji at the LNG
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CASE STUDY IN RISK ALLOCATION AND CONTROL INDAHEJ PETRONET LNG IMPORT TERMINAL
Cre," En+#nce(en! Re!",#% R"!.! 9or."n$ C#)"#% Fn,"n$
Tr! & Reen"on Accon! +ro$+ /+"c+ #%% c#!+ *%o/! o* Pro4ecCo()#n' #re roe,
C#!+ F%o/ 9#er*#%% o Pr"or""e P#'(en!
De Ser3"ce Re!er3e Accon! *or !er3"c"n$ ,e! "n c#!e o*
!+or er( c#!+ *%o/ ("!(#c+e!5
Perone LNG E8)er"ence:
Se)#r#e Tr! & Reen"on Accon!2 one *or ro"n$ c#!+*%o/! "n re!)ec o* LNG #n, c+#rer +"re )#'(en! #n, !econ, *or
#%% o+er c#!+ *%o/!5
C#!+ F%o/ 9#er*#%% o Pr"or""e P#'(en!
S"8 (on+ ,e !er3"ce e6"3#%en LC o)ene, "n %"e o* DSRAPresented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 41
CASE STUDY IN RISK ALLOCATION AND CONTROL IN
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CASE STUDY IN RISK ALLOCATION AND CONTROL IN
DAHEJ PETRONET LNG IMPORT TERMINAL
Presented by Dr. Himadri Banerji at the LNG
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JOINT PAYMENT SECURITY MECHANISM
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Jo"n P#'(en Secr"' Mec+#n"!(
PLL #n, R#!G#! +#3e #$ree, )on # PSM2 /+"c+ en3"!#$e! +# +e )#'(en!*ro( +e o**-#.er! /o%, e !)%" "no /o !re#(!2
One co3er"n$ LNG c+#r$e! #n, c+#rer +"re )#'(en!2 #n,
!&%' %T()* +N "+%K &LL,!&T+,N &N) !,NT",L +N
)&' $'T",N'T LNG +#$,"T T'"#+N&L
T+e!e /o%, e ,e)o!"e, "no # Fe% P#'(en Tr! #n, Reen"on Accon@FPTRA #n, # PLL On!+ore Tr! #n, Reen"on Accon @POTRA2re!)ec"3e%'5
FPTRA +#! /o !-#ccon!2 +e LNG C+#r$e Accon2 #n, +e C+#rer H"reC+#r$e Accon2 "no /+"c+ +e *e% )#'(en #n, +e c+#rer +"re c+#r$e!/o%, e ,e)o!"e,
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 43
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T+e #(on! ,e o R#!G#! #n, +e LNG S+"))er /o%, e r#n!*erre, o
+e"r re!)ec"3e O**!+ore Tr! Accon! on +e ,e ,#e!5
IPLL #%!o )ro3",e! *or # US Do%%#r ,eno("n#e, !#n,' %eer o* cre,"
!&%' %T()* +N "+%K &LL,!&T+,N &N) !,NT",L +N
)&' $'T",N'T LNG +#$,"T T'"#+N&L
*or co3er"n$ /o (on+! o* )#'(en o +e LNG !))%"er #n, *or (on+!
o* c+#rer )#'(en! o +e !+"))"n$ con!or"(5
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 44
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T+e "n*%o/! "no +e PLL On!+ore Accon!2 /+"c+ #re +e re$#!!"*"c#"on
c+#r$e!2 /o%, *"r! e !e, o (#.e !#or' )#'(en! #n,
(ee o)er#"n$ e8)en!e!2 *o%%o/"n$ /+"c+
+e re!",#% #(on /o%, e r#n!*erre, "no # ,e !er3"ce #ccon
!&%' %T()* +N "+%K &LL,!&T+,N &N) !,NT",L +N
)&' $'T",N'T LNG +#$,"T T'"#+N&L
*ro( /+"c+ +e )#'o! /o%, e (#,e o +e %en,er!5
In #,,""on2 PLL +#! o**ere, %eer! o* cre," @LC! o +e %en,er!2 co3er"n$
/o 6#rer%' ,e !er3"c"n$ co(("(en!5
T+e re!",#% c#!+ *%o/! /o%, e #3#"%#%e *or #))ro)r"#"on5
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 45
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Dr5 H"(#,r" 7#ner4" :Pro4ec A,3"!or' & Srcre, F"n#nce "n
Ener$' In,!r"e! @O"%2 G#!2 Po/er
< A!!"!#nce o #$enc"e! *or "()%e(en#"on o* )ro4ec! /"+ )r"3#e !ecor)#r"c")#"on +ro$+ 7OOT17OT17OO roe!5
< A!!"!#nce "n )re)#r#"on o* ", ,oc(en! "nc%,"n$ re%e3#n conr#c!#n, #$ree(en!2 e3#%#"on o* ",! #n, !e%ec"on o* ",,er5
< A!!"!#nce o )r"3#e )#r"e! "n )re)#r#"on #n, !("!!"on o* ",! *or
< A!!"!#nce "n #r"** *"%"n$ o $ener#"n$2 r#n!("!!"on #n, ,"!r""onco()#n"e! #n, *r#nc+"!ee 1 re!rcr"n$ #n, )r"3#"!#"on o* S#eE%ecr"c"' 7o#r,!5
< Po%"c' #,3"!or' o Cenr#% & S#e Go3ern(en!2 Cenre #n, S#eE%ecr"c"' Re$%#or' Co(("!!"on!5
< Pre)#r#"on o* 7!"ne!!2 In3e!(en! #n, F"n#nc"n$ P%#n< I,en"*"c#"on o* !orce! o* F"n#nce #n, S'n,"c#"on o* R)ee #n, Fore"$n
crrenc' %o#n5
Presented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 46
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Dr5 H"(#,r" 7#ner4" :Pro4ec A,3"!or' & Srcre, F"n#nce "n
Ener$' In,!r"e! @O"%2 G#!2 Po/er
A,3"!or' *or rene/#%e ener$' )ro4ec! /"+ A,3"!or' *or Pro4ec! n,er
In,"#n So%#r M"!!"on< A))r#"!#% o* )ro4ec! "n 3#r"o! Ener$' "n,!r' !ecor!5
< In3e!(en #))r#"!#%! *or re3"e/ o* c#)"#% ,$e"n$ ,ec"!"on )roce!! o*co( #n"e!
< Secr""!#"on #n, o+er !rcre, *"n#nce )ro,c!De D"%"$ence
C#)"#% Srcr"n$
F"n#nc"#% Mo,e%%"n$
R"!. An#%'!"!F"n#nc"#% V"#"%"' S,"e!
Pro4ec De3e%o)(en
EPC Conr#c R"!. M#n#$e(en S))orPresented by Dr. Himadri Banerji at the LNG
Terminals and Distribution IBC Asia Singapore1st to 4th July July 2013 47
62$6' "!2!*/#7 2n $#% !anker being filledcourtesy %ermanischer $loyds
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T&NK *,(
Presented by Dr. Himadri Banerji at the LNG
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