LNG 101 - The Foundations of Liquefied Natural Gas

Name: LNG 101 - The Foundations of Liquefied Natural Gas
Rating: 4.5 (343 reviews)

Insights into LNG, the Oil and Gas Industry's fastest growing sector. Reviewing LNG Technology, Markets and Trading.

Created byArder Energy

Last updated 3/2025

English

What you'll learn

Obtaining an overview of the main technical, engineering, project management, and commercial aspects of the LNG value chain
Understanding LNG's key properties and components of the LNG value chain
Gaining insights into the main building blocks of an LNG plant and their functions
Outlining key elements of construction and contracting strategies for LNG projects
Understanding core aspects of LNG vessel classifications and shipping costs
Evaluating LNG pricing formulas and their economic implications
Understanding dimensions of LNG value chain risk and risk management approaches

Course content

8 sections • 39 lectures • 1h 48m total length

Introduction2:55
Explore the foundations of liquefied natural gas, from the value chain and plant technology to market dynamics, pricing, and risk management for informed energy decision-making.
Curriculum1:21
An overview of the course's curriculum.

Definitions - Natural Gas, LNG, NGL, LPG, Condensate1:36
Defining key terms Natural Gas, LNG, NGL, LPG and Condensate, including their main chemical components.
Units of Measurement6:13
Units of measurement most commonly used for volume, mass, energy and heat content.
Back-of-envelope formulas3:10
Simple back-of-envelope formulas for unit conversions that are worth remembering.
Key Properties of LNG2:59
An overview of LNG's key properties - temperature, pressure, energy content, density.
The Primary Energy Fallacy - An Overview7:27
An overview of issues often arising when Primary Energy sources are compared. This lecture provides an overview of the most common problems and misinterpretations, which affect not only LNG but all energy sources.
The Primary Energy Fallacy - Examples2:04
This lecture expands upon the prior overview of the Primary Energy Fallacy by showing the practical relevance to the sizing of LNG projects based on two examples.
The Basics

LNG Value Chain - key components2:04
An overview of key LNG value chain components from upstream gas production to end usage.
Impressions of an LNG plant1:35
An impression of the LNG Canada plant during advanced construction.
LNG Plant process overview - Block Diagram4:07
Outlining the LNG plant process through a review of main process blocks.
The Main Cryogenic Heat Exchanger - the core liquefaction module1:25
An example of a main cryogenic heat exchanger (MCHE).
Key Technology & Sizing Decisions4:02
Key Technology and Sizing choices for liquefaction plants.
LNG Production Seasonality3:33
An overview of liquefaction plant production efficiency seasonality
The LNG Plant

Construction Strategy2:33
Construction Strategy aspects - front-end loading, and key elements
Contracting Strategy3:21
Key aspects of the contracting strategy - Selection, Compensation, Mode.
Contract Modes - EPC, EPCM, PMC2:49
Comparing key aspects of EPC, EPCM and PMC contracting modes.
Contracting Quilt - examples1:58
Examining two bookends of contracting quilts - competitively bid lumpsum turnkey EPC vs. "fragmented" quilt.
LNG Projects & Construction

LNG in the global energy commodity context2:49
An outline of different primary energy sources, and LNG's place within this context.
Major LNG Suppliers1:11
An overview of the main LNG exporting nations.
Case Study: Qatar1:33
A brief overview of Qatar, the first LNG "mega exporter".
Case Study: Australia1:11
A brief overview of Australia's ascent as a key LNG exporter.
Case Study: USA1:23
A brief description of the world's largest LNG exporter (as of 2024), the USA.
Major LNG Importers1:16
A brief overview of the main LNG importing nations.
The LNG Market

LNG Economics concepts3:03
The basic concepts underlying LNG value chain economics.
LNG Pricing & Trading5:32
An overview of trading aspects of long-term and spot market agreements and associated formulas.
LNG Oil-Indexed Pricing Formula - sample calculations2:49
An illustrative example of LNG prices resulting from different oil price scenarios.
LNG Tolling Pricing Formula - sample calculations1:49
An illustrative example of LNG prices resulting from different gas price scenarios.
LNG Price History2:42
A review of the recent LNG price history, comparing JKM spot prices to "typical" illustrative tolling and crude-indexed prices over the same time horizon.
Sunk Cost Economics5:28
An illustration of how sunk cost economics can affect through-cycle asset robustness, and in turn increase spot price volatility.
Dimensions of Risk Management2:56
Identify and manage key LNG risks—health, safety and environment, regulatory permits, capacity and cargo allocation, credit and financing, logistics, and gas price fluctuations—to protect project profitability.
Spotlight on HSE2:44
A brief overview of Health, Safety, and Environment (HSE) aspects of the LNG value chain.
Spotlight on Liabilities, Indemnities and Insurance2:08
A brief spotlight on Liability, Indemnity and Insurance aspects of the LNG value chain.
Economics, Pricing & Risk Management

Requirements

The course starts with the Basics of Natural Gas and LNG, and quickly ramps from there.
Basic understanding of hydrocarbons and project management helpful, but not required.
Basic understanding of commodity pricing and trading helpful, but not required.

Description

Liquefied Natural Gas (LNG) Essentials: Your Foundation for the Global Energy Market

LNG is no longer a niche commodity—it's front-page news and a cornerstone of global energy security, affordability, and sustainability. And it is increasingly seen as a key fuel to enable AI data center deployment. As the energy landscape rapidly evolves, understanding Liquefied Natural Gas is crucial for navigating modern geopolitical and market dynamics. Whether you see it as a vital fuel or a complex challenge, its impact is undeniable.

This course delivers the essential, big-picture overview you need to build a solid foundation in the world of LNG. It cuts through the complexity, making it accessible regardless of your background—whether you're in Engineering, Finance, Policy, or Journalism.

UPDATE MARCH 2026: Energy markets are shifting rapidly with the ongoing crisis in the Middle East. While this is reshaping trade patterns and market shares, understanding the fundamentals is now more critical than ever. This course provides the essential framework required to analyze and navigate these global shifts.

Gain Critical, Actionable Insight: We deliver concise answers to the four defining questions in the industry:

The LNG Value Chain: What is LNG, and how does it move from the wellhead to the final consumer?
Plant Technology & Execution: How do LNG plants work, and what are the key decisions in technology, construction, and contracting for a new multi-billion-dollar project?
Market Dynamics & Trade: Who are the major global suppliers and buyers, and how is LNG priced, traded, and transported today?
Economics & Risk: What drives the financial viability of LNG projects, and how are the massive commercial and technical risks managed?

Why This Foundation Matters

By mastering these essentials, you will be immediately equipped to:

Analyze Market Shifts: Understand how gas supply and demand are shifting LNG procurement strategies.
Speak the Language: Engage confidently in high-level discussions on LNG markets and investment opportunities.
Future-Proof Your Career: Build the foundational knowledge required to move into advanced trading, contracting, or project management roles.

Who Should Enroll? This course is designed for efficiency. It is the perfect starting point for professionals in Finance, Engineering, Policy, or Journalism who need a broad yet sophisticated understanding of the world’s fastest-growing energy segment.

Join thousands of learners and understand the fuel reshaping the future of energy. This course is periodically updated to reflect the latest market shifts. It does not provide financial, investment, or other professional advice.

Who this course is for:

Investors analyzing LNG opportunities.
Energy Executives seeking a broad overview of LNG value chain opportunities and challenges.
Project Practitioners who want to build strong foundational knowledge on LNG.
Graduates interested in joining the LNG industry.
Journalists requiring basic understanding for their reporting on LNG.

LNG 101 - The Foundations of Liquefied Natural Gas

What you'll learn

Explore related topics

Course content

Introduction2 lectures • 4min

The Basics - Definitions, Units of Measurement, Properties6 lectures • 23min

The LNG Value Chain & Liquefaction Plant6 lectures • 17min

LNG Projects & Construction4 lectures • 11min

Shipping and Regasification3 lectures • 10min

The LNG Market6 lectures • 9min

Economics, Pricing & Risk Management9 lectures • 29min

Close-out & Recap3 lectures • 5min

Requirements

Description

Who this course is for: