A non-operating partner in a major LNG project sought support for the Domestic Gas component of its operational obligations.
The Western Australian domestic market is complex with multiple interfaces. The non-operating partner had a small rotating local office and sought Equity Lifting Solutions' to provide ongoing support for its obligations under Domestic Gas operating agreements and gas sales agreements (GSA).
Equity Lifting Solutions developed a plan to support the non-operating partner, primarily focussed on:
Identifying operating risk and formulating pre-agreed responses to unplanned or abnormal events
Meeting obligations of the Domestic Gas JOA and Gas Sales Agreements
Complying with local regulations regarding domestic gas reservation
Developing reliable business processes in partnership with local contract management providers
Building the capability of the local team in terms of contract understanding, cultural aspects of Australian business, WA domestic gas operations and the opportunities and risks posed by participation in the domestic gas spot market.
Continual identification of contractual risks during operations
Regular meeting attendance with client and Plant Operator, Pipeline Operator, Service Providers, Customers
Providing meeting summaries with key impacts and recommendations
Data checking of nominations to Plant and Pipeline Operator
Thoroughly understanding Joint Operating Agreements, Gas Sales Agreements and Pipeline Operator requirements
Equity Lifting Solutions' ongoing operational support gave the client confidence that all its domestic gas obligations were met and that its relationships with Plant and Pipeline Operator, Service Companies and Customers was built on trust and transparency
Knowing that commercial and regulatory domestic gas obligations were managed, the client was able shift focus on its LNG commercial operations - a strategically higher value priority