UGSA Sharing Session Quiz

1.                    What happens to natural gas when it is produced?

• a.       Refining

• b.       Liquefaction

• c.       Refining and Processing

• d. Liquefaction or Processing

2.                    What is LNG?

• a.       Natural gas which is predominantly methane which has been cooled down to liquid form at -162 degrees Celsius

• b.       LPG which is processed, liquefied and bottled for domestic use

• c.       Refined gas which is predominantly methane which has been cooled down to liquid form at -162 degrees Celsius

• d.       Natural gas which is predominantly ethane which has been cooled down to liquid form at -162 degrees Celsius

3.                    Which of the following is an example of a JDS UGSA?

• a.       MLNG Dua UGSA

• b.       NC3 & NC8 UGSA

• c.       Kebabangan UGSA

• d.       SK408 UGSA

4. The Initial Delivery Date shall be the date the Gas is metered at the Gas Delivery Point(s) for any twenty (20) days out of twenty-five (25) days, consecutively during the Build-Up Period

• a.       True

• b.       False

5.       What happens to the UGSA in the event that gas is fully depleted prior to the stipulated UGSA period or PSC expiry?

• a.       A rejuvenation of the gas field is conducted to revive the viability of the gas field

• b.       The UGSA is extended through the conversion of the UGSA into a late-life UGSA

• c.       The UGSA is left idle until the expiry of the PSC

• d.       The UGSA is terminated

6.                    What are the usual contaminants in natural gas?

• a.       Chloroform, carbon monoxide, sulphur

• b.       Carbon dioxide, hydrogen sulfide, mercury

• c.       Magneto, argon, chlorine

• d.       Potassium, iron

7.                     Sabah is the biggest contributor of natural gas production in Malaysia.

•     True

•    False

8.                    What is the current benchmark applied in determining the contract gas price?

• a.       HSFO & Dutch TTF

• b.       MRP – Malaysia Reference Price, i.e. the weighted average price of LNG export from Malaysia on an CIF basis

• c.       Henry Hub multiplied by the FOB equivalent of the current Brent crude price

• d.     MRP – Malaysia Reference Price, i.e. the weighted average price of LNG export from Malaysia on an FOB basis

9.                    The common delivery point of gas is at the gas metering station.

• True

• False

10.                    What are the main items to be mindful of in the UGSA liability arrangement? Select whichever is applicable.

• a.       Exclusion of liability

• b.       Claims by/against LNG buyers

• c.       Capping of liability

• d.       Loss relating to plant or seller’s facilities