Meeting Report for Texas Section – June 2007 meeting
By Lars Ronning 

The June meeting of the Texas Section was held at the Westchase Marriott on June 12^th.  Close to 50 attendees showed up for a presentation on “The Need to Factor Asset Risk into LNG Terminal Agreement Negotiations”.  The speaker was Pedram Fanailoo from DNV Energy in Houston.  Mr. Fanailoo first gave an overview of the various potential delays to the LNG supply chain.  He next discussed the impacts such delays could have and potential ways to mitigate such impacts.  Many LNG terminals in the future will be multi-user, meaning that several companies will have access rights to the terminal.  Mr. Fanailoo suggested that these users should ensure that they understand how the terminal will operate before they negotiate access rights.   Many factors can affect a terminal’s operability including weather, equipment reliability, berthing limits, storage and inventory.  Mr. Fanailoo recommended a risk-based approach to understanding a terminal’s performance in order to negotiate a more suitable Terminal Use Agreement.  DNV has developed Monte Carlo based simulation software that is being used by many major oil companies, as well as others, to simulate the whole supply chain in order to see the impact of events on the whole system.

Section Chair, Donald Burris (left) thanking Pedram Fanailoo for his presentation.

Attendees at the June meeting	More attendees at June meeting