Cost and Competition

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Overview

A comprehensive, consistent economic comparison of selected existing and prospective LNG projects through cost-of-service estimates derived from engineering-based costs and basis of design.

Costs, cost-of-service, and competitive analysis for:

  • 52 export project configurations
  • 18 import locations
  • Over 520 trades

Features

  • Provides in-depth views of how LNG export and import projects are structured, what they cost, and how they compete in terms of cost-of-service
  • Calculates the chain COS for over 520 LNG trades
  • Shows the rents that LNG chains could capture at representative gas prices into some of the world’s major LNG markets
  • Allows the user to examine a number of “what-if” scenarios, and see the effects on project economics if some of the fundamental assumptions are changed
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Poten & Partners, Inc. and Merlin Associates’ newest edition of their benchmark study, LNG Cost and Competition (C&C), estimates the costs – both total investment and unit costs – for over sixty export and import projects, both existing and prospective.  This cost of service (COS) analysis compares LNG export projects at the FOB (Free on Board), ex-ship and ex-terminal points in the delivery chain, to assess:

  • How are cost-cutting developments, particularly economies of scale spearheaded by the new mega-trains and super ships, changing the competitive landscape?
  • Which prospective LNG export projects will be economically viable at expected gas prices in various Atlantic Basin and Pacific Rim outlets?
  • How are prospective LNG projects positioned on a cost basis to compete with each other for sales into current and emerging LNG import markets?
  • How do projects compare in the key components that make up each project’s COS (FOB technical costs, sovereign take, condensate and LPG co-product credits and shipping)?