The Global LNG Service provides in-depth, comprehensive economic and competitive analysis of existing and planned LNG projects and company portfolios. Unique in its detailed modeling of the upstream component of LNG projects, the LNG models incorporate PFC Energy's upstream and global gas expertise to provide clients with an objective view of their own and their competitors' performance and portfolios in the LNG business.
Executives, strategic planners and managers with responsibility for LNG operations at the project, portfolio and corporate levels have used the analysis and models to answer questions such as the following:
-
Which facilities are competitive into various markets?
-
What are the costs and cash flow generated along the LNG value chain?
-
What are the gas volumes that companies book as a result of LNG projects?
-
What are the expected returns in the upstream and liquefaction components of LNG?
-
Can LNG be developed under existing fiscal regimes and remain commercially competitive with other projects?
-
What level of investment is required for new entrants into the LNG business to achieve cash flow objectives?
-
What is the strategic importance of LNG in company portfolios relative to other business segments and investments (e.g. the deepwater)?
In-Depth LNG Project Analysis
PFC Energy's rigorous, in-depth analysis of the investment, pricing requirements and returns of each phase of an LNG project provides a systematic tool capable of comparing models across the world. The proprietary models include:
-
Project Overview: Concept, partners, volumes, dates
-
Maps: Fields, acreage and pipelines associated with the liquefaction project
-
Project Schedule: Each phase of the project with capex forecasts
-
Upstream: Development plans, modeled contract terms, IRR, capex, cash flows, production
-
Liquefaction: Facility description, train details, project schedule, capex, contract terms
-
Contracted Volumes: contracted volumes by buyer
-
Shipping: Shipping route illustrations, rates and mileage to various destinations
-
Value Chain Results: Nominal and real upstream and liquefaction cash flows, IRR,NPV
Interactive Shipping Calculator
An interactive, multi-variable shipping calculator helps calculate the shipping cost from a selected origin to selected destination while varying assumptions such as ship size, sailing speed, time in port, fees and tanker charter rates.
LNG Plant Model
The dynamic LNG plant model allows easy changes to assumptions such as opex/ton, tax and inflation rates, operating up- time and plant capacity. The detailed estimate of LNG facility expenditure and revenues projects an annual expenditure and revenue distribution over the life of the project.
Value Chain Summary
A summary of the returns and cash flows for each segment of the value chain-from upstream through liquefaction and shipping-is provided for each project. Swings in sales prices create additional pre-tax gross margin which could be allocated anywhere along the chain, depending upon partnership arrangements. The detailed models allow for comparison of absolute and relative returns to each partner on a project basis, as well as the roll-up by region and by company of LNG portfolios.