Fast-paced growth in LNG

LNG is one of the fastest growing energy markets worldwide. Given the number and scale of new LNG projects proposed or under construction, global production capacity could more than double by the end of the decade. According to the IEA, this growth will require a $250 billion investment in liquefaction plants, coastal regasification import terminals, and special LNG tankers over the next 30 years. Higher natural gas prices and growing efficiencies in the LNG value chain are making it economically feasible to ship LNG over long distances, transforming natural gas from a regional to a global market. The players in the LNG market include integrated oil and gas companies, national oil companies and governments, independent upstream players, utilities, infrastructure and transportation companies, and private investors. The upstream and downstream players hail from all corners of the globe -- Americas, Africa, Europe, Middle East and Asia Pacific -- but the fastest growing exporters of LNG are from countries in the Middle East and Africa. Although the economics of widespread use of LNG are becoming more attractive, there sill remain a number of issues for the market players, including safety and environmental considerations, geopolitical risks, and higher construction costs.

PwC services

PwC has been working with clients who are deeply involved in the LNG market across the globe and are at the leading edge of developments. We have worked with these clients across all stages of LNG projects:

Market analysis and strategic options

  • LNG capacity and phasing decisions
  • Which markets should be served
  • Assessment of market trends and drivers
  • Pipeline versus LNG supply analysis
  • LNG Workshops

Economic and commercial assessments of LNG projects

  • Commercial feasibility analysis
  • Netback calculations for entire value chain
  • Which project will maximise shareholder value?
  • Return and risk assessment
  • Risk mitigation
  • Tariff calculation/setting along the value chain

Project development and structuring

  • Partnering along the value chain
  • Commercial principles and Heads of Terms
  • Development of a suitable project structure
  • Financial structuring
  • Finance raising
  • Refinancing procurement tenders
  • Selection of EPC contractors