Opportunities for LNG supply infrastructure and demand growth in US and International markets

Abstract

Countries are looking beyond their borders for options to satiate a forecasted increase in natural gas consumption. A strong option for importing natural gas is by way of a liquefied natural gas (LNG) supply chain where natural gas is liquefied, transported in special tankers, and regasified at the destination. Research was conducted to determine a method of evaluating the feasibility of such a project. A computer-based simulation model was created to calculate financial metrics for potential LNG projects based on unique inputs such as annual production, distance, and natural gas market and commodity price. Potentially feasible projects are based on the resulting metrics as well as interpretations of risk, and a source's ability to meet a consuming market's demand requirements. Financially, the most attractive projects were the short haul routes to countries with high market prices. However, due to risk and supply inadequacy, it was determined that markets with the most growth to satisfy were best supplied by countries with the most adequate resources.