This unique work analyses the commercial, legal and financial aspects of the complex process of developing an international energy project for the production and marketing of liquefied natural gas (LNG).
The authors, informed by their significant experience and insight in the LNG industry, describe the essential chains in the commercialism of natural gas as LNG: entrepreneurial aspects, functional LNG facilities and a linked series of contracts and contractual relationships. The expert contributions elucidate the import and significance of the crucial dependent factors that appear and reappear in all stages of a successful LNG project.
Each activity, each facility, each contract must be understood in the context of the overall project development process. By providing an understanding of the whole, this book can inform the performance of those who have personal responsibility in the LNG industry, including energy lawyers, engineers and bankers.
Acknowledgements, List of Contributors, Table of Figures, List of
Abbreviations, Introduction Chapter 1 LNG THEMES AND VARIATIONS
Gerald B. Greenwaldl.1.1 Natural Gas into LNG l.2 The
Process of Project Development l.3 Project Development Schedules 1.4
LNG Markets l.4.1 LNG Market Cycles 1.5 LNG Chains 1.6
Technology, Economy of Scale and Trade Expan Chapter 2 LNG MARKETS:
HISTORICAL DEVELOPMENT AND FUTURE TRENDS Robert JE. Jones 2.1
Introduction 2.2 Historical Development of the LNG Trade 2.3
Potential New Asian Markets 2.4 The LNG Suppliers 2.5 Possible
Future Suppliers 2.6 Asian LNG: Matching Supply and Demand 2.7 A
New Era of LNG for Europe Chapter 3 LNG PROJECT FEASIBILITY Andrew
R. Flower 3.1 Introduction 3.2 Why LNG? 3.3 The LNG
Chain 3.4 The Market 3.5 Sale and Purchase Agreement 3.6
Government 3.7 Project Structure 3.8 Finance 3.9 The
Economic Model 3.10 Summary Chapter 4 THE CHAIN OF LNG PROJECT
CONTRACTS Peter P Miller 4.1 Introduction 4.2
'Concession' Arrangements 4.3 Venture Arrangements 4.4 From
Discovery to Development 4.5 Engineering, Procurement and Construction
(EPC) Contracts 4.6 The LNG Sale and Purchase Agreement (SPA) 4.7
Trends and Prospects Chapter 5 THE LNG TRANSPORTATION LINK Richard
C. Eddy 5.1 Unique Features of LNG Transportation 5.2 Design
and Construction of LNG Ships 5.3 Unique Features of the LNG Ship 5.4
LNG Transportation Contracts 5.5 LNG Ship Operations 5.6
Extended Ship Life and Existing Ship Availability 5.7 Future
Development Prospects Chapter 6 LNG PROJECT FINANCE: SHARING RISKS WITH
PROJECT LENDERS Gerald B. Greenwald 6.1 Financing a Project
in Segments 6.2 Extending the LNG Chain to the Electricity Grid 6.3
The Economic Feasibility of LNG Projects 6.4 The Financing Past Will
Not Be Prologue 6.5 New Priorities for LNG Project Financing 6.6
The Project Financial Plan 6.7 Approaching Finance Markets 6.8
The Lender's Analysis 6.9 New Policies for LNG Project Financing
Chapter 7 LNG: THE STRATEGIC PLANNING ISSUES Kimball C. Chen 7.1
Introduction 7.2 The Structure of the Industry and the Motivations of
the Key Players 7.3 The Nature of Value 7.4 Important
Externalities and Their Trends 7.5 Competition, Cooperation and
Comparative Advantage 7.6 Possibilities for Creating Change 7.7
Case Studies, Index
` This is an important book clarifying the increasingly complex subject to the international LNG business. Every serious student of this subject should read it. '
J. Robinson West, Chairman, The Petroleum Finance Company Limited, Washington
` This comprehensive, well-written book fills a long-vacant gap in the LNG literature. The seven chapters, written by six leading authorities, contain a wealth of information on all aspects of a highly complex industry: from the technical elements needed to make a project work to strategic planning and contractual and financing arrangements. This extremely valuable work will be essential reading for anyone involved in the LNG industry. '
Bernard S. Lee, President, Institute of Gas Technology; Chairman, Steering Committee, LNG 13
` ... the most exhaustive overview of the LNG industry ever published ... contains an impressive wealth of information on all aspects of a complex, dynamic industry ... '