A major player in the global LNG business required technical due diligence on the future supply for an LNG facility expansion prior to making a final investment decision.
- Facility expansion of ~1.2 Bcf per day
- Future gas supplied from 70+ projects by three independent third party companies
- Due diligence report led to LNG facility expansion approval
- A client wanted to understand the potential future gas supply underpinning the proposed expansion of an LNG facility
- Limited technical data was available from the third party suppliers, who required their data to be kept confidential from the other suppliers
- A variety of potential risks needed to be identified and assessed in a short timeframe
- Sproule’s technical experts completed a high-level review of the gas supply plans of the third party suppliers
- To address data limitations, Sproule prepared a detailed questionnaire for the third party suppliers regarding their future projects
- Key risks were outlined regarding approval of future development plans, funding for projects, pipeline capacity, availability of supporting data, and regulatory agreements and approvals
- Five reports were prepared, including supplier specific reports and a sanitized summary to be shared among the third party suppliers to address confidentiality concerns
- Sproule identified projects where further investigation was recommended. The client was able to address the key risks directly with the third party suppliers
- Based on Sproule’s insights, the company gained the assurance they required regarding the future gas supply to approve the facility expansion
- The company safeguarded future energy supply for the domestic market and maintained their position as a global LNG supplier
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