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Case Studies 

Due Diligence for LNG Facility Expansion

EMEA / 2020 / Transaction Advisory

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.

Project Highlights

  • 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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Meghan Klein, P.Eng.
Senior Manager, Engineering

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