gas monetisation: case study

we have a breadth of capability, accessing enabling technology providers to bring real insights around LNG, FLNG, FRSUs, ssLNG, compact GTL, CNG etc

capability:gas monetisation
tags

We start with the end in mind, bringing an integrated and holistic approach to field development planning, which is uniquely integrated across the technical, strategic and commercial.

situation

Insight provided to an international oil company about a possible farm-in to a state undeveloped gas asset. An assessment was required to understand the possible options to extract full value if developed.

value driver

io had the right capability to perform an end to end assessment of multiple technical and market solutions, assessing the balance to find the most optimum development of the gas.

result

In this instance the clear solution was to generate low cost gas to be converted into LNG but crucially staying flexible on destinations to chase the highest price international markets.

challenge

An international oil company was looking to farm in to an undeveloped gas resource in South America. The company was looking for an assessment of the various different options available in order to monetise the gas and to use in negotiations with the national oil company and agree on the likely gas export route, should it take ownership.

io approach

  • central to the io approach was the use of a multidisciplinary team to examine the various options for gas monetisation both from a technical and commercial perspective
  • to develop technical concepts given the gas quality, reservoir properties and locations of other infrastructure
  • review the potential gas export markets looking at pipeline gas export and/or sales domestically, locally delivered CNG or LNG or international market driven LNG
  • use knowledge of the world LNG market to benchmark the likely commercial returns for LNG export vs domestic gas sales

actions taken

  • based on the commercial review, the lowest LNG production cost option was chosen using near shore barge  mounted LNG modules which were scalable
  • this allowed a phased development coupled with a flexible LNG sales strategy to access the highest priced LNG markets.