Illustrative LNG Economic Model

This simple, illustrative model for an LNG project’s economics, facilitates stress-testing of economic assumptions, and their impact on IRRs and NPVs.

The InputsOutputs tab allows you to flex key variables such as: LNG sales price, Capex/tpa, Opex/mcf, Utilization, Thermal Efficiency, LNG shipping distance, LNG tanker rates, and liquids cuts.

A base LNG case project is likely to earn a c7% real, unlevered IRR. The economics are most sensitive to gas pricing and capex; and somewhat less sensitive to the other variables.