In an LNG market featuring fierce competition to build and finance export projects,the winners will be those that cut up-front costs to the bone while sidestepping the inherent execution risks.That was the message at the recent Gastech conference in Houston,where several project developers discussed their formulas for success(NGW Oct.l'l8).Much like a spacecraft reentering the earth's atmosphere,an LNG project has a very narrow margin of error.It must fall beneath the costs of rival projects while avoiding execution risks that can lead to financial losses.The need for new upstream gas pipelines complicates the effort.”You have to work very,very closely with your [engineering,procurement and construction] contractors;they have to be in on it from the beginning,”said Novatek Deputy CEO Mark Gyetvay,in reference to the 16.5 million ton per year(2.2 billion cubic feet per day)Yamal LNG plant in Russia.
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