PE 5970: Group Project
A large utility and shipping conglomerate from Japan has $1billion in its 10-year budget to invest in an LNG supply project. They are interested in Tellurian’s US Pipeline project proposal and the more traditional Mozambique project which Total has just taken the lead on. They know they have a good chance of being welcomed into participating in most of the LNG projects. They prefer to only approach one initially. They have considered an entry into one of the emerging Mozambique projects, but do not want to wait eight plus years for the first production. They currently have participation in Qatar and Australia LNG projects and would like to further diversify their LNG portfolio.
They have hired your firm to provide a fresh look and new insights into the considerations for each of the two projects and your recommendation regarding which one to investigate in more detail. Your group will analyze the two LNG investment opportunities for which you can only recommend one to progress further. You will evaluate the cost range, schedule, market, project execution considerations, and risk for each opportunity. You will provide a written report or PowerPoint presentation with your findings and recommendation. After submitting the written material, you can also present your findings during a Zoom meeting.
You are limited to the $1billion capital expenditure. Project percentages will vary depending on the segments and level of investment you select to participate in. Segment participation will also impact project risk.
There is considerable information online regarding each project, but be cautious of optimistic estimates. The following items will help you get started:
Grading will be based on the quality of your review.