Before you watch

Pay attention to:

Who are the stakeholders? Who will drive the project? What are the public & project expectations? How will the stakeholders and partners align?
How much natural gas do we need and who will get it – Distribution between LNG export, domestic gas & domestic gas businesses
Who has the skills to do the work and what will it cost? Local or international labor? Do we have people with the right skills to develop the project? Do we have the materials & services the project requires? Capacity building, can we develop the people, materials, and services we lack?
What does the global market look like? Who will buy the LNG? How much can we sell the LNG for? Will domestic gas add or subtract project value?
Timing - When do we start spending and when will we start making money? How much time do we have to develop capacity? When will we know domestic gas requirements?
What are the options for structuring the project? Who do we want as participants and how can they help? How are we going to select primary contractors and technology?
How are we going to pay for the project? Financing, can we use it as part of the risk mitigation plan? What government carries, social programs are required?
The project risk & uncertainty is great, where is it, how are we going to manage it and who will take it? How will the project value be distributed between the segments? Where will there be transfer pricing? What will be the government take?
What will the government role include? The fiscal regime, the security of participant investment, local content, social & environmental considerations? What must the government do, who must they protect?

Key items include:

Project financing requirements help mitigate project risk
Wise selection of project participants helps mitigate project risk
Early alignment on domestic gas requirements is important
Local content development and capacity building should start early
The government role is complex

Questions to think about ... (Optional)

What is more important, minimizing the number of project participants to reduce the stakeholder alignment requirements or having more participants with varied skills to aid project development?

Video

PE5970 Module 9A

PE5970 Module 9B

Check Yourself / Key Take-aways

Check your understanding with these statements:

Can you estimate the project schedule impact of adding domestic gas to the project requirement
Are you able to articulate the roles of government in LNG project development
Can you explain why project financing is a risk mitigation element
What criteria would you use for project participant selection
Can you explain how domestic gas benefits the general population
Can you list potential gas-related businesses the country may develop
Can you explain why long term gas purchase agreements reduce project risk