Let's look at Tellurian's EnSight acquisition numbers.
It is $125 mm cash for an asset that produces 16 bcf/yr for 6 1/2 years until it hits the proved reserve number of 108 bcf.
If one pays $125 mm for a gas asset that produces 16 bcf/yr for 6 1/2 years, then how much does one have to pay for buying gas assets that will produce 550 bcf/yr require to produce 11 MTPA for 30 years, the design life of the plant?
Is integrated upstream model for LNG really all that lucrative?
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✅ Large-scale LNG trains:
a (1-3 MTPA)
b (3-5 MTPA)
c (5-8 MTPA)
Note: We're talking about individual train capacities, NOT the total export capacity of a LNG plant complex.🌏🏭
Here is the structure of this thread:
Tweet 1 of 6: Introduction 🌏🏭
An overview of our comparative analysis on individual LNG train sizes and the thread's structure (This tweet).
Tweet 2 of 6: Project Economics 💰
Exploring the financial aspects of different LNG train sizes, focusing on
1️⃣ Capital Expenditure (CAPEX)
2️⃣ Operational Expenditure (OPEX)
3️⃣ Financing options
Tweet 3 of 6: Project Development 🛠️
Exploring the Project Development aspects of different LNG train sizes comparing
1️⃣ Technology availability
2️⃣ Contractor selection
3️⃣ Fabrication methods
4️⃣ Project complexity
5️⃣ Construction duration
6️⃣ Permitting and regulatory requirements
Tweet 4 of 6: Operations & Logistics 🚢
Exploring the Operations & Logistics aspects of different LNG train sizes evaluating
1️⃣ Workforce requirements
2️⃣ Infrastructure needs
3️⃣ Energy efficiency
4️⃣ Scalability & Expansion potential
Tweet 5 of 6: Market & Supply Chain 🌐
Exploring the Market & Supply Chain aspects of different LNG train sizes Assessing
1️⃣ Feed gas supply
2️⃣ Pipeline access
3️⃣ Off-take agreements
4️⃣ Market flexibility and adaptability
Tweet 6 of 6: Summary and Key Takeaways 📝🔑
Concluding the series by highlighting the most significant insights and takeaways from the comparisons made in the previous tweets.
3-5 MTPA: Even higher initial investment, further economies of scale benefits
5-8 MTPA: Largest upfront capital requirements, greatest economies of scale
2️⃣ OPEX Comparison
🔹Small-scale: Higher operating costs per ton (less efficient processes, lower output)
🔹Mid-scale: Lower operating costs per ton (improved efficiencies, higher production volumes)
🔹Large-scale:
1-3 MTPA: Even lower operating costs per ton
3-5 MTPA: Greater cost efficiency due to economies of scale
5-8 MTPA: Optimal cost efficiency
3️⃣ Financing Options
🔹Small-scale & mid-scale: More accessible financing (lower capital requirements)
🔹Large-scale (1-3, 3-5, 5-8 MTPA): More complex financing, may require involvement from multiple stakeholders (governments, international financing institutions)
In summary, project economics vary greatly across LNG train sizes, with larger trains offering better economies of scale, but also higher upfront costs.
Finance options, risks, and returns depend on the specific size and market.
#LNGTrains #ProjectEconomics, #LNG
🚀Tweet 3 of 6: Project Development 🛠️
Comparing project development aspects
Project Development 🛠️
1️⃣ Technology availability
2️⃣ Contractor selection
3️⃣ Fabrication methods
4️⃣ Project complexity
5️⃣ Construction duration
6️⃣ Permitting and regulatory requirements
of different LNG train sizes:
✅ Small-scale LNG trains (<0.5 MTPA)
✅ Mid-scale LNG trains (0.5-1 MTPA)
✅ Large-scale LNG trains:
a (1-3 MTPA)
b (3-5 MTPA)
c (5-8 MTPA)
1️⃣ Technology Availability
🔹Small-scale (<0.5 MTPA): Limited options, suitable for niche markets
🔹Mid-scale (0.5-1 MTPA): A broader range of technologies, better fit for various applications
🔹Large-scale: 1-3 MTPA: Good technology options, some custom solutions
3-5 MTPA: Wide range of technologies, advanced solutions
5-8 MTPA: State-of-the-art technology offerings, the highest level of customization
2️⃣ Contractor Selection
🔹Small-scale (<0.5 MTPA): Local or regional contractors
🔹Mid-scale (0.5-1 MTPA): Greater choice of experienced contractors
🔹Large-scale: 1-3 MTPA: Selection of well-established EPC contractors
3-5 MTPA: Top-tier EPC contractors, global expertise
5-8 MTPA: Most challenging permitting processes, the highest level of regulatory compliance
Overall, project development complexity increases with the size of the LNG train.
Smaller trains have more available technology options and shorter construction times, while larger trains require more specialized expertise and longer timelines.
✅ Conduct workshops to share lessons learned and best practices related to interface management 🎓
✅ Gather lessons from outside sources and the project's own experiences for continuous improvement 🔄
✅ Document & share findings 📚 3/7