Wednesday, July 26, 2006

LNG Industry Cost

There are four main component that influence LNG project price.The first item is gas production cost which includes 15-20% of entire costs.
the second item is LNG plant with 30-45% of cost.
According to Gas Technology Institute (GTI) Liquefaction cost has been decreased 35 to 50 percent over the past ten years.This means that plant capital cost decreased from US$500 to less than US$200 per tone .Meanwhile an independent Consultant estimates that LNG plant would cost $1.09 per milion btu (more than $56 per ton) for a two trains,8 mtpa capacity, greenfield LNG project and US$0.97 for a expansion of this project.
Third part of LNG project price component is LNG shipping cost that contain 10-30 percent of costs.Since LNG tankers are usually dedicated to specified project there is no set market for LNG tanker like as oil tanker and charter rate is function of ship price, distance and time expended.Charter rate is very widely from US$27,000 to 150,000 per day.Today the average rate for long term contract is about US$60,000.
And finally is the regasification terminal cost.The cost is very depended to site specific as it varies from US$100 million for a small terminal to US$2 billion or higher for huge one.

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