Tuesday, July 11, 2006

What is the LNG chain?


LNG chain contains all activities that LNG transfers from plant to market.So all activities related to exploration,production,shipping,regasification and storage are taking into account.In order to determining the LNG cost we need to know what is the cost in each chain.Let see together for case of Iran :
  1. $ 0.5 per mmbtu for exploration
  2. $0.5-1 per mmbtu for liquefaction
  3. $1.10 per mmbtu for shipping from Tombak (Persian Golf) to Japan
  4. $0.3-0.5 per mmbtu for re-gasification and storage

Then the cost of LNG from Iran in Japan's market would be $2.40-3.10 per mmbtu.

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