THE INCREASING COST OF LNG (CAUSES AND REMEDIES)

The cost of LNG delivered from the first LNG projects was not out of line with the price of other energy. Recently, however, the trend has been sharply upward. Expected savings from advanced technology and from economies of scale have not been realized with the result that LNG is now barely competitive. What are the possibilities of cost reduction? Can investment be reduced by better coordination of liquefaction, shipping and terminal facilities as a system and by the use of advanced techniques? Are there unnecessary losses of high cost product in shipping and terminals? Can fixed charges be reduced by means of innovative financing and by the sharing of risks? The sum of small savings in many fields may make the difference between rejection of LNG as uneconomic and the growth of a profitable industry.

Media Info

  • Pagination: p. 1-12

Subject/Index Terms

Filing Info

  • Accession Number: 00322629
  • Record Type: Publication
  • Report/Paper Numbers: Paper 7, Appendix Conf Paper
  • Files: TRIS
  • Created Date: Nov 29 1980 12:00AM