KAZTRANSGAZ

REFINERY

Natural gas and LNG

 

Natural gas supply and demand have both grown rapidly over the past 10 years, and we expect the fuel to continue playing an important role even through the Energy Transition.  Natural gas discoveries have proliferated in the recent decades and its production from shale gas and other onshore and offshore assets have become very cost competitive. 

 

Further, midstream infrastructure has kept pace with capital investments made globally.  As a result, the installed base of midstream capacity has grown worldwide including gathering lines, gas processing plants, natural gas liquid (NGL) fractionators, sulfur recovery, carbon dioxide (CO2) and acid gas removal, regional and international transmission pipelines, and local distribution pipelines.

 

Climate change and environmental concerns coupled with rising cost competitiveness has led to rapid growth in the supply and demand for liquefied natural gas (LNG).  As a result, a lot of capital has been invested across the LNG value chain globally including liquefaction, shipping, and regasification infrastructure.

 

Natural gas and LNG, however, face numerous challenges going forward.  A key concern is whether the fuel will continue to be a competitive source of energy in the Energy Transition.  Ensuring a role for natural gas in 2040 and beyond will require improvements to its cost, supply, operational, and, most importantly, sustainability competitiveness.  Specifically, industry players will have to cut and stop natural gas flaring and fugitive emissions, improve the efficiency of natural gas utilization, and broaden the fuel’s applications through small-scale LNG and compressed natural gas (CNG).

How KazTransGaz helps natural gas and LNG companies

 

KazTransGaz Analytics brings deep expertise, rich experience, and numerous models, analytics, and databases on natural gas and LNG supply, costs, capacity and plants, demand, trade flows, and other analytics to help clients with a wide range of needs.  Our teams have helped upstream E&P operators develop and optimize strategy and portfolios for natural gas producing assets including M&A and acquisitions and divestitures (A&D).  In other work, KazTransGaz has estimated, benchmarked, and optimized operational costs and economics, evaluated and accelerated deployment of new technologies and innovation in production, transmission, and utilization of natural gas.  Finally, KazTransGaz has forecasted natural gas supply, demand, costs, and trade flows through insightful market research, forecasting, and competitive intelligence.

 

Relevant examples

 

A few examples of our work in the natural gas and LNG sector are presented here.  Please contact us to learn more about how KazTransGaz can help you.

 

Market research

 

  • Forecasted U.S. LNG exports in 2025 and benchmarked 40+ projects to identify best, most likely one for investor
  • Projected share of LNG in global marine fuel and bunkering market through 2030 to comply with IMO regulations
  • Published two annual studies on small-scale LNG covering North America and global markets
  • Study on small-scale LNG
  • Study on North America small-scale LNG

 

Business strategy

 

  • Advised a major company on gas portfolio strategy prioritizing investment opportunities in U.S., Canada, Australia, and Africa
  • Developed gas monetization strategy for super major benchmarking LNG against gas-to-liquids across multiple criteria

 

Feasibility studies

 

  • Evaluated feasibility of Canadian LNG project for oil major by estimating capex, target markets, feed cost, and opex
  • Led due diligence on LNG bunkering project in Europe for lender based on demand, LNG supply, and regulations
  • Assessed the feasibility of a small-scale LNG plant to serve markets in the U.S. Northeast

 

Transaction support

 

  • Benchmarked 20 U.S. small-scale LNG projects and advised Japanese LNG portfolio player through investment
  • Analyzed LNG portfolio impacts of oil major’s acquisition of mid-sized E&P company with LNG and offshore assets

 

Competitive intelligence

 

  • Studied competitive strategies of LNG peers covering target markets, costs, and sales agreements for oil major
  • Profiled 45 LNG project announcements with in-depth competitive intelligence for Japanese LNG investor

 

Technology assessment

 

  • Assessed micro-scale LNG technology for costs, benefits, risks, and returns for an Asian project developer
  • Piloted a go-to-market strategy for OEM with micro-scale LNG process targeting niche, remote power generation needs