July 2008

Special Report: Process/Plant Optimization

Developing mid-scale LNG projects from the contractor's perspective

Modular liquefaction methods reduce construction and operating costs for smaller reserve developments

The global market for liquefied natural gas (LNG) continues to grow rapidly. Traditionally, base-load LNG plants have provided the majority of this supply. As the industry has grown, base-load plants have grown increasingly larger. This has normally meant better economies of scale on project cost. Recently, however, base-load plants have become much more complex, and the cost is escalating in an uncontrolled fashion. The growing "diseconomies" of scale for larger units is directing more attention to development of mid-scale LNG projects that could cover the gap between LNG supply and demand. The appeal of mid-scale projects is that they require smaller reserve bases, less total investment a

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