A theoretical framework for economic assessment of small-scale LNG projects

Abstract

The production of small-scale liquefied natural gas (SLNG) is a promising area of the gas industry, which allows to solve the problem of energy carriers distribution between end users. This differs SLNG from medium- and large-scale projects that concentrate LNG in hubs. The implementation of SLNG projects assumes the creation of an extensive network that allows covering vast territories that are not covered by centralized gas supply networks, rather than the development of single production capacities. In this paper, we propose a theoretical framework that allows to assess the attractiveness of SLNG networks development not only in terms of direct, but also indirect effects, which differ depending on the composition of project stakeholders, as well as on the stage of technological chain. The essence of term “flexibility” in relation to LNG projects has also been clarified.