Financial model for LNG bunkering port

Background

• The client company has investment in energy infrastructure in the Middle East and US and was seeking to expand its business by entering into the LNG bunkering business in the US Gulf.

Client Objectives

• To develop a financial model for a potential LNG bunkering operation in the US Gulf.

Drewry Approach

• Drewry conducted a comprehensive market and financial analysis which included:

  • Comparison of LNG procurement costs between different routes 

  • Annual cashflow prospects over the forecast period between 2024 and 2033 based on different scenarios.

  • Chartering assets compared to owned and financed assets.

  • Return analysis of investments using Net Present Value (NPV) and Return on Investment (ROI) of the purchase options under consideration.

Results Achieved

• Drewry submitted the final report to the satisfaction of the client. Further technical and legal assessments continue to be undertaken by the client.