Nlng signs engineering design contract for train 7 construction businessday in the buildup towards train 7 final investment decision fid later this year, the nigeria lng limited nlng is seeking about n2. Papazogloua, piet ribbers b, aphrodite tsalgatidouc a infolab, tilburg uni. Eni maximises the value of its lng through each stage of the value chain and is able to reach premium lng markets thanks to the combined use of supply and sales contract flexibility, vessel fleet management both owned and chartered in tonnage, regasification capacity, lng storage capacity, cargo reloadings and diversions. Indepth incident investigation, analysis and sharing of incident. Economics of the lng value chain and corporate strategies an.
Nlng base consists of two lng trains operated by nigeria lng, a joint venture between nnpc, shell, total and eni. Lng value chain domestic gas value chain domestic market introduction domestic use of gas natural gas power generation market structure elements of a gas master plan 2 6. Wartsilas extensive expertise across the entire lng value chain enables it to bundle. This presents a variety of issues and choices which need to be addressed in the fiscal regime. Global lng fundamentals developed by funded by contributing partners transport l n g liquefaction gas processing liquefaction production exploration and. He wrote about what constituted productive work in 15th century france, and his findings on production and profit are the basis for tableau economique. This is a people driven imitative with coop providing expertise, support or crowd funding mechanisms. Developed by michael porter and used throughout the world for nearly 30 years, the value chain is a powerful tool for disaggregating a company into its strategically relevant activities in order to focus on the sources of competitive advantage, that is, the specific activities that result in higher prices or lower costs. The question of strategic success for large and small firms has shifted from one based on profit. Liquefied natural gas and regasification harvard energy journal.
Gts1 is a 36inch onshore pipeline extending 149 kilometres from the agip jvs obiafuobrikom gas plant to nlng, terminating in a 150 m3 slugcatcher. Plants throughout the gas value chain are increasing rapidly in size. The earliest mention of what we today call a value chain is evident in the writings of francois quesnay. A value chain is a highlevel model developed by michael porter used to describe the process by which businesses receive raw materials, add value to the raw materials through various. This handbook also contains, pages for you to scribble down your thoughts, as it can serve as journal of some sort, to document your natural gas, entrepreneurial journey. Understanding natural gas and lng options department of energy. Unlocking the supply chain for lng project success assets. T he value chain analysis describes the activ ities the organ ization performs and links them to the organizations competitive pos ition.
Nigeria lng nlng transportation infrastructure report summary the nlng plant is supplied with feedgas via six major pipelines known as the gas transmission system gts. Competitive advantage grows fundamentally out of value a firm is able to create for its buyers that exceeds the firms cost of creating it. The industry value chain includes all of the valuecreating activities within the whole industry, beginning with the basic raw material and ending. Unlocking the supply chain for lng project success2.
There are a lot of opportunities within nigerias lng valuechain. Options and opportunities to make food value chains more environmentally sustainable and resilient in subsaharan africa t here are several proven options and opportunities to make food value chains vcs more environmentally sustainable and resilient in subsaharan africa ssa. The world has changed combined resources of 28,600 tcf are equal to 250 years of current production unconventional,984 conventional 14,233. Gas prices are often established in other countries or regulated for domestic consumers. Value chain analysis of natural gas industrylessons from the us regulatory success and opportunities for europe journal of natural gas scince. Integrated value chains and their implications from a business and technology standpoint michael p. Over 5days, the course covers technical lng basics and facility operation topics, plus technical, design, and commercial issues. Oisamoje, phd1 department of business administration. Hildas extensive experience includes operational excellence, process transformation, procurement, change management and financial process redesign. The value chain the term value chain was used by michael porter in his book competitive adva n tage. Aligning transfer pricing outcomes with value creation as well as action paper. Completing the lng value chain the use of natural gas is already strong and will continue to increase.
All these activities can be represented using a value chain. In this chapter, the lng supply chain is introduced, and two planning problems related to the transportation planning and inventory management within the chain are presented. Nigeria lng nlng transportation infrastructure report. Megathos law practice il lng business opportunities handbook. Our strategic goal is to fulfil nlng s mission which is to market, produce and deliver liquefied natural gas and natural gas liquids to buyers safely, reliably and profitably, growing our company and its people to their full potential, and being a trusted partner with all our stakeholders in the sustainable development of nigerias gas industry and of nlng s host communities. In particular, applying a value chain framework to development projects is provided in another aciar publication, a guide to valuechain analysis and development for overseas.
Seep preevent presentation 26 value chain analysis can help to reveal linksbetween producers, exporters and global markets identify constraintsall along the chain to competing in the marketplace. Value is what buyers are willing to pay, and superior value stems from offering lower prices than competitors for equivalent benefits or providing unique benefits that more than offset a higher price. Domestic supply and demand analysis power and nonpower sector. This lng short course is designed for participants requiring moderate technical coverage, coupled with information on lng commerce and all parts of the lng value chain. Lng value chain transport unloading and storage terminal final customers gas distribution. We have strived to establish an lng value chain that. The oecd also released a discussion draft concerning the use of profit splits in a value chain context. Economics of the lng value chain and corporate strategies an empirical analysis of the determinants of vertical integration sophia ruster1 and anne neumann paper to be presented at the 26th usaee international conference september 2427, 2006, ann arbor, michigan, u.
Economics of the lng value chain and corporate strategies. Lng value chain 8 gas production pipeline lng plant lng shipping lng receiving terminal power generation gas distribution electricity transmission gas marketing end user end user 1520 % 3045 % 1030 % 1525 % typical cost distribution in the lng value chain numbers are confirmed by different sources. Nlng forecasts 32% annual growth for nigerias lpg market. Integrated value chains and their implications from a. Developing business through the lng value chain we aim to develop our business throughout the lng value chain, maximizing value through linked business spanning the procurement and transportation of lng, the production and supply of city gas, and the provision of energy solutions. It was the first lng project in nigeria and started operations in 1999. Every firm is a collection of activities that are performed to design, produce, market, deliver, and support its product.
Coop funding mep member equity project capital base increase by allowing members buy more equity, member seed money. All electric lng plants better, safer, more reliable and profitable. Value chain analysis is a technique that yields value improvement. Tord johnsson, area business development manager, oil and. Our strategic goal is to fulfil nlngs mission which is to market, produce and deliver liquefied natural gas and natural gas liquids to buyers safely, reliably and profitably, growing our company and its people to their full potential, and being a trusted partner with all our stakeholders in the sustainable development of nigerias gas industry and of nlngs host communities. Chain is defined by interdependence of projects shared risks. It works by breaking an organizations activities down into strategically relevant pieces, so that you can see a fuller picture of the cost drivers and sources of differentiation, and then make changes appropriately. Finally, resulting from the subsample analysis of the atlantic basin, it becomes obvious that for value chains connecting to european instead of u. To allow the local sector to better meet the requirements of the buyers, four main interventions were implemented. Lng is a clear liquid, with a density of about 45% the density of water. Introduction to lng and various types of lng storage tanks introduction lng is a cryogenic liquid.
Options and opportunities to make food value chains more. The term cryogenic means low temperature, generally below 100 o f. Porters value chain is a useful strategic management tool. The value chain from competitive advantage, by michael.
Guidance on transfer pricing documentation and countrybycountry reporting. Lng value chain for value creation the tokyo gas group, since receiving the first cargo of lng to japan, in 1969, has been the nations leader in use of lng and a top company in natural gas. View global value chain research papers on academia. Lng value chain value propositions golng main page. An empirical analysis of the determinants of vertical integration. Chart industries supplies the entire lng value chain and can help you with a solution that fits your lng power generation needs today. Corporate strategies along the lng value added chain tu dresden. An lng receiving terminal comprises lng storage tanks and regasification facilities that convert lng back to its gaseous state by the application of heat, also known as vapourisation. Completing the lng value chain download pdf wartsila.
Agriculture and rural development includes bibliographical references and index. Denis gacicha confidential property of schneider electric. Disclaimer 2 this presentation and the information herein contained is gas natural fenosa gnf. Breaking down whats involved in an lng project the timeline, level of effort and cost the complexity of major lng projects is reflected in their time scales to completion. While describing the nigeria liquefied natural gas nlng as a very critical company for nigeria, kyari appealed to prospective investors to consider investing in the organization for the benefit of shareholders and the entire nigerians. Nigeria lng nlng nlng base commercial overview report. There are a lot of opportunities within nigerias lng. Corporate strategies along the lng value added chain an. Usaids value chain systems training, and a number of projects in collaboration with professors ray collins and andrew fearne, and associate professor laurie bonney.
This program is designed as a primer to introduce participants to technical, commercial, project. Transportation planning and inventory management in the. Managing the value chain, page 2 concept introduction the urgency and immediacy of the current financial crisis that burst into american consciousness in the 4 th quarter of 2008 has left companies around the world gasping for air. For example, an lng process train designed with capacity of 4 mtpa has a shaft power requirement of. In 1985, michael porter pioneered a new modern model describing a value chain in his groundbreaking book.
All electric lng plants better, safer, more reliable and. Since gas has to be moved by pipeline or by dedicated lng vessels. Most of the technical and socioeconomic solutions for sustainable. Pdf natural gas utilization and its effect on nigerias.
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