LNG expansion poses some major technical challenges, but more important are the non-technical challenges, including remote locations, political sensitivities, new stakeholders and constantly changing joint ventures, regulatory landscapes and organizational models. This KPMG International report focuses on Western Canada (British Columbia), East Africa and the United States Gulf Coast, as three of the geographic centers of the next wave of LNG expansion.
Project success is often elusive due to:
Some of these include: not underestimating project complexity; a strong project governance; an operating model and culture that goes beyond optimizing within silos to optimize linkages; alignment of engineering, procurement and construction (EPC) and supplier interests; and ensuring stakeholder, regulatory and human resource considerations are as central as technical issues in decision-making. Read the full report for further details.
The key to success is building relationships and alliances with key stakeholders, including local and regional governments, EPC/supply chain, national sovereign wealth funds and pension funds, labor unions, local businesses, indigenous communities and environmental NGOs.
Key recommendations for successfully dealing with project proponents, company head offices, supply chain and EPC companies, LNG buyers, financiers and investors, and governments are provided in this KPMG report.