Gholam Ali Rahimi - Institute for International Energy Studies, Modeling & Long Term Energy Studies Group
Mahsa Razdan

High investment level, various partners and the volume of gas consuming by the LNG projects, makes them very complicated. All the different parts of the LNG supply chain are linking together and if they can not connect the sections properly, production and supply of LNG will have problems. A successful LNG project involves the bringing together of a chain of activities to link the gas production to the gas user.The distribution of LNG sale's profit to the final consumers must be in a way that all the chain parts could get benefiting from the supply chain. Otherwise connection will be weaker and problems will occur. The most important connection in LNG supply chain is the link between upstream of gas production and liquefaction. Because upstream will provide the gas needed for producing LNG.Exploration of remote gas field, that transferring gas with pipeline is very hard from there, is the first step of most of the LNG projects. Most of the time finding gas field is happening in the process of exploring oil fields. In these situations at first an experience company in LNG industry will be needed to corporate in developing LNG plans. Regarding that the requirements of the host country or national oil company (that is the owner of the resource) must be concerned.The connection between upstream and liquefaction depends on the contracts1 for developing upstream. The LNG market is predominantly based on long term sales contracts between buyers and sellers. For example, if the contract is production sharing or concession, linking will be different.

LNG, Supply Chain, linking, Integrated Structure, Non-Integrated Structure, Investment, Upstream, Downstream, Liquefaction