Working alongside the system operator and leading power generators, we evaluated a number of potential import sites and technology options. We screened each site against a broad range of factors. Did it have the right metocean characteristics? Would the location require a long pipeline connection or costly dredging? How would it fit in the local social and cultural context? How would the site affect the time and cost of construction? And would it be an attractive proposition to LNG sellers? Seen through these lenses, we identified a shortlist of preferred concepts.
A commercial mindset
Technical feasibility reveals what’s possible. But we live in a commercial world. Building on our initial feasibility studies, we partnered our client to understand the different commercial implications of the options on the table, accelerating their maturity as a potential LNG importer sourcing energy from international markets.
Scaling options
Large scale LNG importation gives buyers flexible access to the spot market, but the infrastructure needed to receive large vessels comes with a high capex price ticket. For New Zealand with its population of some 5.3 million, relatively small industrial base and hydro-led power market creating uncertainty of gas demand for electricity generation, that would translate into a very high potential cost per molecule. A large scale solution would essentially be a high cost insurance policy. So our work also looked at small-scale LNG options, right-sizing supply on a constant ‘tramline’ basis year round.
Armed with insight
Large and small-scale LNG imports come with very different costs and benefits. We helped all stakeholders see and size the costs, constraints, and trade-offs of each approach. Our insights are now helping the New Zealand government make clear-eyed decisions on their next steps as they look to guarantee the country’s ongoing energy security.