TECHNICAL PROGRAMME | Energy Infrastructure – Future Pathways
Navigating the Future: Innovations & Market Dynamics in LNG, FLNG, & CNG
Forum 7 | Hall 10 - ZAIN Technical Programme 2
12
October
14:00
15:15
UTC+3
This session aims to explore the evolving landscape of natural gas, focusing on the future prospects of LNG, FLNG, and CNG technologies. As the global energy market shifts towards cleaner alternatives, natural gas is poised to play a pivotal role in the energy transition. The session will bring together discussions on the latest technological advancements, market opportunities, and challenges in the LNG, FLNG, and CNG sectors.
The global liquefied natural gas (LNG) market has undergone a rapid transformation in recent years, evolving from a relatively niche segment of the energy industry into a globally integrated and financially sophisticated marketplace. As the LNG value chain expands to address the dual pressures of energy security and decarbonization, investment evaluation and decision-making surrounding LNG infrastructure, gas trading portfolios, and upstream assets have become increasingly more complex. At the core of these decisions lies the need for a robust understanding of LNG asset valuation - encompassing both fundamental cash flow generating principles and the strategic, option-driven perspective.
This paper explores the dual concepts of intrinsic and extrinsic value in the context of LNG asset valuation. Intrinsic value refers to the economic worth of an asset based on its risk-adjusted future cash flows, typically assessed through traditional financial models such as discounted cash flow (DCF). It is grounded in fundamental drivers such as capital and operational costs, revenues, and ultimately free cash flow. Extrinsic value, by contrast, captures the strategic flexibility and embedded option value unique to LNG assets – such as the ability to reroute cargoes across global markets, exploit regional price arbitrage opportunities, or optimize temporal spreads through storage and regasification timing.
Given the capital intensity, long-term investment horizons, and regulatory exposure inherent in LNG infrastructure, a holistic view that integrates both intrinsic and extrinsic components of value is of crucial importance for stakeholders across the energy value chain. This includes operators, financiers, investors and sellers in the LNG merger and acquisition landscape. As the energy transition continues, LNG assets are increasingly attracting interest from broad spectrum of players - from traditional oil and gas majors to private equity funds - each assessing value through the lens of their own strategic objectives.
To bridge theory and practice, this paper presents both a conceptual valuation framework and a real-world case study analysis of ADNOC’s recent bid for Santos, highlighting how intrinsic and extrinsic value drivers contribute to the valuation of LNG assets. This approach illustrates how modern LNG valuation must go beyond static financial metrics to capture the full spectrum of economic and strategic potential embedded in LNG assets.
This paper explores the dual concepts of intrinsic and extrinsic value in the context of LNG asset valuation. Intrinsic value refers to the economic worth of an asset based on its risk-adjusted future cash flows, typically assessed through traditional financial models such as discounted cash flow (DCF). It is grounded in fundamental drivers such as capital and operational costs, revenues, and ultimately free cash flow. Extrinsic value, by contrast, captures the strategic flexibility and embedded option value unique to LNG assets – such as the ability to reroute cargoes across global markets, exploit regional price arbitrage opportunities, or optimize temporal spreads through storage and regasification timing.
Given the capital intensity, long-term investment horizons, and regulatory exposure inherent in LNG infrastructure, a holistic view that integrates both intrinsic and extrinsic components of value is of crucial importance for stakeholders across the energy value chain. This includes operators, financiers, investors and sellers in the LNG merger and acquisition landscape. As the energy transition continues, LNG assets are increasingly attracting interest from broad spectrum of players - from traditional oil and gas majors to private equity funds - each assessing value through the lens of their own strategic objectives.
To bridge theory and practice, this paper presents both a conceptual valuation framework and a real-world case study analysis of ADNOC’s recent bid for Santos, highlighting how intrinsic and extrinsic value drivers contribute to the valuation of LNG assets. This approach illustrates how modern LNG valuation must go beyond static financial metrics to capture the full spectrum of economic and strategic potential embedded in LNG assets.
Shallow geothermal energy is considered a kind of competitive renewable energy. The LNG storage tank energy pile technology is to bury the heat exchange tube in the pile foundation to form a primary loop system and to use the shallow geothermal energy. These piles act as an underground heat exchanger and simultaneously carries the structural loads. Under the "Dual-carbon" strategy, it can effectively reduce the carbon emissions and energy consumption of LNG terminal if promoting the application of LNG storage tank energy piles, especially the large-diameter and super-long energy piles, However, research on the large diameter and super-long energy piles as well as their engineering applications is limited in the phases of design methods, construction techniques and testing methods. Hence, a number of 1.2m diameter and 53m long LNG storage tank energy piles were designed and constructed in a LNG terminal for the first time in the industry, which helps to gain the experiences in design, construction and testing of these piles. The bearing capacity, pile integrity, heat exchange efficiency and pipe resistance of two large-diameter and super-long energy piles were quantitatively analyzed. The results demonstrate the feasibility and applicability of this technology, and the findings can serve as a reference for future practical applications.
Steel industries in Iran produce over than 33 million tons of direct reduced iron (sponge iron) and more than 30 million tons of steel billets. Due to the gas interruption/limitation in winter, the production of sponge iron and consequently steel is unstable in this period and caused loss of profit. LNG peak shaving plants are one of the ways that used in many countries around the world to deal with this problem to balance the fluctuation in natural gas supply and demand during summer and winter months. In other words, the shortage of natural gas supply in winter is compensated by storing gas in the liquid form (LNG) in the summer, therefore, company will be able to continue its production in this duration and avoid the financial losses. The main process units of the LNG peak shaving plant are gas sweetening, dehydration, mercury removal, heavy hydrocarbon removal, liquefaction, nitrogen removal and regasification. In this case study, an Iron & Steel Co. in Iran intends to construct the LNG plant with the aim of peak shaving in the winter season. Based on the required feed gas flow rate (3,000,000 Nm3/day), duration of gas interruption/limitation in winter (90 days) and the possible duration for the LNG production equal to 8 months, the capacity of the LNG peak shaving plant and LNG storage volume was calculated as 300 tons per day and 180,000 m3 (4 tank*45,000 m3), respectively. The natural gas as the feedstock of the LNG plant is supplied by Iran Gas Trunk-line (IGAT). The activity including study of existing infrastructure in company and simulation of the plant was done and the facilities, required utilities and sizing of equipment was estimated. The capital cost was estimated based on the main equipment of process units. The total estimated EPC cost was equal to 180,000,000 U$. The operation cost includes feed cost, utilities, chemicals, labor costs, maintenance & repair cost, etc. was calculated. Considering the loss of profit, the economic parameters including Internal Rate of Return (IRR), Net Present Value (NPV) and payback items was calculated. Due to the percentage of feed gas supply to the company from the gas network, the LNG plant is able to supply gas as a feed to the company for 30-85 days and IRR is in the range of 17-45%, which indicates the high importance of constructing the LNG plant and its profitability for the company. At last, the sensitivity analysis was done in CAPEX (±30%), OPEX (±30%) and loss of profit (±30%).
Liquefied Natural Gas (LNG) production requires stringent feed gas specifications to ensure safe, efficient, and cost-effective operation. Natural gas entering LNG facilities contains a range of contaminants—including water, carbon dioxide (CO₂), sulfur compounds (e.g., mercaptans, COS, hydrogen sulfide), and mercury—that must be removed prior to liquefaction. These contaminants, if not adequately treated, can lead to equipment corrosion, freezing issues, catalyst poisoning, and environmental hazards. Typical pretreatment targets include H₂O < 0.1 ppmv, CO₂ < 50 ppmv, total sulfur < 50 ppmv, and Hg < 0.01 μg/Nm³.
Conventional LNG pretreatment typically involves four key steps: (1) acid gas removal utilizing generic solvent technologies, (2) dehydration via molecular sieves, (3) mercury removal with non-regenerable adsorbents, and (4) heavy hydrocarbon removal and/or cryogenic recovery of C3+ species (and optionally, even real-time flexible C2+), when advantageous. While these technologies are well-established, they are often deployed as standalone units, which may not be optimized for varying feed compositions or operational constraints. Additionally, the complexity of integrating multiple technologies can lead to increased capital and operating costs, longer commissioning times, and reduced flexibility.
Honeywell UOP has developed end-end hybrid pretreatment solutions that integrate, a). Special Activated solvent technologies for Acid Gas Treatment, b) Adsorbents with higher capacities for Mercury removal and Dehydration, and c) Advanced cryogenic fractionation with industry-leading energy efficiency. These solutions are tailored to specific feed conditions and customer requirements, offering improved efficiency, additional revenue-generating product streams, reduced footprint, and simplified operations. By leveraging advanced process modeling, solvent / adsorbent expertise, and commercial experience, Honeywell UOP delivers scalable solutions that address both technical and economic challenges in LNG pretreatment.
This paper presents a commercial case study that illustrates the application of Honeywell UOP’s hybrid designs:
Customer 1: A greenfield LNG facility designed for high-capacity acid gas, water and total sulfur removal, followed by adsorption-based mercury removal and NGL recovery unit. The integrated design offers a complete hybrid pretreatment package, reducing the need for multiple vendors and simplifying project execution.
Honeywell UOP’s hybrid pretreatment solutions represent a forward-looking approach to LNG processing—combining technical innovation with commercial practicality. They also highlight Honeywell UOP’s ability to provide innovative, integrated solutions while mitigating operational risks such as bed fouling, pressure drop, and regeneration inefficiencies through optimized process design. As global demand for LNG continues to grow, these solutions offer producers a reliable, cost-effective pathway to meet evolving market and regulatory requirements.
Conventional LNG pretreatment typically involves four key steps: (1) acid gas removal utilizing generic solvent technologies, (2) dehydration via molecular sieves, (3) mercury removal with non-regenerable adsorbents, and (4) heavy hydrocarbon removal and/or cryogenic recovery of C3+ species (and optionally, even real-time flexible C2+), when advantageous. While these technologies are well-established, they are often deployed as standalone units, which may not be optimized for varying feed compositions or operational constraints. Additionally, the complexity of integrating multiple technologies can lead to increased capital and operating costs, longer commissioning times, and reduced flexibility.
Honeywell UOP has developed end-end hybrid pretreatment solutions that integrate, a). Special Activated solvent technologies for Acid Gas Treatment, b) Adsorbents with higher capacities for Mercury removal and Dehydration, and c) Advanced cryogenic fractionation with industry-leading energy efficiency. These solutions are tailored to specific feed conditions and customer requirements, offering improved efficiency, additional revenue-generating product streams, reduced footprint, and simplified operations. By leveraging advanced process modeling, solvent / adsorbent expertise, and commercial experience, Honeywell UOP delivers scalable solutions that address both technical and economic challenges in LNG pretreatment.
This paper presents a commercial case study that illustrates the application of Honeywell UOP’s hybrid designs:
Customer 1: A greenfield LNG facility designed for high-capacity acid gas, water and total sulfur removal, followed by adsorption-based mercury removal and NGL recovery unit. The integrated design offers a complete hybrid pretreatment package, reducing the need for multiple vendors and simplifying project execution.
Honeywell UOP’s hybrid pretreatment solutions represent a forward-looking approach to LNG processing—combining technical innovation with commercial practicality. They also highlight Honeywell UOP’s ability to provide innovative, integrated solutions while mitigating operational risks such as bed fouling, pressure drop, and regeneration inefficiencies through optimized process design. As global demand for LNG continues to grow, these solutions offer producers a reliable, cost-effective pathway to meet evolving market and regulatory requirements.
Anindita Sharda
Speaker
Process Specialist, Adsorbent/Membrane Technologies
Honeywell UOP
India
Liquefied Natural Gas (LNG) production requires stringent feed gas specifications to ensure safe, efficient, and cost-effective operation. Natural gas entering LNG facilities contains a range of contaminants—including water, carbon dioxide (CO₂), sulfur compounds (e.g., mercaptans, COS, hydrogen sulfide), and mercury—that must be removed prior to liquefaction. These contaminants, if not adequately treated, can lead to equipment corrosion, freezing issues, catalyst poisoning, and environmental hazards. Typical pretreatment targets include H₂O < 0.1 ppmv, CO₂ < 50 ppmv, total sulfur < 50 ppmv, and Hg < 0.01 μg/Nm³.
Conventional LNG pretreatment typically involves four key steps: (1) acid gas removal utilizing generic solvent technologies, (2) dehydration via molecular sieves, (3) mercury removal with non-regenerable adsorbents, and (4) heavy hydrocarbon removal and/or cryogenic recovery of C3+ species (and optionally, even real-time flexible C2+), when advantageous. While these technologies are well-established, they are often deployed as standalone units, which may not be optimized for varying feed compositions or operational constraints. Additionally, the complexity of integrating multiple technologies can lead to increased capital and operating costs, longer commissioning times, and reduced flexibility.
Honeywell UOP has developed end-end hybrid pretreatment solutions that integrate, a). Special Activated solvent technologies for Acid Gas Treatment, b) Adsorbents with higher capacities for Mercury removal and Dehydration, and c) Advanced cryogenic fractionation with industry-leading energy efficiency. These solutions are tailored to specific feed conditions and customer requirements, offering improved efficiency, additional revenue-generating product streams, reduced footprint, and simplified operations. By leveraging advanced process modeling, solvent / adsorbent expertise, and commercial experience, Honeywell UOP delivers scalable solutions that address both technical and economic challenges in LNG pretreatment.
This paper presents a commercial case study that illustrates the application of Honeywell UOP’s hybrid designs:
Customer 1: A greenfield LNG facility designed for high-capacity acid gas, water and total sulfur removal, followed by adsorption-based mercury removal and NGL recovery unit. The integrated design offers a complete hybrid pretreatment package, reducing the need for multiple vendors and simplifying project execution.
Honeywell UOP’s hybrid pretreatment solutions represent a forward-looking approach to LNG processing—combining technical innovation with commercial practicality. They also highlight Honeywell UOP’s ability to provide innovative, integrated solutions while mitigating operational risks such as bed fouling, pressure drop, and regeneration inefficiencies through optimized process design. As global demand for LNG continues to grow, these solutions offer producers a reliable, cost-effective pathway to meet evolving market and regulatory requirements.
Conventional LNG pretreatment typically involves four key steps: (1) acid gas removal utilizing generic solvent technologies, (2) dehydration via molecular sieves, (3) mercury removal with non-regenerable adsorbents, and (4) heavy hydrocarbon removal and/or cryogenic recovery of C3+ species (and optionally, even real-time flexible C2+), when advantageous. While these technologies are well-established, they are often deployed as standalone units, which may not be optimized for varying feed compositions or operational constraints. Additionally, the complexity of integrating multiple technologies can lead to increased capital and operating costs, longer commissioning times, and reduced flexibility.
Honeywell UOP has developed end-end hybrid pretreatment solutions that integrate, a). Special Activated solvent technologies for Acid Gas Treatment, b) Adsorbents with higher capacities for Mercury removal and Dehydration, and c) Advanced cryogenic fractionation with industry-leading energy efficiency. These solutions are tailored to specific feed conditions and customer requirements, offering improved efficiency, additional revenue-generating product streams, reduced footprint, and simplified operations. By leveraging advanced process modeling, solvent / adsorbent expertise, and commercial experience, Honeywell UOP delivers scalable solutions that address both technical and economic challenges in LNG pretreatment.
This paper presents a commercial case study that illustrates the application of Honeywell UOP’s hybrid designs:
Customer 1: A greenfield LNG facility designed for high-capacity acid gas, water and total sulfur removal, followed by adsorption-based mercury removal and NGL recovery unit. The integrated design offers a complete hybrid pretreatment package, reducing the need for multiple vendors and simplifying project execution.
Honeywell UOP’s hybrid pretreatment solutions represent a forward-looking approach to LNG processing—combining technical innovation with commercial practicality. They also highlight Honeywell UOP’s ability to provide innovative, integrated solutions while mitigating operational risks such as bed fouling, pressure drop, and regeneration inefficiencies through optimized process design. As global demand for LNG continues to grow, these solutions offer producers a reliable, cost-effective pathway to meet evolving market and regulatory requirements.
Steel industries in Iran produce over than 33 million tons of direct reduced iron (sponge iron) and more than 30 million tons of steel billets. Due to the gas interruption/limitation in winter, the production of sponge iron and consequently steel is unstable in this period and caused loss of profit. LNG peak shaving plants are one of the ways that used in many countries around the world to deal with this problem to balance the fluctuation in natural gas supply and demand during summer and winter months. In other words, the shortage of natural gas supply in winter is compensated by storing gas in the liquid form (LNG) in the summer, therefore, company will be able to continue its production in this duration and avoid the financial losses. The main process units of the LNG peak shaving plant are gas sweetening, dehydration, mercury removal, heavy hydrocarbon removal, liquefaction, nitrogen removal and regasification. In this case study, an Iron & Steel Co. in Iran intends to construct the LNG plant with the aim of peak shaving in the winter season. Based on the required feed gas flow rate (3,000,000 Nm3/day), duration of gas interruption/limitation in winter (90 days) and the possible duration for the LNG production equal to 8 months, the capacity of the LNG peak shaving plant and LNG storage volume was calculated as 300 tons per day and 180,000 m3 (4 tank*45,000 m3), respectively. The natural gas as the feedstock of the LNG plant is supplied by Iran Gas Trunk-line (IGAT). The activity including study of existing infrastructure in company and simulation of the plant was done and the facilities, required utilities and sizing of equipment was estimated. The capital cost was estimated based on the main equipment of process units. The total estimated EPC cost was equal to 180,000,000 U$. The operation cost includes feed cost, utilities, chemicals, labor costs, maintenance & repair cost, etc. was calculated. Considering the loss of profit, the economic parameters including Internal Rate of Return (IRR), Net Present Value (NPV) and payback items was calculated. Due to the percentage of feed gas supply to the company from the gas network, the LNG plant is able to supply gas as a feed to the company for 30-85 days and IRR is in the range of 17-45%, which indicates the high importance of constructing the LNG plant and its profitability for the company. At last, the sensitivity analysis was done in CAPEX (±30%), OPEX (±30%) and loss of profit (±30%).
Li Xiao
Speaker
Director of Research and Development Center
CNOOC Gas & Power Group Co., Ltd.
China
Shallow geothermal energy is considered a kind of competitive renewable energy. The LNG storage tank energy pile technology is to bury the heat exchange tube in the pile foundation to form a primary loop system and to use the shallow geothermal energy. These piles act as an underground heat exchanger and simultaneously carries the structural loads. Under the "Dual-carbon" strategy, it can effectively reduce the carbon emissions and energy consumption of LNG terminal if promoting the application of LNG storage tank energy piles, especially the large-diameter and super-long energy piles, However, research on the large diameter and super-long energy piles as well as their engineering applications is limited in the phases of design methods, construction techniques and testing methods. Hence, a number of 1.2m diameter and 53m long LNG storage tank energy piles were designed and constructed in a LNG terminal for the first time in the industry, which helps to gain the experiences in design, construction and testing of these piles. The bearing capacity, pile integrity, heat exchange efficiency and pipe resistance of two large-diameter and super-long energy piles were quantitatively analyzed. The results demonstrate the feasibility and applicability of this technology, and the findings can serve as a reference for future practical applications.
The global liquefied natural gas (LNG) market has undergone a rapid transformation in recent years, evolving from a relatively niche segment of the energy industry into a globally integrated and financially sophisticated marketplace. As the LNG value chain expands to address the dual pressures of energy security and decarbonization, investment evaluation and decision-making surrounding LNG infrastructure, gas trading portfolios, and upstream assets have become increasingly more complex. At the core of these decisions lies the need for a robust understanding of LNG asset valuation - encompassing both fundamental cash flow generating principles and the strategic, option-driven perspective.
This paper explores the dual concepts of intrinsic and extrinsic value in the context of LNG asset valuation. Intrinsic value refers to the economic worth of an asset based on its risk-adjusted future cash flows, typically assessed through traditional financial models such as discounted cash flow (DCF). It is grounded in fundamental drivers such as capital and operational costs, revenues, and ultimately free cash flow. Extrinsic value, by contrast, captures the strategic flexibility and embedded option value unique to LNG assets – such as the ability to reroute cargoes across global markets, exploit regional price arbitrage opportunities, or optimize temporal spreads through storage and regasification timing.
Given the capital intensity, long-term investment horizons, and regulatory exposure inherent in LNG infrastructure, a holistic view that integrates both intrinsic and extrinsic components of value is of crucial importance for stakeholders across the energy value chain. This includes operators, financiers, investors and sellers in the LNG merger and acquisition landscape. As the energy transition continues, LNG assets are increasingly attracting interest from broad spectrum of players - from traditional oil and gas majors to private equity funds - each assessing value through the lens of their own strategic objectives.
To bridge theory and practice, this paper presents both a conceptual valuation framework and a real-world case study analysis of ADNOC’s recent bid for Santos, highlighting how intrinsic and extrinsic value drivers contribute to the valuation of LNG assets. This approach illustrates how modern LNG valuation must go beyond static financial metrics to capture the full spectrum of economic and strategic potential embedded in LNG assets.
This paper explores the dual concepts of intrinsic and extrinsic value in the context of LNG asset valuation. Intrinsic value refers to the economic worth of an asset based on its risk-adjusted future cash flows, typically assessed through traditional financial models such as discounted cash flow (DCF). It is grounded in fundamental drivers such as capital and operational costs, revenues, and ultimately free cash flow. Extrinsic value, by contrast, captures the strategic flexibility and embedded option value unique to LNG assets – such as the ability to reroute cargoes across global markets, exploit regional price arbitrage opportunities, or optimize temporal spreads through storage and regasification timing.
Given the capital intensity, long-term investment horizons, and regulatory exposure inherent in LNG infrastructure, a holistic view that integrates both intrinsic and extrinsic components of value is of crucial importance for stakeholders across the energy value chain. This includes operators, financiers, investors and sellers in the LNG merger and acquisition landscape. As the energy transition continues, LNG assets are increasingly attracting interest from broad spectrum of players - from traditional oil and gas majors to private equity funds - each assessing value through the lens of their own strategic objectives.
To bridge theory and practice, this paper presents both a conceptual valuation framework and a real-world case study analysis of ADNOC’s recent bid for Santos, highlighting how intrinsic and extrinsic value drivers contribute to the valuation of LNG assets. This approach illustrates how modern LNG valuation must go beyond static financial metrics to capture the full spectrum of economic and strategic potential embedded in LNG assets.
