Securing private equity finance
In a saturated LNG market, developing and financing an FLNG project can be challenging enough for industry veterans, but for those who are new to the market, it brings an extra level of difficulty.
Our client was an infrastructure company taking its first steps in the LNG industry. The client was developing an FLNG project in North America but needed a broad range of specialist commercial advice to take the project through initial marketing and then secure the finance needed from private equity investors. We were tasked with proving the feasibility of the project and defining a commercial plan that would appeal to potential LNG buyers and instill confidence in the financial backers.
An LNG education
We began a series of weekly workshop sessions to quickly get our client up to speed with the LNG market. Members of our team with experience from across the gas and LNG value chain held sessions covering commercial topics including the global LNG market and context, value chain fundamentals, project risk assessment, marketing strategies, terms sheets and commercial documents, and pricing strategy.
Having built our client’s knowledge in manageable weekly workshops, we then held a final workshop over two-and-a-half days to focus on a suggested marketing strategy and the risks facing the project.
Our support shaped our client’s marketing strategy and timeline for the project. This included a change to their planned go-to-market approach. We worked with our client to build a targeted list of tier 1 and tier 2 LNG buyers to approach, and modified the initial term sheet to make it fit-for-purpose.
We delivered the workshops and our final report in a way that gradually built our client’s knowledge, so that they got the most out of our insight and could tailor future sessions to focus on key information and deliverables. Our strategic input gave our client and potential investors assurances over the feasibility of the project.
We continue to provide commercial support as the project moves into the next phase.