At the 2023 ADI Forum, Jeff Hammad, Chief Commercial Officer, Golden Pass LNG, shared insights into the company’s journey of developing their LNG export project. Building an LNG facility is a long and challenging process, including commercial agreements and the permitting process. Hammad described the history of LNG developing in the U.S. as occurring in “waves,” with Golden Pass being a key player in the second wave, making their Final Investment Decision (FID) in 2019. He contrasted this with a third wave, triggered by the European energy crisis, which created a window of opportunitiy with high price spreads, leading to a surge in new project proposals.
Several critical factors such as access to natural gas supply, the availability and cost of LNG carriers, financing, and the capacity of EPC are crucual and can present significant hurdles to project approvals. Hammad stressed the importance of presistence and fundamental understanding of the market in navigating the inherent uncertainties of LNG development.
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ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
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