ADI conducted a technical and commercial risk assessment of a proposed waterfront LNG facility, focusing on EPCM strategy and marine integration. The work identified critical FEL-3 gaps, including scope exclusions in storage tank quotes and misalignments between piping layouts and plot plans. Rigorous analysis of the bunkering barge cycle times highlighted operational vulnerabilities related to the U.S. Gulf Coast and single-point failure risks.
The client
Private equity firm
The situation
Significant execution and technical risk associated with the transition from small-scale to a larger 350,000 GPD bunkering facility.
ADI’s contributions
FEL-3 gap analysis
Detailed engineering review surfaced physical scope exclusions that represented significant unbudgeted capital requirements.
Contractual liability audit
Evaluation of sales and purchase agreements identified price penalties and termination clauses that threatened long-term returns.
Operational logistics modeling
Voyage cycle time sensitivity analysis revealed constraints in consistently servicing contracted marine offtake volumes.
EPC strategy review
Assessment of contractor experience with non-FERC domestic waterfront projects identified critical construction management resource needs.
Key outcomes
- Identification of technical “red flags” and contract liabilities enabled the client to reassess project valuation and risk mitigation.
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