This study benchmarked various monetization options for shale gas, quantifying the oil-to-gas price ratios required to achieve target investment returns. ADI evaluated the competitive positioning of LNG, gas-to-liquids (GTL), and methanol-to-gasoline (MTG) across major North American gas hubs. The analysis highlighted how regional differences in capital intensity and feedstock accessibility vary across the U.S. Gulf Coast, Canada, and Alaska.
The client
Integrated energy company
The situation
Strategic need to prioritize capital allocation between competing gas-utilization technologies in a low-cost feedstock environment.
ADI’s contributions
Feedstock price ratio modeling
ADI determined that a boe-based ratio that is the critical threshold for the commercial viability of conversion projects.
Geographic return benchmarking
Analysis of regional labor and infrastructure costs identified the U.S. Gulf Coast as the premier location for gas monetization.
Technology capital intensity review
Comparative capex analysis established the risk-return profiles for different asset classes across the gas value chain.
Market penetration forecasting
Modeling NGL supply growth and NGV demand provided a comprehensive outlook for domestic gas utilization.
Key outcomes
- Prioritized roadmap for large-scale monetization, identifying LNG exports as the most significant demand driver through the medium term.
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