Peru LNG is a LNG facility in Pampa, Melchorita Peru. Commissioned in 2010, it is the first natural gas liquefaction plant in South America and has a capacity of 4.4 million tons of LNG per year. Given the early stage in the asset’s life, Peru LNG had a wide range of options available to improve the value of the operating asset.
The situation
Peru LNG engaged us to review a portfolio of improvement options to develop a five year capital improvement program. The objective of the review was to facilitate the integration of Peru LNG performance objectives into the planning and execution of its capital projects. The team utilised Advisian's assessment methodology to conduct the review and support effective decision-making.
Our approach
To facilitate the evaluation of several projects, a baseline energy model was created for the facility. This model allows the efficiency gains of implementing projects to be evaluated in terms of throughput. The team also conducted an analysis of the plant’s operational history to determine the potential throughput gains to be estimated.
These baseline data sets, combined with cost estimates for each of the options, allowed the team to compare the net impact of each of the improvement options under consideration. Using Advisian's DELTΔTM Tool, a portfolio model was developed enabling us to rank, prioritise and conduct sensitivity analysis for each of the options.
This provided a clear and effective decision framework for the Peru LNG management team, supporting them in the selection of the portfolio of improvements which maximised the value returned by the facility.
Results
The portfolio assessment resulted in a set of nine capital projects being recommended and four conditionally recommended for delivery over the next five years.
