RATIONALE FOR BUSINESS MODELS OF MANAGEMENT OF INTERNATIONAL PROJECTS OF LNG PRODUCTION AND SUPPLIES
Gabriyelov Aleksandr O.1
1OOO «Gazprom VNIIGAZ»
Keywords: liquefied natural gas (lng), business models, real options
LNG is the most dynamically developing segment of the world gas market with dozens of projects being under way or planned all over the world. Specific charater of LNG projects requires special approach to management and in particular a rationale of the project business model. The main business models of of LNG projects are idebtified and described, their advantages and risks are shown, the fac tors affecting the choice of the model are evaluated. The theory of real options and simulation modeling was used to assess the managerial flexibility characteristic of a number of business models.
1. Amram M., Kulatilaka N., 1999. Real Options: Managing Strategic Investment in an Uncertain World, Harvard Business School Press, Boston, MA.
2. Copeland T., Antikarov V., 2001. Real Options: A Practitioners Guide, TEXERE, New York
3. Hayes M., 2008. Flexible LNG supply and gas market integration: a simulation approach for valuing the market arbitrage option. Working Paper, Stanford University
4. IEA, 2009. World Energy Outlook, OECD/IEA, Paris
5. IEA, 2008. Natural Gas Market Review, OECD/IEA, Paris
6. Jensen J., 2004. The Development of a Global LNG Market, Oxford Institute for Energy Studies.
7. Jensen J., 2003. The LNG revolution. Energy Journal of the International Association for Energy Economics, Vol. 24, № 2
8. PACE Global Int. http://www.paceglobal.com/
9. Stern J., 2009. Continental European Long-Term Gas Contracts: is a transition away from oil product-linked pricing inevitable and imminent? Oxford Institute for Energy Studies, Oxford.
10. Trigeorgis L., 1996. Real Options: Managerial Flexibility and Strategy in Resource Allocation, The MIT Press.
11. Tusiani M.D., Shearer G., 2007. LNG: A Nontechnical Guide, Pennwell Books