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21 Pages

BP LNG corporate summary


BP LNG corporate summary

Report summary

BP was the first company to sell LNG on a portfolio basis. Unlike some of its peers, it has chosen not to pursue opportunities to develop greenfield LNG development, particularly in Australia. Instead, it has built critical mass in its portfolio through LNG trading, and we estimate that over 60% of the LNG it sells bought from third party sources under a variety of spot, short and mid term deals. BP is expanding its position, most obviously with the move into the Freeport liquefaction facility in the US, where it has contracted the entire capacity of Train 2.  The company has built a diverse marketing portfolio spanning established and emerging markets, and several different price markers. As such, it is less reliant on the spread between Henry Hub and oil, and has pursued a balanced position to price exposure. 

What's included?

This report includes 2 file(s)

  • BP LNG corporate summary PDF - 484.96 KB 21 Pages, 7 Tables, 15 Figures
  • BP LNG corporate summary.xls XLS - 2.30 MB

Description

The LNG market is set to increase by 50% between 2015 and 2020. This spectacular growth is transforming the market, with many new companies entering the sector and changing the industry landscape. LNG buyers are becoming increasingly fragmented, while the new emerging markets have smaller demand needs. This shift has increased demand for portfolio LNG supply.

This report allows you to understand how this company uses its LNG supply volumes, market access and shipping assets to create value from its LNG business. It provides an overview of the company's LNG strategy, assets, LNG supply access, LNG market commitments to give an accurate forecast of its flexible LNG portfolio.

As the LNG business continues to expand, in terms of both the number of players and the absolute volume of LNG traded, it is vital to understand the position and strategy of key suppliers and competitors.

Offering bottom up market analysis for over 150 LNG supply assets, 28 LNG-importing countries and more than 500 LNG contracts, Wood Mackenzie is the definitive and trusted resource for the LNG industry. We use our robust database and expert industry knowledge to help you understand the dynamics of the global LNG industry and identify emerging trends and opportunities.

  • Executive summary
  • LNG strategy
    • The most ‘gassy’ major
    • Building LNG Market share via trading
    • A fixed margin strategy for building its portfolio
    • Counter-cyclical investment on the agenda – but will we see more?
    • Long term marketing
    • Future Trading
  • LNG assets
    • Gas into LNG
  • Supply-demand balances
    • Contracted Supply
    • Atlantic LNG and short-term deals provide the foundation
    • Freeport will drive growth in BP’s contracted position
    • African volumes provide post-2020 options
    • Limited supply options
    • Committed LNG
    • Numerous and diverse buyers
    • Emerging buyers
    • Short-term and spot deals
  • Value drivers
    • Price Spread Arbitrage
  • Risks and uncertainties

In this report there are 22 tables or charts, including:

  • Executive summary
    • SWOT Analysis
  • LNG strategy
    • Gas into LNG comparison
    • Liquefaction capacity comparison
    • Spot LNG procured for resale (2015)
    • BP's fixed margin strategy
  • LNG assets
    • LNG assets: Table 1
    • Gas into LNG by equity (mmcdf)
    • Effective liquefaction capacity by equity (mmtpa)
    • LNG assets: Table 2
    • LNG assets: Table 3
    • BP Shipping - owned and chartered
    • BP ships required vs fleet size
    • LNG assets: Table 4
  • Supply-demand balances
    • Table 4 Contracted supply
    • BP's contracted supply to 2025
    • Table 5 BP's sales contracts
    • Figure 7 BP's committed sales to 2025
    • Figure 8 BP's flexible LNG (mmtpa)
  • Value drivers
    • BP supply contracts
    • BP committed sales
    • BP supply contracts
    • BP committed sales
  • Risks and uncertainties
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