Acquisition of a European LNG & LBG liquefaction plant
M&A Transactions – Gas & LNG
The Engagement:
Commercial Due Diligence
LNG & LBG liquefaction plant
The Client:
Midstream Gas Infrastructure Owner and Operator
Duration:
3 months
Transaction summary
- Acquisition of a mid-scale LNG and LBG (liquid biogas) liquefaction plant in Northern Europe
- Annual nameplate LNG production capacity of 300,000 metric tonnes with 28,000 cubic meters of storage capacity
- State-of-the-art natural gas and biogas facility operating mainly on electricity produced from renewable sources
- The facility plays a critical role in enabling a lower carbon footprint for the Nordic industrial and road transport market as well as the maritime sector across Northwest Europe
- Competitive sales process organised by the vendor, a national utility. Transaction price not disclosed.
Outcome
- Derivation of the appropriate tolling fee and structure based on market supply dynamics and alternative viable supply points (including small-scale LNG transportation costs) in Europe
- Assessed tolling fee impacts on the asset under different demand scenarios
- Commercial due diligence of contracts and operational set-up
- Submitted a Valuation Assessment Report to our client, which was used for the Investment Committee decision process and financial modelling of the asset
- Our client successfully closed the transaction in 2021