In December 2003, the Pacific LNG Consortium worried it was nearing an end to its long term effort to come up with Bolivian natural gas for export. Three companies - Repsol YPF (Spain, 37.5%), BG Group (United Kingdom, 37.5%), and Pan-American Energy, a unit of BP (United Kingdom, 25.0%) - included the Pacific LNG Consortium.
The Association's objective, in a nutshell, was to develop Bolivian gas, build a pipeline to the Pacific coast, assemble a liquefied natural gas (LNG) liquefaction capacity, and sell abroad the LNG to California via pipeline from the port in Mexico. The project's economic viability was based on two crucial variables: ready access to Bolivian natural gas for at least thirty years, as well as a long term sales agreement for the gas.
Although Pacific LNG had a memorandum of understanding (MOU) for the contractual sale of the gas, the MOU was about to run out, and also the Bolivian government was still debating the political and economical problems related to the export of its most precious natural resource-natural gas. The Association needed to make a last-ditch attempt to save the job.
The Pacific LNG Project Case Study Solution
PUBLICATION DATE: November 16, 2010 PRODUCT #: TB0247-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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