Liquefied natural gas — The race to capture opportunity
Despite an uncertain short-term market as a result of the global economic downturn, long-term demand for liquefied natural gas (LNG) is expected to recover and resume its steep growth trajectory. However, given the complexity of risk management issues in infrastructure development, as well as the volatility of prices and availability of competing fuels, the challenge facing many companies is to predict the most appropriate time for creating new production capability that balances anticipated demand with sound investment strategy.
For investors to position themselves for action in this volatile arena, a recently updated IBM Institute for Business Value study recommends four crucial courses of action:
- Focus constrained joint venture resources on differentiated areas of the new business.
- Instill a culture of safety.
- Increase visibility for improved decision making.
- Establish a reusable business model and associated infrastructure.
Investors are involved in a high-stakes race against time in which they must be prepared to mobilize quickly and establish flexible business and operational models that can adapt to an unpredictable future. Are you ready for the race?
