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The Leaders in LNG Technical Advisory Services

Merlin's Services
Capital Cost Estimation

Merlin Advisors has a large, detailed database of existing LNG project costs, including actual purchase orders and sub-contract costs. This extensive database provides critical inputs for Merlin’s proprietary LNG Capital Cost Estimate ModelsTM for the entire LNG supply chain, including:

  • LNG Capital/OperatingTM;
  • LNG ShippingTM;
  • LNG Import Terminal; and
  • Power Generation.
The Merlin LNG Capital Cost Estimate ModelsTM database includes actual LNG-specific cost data for liquefaction trains ranging in size from as small as 2.5 MMt/y to as large as 6 MMt/y. It includes actual equipment lists for all projects in the database.
  • For train sizes not represented, costs are interpolated between the next smaller and the next larger ones. Given the relatively small increments between train sizes in the database, this methodology has proved to be highly accurate.
  • Actual equipment costs are updated quarterly to a new basis year using industry cost escalation indices, to reflect inflationary cost increases for oil and gas equipment and materials.
  • Site-specific labor rates and productivities are from Merlin’s database supplemented by industry construction labor cost data.
The project-specific input for the Merlin ModelsTM is developed in a short time period allowing a high accuracy cost estimate to be provided quickly and cost effectively.

 

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