Financial Feasibility Study between Purchasing and Hiring LNG Carrier In Iranian LNG Industry

Document Type : Original Research Article


1 PhD. Candidate on energy systems eng. , K.N.T University

2 M.E. Student, marine structure eng. , Hormozgan University,

3 Assistant prof.Maritime Tranportation&Tech.Group,TRI,Iran


LNG chain value consists of gas exploration, gas liquefaction, transportation, Re-gasification and finally gas distribution to the end user network. Transportation part of this chain normally consists of 25 to 30% of the total vale and is the most lucrative part of it. As proved Iranian gas reserves is about 29 trillions cubic meter and nearly half of it is South PARS gas field shared between Iran and Qatar ,there is an increasing concern on entering into gas export market in near future.
This enthusiasm enquires a thorough financial study on economical feasibility study on this industry. In this study by emphasizing on key parameters of LNG shipping industry like, technical vessel specification distance between exporting and importing terminals, cost of LNG carriers , boil of ratio of vessels, oil and gas future price prediction vessels heeling portions and most importantly the difference between vessel purchase and hiring daily rate of vessels.
We are to model this industry economically and by doing an economical sensitivity analysis on the model some economical indexes are extracted which are of most benefit for countries decision makers.
Two scenarios of purchasing and renting vessel have been investigated and it is shown than in different financial condition and oil and gas market there are at least minimum internal rate of return of 4 to 18% and at last these finding have been demonstrated in a 3D diagram showing net in come oil price (as an important parameters) and rent daily rate of vessels to show the profitability of this industry to the reader.