Tolling model a new option for LNG plant ownership
Tolling is a new model of LNG plant operation. Under tolling, a customer (natural gas supplier) pays a toll to run gas through a liquefaction plant owned by another company. The plant owner is merely interested in providing the liquefaction services and collecting the toll. This model is practical i...
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| Publisher: | Office of the Federal Coordinator (OFC) Issue paper |
| Date: | February 2013 |
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| Online Access: | View Full Text |
| Library Holdings: | Print Versions |
| Summary: | Tolling is a new model of LNG plant operation. Under tolling, a customer (natural gas supplier) pays a toll to run gas through a liquefaction plant owned by another company. The plant owner is merely interested in providing the liquefaction services and collecting the toll. This model is practical in the United States. In Canada, a different pricing structure from the U.S. projects is needed to attract investors. Pricing is a key issue because the plant owner gets paid the same regardless of the customer's cost and ultimate selling price, and because the plant owner does not benefit from high gas selling prices. |
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| Physical Description: | 8 pages |