Benchmarking reply

07/14/2003
(Re: A letter by Avidan and Hernandez, OGJ, June 30, 2003, p. 10.)Merlin Associates concurs that benchmarking competitive LNG projects is difficult; however, we had sufficient detailed data for existing projects to make an accurate and, most importantly, neutral study. For this study our client, one of the major participants in the LNG industry, also provided additional data.We clearly stated that the ALNG project was a single-train project. The EPC contract value we used as a starting point for the ALNG project was approximately $600 million.We adjusted the projects to reflect processing requirements resulting from significant differences in hydrocarbon feed gas compositions and acid-gas...
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