LNG Carriers Fleet Due Diligence

Energy & Utilities | Economic Consulting

October 28, 2020

Ship

FTI Consulting advised an infrastructure fund in its investment decision regarding a $1bn transaction for the purchase of a fleet of LNG carriers. FTI Consulting’s experts provided a comprehensive Commercial and Technical Due Diligence on the fleet of LNG carriers.

Situation

A multi-sector infrastructure fund was considering an investment in a $1bn+ fleet of LNG carriers, and needed support to assess the potential profits and risks associated with the investment.

Our Role

FTI Consulting’s experts provided a comprehensive Commercial and Technical Due Diligence on the fleet of LNG carriers. The analysis included a comprehensive review of LNG Shipping technologies, players and commercial practices, as well as forecasting the LNG charter rate until 2040 under various scenarios, based on FTI Consulting’s in-house LNG Shipping supply/demand modelling.

Our Impact

We provided a comprehensive revenue forecast (with low/base/high scenarios) to allow the investor to fully assess the expected returns of the asset. We further provided detailed analyses on every key commercial and technical risk area. Our forecasts formed the basis of the investor’s bid for the asset. The transaction concluded positively in 2019.


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