Liquefied Natural Gas Liquefaction Plant (LNG) Project. LNG projects are classified as a mega-project (>$1 Billion) and are conducted at typically remote international locations. This paper will focus on developing a “generic” risk management plan that can be used as a template for project teams in developing project specific plans. It will be generic since actual risks will be dictated by the project environment. First will be risk identification grouped by ‘sources of risk' categories such as political, commercial, economic, etc. Secondly, I will touch on inputs required to quantify such risks. Lastly I will explore potential responses to key risks.

In today's highly competitive business environment, properly managing risks will differentiate successful projects from those that may have difficulty. The template presented in this paper is meant to help a LNG project team organize thoughts about what can possibly go wrong, assessment of such risks and how to determine the appropriate response. Examples of risks for a LNG Project are used to illustrate the process.

These plants require a keen understanding of risks in order to support a project funding decision. Some aspects of these plants that make them a prime candidate for case study include: o Large capital expenditures typically of greater than $1 billion US Dollars. o International “greenfield” projects with significant logistical and cultural efforts o Many project stakeholders – Local Governments, Partnerships, LNG Buyers, etc. o Extensive schedules of 60+ months from feasibility engineering to plant start-up o An ongoing boom in the LNG industry is creating unique competition for engineering services and material/equipment supplies.