05 Jan Megaprojects Management
Projects within the NG and LNG industries are considered large-scale, complex-scope, multifaceted, technically demanding, and capital-intensive. Hence, they require precise management, proper synchronization, and extensive coordination at various stages (i.e., planning, procurement, engineering, construction, commissioning) to successfully develop and implement systems. The LNG value chain introduces several difficulties, risks, and challenges for efficient project development and management, given that the recent market fluctuations in the price of LNG have led buyers to request short-term contracts (e.g., up to 5 years). Optimally running any part of an LNG value chain has become challenging, significantly increasing the need to develop LNG megaprojects studies and methodologies.
Management of LNG megaprojects is highly critical given the substantial economic investment. Therefore, efficient and precise cost control is fundamental to avoiding capital losses and schedule delays. It must be noted that inter-and intra-organizational coordination factors are critical. Project executors need to work on a case-by-case basis and apply specific techniques and approaches. Traditional project management focuses on the timely and cost-effective execution of outputs that meet specifications while dismissing value-creation practices (Remenyi and Sherwood-Smith, 2000, Ashurst et al., 2008). Project management theory is based on a three-dimensional lifecycle approach where the project manager seeks to optimize the dimension of cost-schedule-technical matters (Gransberg and Jeong, 2015). However, due to their unique characteristics, LNG megaprojects require customizable management strategies to minimize risks and provide proper development and implementation environments (Kerbache et al, 2023).
References
- Laoucine, Kerbache. Salman H., Ashkanani (2023). “Enhanced megaproject management systems in the LNG industry: A case study from Qatar”. Energy Reports, Volume 9, Pages 1062-1076.
- Remenyi D., Sherwood-Smith M. (2000). “Achieving maximum value from information systems: A process approach”. John Wiley & Sons, Inc.
- Ashurst C., Doherty N., Peppard J. (2008). “Improving the impact of IT development projects: The benefits realization capability model”. Euro. J. Inform. Syst., 17 (4) (2008), pp. 352-370, 1057/ejis.2008.33.
- Gransberg D., Jeong H. (2015). “Managing megaproject complexity in five dimensions”. The 6th International Conference on Construction Engineering and Project Management, Busan, South Korea.
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