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Pipe dreams: A financial analysis of the Northern Gas Pipeline

May 01, 2016
Bruce Robertson
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Key Findings

Recent capacity downgrades for the project suggest demand for the project is overstated.

The project would most likely be a loss-making enterprise.

Executive Summary

Construction of the North East Gas Interconnector (NEGI) is being proposed at a time in which global liquefied natural gas (LNG) markets are in a glut. The NEGI deal—if it were built—would occur under a monopoly arrangement whose economic benefits, if there are any, would be limited to foreign owners.

This report explores the many risks in how the project is structured financially and how it is being proposed in the face of declining markets.

Highlights of our finding are shown in this Executive Summary, followed by our full analysis.

NGP map of area

Please view full report PDF for references and sources.


Bruce Robertson

Bruce Robertson has been an investment analyst, fund manager and professional investor for over 36 years. He has worked with Perpetual Trustees, UBS, Nippon Life Insurance and BT. He has appeared as an expert witness before a number of government enquiries into energy issues.

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