This paper analyzes the strategies and decisions of major oil companies’ on selecting regasification terminal sites for importing liquefied natural gas (LNG) along North American coastlines and delivery of regasified gas into regional domestic markets. Each participating firm’s decision is extensive and complex, involving multi-years of capital and human investments. Furthermore, fierce competition exists among firms procuring LNG cargos and servicing the same set of demand areas, i.e. North America market.
This paper condenses the whole strategy and decision making process into a simplified multistage model. The model will focus on exploring the strategic elements of decisions for each participant firm in the competition through a game-theory lens….