Staatsolie, the national oil company of Suriname, is evaluating options to monetize the country’s natural gas reserves. As part of this effort, the company is seeking a high-level assessment of gas import options for Suriname’s existing power plants, with the potential to transition to domestically produced gas as those resources come online. In this context, K&M was engaged to conduct a high-level analysis and cost comparison of the available gas supply alternatives.

K&M Advisors was engaged to estimate the Levelized Cost of Gas (LCOG) and the Levelized Cost of Electricity (LCOE) under two LNG supply options—ISO containers and LNG vessel—and two demand scenarios. The first scenario involved supplying converted heavy fuel oil (HFO) engines at EBS and SPCS, while the second considered supplying a new greenfield power plant, with capacity and technology to be defined.

The LCOG estimates included a detailed cost breakdown encompassing the LNG FOB price, shipping costs, and onshore infrastructure and logistics such as storage and regasification. K&M compared the estimated LCOG and LCOE against the 2024 or 2025 HFO price and the LCOE associated with HFO-based generation. Additionally, the analysis included the calculation of a Henry Hub breakeven price, identifying the point at which the LCOE for gas-fired generation equals that of HFO.