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3 IT Priorities for LNG Projects: What to Address Before FID

by iSphere on March 25, 2025 in Blog, Energy Industry

As liquefied natural gas (LNG) companies prepare for the final investment decision (FID), there is no shortage of requirements demanding attention.

Leaders must:

Oversee the development of physical infrastructure
Conduct financial analysis on expenditures and market demand
Identify potential risks and mitigate them
Ensure regulatory compliance

Most are attuned to those challenges, but there is one area that is unfortunately overlooked: IT. If you’re waiting until FID is complete before you address your IT solutions and workforce, then you’re likely hindering your ability to scale production and profits efficiently.

During a recent conversation with Raj Kondapaneni, an experienced Chief Information Officer in the LNG sector, we explored some of the challenges, demands, and fundamental IT roadmap needed to maximize returns. Let’s drill down into the details:

Starting Off with Contractors and Fractional Support

How do you go from zero revenue to a multibillion-dollar LNG company? At the beginning of the enterprise journey, there’s little difference between an LNG operation and any other startup. That means the underlying goal should be providing IT functionality while controlling costs.

Often, engaging a cost-effective managed IT services provider (MSP) with familiarity in the energy sector is the right way to launch your enterprise. Consultants can set up laptops, implement Office 365, and handle technical support that aligns with industry best practices while you focus on other pre-FID processes.

That said, your organization does need someone who can oversee and direct their efforts. “If you have someone at the executive level who is technically savvy, you can entrust them to oversee IT contractors to implement the strategy. If not, your organization needs fractional support from a partner that understands engineering, procurement, and construction (EPC) processes, LNG obstacles, and IT,” said Raj.

What to Look for When You’re Ready to Hire

Eventually, you need to hire senior level IT professionals to guide the venture. Identifying the right talent at the right time is one of the critical IT priorities for LNG projects, ensuring that your systems and processes are built for long-term scalability.

Typically, that can be six to eight months before the EPC contract is signed, so you have an IT executive to provide an expert perspective. Industry background is important, but not necessarily mandatory. It’s a tight labor market, so finding someone who has worked in a processing facility, chemical engineering company, or steel refinery would be suitable replacements. Downstream oil and gas work as well.

Furthermore, you need someone with an almost entrepreneurial spirit. “There’s a difference between being able to operate a company that is fully built and building an IT roadmap from scratch. The ability to work with different stakeholders and define work processes, not only in IT but across departments, is an indispensable skill,” said Raj.

More than a technology expert, effective CIOs within the LNG space are:

Risk Governance Focused: Even as regulations in the United States change, it’s important for leaders to think in terms of no-regret solutions. CIOs who can engage in those conversations can help growing LNG firms easily navigate the global market and regulatory bodies.
Stakeholder Centric: The success of any developing LNG company lies in a synchronization of stakeholder initiatives. Any CIO hired at this stage will be working closely with team members across disciplines, it’s important that he or she takes a collaborative approach and thinks in terms of applied solutions.

Implementing the Right IT Solutions at the Right Time

The good news is that LNG organizations don’t need to map out the entirety of their IT systems from the start. With finite capital, it’s better to take a strategic approach and start small, focusing attention on implementing technology that can address near-term challenges. And as with everything in the pre-FID stages, IT is all about timing.

Because of the how enterprise resource planning (ERP) systems help to synchronize business functions, some companies assume it should be one of the first priorities. However, implementing ERPs prior to FID isn’t justifiable since you likely don’t have the staff or scope to pick the perfect solution. Instead, start with smaller-scale solutions like NetSuite or SageSure that meet immediate accounting and procurement needs rather than a holistic platform. Once you have a CIO, then you can determine the right ERP.

Document management systems, on the other hand, should be determined sooner rather than later. Despite what some think, using SharePoint is not enough. “As you finalize your EPC contracts, there will be a lot of document sharing between your operations team and the EPC firm. That is why LNG companies need to prioritize the selection of their document management system and the creation of their information management strategy very early,” said Raj.

Lastly, you want to prioritize a robust cybersecurity posture from the start. Some EPCs fall short of cybersecurity standards that are critical to protecting your physical infrastructure and digital assets. Be sure to only choose vendors that are willing to prioritize security and build cybersecurity requirements into EPC agreements before the contracts are signed.

Preparing for the Next Steps

Creating a strategic IT foundation during the pre-FID phase is only the start of a long enterprise journey. By focusing on the right IT priorities for LNG projects, companies can scale operations, secure digital assets, and drive long-term profitability.

With that, it’s possible to support operational excellence and competitive advantage for decades to come.