Which method of transporting natural gas involves a larger sunk investment - pipeline or tanker?
A) Pipeline.
B) Tanker.
C) Neither: the same.

Question

Quizplus · Accepted Answer

Pipeline transportation of natural gas requires a significant upfront investment in infrastructure, including the construction of the pipeline itself, compressor stations, and maintenance facilities. This infrastructure is fixed and extensive, leading to higher sunk costs compared to the more flexible and less infrastructure-intensive tanker transportation.

Which Method of Transporting Natural Gas Involves a Larger Sunk