8 – 12 MTPA Liquefied Natural gas (LNG) Financial and Economic Model

This model is used to provide a robust economic analysis of a 8 – 10 MTPA Liquefied natural gas (LNG) Financial Model with incremental case of 10MTPA across various product configurations. This model provides useful insights driven by a robust analysis of key cost drivers of capital, operating, fiscal & commercial ,economic drivers  typical of  LNG Development Project. with a net back price approach model. This model provides flexible scenarios on several project cases with project scenarios with a  kick-of 8MTPA each for 3 model cases – Base case, low case & high case  project cases.  A distinguishing feature of the model is that this provides insights while considering the impact of Profit sharing (PSA) model of government and/or investors participation towards the business benefits assuming contractors & government participate jointly in the project development.  The model provides analysis of recoverable cost for project investors as well as addressing profit split considering 2 profit models (Production-based profit model & R-Factor based scenario) split in profits between partners as well as entitlement economics to arrive at a project cash flow projections.    Users just need to update each project scenarios to run this model and assess flexible economic results considering the impact of Joint venture (JV) model of government and/or investors participation on working interests. 

8 – 12 MTPA Liquefied Natural gas (LNG) Financial and Economic Model
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Below are  the contents  for the LNG  “Multi-model case  version sessions”

1)DASHBOARD: This address provides the executive summary of  the project opportunity  with economic results on the model

2)LNG CONTROL TAB: This Addresses the CAPEX Scenario, OPEX Drivers, Price Sensitivity Inputs, Asset Delivery Schedules, Special Bonus Payment frameworks, and Model Profit Split Share considerations and includes flexible options for project management delays in delivery schedules and cost shifts to gauge the economic value to give insights to project evaluation teams.

3)FLAGS: A section that documents the Flags and switches for the entire project model

4)LNG INPUTS: Model Scenario  of Asset specific Locations and  Asset Scenario address model sensitivity including cost and Gas liquefaction delays.

5)MODEL DRIVER: This covers the active working model section from the selected model option in the “LNG INPUTS” Section. This version includes flexible options for project management delays in delivery schedules and cost shifts to gauge the economic value and give insights to project evaluation teams.

6)LNG OPERATING MODEL: This calculates the Gross Operating Cash Flow Model of the active model scenario.

7)DEPRECIATION MODEL: 2 model on Depreciation was provided using Straight line Model and the Bespoke methodology of depreciation, post operations start date.

8)FISCALS: The model addressed fiscal analysis on Assessable profits using Applicable capital allowances using model regulation of the PIA  after applicable tax holidays towards the pretax cash flows with  Optional Tax Holidays scenarios on several options.

9)PSC MODEL: This model provides a basics to calculate the production sharing benefits assuming contractors and govt participate in the project development. The model utilizes a model for contractor cost which are recoverable as well as Contractor Cost  and  Contractor Tax applicable  on LNG Project processing.

Also, this  model for addressing Profit split considering:- Production- Based (similar to the Upstream Oil and gas DROP)  model and R-Factor based scenario for a basics to split the project profits between partners. This also provides a model for entitlement analysis with cost provisions to arrive at a contractor cash flow.

10)PSC ANALYSIS: This section is comprised of Company NCF Analysis  – With Carry Options, Validation Analysis and Checks, Division of  spoils validations.

Again, this model provides  a single scenario on participatory working interests and option carry on CAPEX with modeling approaches to ensure repayments are made on commercial operations start date

11)EQUITY ANALYSIS: This section includes the Project Lender Cash Flow with Equity IRR and Analysis

12) MODEL CHARTS: This robust economic tool finally provides model working charts on key economic results, including:

  • Net back-calculation model
  • Return profile
  • Investor cashflow
  • Specific Year driven – division of spoils
  • Project Level Division of spoils sharing model
  • Contractor and Government take statistics

13)CHECKS: This provides model validation checks to ensure the model is working as it should.

NOTE: LNG PSC DEMO MODEL_Multi_Project provides a 3-project scenario model while the LNG PSC DEMO MODEL_Single_Project provides a single optimized project case scenario.

After purchase, We are happy to provide clarifications on the working structure if required.

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