Gas Field Monetisation: Major Investment Drivers for Gas-to-Power Ventures

摘要

Vertical integration between natural gas and power generatingrncompanies is essential in ensuring profitable monetisation ofrnthe massive natural gas fields in all regions of the world,rnincluding the Asia-Pacific. With a simple economic model,rnmajor investment drivers most likely to ensure the success ofrnsuch integration have been highlighted in this study.rnThe sub-surface and surface engineering data inputs into thisrnmodel were obtained from a natural gas company conducting arntest trial of feeding gas into a 14.4-24 MW Power Plant. Datarnincluded production profiles, facility costs and historicalrnperformance obtained from both gas and power sides of thernintegrated venture. Also included in the modelling werernprevailing regimes of fiscal and government incentives.rnAdequate measures of economic and risk analyses werernimplemented. To validate the model, the assumptions werernpassed through challenge sessions, and many runs of otherrninvestment options were made. The outputs were checked forrnconsistency.rnThe results have shown that gas-to-power profitability, andrnhence final investment decisions, are mostly affected byrnchanges in gas and power market prices. Supply reliability,rngovernment interventions, project location, and expected returnrnare the next set of important variables any investor shouldrnclosely monitor. Natural gas costs and electricity consumptionrnpattern additionally affect the power generation side of thernventure. Effectively identifying, evaluating, and communicatingrnthese investment drivers should ensure profitable gas fieldrnmonetisation - in the form of gas-to-power ventures. Projectrnoptimisation and effective business control should also bernfacilitated