In this assignment, you will compare two gas monetization options for a gas field of your choice. You can choose any gas field and therefore consider the proper cost and price parameters that are applicable to that field and market. For monetization options, you could consider LNG, GTL or Gasto-Power, or any other viable options. You can use any of the project appraisal method e.g. NPV, IRR, payback years. Since we are studying the two alternatives of monetizing gas, we will not worry about the exploration and development costs of the gas field and the lifting cost of gas production. Technical Input-Output Parameters For LNG projects, a world scale LNG plant with a capacity of 4 million tons/year requires approximately 600 MMCF/D (million cubic feet per day) of feed gas. This same quantity of gas is estimated to produce 60,000 Bbl/day of GTL products; mainly Naphtha (16,000 Bbl/day), Diesel Oil (44,000 Bbl/day). (Please use the following conversion factors for your calculation: 1 ton of LNG = 87.2 CF of LNG = 87.2*600 CF of gas, 1 CF of gas = 1000 Btu. If you need other unit conversions, please consult the BP Statistical Review) Cost Parameters If you can find the cost parameters (CAPEX and OPEX) that is most appropriate to your country (or gas field) of study, please use them and remember taking into account of the inflation in case the numbers that you found are several years old. If you can't find the more relevant cost numbers, you can use the following assumptions. A good reference point for LNG costs Songhurst (2018). The capital cost (investment) for the 60,000 bbl/day GTL plant is $10 billion and the operating cost is $10/Bbl. For LNG projects, a 4 MTPA LNG project requires a total of $5.6 billion investment cost for the liquefaction plant (Note, if the liquefaction plant is located afar from the gas field, you should consider the pipeline cost). Let's assume the OPEX for LNG liquefaction and shipping is $2.5/MMBtu ($1.5 for liquefaction and $1.0 for shipping). The techno-economic parameters of an advanced combined cycle gas turbine and advanced gas (combustion) turbine are as follows: Size (MW) Overnight construction cost ($/kW) Variable O&M ($/MWh) Fixed O&M ($/kW/yr) Heat Rate (Btu/kWh) CCGT 400 1017 3.27 15.36 6430 GT 210 671 10.37 7.04 9750 Product Price GTL products, diesel and naphtha, should be selling at the same price as the oil-based products in the proper market. LNG, pipeline gas will need to compete with the indigenous gas in the market. Equally, the price of electric power will be sold in the local market. Please indicate your source and assumptions for price information. 2 Project Life, Tax, and Discount Rate Let's assume the project life for all plant is 30 years. Every year the GTL plant will shut-down one month for maintenance, so let's assume the GTL plant will operate at full capacity for 330 days every year. For simplicity, let's assume no tax issues involved and all dollar figures are constant dollars. If you have a discount rate that is prevailing in the country that you are studying, please use it and detail the source. Otherwise, you can use 10% discount rate. You should have (1) a reference case scenario which represents the best estimate for your country/market; (2) check the project sensitivities with respect to capital costs and product prices. Procedural Issues 1. Please choose a country with which you are familiar and more importantly, there is a gas field! 2. Please write a brief report detailing your assumptions and findings (~ 1000 words) and submit both the report and excel file to the VLE submission point.