advisory: case study

gas-to-power screening

supporting an Asia Pac upstream independent monetise their gas

capability:advisory
tags

Our advisory capability allows us to give trusted advice focused on achieving your business goals collaboratively. We provide a uniquely integrated technical and commercial approach to project and portfolio evaluation.

situation

Client desire to monetise their upstream gas portfolio by converting capacity in the domestic power network from coal fired generators to gas powered.

value driver

Develop a financial model, sensitivity analysis and report, comparing and ranking 16 different development options across three different sites.

result

The optimal gas-to-power project was identified using a bespoke decision matrix to highlight key project value drivers & uncertainties. Recommended next steps set out to realise the value.

challenge

With the existing coal fired power station reaching the end of its design life, retirement would decrease reserve margins of the domestic power network. The client wanted to understand the feasibility of meeting the shortfall by supplying gas into the domestic network for gas generated electricity into the power network.

io approach

  • provide an integrated team of technical, commercial and financial modelling experts
  • define the case matrix and key value drivers up front
  • deliver a detailed study and financial model within three weeks to compare and rank multiple cases through a bespoke decision matrix
  • highlight key uncertainties through a crossover tornado chart
  • make recommendations for client’s future gas monetisation

actions taken

  • evaluation of greenfield sites, brownfield sites and converting an existing power plant
  • comparison of simple and combined cycle technology at 200 and 400 MW nominal capacities
  • applied GE Power equipment and EPC cost estimates
  • full collaboration on the study with the client gas team and a power market specialist consultant