LNG Economic Model – Model Description

This is a 20MTPA LNG distribution economics tool with full economics valuation modelling framework suitable for venture capital and private equity investment analysis. Yes, this is modelling in compliant to section 39 on the Nigeria Tax provisions.

Below are the model sections:

Overview and Inputs of LNG Economic Model

• FISCAL DASHBOARD: Economic results and key performance indicators (KPIs)

• PROJECT SUMMARY: Summary of key model results and assumptions

• TERMINAL_INPUTS: Model inputs with yellow background and blue text

• MODEL DRIVER: Model case development scenario based on “LNG terminal” tab

• CONTROL: Asset scenario, profit share model, LNG plant capacity profile, production bonus option, and model sensitivity analysis

Project Economics and Operations

• FLAGS: Working model scenario of project schedules (pre-construction, construction, operation, and financing flags)

• MACRO: Time-series macroeconomic indicators (capital expenditure escalations, OPEX expenditure escalations, and terminal revenue driver indices)

• MAINT. CAPEX: Phased-based maintenance capital expenditure for the LNG terminal project

• REVENUE: 5 tiers revenue model including an integrated scenario for 5 core LNG terminal operations

• CAPEX: Detailed breakdown of capital expenditure model drivers

• OPERATING MODEL: Gross operating cash flow (GOCF) model based on the model case scenari

Fiscal and Financing Analysis

• ASSET DEPRECIATION: Two depreciation models (straight-line and bespoke CF-based methodology)

• D&A: Decommissioning and abandonment model using the unit of production approach (UOP)

• FISCALS: Fiscal analysis with assessable taxes and provisional tax holiday models

• PSC MODEL: Contractor cost recovery, profit split, and entitlement analysis

• PSC ANALYSIS: Profit share model (R-factor and DROP model)

• FCFF PREFINANCING: Pre-financing analysis

• FINANCING: Financing model inputs (annuity approaches, debt modeling with high-level charts)

For Help and Guidance

I can offer guidance on using the template and customization options. Please reach out for more clarification.