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Natural Gaz profitability study for future importing terminal project in Morocco
- Source :
- Renewable Energy and Sustainable Development, Vol 5, Iss 2, Pp 80-89 (2019)
- Publication Year :
- 2019
- Publisher :
- Academy Publishing Center, 2019.
-
Abstract
- In recent years, energy debates are increasingly focused on the energy transition, the Kingdom of Morocco has shown a growing preference for Liquid Natural Gaz (LNG) to ensure energy efficiency. Therefore, Morocco is projecting to invest in its first natural gas for importing and storage capacity by 2030. In tune with developing a terminal site location and an optimum routing alternative for pipeline [1], this article comes as a follow up to establish a profitability study for the same importation terminal. It aims to investigate the financial viability of such a project.The profitability of an investment is generally the most important criterion for the decision-making. Even if the combined ecological and industrial benefits of natural Gaz can sometimes provide enough motivation to invest in importation terminal, a long-term profitability study is a compulsory in such expensive projects, it is systematically pursued to evaluate the economic impact of such an investment decision.After highlighting the multiple benefits of Natural Gaz, the first step is setting up the financial model to be adopted, which is in this case the net present value (NPV) and payback profitability criteria. Therefore, operating and financial assumptions are made based on the benchmark with other similar projects, and finally, the profitability study will allow us to measure the LNG terminal capacity to generate revenue.
Details
- Language :
- English
- ISSN :
- 23568518 and 23568569
- Volume :
- 5
- Issue :
- 2
- Database :
- Directory of Open Access Journals
- Journal :
- Renewable Energy and Sustainable Development
- Publication Type :
- Academic Journal
- Accession number :
- edsdoj.68634f5cee1649efad01330fed3df04e
- Document Type :
- article
- Full Text :
- https://doi.org/10.21622/resd.2019.05.2.080