INVESTMENT PROFITABILITY STUDY FOR A GAS PIPELINE

GLOBAL ANALYSIS
Year S 0 1 2 3 4 5 6 7
Technical Data (Constant Money)
Volume (MMcfd) 200 200 200 200 200
Volume (Bcf) 2610 73 73 73 73 73
Accumul. Volume 73 146 219 292 365

Capex Planning 50% 25% 25%

Investissement (M$) 390 390 195 98 98
Opex/Capex 2.0%
Opex (M$) 234 8 8 8 8 8

Year 0 1 2 3 4 5 6 7
Economic Assumptions
Inflation 2.0% 1.00 1.02 1.04 1.06 1.08 1.10 1.13 1.15

Discount Rate 10% 1.00 1.10 1.21 1.33 1.46 1.61 1.77 1.95

Tariff P ($constant/Mcf) 1.50

Tariff P ($current/Mcf) 1.50 1.53 1.56 1.59 1.62 1.66 1.69 1.72

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INVESTMENT PROFITABILITY STUDY FOR A GAS PIPELINE
GLOBAL ANALYSIS
Cash Flow Schedule (Current Money) S 0 1 2 3 4 5 6 7
Revenues 5676 116 119 121 123 126

Investment 396 195 99 101

Depreciation number of years 15
Depreciation Charges 396 26 26 26 26 26

Opex 336 8.3 8.4 8.6 8.8 9.0

Deductible Charges 732 35 35 35 35 35

Taxable Income 4944 82 84 86 88 90
Income Tax 30.0% 1483 24 25 26 26 27

Net Accounting Result 3461 57 59 60 62 63

Cash Flow 3461 -195 -99 -101 83 85 87 88 90

Cash Flow (Constant Money) 2284 -195 -98 -98 79 79 78 78 78

Internal Rate of Return 17%
Discounted Cash Flow 306 -195 -89 -81 59 54 49 44 40
Accumulated Cash Flows NPV -195 -284 -364 -305 -252 -203 -159 -119

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 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

210 220 230 240 250 250 250 250 250 250 250 250 250 250 250 250 250 250
77 80 84 88 91 91 91 91 91 91 91 91 91 91 91 91 91 91
442 522 606 694 785 876 967 1059 1150 1241 1332 1424 1515 1606 1697 1789 1880 1971

8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8

8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

1.17 1.20 1.22 1.24 1.27 1.29 1.32 1.35 1.37 1.40 1.43 1.46 1.49 1.52 1.55 1.58 1.61 1.64

2.14 2.36 2.59 2.85 3.14 3.45 3.80 4.18 4.59 5.05 5.56 6.12 6.73 7.40 8.14 8.95 9.85 10.83

1.76 1.79 1.83 1.87 1.90 1.94 1.98 2.02 2.06 2.10 2.14 2.19 2.23 2.27 2.32 2.37 2.41 2.46

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 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
135 144 154 163 174 177 181 184 188 192 195 199 203 207 212 216 220 225

26 26 26 26 26 26 26 26 26 26

9.1 9.3 9.5 9.7 9.9 10.1 10.3 10.5 10.7 10.9 11.1 11.4 11.6 11.8 12.1 12.3 12.5 12.8

36 36 36 36 36 36 37 37 37 37 11 11 12 12 12 12 13 13
99 108 118 127 137 141 144 147 151 154 184 188 192 196 200 204 208 212
30 32 35 38 41 42 43 44 45 46 55 56 58 59 60 61 62 64

69 76 82 89 96 98 101 103 106 108 129 132 134 137 140 142 145 148
96 102 109 115 123 125 127 130 132 134 129 132 134 137 140 142 145 148

82 85 89 93 97 96 96 96 96 96 90 90 90 90 90 90 90 90

38 36 34 33 31 28 25 23 21 19 16 15 13 12 11 10 9 8
-80 -44 -10 23 53 81 107 130 151 170 186 201 214 226 238 248 257 265

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 26 27 28 29 30 31 32

250 250 250 250 250 250 250

91 91 91 91 91 91 91
2062 2154 2245 2336 2427 2519 2610

8 8 8 8 8 8 8

26 27 28 29 30 31 32

1.67 1.71 1.74 1.78 1.81 1.85 1.88

11.92 13.11 14.42 15.86 17.45 19.19 21.11

2.51 2.56 2.61 2.66 2.72 2.77 2.83

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 26 27 28 29 30 31 32
229 234 238 243 248 253 258

13.1 13.3 13.6 13.9 14.1 14.4 14.7

13 13 14 14 14 14 15
216 220 225 229 234 238 243
65 66 67 69 70 72 73

151 154 157 160 164 167 170

151 154 157 160 164 167 170

90 90 90 90 90 90 90

8 7 6 6 5 5 4
273 280 286 292 297 301 306

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