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Case Study

Reducing potential capital spend by +$255m

Night view of an LNG facility

Capital planning and assessment: helping our client realise +$170m of NPV benefits whilst reducing the potential capital spend by +$255m.

The challenge

Advisian was commissioned to perform a portfolio analysis of 16 projects contained within the client’s five year plan. The projects included process facilities, a marine terminal, power generation, emergency response and employee housing.

Our approach

Advisian utilised the EcoNomics™ Assessment process and DELTΔ™ Toolset to determine the highest value within the portfolio, and to monetise the social, environmental and financial parameters as well as prioritise projects.

Results

From a potential capital spend of $300M, the ultimate portfolio was formed to spend just $45M. The reduced portfolio provided $170M of NPV benefits.

The following key parameters exhibited the greatest influence in the assessment:

  • Community benefits due to local content and contracting

  • Cost of grid electricity

  • Value of water consumption reductions and re-use

  • Value of commercial and accommodation property created or preserved

  • Operating and maintenance costs saved

  • Value of additional LNG production

Topics

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