LNG Liquefaction Plant – Project Finance Model (Excel XLSX)

BENEFITS OF THIS EXCEL DOCUMENT

1. Presents an up to 15 years forecast and profitability analysis of a development and operating scenario for an LNG Liquefaction Plant.

OIL & GAS EXCEL DESCRIPTION

This product (LNG Liquefaction Plant – Project Finance Model) is an Excel template (XLSX), which you can download immediately upon purchase.

An LNG liquefaction plant processes natural gas by cooling it to -162°C, transforming it into liquefied natural gas (LNG) for efficient storage and transport. These facilities remove impurities and heavy hydrocarbons before compressing the gas into liquid form, significantly reducing its volume. LNG liquefaction plants are essential for exporting natural gas to global markets, especially where pipelines are not feasible, supporting energy trade and supply diversification.

This Finance Model provides a dynamic (up to 15 years) forecast and profitability analysis of a development and operating scenario for an LNG Liquefaction Plant. The main purpose of the model is to enable users to get a solid understanding of the financial feasibility of the project and to evaluate the return to investors.

The model provides 2 different operations agreements the investors have entered into with the Government.

Tolling Plant: Tolling is a new model of LNG plant operation. Under tolling, a customer (natural gas supplier) pays a toll to run gas through a liquefaction plant owned by another company. The plant owner is merely interested in providing the liquefaction services and collecting the toll. This model is practical in the United States.
Export Oriented Unit: A merchant commercial structure, where thhe producer of natural gas is a different entity than the owner of the LNG export facilities, and the LNG liquefaction project company purchases natural gas from the upstream E&P project company under a long-term natural gas sale and purchase agreement.

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

Model Structure

•  Setup Assumptions
This section is used to input all the assumptions for the project.
It includes assumptions for Project Timing, Plant Development Budget, Selection of Operations Agreement (Export or Tolling), Plant Capacity and Efficiency, Upstream Gas input and LNG export, Pricing (Revenue and COGS), Tax Credit Incentives (ITC & PTC), CapEx, Opex & Financing

•  Development Budget
This section includes all assumptions for the development of infrastructure for operations of a LNG Regasification Plant to commence.
It includes Land Costs, Plant Development Costs and Other Development Expenses and is broken down into 4 development phases

•  Payroll
This section includes assumptions for the positions, number of employess and salaries per position and a 15-year hiring schedule. 

•  Loan Schedule
Loan amortization Schedule of project's debt including an optional moratorium and interest-only (IO) period.  

•  Scenarios
Scenario Ananysis for Plant's Utilization, Revenue, COGS and OpEx using 3 different approaches (Base, Upside and Downside scenario).

•  Project Cash Flows and Return Metrics
Presentation of Project's Cash Flow and Returns including the below reports:
– Monthly Project Cash Flow
– Annual Project Cash Flow
– Plant Financing and Tax Supporting Schedules
– Key Performance Indicators
– Unlevered & Levered Project Return Metrics (IRR, MOIC, Payback, NPV)
– Business Performance Dashboard

•  Investors Distribution Waterfall
A Private Equity 2-Tier Investors Distribution Waterfall Model including LPs Preferred Return (Hurdle Rate)

•  Project Executive Summary
Professional Executive Summary report containing all of the high-level relevant information for review and is designed to be easy to read, print, and save to pdf. The report includes Project General Info, Timing, Sources, and Uses of Cash, Operations Summary and Key Metrics, Project and Investor return metrics.

Instructions on the use of the model are included in the Excel file.

Help & Support

Committed to high quality and customer satisfaction, all our templates follow best practice financial modeling principles and are thoughtfully and carefully designed, keeping the user's needs and comfort in mind.
No matter if you have no experience or you are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you however experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.

Source: Best Practices in Oil & Gas, Integrated Financial Model Excel: LNG Liquefaction Plant – Project Finance Model Excel (XLSX) Spreadsheet, Profit Vision