Natural Gaz profitability study for future importing terminal project in Morocco

<p>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 ca...

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Bibliographic Details
Main Authors: Firdaous EL GHAZI, Moulay Brahim SEDRA, Mahmoud AKDI
Format: Article
Language:English
Published: Academy Publishing Center 2019-12-01
Series:Renewable Energy and Sustainable Development
Subjects:
Online Access:http://apc.aast.edu/ojs/index.php/RESD/article/view/331
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Summary:<p>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.</p><p><br />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.</p><p><br />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.</p>
ISSN:2356-8518
2356-8569