The Petroleum Division of Mines and Energy South Australia (MESA) engaged GPA Engineering to provide cost estimates to feasibility study level for processing and transporting products from new gas discoveries in the Cooper Basin, both on a...
The Petroleum Division of Mines and Energy South Australia (MESA) engaged GPA Engineering to provide cost estimates to feasibility study level for processing and transporting products from new gas discoveries in the Cooper Basin, both on a stand-alone basis and one assuming access to current facilities. The results have been used by MESA to generate cash flow analyses for a number of cases in order to develop minimum economic field sizes for the different development options. These include developing stand-alone facilities (which are independent from existing infrastructure), and tolling through existing facilities. It should be noted that the study does not necessarily imply that spare capacity is available at existing facilities. However, the study does provide an indication of the likely limits of negotiated tariffs where capacity is made available. If plant capacity is available, the negotiated toll will fall between the marginal cost (when there is plenty of spare capacity) and the deprival value cost (when there is minimal spare capacity). MESA chose the deprival value approach as the basis for calculating maximum tariffs, not because it is necessarily MESA's preferred approach, but rather because it has a strong theoretical basis and places a ceiling above which tariffs are unlikely to extend. Minimum tariffs were calculated on the basis of marginal (operating) costs. A copy of all financial data provided in this report is available from MESA in Quattro Pro for Windows or MS-Excel spreadsheet formats. Other organizations can therefore use these data to calculate minimum economic field size using their own cost data if desired.
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