Example:
Gas Storage Feasibility Study
 
Client:
Confidential
Partners:
Whyte, Young and Green
Duration:
Three months from briefing
Key MJM Staff and Associates:
Mike Madden (Senior Consultant), Nick F.White (Research Director, Chris LeFevre (Associate)

Gas Storage Feasibility Study

Project Description

The purpose of this feasibility study was to provide estimates of capex, opex and potential income that would result from converting a disused mine into a gas storage facility for operation in the UK gas market.

Building the team

This project involved understanding how the technical and commercial aspects of gas storage in the UK linked with a detailed geological understanding of the potential asset itself. Therefore we developed a bespoke team that consisted of experts in the technical and commercial aspects of gas storage, gas compression and geology.

Approach

In order to establish both the technical and commercial feasibility of the project we developed two work areas. The Technical Team undertook a review of the disused mine as a potential gas storage facility with detailed examination in order to establish its potential technical characteristics. In parallel the Commercial Team, following an analysis of the gas storage market in the UK, developed a gas storage valuation model. Then using the characteristics provided by the technical team, established a potential NPV for the project based on the intrinsic and extrinsic value of the asset.

Outcome

Given the aspirations of the client to ultimately sell the asset the main deliverable was a high quality feasibility study for review by potential purchasers. The final report therefore clearly set out the options open to potential purchasers for using the disused mine as a gas storage facility with associated costs and potential incomes.

“We conduct comprehensive market studies.”