Financial Feasibility Assessment for PT ABC LNG Production Facility Expansion Plan

PT ABC is an LNG producer that has been producing a reliable for its customers since 2013. Initial GSA with upstream parties set to be expired in 2026, however, recent development indicates have secured PSC extension another 20 years. Considering this development, considering opportunity secure long-term gas supply enables production capacity expansion which will create additional revenue and improve plant reliability. A technical feasibility study performed 2 options estimated construction time of 30 months are considered feasible. This final project aims provide financial assessment the capital budgeting risk technique. Capital analysis using base case scenario both value DSLNG NPV 52.1 MUSD, IRR 20.57%, DPBP 9.4 years, PI 1.52 Option 1, 117.8 28.77%, 8.62 2.68 2. However, also found some variables affecting significantly, such as feed price, availability, Capex realization debt interest rate. Monte Carlo simulation shows probability success (NPV > 0) 54.24% 1 65.80%