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Natural Gas Procurement Challenges for a Project Financed Cogeneration Facility
Date
1988-09Metadata
Show full item recordAbstract
A decision to project finance a 110
megawatt combined cycle cogeneration facility
in 1986 in place of conventional internal
financing greatly changed the way in which
natural gas was normally procured by
Union Carbide Corporation. Natural gas supply
security for the term of financing was a major
concern of the financing interest, while
competitive fuel cost greatly concerned Union
Carbide. In addition, the natural gas contract
had to be in place prior to construction
financing finalization.
This paper will explore the thought
process that went into evaluating the various
natural gas supply proposals that ultimately
resulted in the final contractual
arrangements. While the information presented
will be deliberately non-specific to the
suppliers involved or the contractual terms,
the discussion will cover the following areas:
PROJECT FINANCING REQUIREMENTS,
GAS SUPPLY CONSIDERATIONS,
SUPPLY TRANSPORTATION
EXPEDITIOUS INTERNAL APPROVAL, and
SUPPLIER INTANGIBLES.
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Citation
Good, R. L.; Calvert, T. B.; Pavlish, B. A. (1988). Natural Gas Procurement Challenges for a Project Financed Cogeneration Facility. Energy Systems Laboratory (http://esl.eslwin.tamu.edu). Available electronically from https : / /hdl .handle .net /1969 .1 /92373.