The Study On Financial Evaluation Of Tianjin LNG Receiving Station Project

In recent decades, China’s economy has experienced a rapidly developing. The consumption of energy is also growing, but China is not yet expand production and transportation of domestic oil, coal, and NG to meet the need to energy. Therefore we must rely on imported energy to satisfy future demand. In recent years, the most efficient and viable way to import LNG is by sea, especially through the coastline in the eastern coastal provinces. Tianjin, Beijing, Hebei and Shandong are the important parts of the Bohai economic zone. The demand of imported gas in these areas is very large and the amount is increasing year by year. Tianjin is a powerful driving force of Beijing-Tianjin-Tangshan economic zone. Tianjin port has good conditions and has a very obvious location advantage. So Tianjin has the conditions to construct a LNG receiving station.This thesis is divided into three parts. The first part describes the theoretical foundation of project financial evaluation, including concept, processes and evaluation index system. These indexes can be divided into three categories according to the time value of money, the nature of the indicators and the purpose of indicators. According to the purpose, these indicators can be divided into financial benefits, profitability and uncertainty analysis. Finaly describes the characteristics of LNG terminal’s financial evaluation.The second part introduces the LNG market demand forecast analysis of Tianjin LNG terminal. First illustrate the market position and planning scale of the project. We decide that the range of market is Tianjin, Beijing, Hebei and Shandong province. Then use the consumer coefficient method to forecast the demand of LNG terminal in various markets. And then do the supply-demand balance analyses combined with the available resource supply. Drawing a conclusion that natural gas supply cannot meet the market demand, so it is necessary to construct a LNG receiving station in Tianjin. Finally, according to the supply-demand analysis result, do the price elasticity analysis.Financial analysis and evaluation is the third part of this paper. First analysis the project investment estimate and project financing. So we can know the total investment, the size of borrow funds, interest of construction period. Then we do the financial analysis and evaluation of the project. Firstly, estimating the revenues and cost of the project, producing cash flow statement, profit distribution statement, balance sheet and many other statements according to the result. Secondly, using NPV, IRR, payback period, asset-liability, breakeven point to analysis the project’s financial viability. Finally draw a conclusion that Tianjin LNG receiving station project is feasible in financial.