NATURAL GAS PRICING

NATURAL GAS COST TO LEBANON

Description

US$ / Mcf

US$ / MMBTU

Liquefaction plant

1.1 ± 0.20

Shipping costs (LNG tankers and operating costs)

0.70 ± 0.30 (distance)

Regasification

0.35

Field production

0.75 - 2

Total Cost to get LNG to market

2.4 - 4.65

2.32 - 4.49

Natural Gas, at source

5.5

Total Cost of NG to Lebanon

7.82 - 9.99

NATURAL GAS COST PER KWHR - PPA BASIS

Description

Unit

Value

Price (mean value between 7.82 & 9.99)

US$ / mmBtu

$8.905

Heat Content (assumed)

Btu / Scf

1,000

Heat Rate

Btu / KWhr

9,000

Generator Rating (2,000 MW)

Kw

2,000,000

Annual Energy Production

KWhr

13,402,800,000

Monthly Energy Production (30 days)

KWhr

1,116,900,000

Monthly Energy Consumption

Btu

10,052,100,000,000

Monthly Fuel Consumption

Scf

10,052,100,000

Monthly Fuel Bill

US$

$89,513,951

Natural Gas Cost per kWHr - PPA Basis

US$/KWhr

$0.080

TARIFF & BILLING CALCULATIONS

EST TARIFF COST CALCULATION

US$ Cents / kWh

Tariff 1

Allowance for -

Recovery of capital investments, financing costs, ROI

a

Insurance, Taxes, Risk factor etc

b

Annual inflation (costs escalation)

c

Plant depreciation

d

Fixed O&M

0.85

Tariff 1

X

Tariff 2

Variable O&M

0.65

Variable Fuel cost (Natural Gas)

8.00

Tariff 2

8.65

Total Tariff

X + 8.65

EST BILLING CALCULATION

US$ p.a.