Client Requirement:

To create a valuation formula to determine both intrinsic and extrinsic value of a potential gas storage facility in the UK.

Approach:

A model was created to determine valuation of potential engineering options for the facility and to compare with other facilities already operational or proposed in the UK.  The model was run against a series of pricing scenarios based on historical information to determine the viability of the facility. Ongoing support was provided to attend meetings with shareholders to deliver findings, answer questions and undertake further ad hoc research. 

Result:

The storage project was postponed indefinitely as the proposed valuations did not meet return on investment criteria for the project.