Feasibility Study Of ChangWuLin Gas Pipeline Project

Feasibility study is very important for investment strategy. The engineering construction of Gas Transmission Pipeline From West to Eastern China and the exploration and development of Puguang Gas field in North-east of Sichuan Province enhance the natural gas development and utilization in the whole country, that is the trend of industry development in China.Neimenggu Municipality, with no history of natural gas utilization and near the gas field of large scale, shall boost the local natural gas development and utilization. This is very important for the reasonable distribution of local nature source, prosperity of local relevant industries, opening and economy development of the Municipality as well as local society stability, improvement of investment environment and local people's life. Therefore, it is a question to Neimenggu West Natural Gas Co., Ltd. ,that is to increase the economic benefit and find new profit source by construction of ChangWuLin gas pipeline.This article gives the feasibility study of the project of Changqing-Wuhai-Linhe gas Transmission pipeline with combination of ratio and nature analysis, static and dynamic analysis, on the basis of investigation and collection of associated social, economic and technical situation in addition to the study, comparison and demonstration to the potential market, technical proposal, construction proposal, investment estimate, capital raise, cost estimate, future income, taxation estimate. Then, we prepare financial statements of this project, anlyse the payback period, net present value, and internal rate of return, and at last make the financial evaluation. In order to improve the reliability of financial value and the scientific literature of decision, this article has researched the uncertainty and risk of the project by the Break-Even Point analysis and sensitivity analysis. At last, we get the feasible of conclusion, and provides reliable basis for investment decision.