THE ROLE OF FEASIBILITY STUDIES TO ENHANCE THE NATURAL GAS

ABSTRACT
The purpose of this paper is to shred some light on the key
issues of the gas projects feasibility studies and to answer on this
question “What is the impact of the economic, financial and
marketing studies on the transmission and distribution gas project’s
feasibility studies in Egypt?
One of the obstacles to a beneficial gas project developing is,
undoubtedly, the lack of knowledge in developing countries of how to
formulate a project in such a way that its potential profitability whether
from a private or social viewpoint, can be estimated from as firm a basis
as possible. While there has been some improvement in these areas, this
is still broadly true. The basis for an efficient gas project should not only
depend on technical and engineering skills, but also on sound economic,
marketing, financial and legal studies and expertise. Along with these
sophisticated studies, another difficult but equally important subject has
to be deeply assessed, namely the element of risk. A common
misperception in the feasibility studies domain is that some people think
that it should only answer the question of whether the project is profitable
or not, while its main goal is to explore the question of whether the
project represents the best possible use of the limited (scarce) resources at
the country’s disposal (specialized manpower, capital, natural resources).