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Your Calc/valuation is ?
Repaginate AI response below !!
The potential gross value of 20 Tcf of natural gas onshore in Southern Africa depends heavily on the location, market conditions, and extraction costs.
While a specific dollar value for 20 Tcf of gas in this region isn't readily available, the potential value can be estimated based on various factors.
For instance, the Mukuyu-1 prospect in Zimbabwe is estimated to hold 20 Tcf of gas, and Invictus Energy has also identified multi-TCF potential in Zimbabwe.
Here's a breakdown of the factors influencing the value:
Market Price:
The price of natural gas fluctuates based on supply, demand, and global market conditions. For example, in 2019, it was estimated that African natural gas could supply 20% of global needs by 2025.
Location and Infrastructure:
Proximity to existing pipelines, processing facilities, and export infrastructure (like LNG plants) significantly impacts the value. Onshore gas in Southern Africa may require significant investment in pipelines and other infrastructure to reach markets.
Gas Composition:
The presence of valuable byproducts, such as condensate, can increase the overall value. The Mukuyu prospect in Zimbabwe, for instance, is identified as a gas-condensate prospect, potentially yielding both gas and valuable liquids.
Extraction Costs:
The cost of extracting and processing the gas will vary based on the specific geology, well depths, and technological requirements.
Project Development Costs:
The overall cost of developing a gas field, including exploration, drilling, and infrastructure development, will influence the net value.
Estimating a Gross Value:
To get a rough estimate, consider the following:
1. Gas Price:
If we assume a hypothetical price of $5 per million British thermal units (MMBtu), 20 Tcf of gas would be worth roughly $10 billion (20 Tcf * 1000 billion cubic feet/Tcf * 1 MMBtu/1000 cubic feet * $5/MMBtu = $10 billion).
2. Condensate Value:
If we factor in the value of the condensate from the Mukuyu prospect (249 million barrels), and assume a price of $70 per barrel, that adds another $17.43 billion (249 million barrels * $70/barrel = $17.43 billion).
3. Total Estimated Value:
Combining the gas and condensate value, the estimated gross value could be around $27.43 billion (10 billion + $17.43 billion = $27.43 billion).
Important Considerations:
This is a very rough estimate. The actual value could be significantly higher or lower depending on the specific details of the field and market conditions.
This calculation does not account for the costs of extraction, processing, and transportation.
The value of the gas will also depend on the ability to secure buyers for the gas and the terms of those agreements.
In conclusion, while a precise dollar value for 20 Tcf of onshore gas in Southern Africa is difficult to determine without specific details, the potential value can be substantial, especially if the gas is associated with valuable liquids like condensate.
