Financial Analysis for Storage in the Closure Stage

Objective

To ensure that the financial model captures and reflects the applicable obligations for decommissioning of the storage site

Major Deliverables

• Periodic update of the financial model and assumptions book
• Periodic reporting on changes to the financial provisions for storage site decommissioning to the project management team, funders and investors

Tasks

Specific tasks include the following;

• Periodic updates to the financial model to ensure that it continues to reflect any changes to the legal or regulatory requirements for decommissioning provisions and changes to underlying costs. This will take into account:
• MMV requirements
• Storage liability provisions
• Expected out-turn cost forecasts (P(10), P(50), and P(90))
• Periodic updating of the financial model to ensure that the underlying financial assumptions used remain current.  This will include:
• Tax law changes
• Equity injection
• Changes in interest rates
• Changes in inflation and exchange rates
• Periodic updating of the costs data-book for closure and analysis of forecast out-turn cost projections (P(10), P(50) and P(90)) for closure of the storage element
• Periodic analysis and review of the impact on the project of open storage risks.  This will include update of the risk reduction profile for the storage element to evidence where value for money has been provided

Examples

Institute Knowledge Products

Other Sites

Key Personnel

• Project Manager
• Financial work-stream lead
• Cost estimation work-stream lead
• Commercial work-stream lead