The Role of Feasibility Studies To Enhance The Natural Gas Industry

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 mis perception 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)