Oil & Gas
Gas Processing Plant Construction — Capitalized
Capitalizing the cost of building a gas treatment and compression facility.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Development Assets — Gas Plant (PPE) | Asset (+) | 85,000,000.00 | - |
| Cash / EPC Contractor Payable | Asset/Liability (-) | - | 85,000,000.00 |
💡 Accountant's Note
Gas processing plants treat raw gas for pipeline or LNG export. They are long-lived assets (30+ years) depreciated on a straight-line or UOP basis. Capacity expansions are capitalized; routine maintenance is expensed.
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