Oil & Gas

Gas Processing Plant Construction — Capitalized

Capitalizing the cost of building a gas treatment and compression facility.

Account NameTypeDebit ($)Credit ($)
Development Assets — Gas Plant (PPE)Asset (+)85,000,000.00-
Cash / EPC Contractor PayableAsset/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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