•Process simulation for chemical looping combustion (CLC) and its model validation.•Process simulation of humid air turbine (HAT) for power generation.•Process simulation and analysis of CLC–HAT cycle.•Economic analysis of the CLC–HAT cycle for natural gas-fired power plant with CO2 capture.•Comparison between CLC–HAT cycle and conventional HAT cycle. Power generation from fossil fuel-fired power plant is the largest single source of CO2 emission. CO2 emission contributes to climate change. On the other hand, renewable energy is hindered by complex constraints in dealing with large scale application and high price. Power generation from fossil fuels with CO2 capture is therefore necessary to meet the increasing energy demand, and reduce the emission of CO2. This paper presents a process simulation and economic analysis of the chemical looping combustion (CLC) integrated with humid air turbine (HAT) cycle for natural gas-fired power plant with CO2 capture. The study shows that the CLC–HAT including CO2 capture has a thermal efficiency of 57% at oxidizing temperature of 1200°C and reducer inlet temperature of 530°C. The economic evaluation shows that the 50MWth plant with a projected lifetime of 30years will have a payback period of 7years and 6years for conventional HAT and CLC–HAT cycles respectively. The analysis indicates that CLC–HAT process has a high potential to be commercialised.