Strategic roadmap for European Storage Operator
Infrastructure Services – Energy Transition
The Engagement:
Develop a strategic roadmap and pillars for the portfolio across current and new products and conduct a contract renewal assessment.
The Client:
European Storage operator
The Challenge:
Understand how the client can best place itself to maximize their current portfolio and begin to diversify to position themselves as an enabler for energy transition for their customers .
Duration:
Three months
How Energex helped:
Contract Renewal Assessment
- Assessment of market outlooks across core products and how the client was placed for continued supply
- Evaluation of competitive environment and likelihood contracts would be renewed on a short, medium and long term basis
- Provided an Energex assessed rates benchmark to provide background for re-negotiation in comparison to the market standard
- Assessment of the local refinery outlooks in terms of closure and the effect this could have on the contract renewal
- Provided a strategy per location for the contract renewal
Strategic Roadmap
- Conducted a deep dive into the feasibility of green products at the different client locations including mapping of the regulatory environment, current projects and market outlooks
- Assessed the outlook of the European chemicals environment out to 2040
- Analyzed the exposure of the current portfolio in terms of decline and diversification options
- Assessment of the local environment supply system and competition to demonstrate the robustness of the portfolio
- Aligned the management team on a strategic pathway of strategic pillars to present the future market options for different areas of the business
- Considered market options matched to pillars, appropriate to the characteristics of the clients specific terminal assets
Tangible Impact:
- Provided the client with confidence in their contract negotiations backed with feasible other options and benchmarking of rates
- Demonstrated the importance of midstream storage providers for Energy Transition and how the client could be best placed across their portfolio for new products
- Created a strategic pathway that allows the portfolio to be resilient for the future by maintaining the current portfolio and positioning themselves best for new products
- Present a set of market options for specific locations that will allow the client to offer best-in-class services
- Assess which locations will have the best fit for new products in terms of location, investment, customers and modality
- Conducted working group sessions for a collaborative approach, followed by a strategy workshop and final report deliverable