Commercial assessment of potential market options
Infrastructure Services – Energy Transitions
The Engagement:
Commercial assessment of the longevity and participation options for a storage operator
The Client:
NWE Storage Operator
The Challenge:
To assess the feasibility of potential market options for the terminal in order for the client to make sound investment decisions
Duration:
3 months
How Energex helped:
- Provided market outlooks and flows for key products of the client
- Assessed the storage market fundamentals including the regulatory environment and the Russian conflict and their impact on the terminal
- Conducted an overview of the competitive environment
- Analysis of product flows into and out of the terminal
- Conducted an in-depth customer review with renewal likelihoods and an assessment of supply chain integration with customers
- Presented the strategic pathways applicable to different classes of storage
- Provided detailed market options applicable for tanks and logistics
- Ran an economic model that provided high-level analysis of the financial implications of strategic pathways
Tangible impact:
- Three workshop presentations to the management team presenting initial findings and analysis for discussion
- Produced a client-usable model in order to assess IRR and potential payback period of presented market options
- Worked closely with the weekly working group in order to fully understand the criteria and potential options for the terminal
- Presented potential projects for individual tanks and assessment of their feasibility for the client
- Supporting the management team on the presentation to the Executive committee
- Provided an overall report on the findings of the three workshops