Developing a energy transition strategy for oil infrastructure

Developing a energy transition strategy for oil infrastructure

Developing a energy transition strategy for oil infrastructure

Infrastructure Services – Energy Transitions

The Engagement:

Business planning and projects identification for energy transition

The Client:

A fuels importation terminal operator in North West Europe

The Challenge:

How would energy transition impact on future revenues and how should the asset footprint change out to 2040 to allow diversification?


3 months

How Energex helped:

  • Provided energy transition scenarios for the client’s regional market specifically for diesel and gasoline demand
  • Projected the implied throughput volumes out to 2040 at the client terminal on core business based on a detailed assessment of the competitive landscape and logistics options for supply
  • Analysed revenues and EBITDAs generated for each storage tank to allow quantitative decision making
  • Recommend capacity to be in service out to 2040 on the core business and therefore which tanks due for maintenance should be executed vs. assessed for mothballing or conversion options
  • Identified mitigation business lines through e.g. bitumen, chemicals, biofuels, and hydrogen carriers and assessed their fit with the client’s business and location
  • Through an evaluation of potential and in-flight investment projects (including chemicals, bitumen, hydrogen carriers and LPG), we layered diversification and growth into the business plan

Tangible Impact:

  • Workshops were held with commercial, operations and projects teams
  • Identified that gasoline volumes in the client’s market were most robust, with challenges around diesel meaning a specific focus on capacity
  • Identified more efficient ways to store and handle biofuels with existing assets available
  • Suggested a renegotiation with one of the client’s customers given economics on the capacity once costs were considered 
  • A clear strategy and business plan report was delivered to the CEO for presentation to the shareholders and future refinancing
  • Around $60m of investment projects were recommended by Energex for further technical investigations and engagement with existing and potential customers