Identifying infrastructure investment options in a changing market environment
Infrastructure Services – Petrochemicals
The Engagement:
Market study for chemicals expansion projects
The Client:
A chemicals terminal operator in North West Europe
The Challenge:
Which capacity expansion and upgrade projects should be executed given dynamics of the ethanol and methanol markets?
Duration:
3 months
How Energex helped:
- Forecasted supply and demand for main stored products including specific projects that would have a bearing on methanol and ethanol as well as RED II implications
- Mapped competitive landscape and therefore looked at capacity being brought online in coming years and whether this would result in bottlenecks or over capacity
- Considered customer requirements for storage and handling including logistical modalities such as rail
- Advised on future trends such as the use of methanol as a hydrogen carrier and assessed with the management team the suitability of the terminal from a zoning perspective for ammonia
- Assessed projects identified by client organisation and recommended which projects were supported from a commercial perspective
Tangible impact:
- Workshops were held with commercial, operations and projects teams
- Submitted a report to ensure that the financial owners of our client were comfortable with the commercial and strategic rationale for investments
- Allowed the client to become more aggressive in their pricing strategy as analysis showed that their asset is highly competitive in terms of infrastructure, but this was not represented in the rates being obtained
- The client proceeded with the highest-ranked expansion projects rather than the originally tabled full expansion, which is now contracted with a AAA customer at a premium storage rate