Supporting a European utility on developing an LNG strategy
Commercial Advisory – Gas & LNG
The Engagement:
Commercial Advisory
The Client:
European Utility
The Challenge:
Assessing the rationale for LNG market participation whilst considering the company’s current and future expected gas portfolio requirements, framed against future gas demand in the regional and local markets.
Duration:
Ongoing (2023-)
How Energex helped:
- Assessing the current and future structure and requirements of the client’s gas portfolio and wider business
- Creating an in-depth review of the global & European LNG/gas market, including supply & demand and pricing dynamics using the Energex Global Gas & LNG model
- Presenting a detailed assessment of the client’s local market and the role of LNG in filling gas demand over the short and long term against the energy transition backdrop
- Conducting detailed qualitative and quantitative analysis of the various LNG participation options the client could pursue
- Developing possible roadmaps and next steps for implementation for shortlisted participation models
- Presented recommendations to the Management Board and other key project stakeholders
Tangible Impact:
- From a long list of various market participation options Energex worked through a shortlist of suitable participation options
- Energex prepared a quantitative analysis to demonstrate the value & risk associated with market participation options including the impacts of incorporating different pricing exposures into the existing gas portfolio
- We prepared a detailed overview of the risks and mitigations associated with participating in the LNG market, including possible hedging requirements and associated margin and liquidity considerations
- Our project was delivered to the leadership of the various functions across the company, including the Management Board, and the heads of Trading, Risk and Finance