Supporting a European utility on developing an LNG strategy

Supporting a European utility on developing an LNG strategy

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.


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