Validating the commercial viability of a greenfield LNG import project
Commercial Advisory – Gas & LNG
The Engagement:
Commercial Advisory
The Client:
Large global infrastructure fund
The Challenge:
To support the validation of the commercial viability of a new brownfield LNG asset in
North-West Europe.
Duration:
3 months
How Energex helped:
- Independently assessed the current commercial rationale and project economics, combined with producing both an LNG market outlook and a summary of competing projects within Europe to inform the positioning of the project
- Conducted workshops with technical and commercial stakeholders from across the team
- Developed and compared various commercial structures for the capacity to be offered (e.g., tenure, volume commitments, rate structures, etc.) balancing the attractiveness of the project with maximising returns
- Assessed the technical and operational aspects of the project to be able to identify possible benefits and risks and to validate the capital investment required
- Provided a qualitative assessment of prospective customers across producers, traders and utilities to inform the approach to marketing the asset
- Assessed the applicable regulatory requirements within the EU
Tangible Impact:
- Documented understanding of the preferred project scope and its commercial potential versus known competition
- Developed a project ‘blueprint’ detailing the preferred commercial structure, market connectivity and technical aspects of the project
- Provided a short list of prospective customers
- Developed a project teaser and circulated it to primary customers allowing for early-stage market engagement