Strong LNG market growth (around 10% a year across 2016-19) is driving the rapid evolution of LNG portfolios. Large producers such as Shell, BP and Total are expanding their value-chain presence. Trading focused intermediaries including Gunvor, Vitol and Trafigura are driving liquidity growth and evolution of the traded market. And major buyers like Japan’s Jera, South Korea’s Kogas and Singapore’s Pavilion are expanding their portfolio footprints and developing commercial capabilities or joint ventures to support this growth.
LNG portfolio value creation is underpinned by the ability to quantify incremental value from adding new assets, contracts and hedging strategies. A successful modelling framework can be the ‘engine room’ of portfolio value growth. Timera has published an article in Petroleum Economist in Sep 2020 that looks at LNG portfolio value creation and the development of an analytical capability to support it.