Case studies
Global LNG Portfolio Player
LNG portfolio valuation model
Global LNG Portfolio Player
LNG portfolio valuation model
We were engaged to develop a global LNG portfolio valuation model to analyse the interdependent value of portfolio components and incremental investments (e.g. regas, shipping, supply contracts.
Client Challenge
We worked with the client’s commercial & trading teams to create a model that supported existing portfolio monetisation and value creation from new components.
Our Solution
We designed, tested & implemented a stochastic portfolio valuation modelling framework to multiple users within the commercial team, interfacing with existing data feeds & systems.
Result
The delivered model supports portfolio contracting, hedging & optimisation decisions as well as value creation from investment & origination activity.
Large UK Aggregator
Battery & peaker portfolio commercial analysis
Large UK Aggregator
Battery & peaker portfolio commercial analysis
We worked with the client to review, critique and enhance its commercial analytics capability supporting the monetisation of a portfolio of peaker & battery assets.
Client Challenge
We were engaged to provide an external view & practical recommendations on commercial analytics capability.
Our Solution
We worked with the client’s commercial team, undertaking a thorough review of models, tools, data sources & commercial decision making. We then documented a detailed set of practical recommendations & helped the client implement these.
Result
The project identified multiple sources of tangible portfolio value enhancement as well as significantly improving transparency around commercial decisions.
Midstream Gas Company
NWE gas pipeline value enhancement
Midstream Gas Company
NWE gas pipeline value enhancement
We have worked with the owner of a key NW European pipeline on multiple projects aimed at improving asset returns in a rapidly changing market.
Client Challenge
The focus of our engagements have been on optimising pipeline capacity sales strategy & pipeline cost structure, as long term contracts expire & market dynamics change.
Our Solution
We developed a tool for stochastic valuation of the pipeline that facilitated analysis of asset risk/return under different capacity sales strategies. We also analysed the impact of different capacity contract durations & pricing/volume structures.
Result
Our work has supported the client to refine its capacity sales strategy in order to enhance risk adjusted return.
Infrastructure Fund
Flex power portfolio value management
Infrastructure Fund
Flex power portfolio value management
The client acquired a 2GW UK CCGT portfolio and we supported the post-acquisition implementation of a value & risk management framework.
Client Challenge
Our focus was on implementing an ‘Earnings at Risk’ based margin management strategy to support portfolio hedging decisions.
Our Solution
We worked with the client to define a practical means of implementing a dynamic hedging strategy to manage forward market asset exposures and asset risk.
Result
Our advice and analysis underpinned the design & implementation of an enduring hedging and risk management framework.
European Utility
Fast cycle storage capacity sales strategy
European Utility
Fast cycle storage capacity sales strategy
We have been working with a client on a retainer basis for more than 7 years, supporting refinement of capacity sales strategy & commercial decision making.
Client Challenge
We have worked on structuring of capacity contracts, optimisation of asset supply chain & understanding risk/return impact of market changes.
Our Solution
We have used our in-house stochastic storage modelling capability to analyse ways to enhance asset value & refine capacity sales strategy. This has covered storage hedging strategies, capacity utilisation analysis, target buyer types & behaviour.
Result
Our advice has supported the development of a capacity marketing strategy (e.g. pricing/volume structure, duration, interruptibility) and ongoing refinements.
Large LNG Producer
LNG contract hedging & optimisation
Large LNG Producer
LNG contract hedging & optimisation
We were engaged by the client’s commercial team to develop an analytical tool to support the value management of LNG supply contracts & regas slots.
Client Challenge
We worked with the client to develop an analytical tool to support the hedging & optimisation of a portfolio of flexible LNG supply contracts & associated regas slots.
Our Solution
We worked with the client’s commercial & origination team to map down requirements. We then designed, developed, tested & implemented the tool on the client’s desktop.
Result
The tool is used to support day to day hedging and optimisation decisions as well as for medium term contract pricing.