Commercial support for coal seam gas company
Floating regasification – Teesport
LNG Terminal Access Code development
Atlantic Basin LNG Project
Development of midstream gas business

Commercial support for coal seam gas company

Gas Strategies was retained by an Australian coal seam gas company seeking to develop an LNG project.  The initial requirements of the client included establishing the value and risks associated with sales of LNG into various markets.  However, the requirements rapidly evolved into considering the potential value of the project; the client's equity gas; and indeed, ultimately, the company itself.

Execution
The assignment, which included providing market reports; project structuring support; counterparty briefing papers, draft GSAs and supporting materials and negotiating tactical input, was delivered during a highly dynamic period – with the commercial landscape changing on virtually a daily basis. Mobilisation of multiple teams, working on concurrent work streams, was required to maintain the pace of the requirements of the client and the relevance of what we produced.

Client benefit
The process concluded with a full divestment of the company – and thus maximum value at minimal risk for the client.

Floating regasification – Teesport – Site Selection and Commercial Advice

Our client, Excelerate Energy, was seeking to develop access to deliver cargoes to the UK NBP. The client was seeking logistical, commercial and regulatory advice on developing this opportunity.

Execution
Gas Strategies supported Excelerate in establishing commercial viability, and in designing and implementing strategy.  Our team provided shipping, engineering, project development and market support, to be responsive to a demanding timescale.

From initial input and site-search, we provided project strategic management support and insight from concept to planned commissioning. This role included interfacing with official and regulatory agencies, negotiation with key stakeholders, resolving engineering issues, commercial arrangements advice and planning and routing decisions.

Client benefit
The facility was fully operational by Feb 2007 – the fastest ever LNG import facility built. By illustrating the commercial viability of GasPort concept, Excelerate Energy was able to implement a strategy of broadening its geographic footprint.

LNG Terminal Access Code development

Our client, an Asian governmental body responsible for competition and regulation of the gas and energy markets, was developing a commercial framework for a proposed new LNG regasification terminal.  As the first such facility in the country, our client sought assistance in particular with the drafting of a Terminal Access Code (TAC) and in promoting the acceptance of its use by the various key stakeholders. Gas Strategies was retained for this specific task, together with related issues as they arose through the development process.

Execution
After reviewing all the relevant materials and legislation available in preparation, we developed a Draft TAC via a series of face-to-face meetings with key stakeholders.

Client benefit
We supported our client in developing a holistic view of the interrelationships between the key project agreements, ultimately enhancing the client’s progress towards FID.

Atlantic Basin LNG Project – Working with an NOC on a liquefaction project concept

Our client, a prospective NOC/IOC joint venture was seeking to develop an LNG project. We were consulted to assess the economic and other benefits of various markets and to rank regasification terminal access points for the JV.

Execution
We produced a detailed report analysing the various markets in terms of demand, ease of access, relevant markets, costs of supply and other factors; and another that assessed the relative netback economics of each market based on specific approaches. Following a series of workshops we produced a ranking of possible markets based on cost of access and other implications offered by particular markets (e.g. capacity to move downstream; potential to operate a flexible approach). A comparison between the value offered by terminal capacity ownership and an option to deliver were also considered.

Client benefit
The project partners were able to clearly see the potential value – both monetary and otherwise – offered by different potential markets and thus prioritise which markets and market access points to pursue in more detail.

Development of midstream gas business

Our client, a major European Utility, was seeking to build a new LNG organisation in order to expand its activities into the midstream. This required the establishment of a new team, development of new capabilities and a strategy for entering the LNG Value Chain

Execution
We supported the activities of the LNG Team through providing commercial and technical advice and support in connection with the development of the LNG business, including downstream regasification projects in Europe and obtaining supply.

We established a multi-disciplinary team, working on a number of distinct workstreams in support to the client. Our project scope included: infrastructure compatibility; project structure and shareholder/stakeholder issues in respect of a market position the client was developing; technical port and marine input required in the negotiation  of a Terminal Use Agreement; upstream opportunity development; transaction support and business plan development.

Client benefit
The client was able to address the challenge of aligning downstream (regas) and upstream (supply) projects as well as potential projects to secure gas flow and value. The client developed a new approach to engagement upstream and Gas Strategies provided negotiation support thereafter on a major deal that now underpins its midstream LNG business.