Monetisation of North African Gas
Development of a National Gas Export Project
Modelling Future Price scenarios for North West Europe
Project to evaluate Spanish Gas market for future Algerian production
Monetisation of North African Gas
Our client needed to evaluate a major condensate discovery and decide on a monetisation option in North Africa. We helped option evaluation through the implementation of this project.
Execution
We directly engaged with the client’s team throughout the negotiation process. Over the course of several months, whilst supporting our client through the development of the project, we provided extensive advisory work on netbacks from the market to the field, infrastructure access analysis, evaluation of gas marketing options and pricing.
Client benefit
The contribution of expert insight and support thorough the negotiation process, enabled our client to secure a sound gas sales agreement. The confidence in the strength of the agreement enabled senior management and lenders to support investment.
Development of a National Gas Export Project
Gas Strategies was consulted to advise a West African
Execution
Our team worked on location with the client to manage and drive forward the needs and objectives of the project. This included collaborating with the upstream developers, relevant Government Ministries,
Client benefit
Our input enabled our client to engage successfully with the upstream operators. Supported by Gas Strategies, the client made a sound and transparent decision on the appointment of the contractor to carry forward the development of the project.
Modelling Future Price scenarios for North West Europe
Our client, an upstream entity of an integrated oil and gas company, required an analysis of the gas markets of North West Europe to guide future investment and portfolio optimisation decisions.
Execution
We identified and analysed options open to our client to monetise its gas. We also adapted and expanded the World Gas Trade Model to forecast price developments in all of the markets in all target markets. These options were developed in conjunction with our client. Finally we produced a detailed explanation of the technical issues involved in actually transporting gas to the relevant countries and selling it at the wholesale market.
Client benefit
Our client was able to evaluate a wide range of monetisation options tested in a wide range of future market scenarios which took account of global market effects as well as realities of existing European market structure and infrastructure.
Project to evaluate Spanish Gas market for future Algerian production
Our client, a major international oil and gas company, was considering investing in gas exploration in Algeria and wished to evaluate Spain as a possible market for future production.
Execution
Although part of the exercise was satisfied through the production of a qualitative assessment of the Spanish gas market, the centrepiece of the deliverable was a series of demand and price forecasts generated using the World Gas Trade Model. We augmented or altered the datasets already contained within the model, using data collected to meet the specific requirements of our client. We used this used to generate price forecasts under three different oil and coal price assumptions in order to gauge the sensitivity of a notional Spanish wholesale market to these rival fuels.
Client benefit
This process significantly improved our client’s understanding of the Spanish gas market and the mechanisms that integrate it into the global gas market (particularly global LNG trade patterns), enabling it to make improved strategic decisions.