Europe & Middle East

At a time when European indigenous gas supply is declining new hope is being placed on gas supply from the Caspian, eastern Mediterranean and the Middle East. This supply is to be delivered through new world scale pipeline routes transiting Turkey and southeast Europe and potentially as LNG from the Mediterranean.

Potential resources in Azerbaijan and Iraqi Kurdistan are significant and with buyers in Europe seeking to reduce their cost of gas supply and growing demand in Turkey these resources offer a real alternative.

The political, technical and economic challenge of development are enormous but with the Shah Deniz II project targeting first deliveries to Europe in 2019 and gas soon to be piped from Iraqi Kurdistan to Turkey the so-called Southern Corridor is beginning to open, creating new opportunities for suppliers, buyers and a new source of competition in key growth markets of Turkey and established markets to the west.

Key Issues

  • Significant investment is required to bring new supply to market at a time when demand in Europe is down and traditional utility buyers have weakened balance sheets.
  • Projects are immensely complex facing technical, commercial, political and geopolitical challenges requiring the alignment of numerous governmental, regulatory and commercial stakeholder.
  • Balancing the cost of development against the value of gas in the target markets is increasingly difficult made yet harder by recent volatility in the oil market.

Find out more about our work in: Africa, Asia & Australia, Canada, Latin America and the USA. If you would like more information, please contact us.

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Relevant Experience

Case Study - Gas flow sustainability for the acquisition of Open Grid Europe

Our client wished to evaluate the future value of the Open Grid Europe (OGE), Germany’s largest gas pipeline network, and understand the potential effects of market change on the system to determine the level of its bid.

Case Study - Commercial and Market Due Diligence

Our Client, an international infrastructure fund, was considering the acquisition of the Teesside Gas Processing Plant (TGPP) in the UK and required a due diligence advisor to provide advice on the security of future revenues being projected by the vendor. 

Case study - Price reviews for a European utility

Gas Strategies was appointed by a European utility company to assist in a ‘strength-of-case’ evaluation for two potential price reviews. Both reviews involved long term LNG supply contracts in Europe, the first with the client as the purchaser and the second as the seller.

Case study - Commercial dispute support for an Energy company

Gas Strategies supported a European energy company and its legal counsel over a period of nearly three years in a dispute with an upstream player in the Middle East. We joined the client at a phase of the case where previous actions had resulted in the need for damages to be paid and the quantum...

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