Gas, LNG & Low-Carbon Gases Consulting

Challenge

A national oil company engaged our gas consulting team to provide an independent assessment of various gas monetization options for the Vaca Muerta resource basin to support the potential development of a world-scale LNG facility and to identify other material and economic gas monetization opportunities

Solution

• Our consulting team conducted a multi-phased study that included a deep-dive market fundamentals report, including forecasts of supply, demand,
  pricing, regulation, and above-ground considerations; developed and modelled various demand-driven scenarios, highlighting changes in the LNG, industrial, petrochemical, and fertilizer markets, and assessed the scenarios' upstream implications.
• We performed netback analyses for seven potential gas monetization routes, including LNG exports, pipeline export expansion opportunities, urea/ammonia investment, and petrochemical opportunities. This analysis then complemented a benchmarking exercise to help our client better understand potential infrastructure investment requirements, policy considerations, and potential synergies amongst the various monetization routes.

Results

The project has since moved forward with a land deal and FID announcement from key commercial counterpart and upstream gas partner. The client gained a much clearer understanding of the challenges and obstacles required prior to making a significant investment, allowing it to better frame its strategy and target potential upside synergies amongst monetization options.

Challenge

An O&G company is looking to explore opportunities to produce biomethane in the US. They asked our gas consulting team to assess biomethane production potential, project economics, monetization opportunities (e.g., LCFS, voluntary markets), and competitive landscape across various regions in the US and develop a market entry strategy.

Solution

• Leveraged granular datasets to assess regional biomethane market supply and demand potential
  (e.g., facility-level) and project economics across 9 key regions in the US, taking into account regional policies, market trends, and availability of various feedstock (e.g., agricultural waste, landfill).
• Assessed biomethane production costs by location/feedstock and evaluated carbon intensity/monetization strategies (e.g., carbon market, LCFS, RIN, cost premiums) to pressure test project economics for various supply options.
• Identified a shortlist of low-carbon gas production opportunities in the US (e.g., types of feedstocks, locations, production pathways), taking into consideration growth potential and project economics. feasibility (e.g., access to infrastructure), our client’s capabilities, risk appetite, strategic priorities, and competitive landscape.
• Evaluated potential business models to scale up production and developed a tactical roadmap /market entry strategy to enter the US biomethane production market.

Results

• The client developed a comprehensive fact base and understanding of the US renewable national gas market and identified a shortlist of investment areas and potential business models to inform the development of their market entry strategy.

Challenge

A major infrastructure fund needed our consulting team to take on multiple studies to support the client’s investment thesis development, from screening and ranking potential acquisition targets to carrying out detailed commercial due diligence on high-grade opportunities.

Solutions

• We provided US upstream and global liquefaction outlooks to support market framing, making recommendations that would support their investment thesis, which led to the US LNG market being prioritized as an investment opportunity.
• We carried out a screening exercise of US LNG projects, benchmarking against international competitors and evaluating recontacting potential.

Results

We supported the client with commercial due diligence by analyzing upstream, infrastructure, above-ground risks, feedgas availability and deliverability as well as competitiveness of the LNG terminal under consideration.