We provide expert advice on contracting strategy for flexible gas, LNG and power assets. We also advise on negotiation, structuring and pricing of gas supply, gas storage and power offtake contracts, including providing support for contract reopener negotiations. Our clients include utilities, asset operating companies, producers and investment funds.
We provide advice based on our team’s extensive industry experience of gas and power asset contracting. We offer a depth of practical first hand experience of the structuring, pricing and negotiation of long term gas supply and power offtake contracts. Our analytical capability supports sophisticated analysis of the interaction between contract, asset and portfolio exposures. We also have experience acting as expert witnesses in support of legal disputes such as gas supply contract arbitration.
LNG supply contract reopener
Client: Oil Major
Objective: We were engaged to support the client through renegotiation of a large oil-indexed supply contract.
Deliverables: We advised on negotiation of contract pricing and flexibility terms as well as analysing market value drivers and quantifying their impact on contract value.
Results: Our work directly supported the client’s counterparty negotiations.
Pipeline contracting strategy
Client: Pipeline Developer
Objective: We analysed the value of pipeline capacity and linepack and advised on capacity product structures.
Deliverables: We developed a bespoke probabilistic modelling approach to value pipeline capacity products. We used analysis to work with the client in defining capacity product structures.
Results: Our work supported the client’s development of a capacity contracting strategy to support pipeline development.
Route to market contract
Client: Portfolio Generator
Objective: The client needed support with selecting a route to market service provider and structuring a services contract.
Deliverables: We worked with the generator to design a robust contract structure (e.g. pricing, incentivisation, exposure transfer), shortlist service providers and refine contract terms.
Results: Our engagement supported the successful negotiation and implementation of a market access contract for the portfolio.
Power offtake contract negotiation
Client: Infrastructure Fund
Objective: We worked with the client to structure and negotiate a CCGT tolling deal and market access contract structure.
Deliverables: Work included the definition and analysis of a set of contract pricing and flexibility terms that protected the client’s downside but retained access to market recovery upside.
Results: We worked alongside the client in supporting negotiations & refinement of terms with the contract counterparty.