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.
Gas storage asset contracting strategy
Client: Dutch Utility
Objective: We supported the client’s development and refinement of a storage capacity sales strategy, across several engagements.
Deliverables: This has included defining the structure, pricing and sales channels for capacity contracts as well as analysing buyer types, competitor behaviour and ways to maximise asset value.
Results: Our work supported development of the client’s external capacity sales & marketing plan.
Gas supply contract renegotiation
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.
Power tolling contract negotiation
Client: Infrastructure Fund
Objective: We worked with the client to structure and negotiate a CCGT tolling deal and energy services 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 with the contract counterparty.