We are industry experts in the valuation of flexible gas, LNG and power assets. This includes thermal power plants, gas storage assets, interconnectors, gas & LNG supply contracts and LNG supply chain infrastructure. Our clients include gas producers, utilities, generators and investment funds.
Our team consists of a core group of senior industry experts in flexible asset valuation. Our capability is built on a practical experience of valuing assets for some of the world’s leading energy companies and investment funds. Our services cover analysis of market value drivers, asset margin distributions, risk/return dynamics and risk adjusted asset value quantification.
Timera Energy has a sophisticated in-house suite of asset valuation models covering power plants, gas storage/swing, interconnectors and flexible LNG assets and contracts. Our analytical capability has been developed using leading energy industry analytical techniques. Our models have been widely used by clients to support the purchase, sale and commercial monetisation of assets and contracts.
Client Case Studies
UK CCGT risk/return analysis
Client: Infrastructure Fund
Objective: We were engaged to value two separate CCGT assets to support transaction sales processes.
Deliverables: This covered analysis of the evolution of market spark spreads, analysis of asset risk/return distributions, and valuation of ‘out of the money’ plant optionality.
Results: The results formed the basis for the client’s transaction bidding.
LNG supply contract flex valuation
Client: Global Gas & Oil Producer
Objective: We worked with the client to value the diversion flexibility in a long term LNG supply contract.
Deliverables: This included analysis of the evolution of European and Asian LNG spot prices as well as quantification of the intrinsic and extrinsic value of diversion rights.
Results: Valuation results supported renegotiation with the contract counterparty.
Storage capacity valuation
Client: German Utility
Objective: We were engaged to value a fast cycle storage facility.
Deliverables: This included analysis of the evolution of spreads and volatility, stochastic price simulation and quantification of a realistic market value for storage capacity.
Results: The work supported the client decisions on capacity sales strategy and further investment.
Capacity market margin impact
Client: Independent Power Producer
Objective: We supported the client’s commercial preparation for introduction of the UK Capacity Market.
Deliverables: Work included analysis of the evolution of capacity prices and quantification of their impact on the wholesale energy and capacity margins of gas and coal plants.
Results: The results supported auction bidding and longer term asset margin strategy.