ENERGY SECTOR (OIL, GAS, POWER)
For Chase Investment Bank, London: SOUTH KOREA US$1.2 BILLION NATURAL GAS PROJECT FINANCING FEASIBILITY STUDY
Chase was Lead Arranger to an international 6-bank consortium for end client, Oman LNG. Tasks: Our consultant developed detailed oil, power, natural gas and coal models with forecasts of supply and demand through 2025 for South Korea with a Korean gas company as potential end client. Analysed South Korea’s economic outlook, energy demand elasticities in relation to economic growth, energy prices, energy regulatory environment, LNG demand and supply outlook, and power generation outlook.
Result? First shipment from Middle East arrived on 6 April 2000 in Inchon Terminal after initial investment value of US$1.2 billion.
Client Benefits? 8.01 million customers and gas sales of 12.66 million tonnes from Middle East LNG producer to KOGAS (Korean Gas Company), and a big underwriting fee for Client!
For Mobil: ASIA GAS STRATEGY
Multi-country Asian natural gas strategy study. Our consultant analysed several Asian power and non-power gas markets that included Pakistan and East India (West Bengal and Orissa). Tasks included economic and political overviews, gas valuation and pricing, as well as power Transmission and Distribution (T & D) opportunities into India from Bangladesh.
For Mobil: INDONESIA GAS MARKET ANALYSIS
We developed models for Indonesian gas consumption from non-power industries like ceramics, fertilizers, glass, paper and pulp. Our tasks included forecasting demand and supply balances of the products in these industries, analyzing pricing trends and subsidy impacts as well as gas utilization and valuation.
For ARCO (Atlantic Richfield Co., now BP) (Downstream) (Upstream): CHINA GAS MARKET ANALYSIS
For the client, we performed a gas market analysis of China’s Jilin Province and the South Songliao Basin. Our tasks here involved studying the economic and energy situation, evaluating existing gas markets through computer modelling and identifying new potential users, as well as assessing the potential in new gas markets. Results? The client subsequently signed up for two exploration and production (E & P) blocks.
For Shell: SINGAPORE FEASIBILITY STUDY OF PRE-ORDER PICK-UP (ONLINE SHOPPING)
Client had selected Singapore as its pioneer project. Our consultant’s task was to conduct a feasibility study if motorists were willing to purchase small consumer items (e.g. electronics items like MP3 players) from Client’s e-commerce site and to pick up these pre-ordered items from a client petrol outlet nearest to their residence within a 2km radius. We also evaluated and identified the optimum fast growth, high margin consumer products for petrol retailing. We surveyed groups of motorists and invited them to browse Client’s prototype e-commerce website and noted their online shopping experiences and offline shopping preferences.
Result? We recommended to client that this project was not feasible due to motorists’ offline shopping preferences (“touchy-feely-browsing” factor).
Client Benefits? Our consumer marketing research enabled our client to better understand their target customers’ preferred purchasing habits, both offline and online. Client saved much money and effort and avoided an Asia-wide rollout. Client subsequently shelved this project.
For OilTanking GmbH, petroleum storage company: CHINA PETROLEUM STORAGE OPPORTUNITIES
Our consultant assessed LNG shipping costs and port fees in China which covered 23 Chinese ports for 9 petroleum products as part of a bigger feasibility study on petroleum storage investment opportunities in China.
Result? We recommended to client their best China investment opportunities to capitalise on. Client’s investments in Baxian Villas (Beiqijia, Changping, Beijing) and Daya Bay (Huizhou, Guangdong) was the result of our study.
Client Benefits? Our services enabled our client to make a strategic decision to invest in China.