Energy, utilities and resources /

Liquefied Natural Gas (LNG)

The global LNG industry continues to demonstrate significant growth – natural gas is increasingly a fuel of choice as markets switch away from coal and as the economics of importing natural gas improve.

The ever-greater globalisation of natural gas markets is underpinned by LNG market growth, and the trade itself is increasingly liquid and commoditised. As new markets open, more LNG is traded on a short-term basis, and the barriers to entry lower. Opportunity abounds for new entrants and experienced players alike.

In this rapidly evolving market, growth is generating opportunity, but increased competition, decreasing margins and market change also present challenges. Whilst developing and funding major capital projects remains key, buyer preferences evolve away from long-term purchase agreements and towards greater flexibility. Consequently, more and more organisations need to have the capabilities and tools to manage and optimise this flexibility and are seeking to build out such capacity as the market evolves around them.

As margins decline in the face of a maturing market, it will be the fittest players – those best set up to optimise their portfolios and adapt to market change – that will be most successful.

Baringa works with clients across the full value chain of LNG to help them address these opportunities and challenges, through support in a number of areas including strategy, business model design, operational improvement, and Information Systems design, implementation and integration.

FIND OUT ABOUT OUR WORK

Meet members of the team

Jayesh Parmar

Jayesh Parmar

Partner | Energy markets and analytics | London

"LNG is coming of age – with technological developments, cost efficiencies and market developments, LNG is increasingly an option for connecting exploration discoveries through to markets. Market changes are presenting challenges and opportunities as the physical chains linking gas production to markets change from being operated as relatively static and stable flows to more dynamic and flexible linkages with diversion opportunities requiring close management with increased revenue through optimisation."

Peter Thompson

Peter Thompson

Senior Manager | Energy markets and analytics | London

"In the fifteen years I have worked in LNG, the market has changed radically – and continues to do so. Ever more interconnected markets and sophisticated player behaviour, technology evolution and commercial challenges create an environment where organisations need to combine experience and knowledge, commercial acumen and technology to be successful."

Mashal Jaffery

Mashal Jaffery

Senior Manager | Generation and trading | London

"Organisations across the energy and commodity value chain are looking to capitalise on the growth of LNG as a traded commodity. It’s only a matter of years until we see a globally traded virtual pipeline system, i.e. an efficient global gas market."

Grace Quinn

Grace Quinn

Senior Manager | Energy, utilities and resources | London

"The global expansion of LNG trade will continue to facilitate the development of LNG supply chains by capitalizing on existing and future regasification and liquefaction terminals. The impact on the transport industry, in conjunction with increasing regulatory pressure, has seen LNG gain considerable momentum as a transport fuel of the future, particularly within the shipping and marine sectors."

Focus on your sector

Business strategy advisory

We support our clients in identifying, defining and achieving their desired business objectives. Baringa’s Business Strategy and Advisory helps LNG companies to discover, understand and engage in financial, commercial and operational aspects of the LNG value chain.

Market fundamentals analysis

Baringa helps LNG companies to gather the insightful information they need to make rational financial as well as operational decisions and enables our clients to take a long-term view of the LNG market.

Transaction advisory

Baringa supports our clients – be they project sponsors, lenders or equity investors – in fully understanding the risks and opportunities associated with potential investments along the LNG value chain.

Asset and JV operational readiness

Baringa has deep experience working across the LNG value chain in the development of operating models, establishing business processes and developing teams, tools and systems. This experience means we can effectively support our clients in getting businesses, assets and ventures ready for commercial and physical operations.

Trading strategy and capability

The evolution of the LNG market means organisations must place ever more emphasis on running effective trading operations. Baringa works with leading LNG companies to deliver best-in-class trading and risk management capabilities. We create cost-effective trading operations with increased customer focus and overcome multi-geography operations challenges.

Portfolio optimisation

As global gas markets liberalise and converge, traditional arbitrage margins will constrict, and profitability will be driven by optimisation and the efficient management of portfolios. We help companies to navigate the complexities of evolving market conditions and enable them to extract optimal value from their investments and portfolios through a clear understanding of where and how optimisation can be achieved, and the ways and means of delivering it across all operational aspects of the LNG value chain.

Technology transformation

Baringa helps LNG companies to implement technology to enable and support commercial and physical operations. Baringa uses its industry expertise to help harness the right data, systems and infrastructure to improve profitability, increase agility, reduce costs and meet regulatory demands.

Data science and analytics

Baringa helps LNG firms to organise and control data as well as to turn data into insight. In doing so we help companies to establish new capabilities and build and deliver data-powered solutions into production.