Baringa assisted the client in their search for gas infrastructure investment opportunities as well as prospective investment partners, providing detailed market analysis to the client on their approach throughout the deal negotiations.
A European investment fund was looking for prospective gas infrastructure assets in which to invest. The client was seeking to understand the gas value chain, identify areas for investment and consider specific targets of interest. As part of its strategy, the fund was looking to partner with industry players who would have an interest in utilising the gas infrastructure asset.
Baringa’s role was to assist the client in reviewing gas infrastructure options and, upon alighting on regasification terminals as a potential investment area, to identify specific assets and their valuation. In addition, Baringa assisted the client in investigating prospective partners who would have an interest in taking on capacity in the regasification terminal. This then led onto a series of introductions to the asset owner and potential users and the construction of a business model for the acquisition.
As part of the transaction negotiation, we undertook a market analysis and developed a series of potential deal structures that our client was able to use in their commercial negotiations.
In addition, we provided wider commercial and market analysis in support of asset valuation.
Outcomes and Impact
A basis for our client’s commercial negotiations with their prospective partners, including:
• A comprehensive review of the market
• A supported valuation of the asset through our understanding of LNG terminal economics and operations
• Support for the bilateral negotiations with the asset owner
• Shared knowledge to help enhance our client's understanding of LNG assets and economics