ADI evaluated the market value of commercial potential of an existing natural gas pipeline and storage network within the U.S. Gulf Coast. The analysis assessed LNG feedgas supply dynamics, regional pipeline infrastructure, and storage market fundamentals. These findings were synthesized into a commercial strategy that identified the most attractive revenue opportunities and informed positioning for third-party transportation and storage services.
The client
Texas midstream infrastructure owner
The situation
An internal-use midstream operator faced market uncertainty when evaluating transitioning assets into a commercial third-party service provider.
ADI’s contributions
Commercial landscape benchmark
Reduced commercial ambiguity by executing primary research interviews with regional shippers to identify unserved balancing requirements.
Takeaway infrastructure mapping
Mitigated market entry risk by modeling shifting regional pipeline flows, revealing specific local undersupply dynamics near key headers.
Asset valuation framing
Eliminated strategic uncertainty by quantifying the value of operational flexibility over volume capacity for third-party optimization.
Tariff structure optimization
Clarified pricing options by assessing historical Gulf Coast salt cavern reservation rate tiers against depleted reservoir options.
Key outcomes
- Guided corporate positioning and asset commercialization strategies by establishing defensible third-party tariff structures and identifying uncontracted capacity optimization paths.
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