ADI Analytics helped a leading methanol producer develop best practices for methanol sales and offtake contracts based on a survey of customers and their procurement practices, contracting strategies, and pricing structures.
The client
A leading methanol producer was interested in refining their sales, offtake, and pricing contracts and strategies based on industry best practices.
The situation
Growing methanol supply on the U.S. Gulf Coast, a fragmented customer base, and increased trading required an overhaul of the methanol producer’s commercial strategy.
ADI’s contributions
Industry practices summary
Surveyed methanol customers on procurement practices, including short- and long-term contracts, pricing arrangements, shipping and transportation costs, and typical contracting terms.
Executive presentation
Summarized key findings and delivered a presentation and led a Q&A workshop with the client’s executive team, which used ADI’s findings to overhaul its commercial strategy.
New contracting structure evaluation
Assessed opportunities for new contracting models through interviews with ~15 methanol traders, producers, and buyers across the industry.
Key outcomes
- ADI’s work provided the client with actionable insights on methanol contracting, pricing structures, and customer procurement practices to overhaul their commercial strategy.
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