Natural gas supply and demand have both grown rapidly over the past 20 years, and we expect the fuel to continue playing an important role even through the Energy Transition. Natural gas discoveries have proliferated in the recent decades and its production from shale gas and other onshore and offshore assets have become very cost competitive.
Further, midstream infrastructure has kept pace with capital investments made globally. As a result, the installed base of midstream capacity has grown worldwide including gathering lines, gas processing plants, natural gas liquid (NGL) fractionators, sulfur recovery, carbon dioxide (CO2) and acid gas removal, regional and international transmission pipelines, and local distribution pipelines.
Climate change and environmental concerns coupled with rising cost competitiveness has led to rapid growth in the supply and demand for liquefied natural gas (LNG). As a result, a lot of capital has been invested across the LNG value chain globally including liquefaction, shipping, and regasification infrastructure.
Natural gas and LNG, however, face numerous challenges going forward. A key concern is whether the fuel will continue to be a competitive source of energy in the Energy Transition. Ensuring a role for natural gas in 2040 and beyond will require improvements to its cost, supply, operational, and, most importantly, sustainability competitiveness. Specifically, industry players will have to cut and stop natural gas flaring and fugitive emissions, improve the efficiency of natural gas utilization, and broaden the fuel’s applications through small-scale LNG and compressed natural gas (CNG).
How ADI helps natural gas and LNG companies
ADI Analytics brings deep expertise, rich experience, and numerous models, analytics, and databases on natural gas and LNG supply, costs, capacity and plants, demand, trade flows, and other analytics to help clients with a wide range of needs. Our teams have helped upstream E&P operators develop and optimize strategy and portfolios for natural gas producing assets including M&A and acquisitions and divestitures (A&D). In other work, ADI has estimated, benchmarked, and optimized operational costs and economics, evaluated and accelerated deployment of new technologies and innovation in production, transmission, and utilization of natural gas. Finally, ADI has forecasted natural gas supply, demand, costs, and trade flows through insightful market research, forecasting, and competitive intelligence.
Relevant examples
A few examples of our work in the natural gas and LNG sector are presented here. Please contact us to learn more about how ADI can help you.
Business strategy
- Advised a major company on gas portfolio strategy prioritizing investment opportunities in U.S., Canada, Australia, and Africa
- Developed gas monetization strategy for super major benchmarking LNG against gas-to-liquids across multiple criteria
Feasibility studies
- Evaluated feasibility of Canadian LNG project for oil major by estimating capex, target markets, feed cost, and opex
- Led due diligence on LNG bunkering project in Europe for lender based on demand, LNG supply, and regulations
- Assessed the feasibility of a small-scale LNG plant to serve markets in the U.S. Northeast
- Built a valuation model for a new gas monetization plant
Transaction support
- Benchmarked 20 U.S. small-scale LNG projects and advised Japanese LNG portfolio player through investment
- Analyzed LNG portfolio impacts of oil major’s acquisition of mid-sized E&P company with LNG and offshore assets
- Supported National Oil Company in Asia conduct a comprehensive study of the regional natural gas market with emphasis on understanding price elasticity and natural gas affordability across various end-use market segments.
Competitive intelligence
- Studied competitive strategies of LNG peers covering target markets, costs, and sales agreements for oil major
- Profiled 45 LNG project announcements with in-depth competitive intelligence for Japanese LNG investor
- A gas processing plant vendor approached ADI Analytics for voice-of-customer based competitive benchmarking.
Technology assessment
- Assessed micro-scale LNG technology for costs, benefits, risks, and returns for an Asian project developer
- Piloted a go-to-market strategy for OEM with micro-scale LNG process targeting niche, remote power generation needs
- An E&P independent’s corporate venturing group hired ADI Analytics to assess the North American flared gas market and identify technologies to reducing flaring.
- ADI conducted an independent assessment of methanol’s potential for power generation and developed a white paper for public consumption.
Access our thinking
ADI is a thought leader in the natural gas and LNG sector. Access our latest thinking including blog posts, white papers, conference presentations, and videos on the ADI insights section.
