Modelling capability to support price negotiations for a gas to power project
Our client engaged us to assist with their negotiations to sell large quantities of piped gas to an electricity generating utility for a gas-to-power project. The client had their own financial models but required insight into how the utility would value the gas under different operating modes.
We built a financial model of the savings that would be realised by the power utility under various possible operational modes, quantities of gas sold and instantaneous demand requirements. We integrated this model with the clients own financial model to ensure that multiple scenarios could be analysed both from the client’s perspective and that of the utility.