Example:
Market Monitoring
 
Client:
An Asian energy regulator
Partners:
Navitas Resources
Duration:
Three years
Key MJM Staff and Associates:
Mike Madden (Senior Consultant), Nick White (Research Director),
Chris Le Fevre (Senior Associate), Joshua Stedman (Research Analyst), Ed Stock (Senior Associate)

Market Monitoring

Project Description

The purpose of the project was to provide a quarterly report analysing market conduct and competition in a liberalising Asian gas market, as well as additional investigation and support services to the market monitoring panel.

Building the team

We established a joint venture with a local consultancy in order to provide a local contact along with significant energy commodity experience. Working together the team met with the regulator and the local gas industry representatives to develop and refine the gas market monitoring indices.

Approach

This project required a complex analysis of gas market data. On a quarterly basis the gas transporter provided us with a very large database (more than 10GB) containing comprehensive gas system information over a number of years. We then extracted and analysed the data into a number of key performance indices designed to assess the health of the market in areas such as capacity provision, capacity utilisation, nominations and flows, and energy balancing; seeking to identify anomalies that could be caused by poor market conduct, market inefficiencies, or anti-competitive behaviour. We then investigated the findings with relevant companies and provide recommendations for further investigation or market reform.

Outcome

We continue to work with the regulator and market monitoring panel to produce quarterly reports and recommendations for the development of the gas market.

“We conduct comprehensive market studies.”