Gas and Power Markets

Blending Gas, Power and LNG Experience in Engineering, Regulation and Commercial Operations

There is a huge need for greater and more secure electricity supply in many countries of the world. Gas-fired power generation provides great opportunities to build modern, efficient, and comparatively clean generating facilities to meet consumer and industrial aspirations for electricity, in a relatively low cost manner, with lower emissions than from coal or oil. Gas-fired power leads to key interactions between gas and electricity markets, which are frequently on a similar track to regulatory reform and competition and markets, covering areas such as spark spreads, provision of pipeline/LNG infrastructure and fuel to supply generating plant, optionality and commercial operations.

MJMEnergy has been involved in numerous gas and power projects, including assessment of use of gas as fuel for power generation in South Africa, gas contractual arrangements for power generation in the UK, regulatory development to support gas-fired power in Nigeria, and advice on supply of LNG to power generation in Pakistan, Myanmar and Indonesia. Our consultants include a blend of gas, power and LNG experience in engineering, regulation and commercial operations.

Consultancy Projects:

The following titles are examples of some of the energy consultancy projects that we have carried out in this area of expertise. (Clicking the title will provide more information.)

  • Myanmar LNG Import Project
  • Myanmar LNG Import Project

    In order to meet the shortfall between gas supply and demand in Myanmar, the Myanmar Oil and Gas Enterprise (MOGE), considered a number of possible options for sites to facilitate LNG imports. MJMEnergy in conjunction with PEC, ECA, Drennan Marine and DCMetocean, led the project team that examined three possible LNG sites in Myanmar.

    In addition the Project Team developed a site prioritisation tool and reviewed the possibility of gas swaps. The work was sponsored by the World Bank on behalf of MOGE.

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  • Review of Nigerian Petroleum Industry Bill
  • Review of Nigerian Petroleum Industry Bill

    MJMEnergy, acting for a Nigerian energy producer, provided analysis of the Nigeria Petroleum Investment Bill 2012 (PIB-2012) to aid the development of a lobbying strategy.

    In particular MJMEnergy provided support on issues pertaining to gas market liberalisation, trading and tariffs. Areas covered included the development of infrastructure, third party access, tariffs and legal issues such as the Network Code.

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  • Indonesia Gas Infrastructure Optimisation and Investment Framework
  • Indonesia Gas Infrastructure Optimisation and Investment Framework

    MJMEnergy completed an extensive review of Indonesia’s gas market infrastructure and the associated investment planning processes for Indonesian regulatory, DG MIGAS, on behalf of the World Bank. The work focussed on three main work areas:

    1. Gas Infrastructure Optimisation;
    2. Investment Framework for Gas Infrastructure; and
    3. Review of Gas Infrastructure Planning Function.

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  • Pakistan LNG Import Fast Track Project
  • Pakistan LNG Import Fast Track Project

    The purpose of this project was to provide support to SSGC and the Government of Pakistan (MPNR) in order to facilitate the importation of LNG into Pakistan. This involved writing the original tender, reviewing the bids and supporting the GOP in the technical and commercial negotiations.

    MJMEnergy were technical and commercial advisors, working alongside QED.

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  • South Africa and Namibia Gas and Power Market Study
  • South Africa and Namibia Gas and Power Market Study

    MJMEnergy worked as a partner with PPA Energy to provide a gas and power markets study covering South Africa and Namibia for an international oil company.

    The project was intended to inform the company as to whether to invest in hydrocarbon assets in Southern Africa by providing an analysis of potential markets for gas in the form of power generation, industrial and other demand, including analysis of transportation costs. MJMEnergy staff undertook the gas element of the project, including researching, analysing and presenting the natural gas supply and demand estimation, natural gas regulatory structure and economics, and analysis of key players.

    As part of this analysis MJMEnergy reviewed existing and potential gas demand across the markets for a range of gas supply scenarios.

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Training and Capacity Building:

The following are examples of some of the energy training and capacity building we have carried out that is relevant to this area of expertise. (Clicking the title will provide more information.)

  • EU Gas Markets
  • EU Gas Markets

    This two-day overview explores the EU Gas Markets with teaching sessions, case studies and our gas balancing simulation game.

    This two-day course looks at:

    Day One:

    You will gain an overview the whole EU gas market, examining the infrastructure and supply/demand match. We will explain the principles of liberalisation and together we will explore contracts, pricing, markets, gas transportation and security of supply.

    Day Two:

    We will spend some time investigating the key European markets, looking at energy trading regulation and discuss the future of gas in Europe and the possible effect the UK’s departure from Europe might have on the European gas market.
    The next public course date is:

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  • UK Gas Markets
  • UK Gas Markets

    As well as explaining the whole UK 'world of gas', this one-day course will also look at coping with the un-predictables, like the weather, future consumption patterns and the imperative of trading in gas supplies and explaining how these factors form the NBP prices.

    This one-day course looks at:

    • The Physical Gas Market
    • Market Fundamentals & Price Behaviour
    • Overview of the Commercial Gas Market
    • The Gas Balancing Game
    • Instruments & Trading Strategies
    • The Future of Gas

    The next public course date is:

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  • UK Electricity Markets
  • UK Electricity Markets

    During the course of the day we will give you an introduction to the electricity market and explain what the physical and commercial market is. You will try your hand at trading in our Electricity Balancing Game before learning about how electricity interacts with the environment and how the market may develop beyond the next five years.
    The next public course date is:

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  • UK Energy Market Essentials
  • UK Energy Market Essentials

    If you are new to the energy industry, this course will equip you to understand the unique features of energy supply within, out of, and back into the UK. It will give you a vital take on the drivers of energy prices, and the effect our capricious weather has on electricity and gas demand. It will help you to both work out how your own job is influenced by the whole world of energy, and to gaze into the future of where our heat and light might come from when we have retired!

    The course covers:

    • Physical gas markets
    • Physical electricity market
    • UK energy players
    • Commercial energy market overview
    • Future energy
    • The Gas Trading Game

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  • UK Energy Market Futures
  • UK Energy Market Futures

    The course will equip all those needing their own take on the UK energy market with the ingredients to assess likely future scenarios up to 20 years ahead. It features a helicopter view of the current market, known planning success stories, clean energy solutions and other energy-critical subjects. It will help debate the question, "is the future electric?" and look into the shape and challenges of future markets.

    The course covers:

    • Reasons for change and policy interventions
    • The Carbon Counter Game
    • Pathways - all hail electrification!
    • Decarbonisating energy
    • The hydrocarbon bridge - how we are doing?
    • My 2050 role play
    • What's in the News?

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  • EU Electricity Markets
  • EU Electricity Markets

    Course Description

    Over the two days you will gain a sound understanding of the complexities of the European electricity markets, explore the methods used by different countries across Europe and participate in two different interactive trading and balancing scenarios. You are free to ask questions from the trainers who are both experts in this field and there will be plenty of opportunities for discussion.

    Day One:

    You will gain an overview of the European electricity market and examine policy and legislation backgrounds. We will also explore together some of the key country markets and actively engage with balancing.

    Day Two:

    We will provide you with an understanding of the environmental drivers, including the consequences of COP 21, and examine wholesale markets, trading and some of the other key European country markets. You will compete with other delegates in the trading exercise and learn about the future of power generation, markets and demand.
    The next public course date is:

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  • Training Games, Exercises and Simulations
  • Training Games, Exercises and Simulations

    Designed to introduce you to real-life circumstances in which you can make successful choices based on learnt skills, our games and exercises cover a wide variety of areas. For more advanced experiences we have developed exercises that set the scene with realistic management and technical information enabling players to engage with the subject in a serious yet safe environment.

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Energy Publishing:

The following titles are examples of energy reports that we have written, published or sell and are included to complement this section. Feel free to click on the titles for more information.

  • Lifting of Stricter Consents: The Future of UK Gas-Fired Power Plants
  • Lifting of Stricter Consents: The Future of UK Gas-Fired Power Plants

    This report written by Nick White and David Smith and published by FT Energy reviewed the impact of the UK Government’s decision to impose a moratorium on new gas-fired power stations during the period leading up to the reform of the UK electricity pool.

    In bringing a premature end to the Dash for Gas, the Government temporarily preserved UK coal operations, but with the risk of deterring inward investment and distorting the market.

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  • The New Electricity Trading Arrangements
  • The New Electricity Trading Arrangements

    Written by Nick White for Petroleum Economist, this industry guide described and explained the major reform of the UK electricity system whereby the centralised electricity Pool system was replaced by a system of bilateral contracts (referred to as the New Electricity Trading Arrangements or NETA) with generator self-dispatch under the terms of the Balancing and Settlement Code.

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  • Gas and Electricity Trading in Italy
  • Gas and Electricity Trading in Italy

    Written by Nick White and Philip Pike for the Energy Publishing Network, this report provided a detailed overview of gas and electricity markets, players, strategies and trading in Italy in the early years of the energy market liberalisation.

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Key staff and associates:

  • Mike Madden
  • Nick White
  • Chris LeFevre
  • David Haynes