Gas Market Studies

Extensive Experience in Gas Market Studies

Gas markets are growing in many parts of the world, as gas provides an opportunity to extend energy supply to consumers and industry at comparatively low costs, and with a lower carbon impact than coal or oil. In other areas, however, gas markets are contracting, faced with competition from renewable energy sources and tougher emissions limits. Both types of market create a need for understanding and insight as companies, governments and regulators seek to operate in effective and efficient ways in a changing world.

MJMEnergy has extensive experience in gas market studies, having covered a mix of economic, social, regulatory, technical and resource factors in old, new and emerging markets on every continent and in over 70 countries. Key recent work includes advice on the gas masterplan and transmission development in Indonesia, gas supply options in Myanmar, and gas market development in Southern Africa.

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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  • Europe Off-grid LNG Market Study
  • Europe Off-grid LNG Market Study

    MJMEnergy undertook a market study for a major European energy player looking at the companies seeking to develop the LNG market for road transportation and off-grid gas in Belgium, Netherlands, Norway, Spain, Sweden and the UK, as well marine shipping in the Baltic, North Sea and English Channel, and inland waterway transport on the major West European waterways in Belgium and the Netherlands.

    The completed project included a final report and workshop reviewing opportunities, risks and competitors for the client.

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  • UK LNG Market Entry and UNC Accession Study
  • UK LNG Market Entry and UNC Accession Study

    MJMEnergy provided an industrial gases business with a UK gas market entry study, considering the practicalities of sourcing LNG within the UK in order to supply the LNG road transport market. A key part of the study included advice on the cost, benefits and process of becoming UK gas shipper and acceding to the Uniform Network Code.

    The analysis included estimates of gas supply costs from a range of sources, including peak-shaving LNG and imported LNG.

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  • Mediterranean LNG Market Analysis
  • Mediterranean LNG Market Analysis

    Working for an Asian energy producer, MJMEnergy provided a potential markets study for LNG from the Levant Basin. The study included supply/demand and infrastructure forecasts over the period 2017 to 2040 for key potential markets around the Mediterranean, and an assessment of likely pricing dynamics, as well as discussion of the key price drivers.

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  • Review of Nigerian Network Code
  • Review of Nigerian Network Code

    Working for the World Bank, MJMEnergy reviewed the draft Nigerian Network Code, providing a summary of key issues to be considered by the Ministry of Petroleum Resources, with supporting technical analysis and evidence drawn from Network Codes elsewhere.

    As part of the report MJMEnergy identified areas where more work would be needed before implementation of the Network Code would be possible.

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  • Gas Tariff Study for Libya
  • Gas Tariff Study for Libya

    MJMEnergy undertook this work for CERA who were working for the Libyan Energy Ministry. The study involved a detailed review of gas policy, pricing and tariffs in Algeria, Egypt, the Netherlands and Russia, and recommendations for gas pricing policies to facilitate development of the Libyan gas market.

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  • Pakistan Gas Sector Restructuring (World Bank)
  • Pakistan Gas Sector Restructuring (World Bank)

    MJMEnergy and ECA jointly worked on this project on behalf the World Bank to provide recommendations for a suitable gas sector structure to ensure the financial viability of the sector, the introduction of higher cost LNG imports, the development of transmission system expansion and private sector participation.

    In particular, MJMEnergy focussed on gas transmission networks, its costing, configuration and capacity.

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  • Ukraine Gas Restructuring
  • Ukraine Gas Restructuring

    In conjunction with ECA, MJMEnergy provided consultancy services to Naftogaz and the World Bank for the restructuring of the Ukrainian gas sector.

    Mike Madden, Nick White and Chris Le Fevre worked with ECA to assist Ukraine’s national gas company Naftogaz in refining its restructuring concept and developing a feasible short and medium-term implementation plan to restructure transmission, storage and distribution businesses. This was aimed towards establishing a competitive gas market, to restore Naftogaz’ financial stability and for Ukraine to meet its obligations under the EU 3rd Energy Package.

    In particular MJMEnergy provided advice on the operational and commercial aspects of gas infrastructure.

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  • UK Significant Code Review: Gas Supply Security
  • UK Significant Code Review: Gas Supply Security

    Ofgem as part of its Gas security of supply review, commissioned MJMEnergy/Redpoint to identify and analyse the possible risks to GB gas supply security, to inform the regulator’s decisions as to whether to support strategic storage or other interventions in the gas market.

    The report was based on a wide-ranging literature review and a series of interviews with key stakeholders and academics.

    MJMEnergy produced a report that provided an overview of the issue of security of gas supply as it affected the GB market, including an analysis of what was meant by security of supply, current and future challenges to security of supply and a description of the GB gas market from a security of supply perspective.

    We also analysed potential supplies of gas (delivered as LNG and pipeline gas respectively) and associated risks to GB supply security and provided key conclusions regarding risks to security of supply for the GB gas market.

    MJMEnergy provided gas specialist support to Redpoint’s modelling of the impact of various potential security of supply interventions.

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  • EU Competition Enquiry Advice
  • EU Competition Enquiry Advice

    MJMEnergy, working in conjunction with Gas Strategies, provided advice to the EU’s Directorate-General for Competition on the development and interpretation of results of questionnaires sent to European energy market players, including transporters, suppliers and traders.

    The questionnaires were intended to assess the state of competition and identify barriers to competitive gas supply markets in EU states.

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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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  • Israel Linepack Study
  • Israel Linepack Study

    MJMEnergy advised OPC-ROTEM (an independent power producer) on the impact of potential changes to the allocation of linepack being suggested by Israel Gas Lines and the Natural Gas Authority in Israel. The work involved a comparison of the different linepack usage patterns based on different power generation profiles, with the results being fed into the discussions hosted by the regulator.

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  • North-West Europe Gas Storage Study
  • North-West Europe Gas Storage Study

    A major investment bank approached MJMEnergy with a requirement to understand future market dynamics for North West European storage in a very short timescale as part of a proposed storage acquisition. Due to our existing in-house resource and storage expertise we were able to respond rapidly, and complete the project within four days of the initial request.

    This project included two elements: a spreadsheet listing gas storage facilities in NW Europe and a report analysing future market dynamics for the storage market. The spreadsheet listed over 100 proposed or operational storage facilities in Germany, the Netherlands and the UK, and analysed each in terms of operational characteristics and a range of other commercial factors. The report explained the context for gas storage valuation in NW Europe, including long-term and short-term gas pricing and the value of flexibility, and then considered potential impacts in terms of Knowns, Known Unknowns, and Unknown Unknowns.

    The report was delivered on time and completed with a teleconference to summarise the findings and explore further questions and issues.

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  • Gas Quality Study
  • Gas Quality Study

    MJMEnergy, in conjunction with Gas Strategies, provided IEEJ with a detailed study of gas quality in the USA, the UK, France, Netherlands and Germany, with recommendations for international best practice.

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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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  • Review of Russian Gas Supply Chain and use of Gas as Fertilizer Feedstock
  • Review of Russian Gas Supply Chain and use of Gas as Fertilizer Feedstock

    As part of a wider project with Gas Strategies, Mike Madden provided advice to a governmental institution on the gas supply chain in Russia. In particular this involved establishing the well head price of Russian gas and the associated transportation cost in order to establish whether Russian gas companies were abusing their dominant position in the fertiliser market.

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  • Nigeria Extractive Industries Transparency Initiative Gas Audit
  • Nigeria Extractive Industries Transparency Initiative Gas Audit

    MJMEnergy, working in conjunction with the Hart Group, assisted in several gas audits as part of Nigeria Extractive Industries Transparency Initiative (NEITI).

    This included detailed analysis of historical gas flows and system dynamics to assess total production, flaring, own use, marketed gas and gas losses, and to identify inconsistencies and concerns in the data. The reports also included recommendations for system improvements in areas such as gas quality, metering and data management.

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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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  • Commercial and Regulatory Review of the South African and Mozambique Gas Markets
  • Commercial and Regulatory Review of the South African and Mozambique Gas Markets

    MJMEnergy, working in conjunction with QED, provided Sasol with a gas market study covering Mozambique and North-East South Africa.

    In particular MJMEnergy undertook detailed analysis of the gas pipeline network in Mozambique and North-East South Africa, identifying the maximum capacity of the existing facilities, and modelling the impact of changes in load, location, compression and pipeline strings on maximum capacity. This work required detailed technical understanding of gas transmission and operations, and maintenance regimes, as well as gas flow modelling skills, and an appreciation of gas transmission regulatory and charging arrangements. MJMEnergy interacted with local companies, operators and regulators on site visits in South Africa.

    In addition, MJMEnergy contributed to the wider market study, considering supply and demand and market opportunities.

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  • Analysis of South African Gas Pipeline Network
  • Analysis of South African Gas Pipeline Network

    Working in conjunction with PPA Energy. MJMEnergy, provided a power market study for South Africa for a major international oil company.

    The project considered potential opportunities to sell gas into the Southern Africa power market as well as other industrial sectors. MJMEnergy staff undertook the gas element of the project. This included researching, analysing and presenting the review of RSA Government and Eskom gas strategy, review of current and potential competitors and gas suppliers, review of current and potential partners and customers, potential for LNG imports and cost-competitiveness of LNG relative to indigenous gas production and other fuels.

    We also provided a detailed analysis of existing and potential gas demand across the markets for a range of gas supply scenarios.

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  • Ghana LNG Project
  • Ghana LNG Project

    MJMEnergy in conjunction with an international energy consultancy provided support to VRA in Ghana in relation to developing LNG imports via an FSRU. Whilst Ghana does obtain a large amount of its power from large hydroelectric projects, during periods of drought the shortfall is currently made up by diesel-fired power generation. This is neither very efficient nor environmentally friendly, therefore the purpose of this project was to provide an alternative source of fuel to diesel when required by the power generators.

    Areas covered during the project included the following:

    • Development of tender documentation - in order to develop this project the VRA would need to tender for the FSRU and associated LNG supplies from the international market. The purpose of this tender was to facilitate that process.
    • High level review of Terminal User Agreements - the project team provided the client with a brief review of TUAs in order for the client team to appreciate the complexity of the project.
    • Analysis of the supply/demand match - the supply/demand match in Ghana and in particular the highly seasonal nature of the gas demand will influence the commercial framework. Therefore the project team analysed the characteristics of the demand profile.

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  • Potential of Repurposing Gas Mains for Heat Networks Project
  • Potential of Repurposing Gas Mains for Heat Networks Project

    MJMEnergy worked for the UK Department of Energy and Climate Change on a project to assess the potential for repurposing iron gas mains (which were due to be replaced under the Iron Mains Risk Reduction Programme) as part of heat networks.

    The project required MJMEnergy to facilitate communication between the Gas Distribution Network Operators, DECC, Ofgem and the Health and Safety Executive on possible projects. MJMEnergy collated resources into a secure online library, and produced a summary report on the potential.

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  • European Storage Investment Opportunities
  • European Storage Investment Opportunities

    Working in conjunction with South Court, MJMEnergy provided a ranked project database for an investment firm wishing to enter the European gas storage market. The database included over 50 European gas storage facilities, with rankings reflecting their potential value in changing markets, and recommendations for where investment was l ikely to achieve the greatest return.

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  • UK and Italy Gas Transportation Study
  • UK and Italy Gas Transportation Study

    MJMEnergy, working in conjunction with Gas Strategies, provided a Japanese utility with a detailed study of gas transportation arrangements under the network codes in the UK and Italy, including the impact of market liberalization and gas tariff structures.

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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.)

  • LNG Economics and Markets
  • LNG Economics and Markets

    Understanding the costs and value of LNG is crucial to optimising LNG operations and purchasing in changing markets. This three-day course offers helpful insight, useful case studies and practical exercises.

    Day 1: An introduction to the LNG business and economics.

    Day 2: Making and delivering LNG: costs and projects.

    Day 3: Extracting value: regasification, the long-term and short-term markets.

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  • Global LNG
  • Global LNG

    During the course of the day we will study US, European and Asian pricing methodology, and take a look at traditional pricing structures and shifting trends. The expansion of LNG interest and the evolution of LNG pricing worldwide is explained with a look at the future prospects.
    The next public course date is:

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  • LNG Supply Workshop
  • LNG Supply Workshop

    The LNG supply industry is rapidly developing with new technology, supplies and contractual arrangements. Drawing on MJMEnergy's comprehensive, recently published LNG Supply Handbook, the LNG Supply Outlook Workshop provides an insightful, high-level, summary of LNG supply developments and forecasts from the short-term to 2035.

    This half-day workshop will cover the following, although you may request variations:

    • LNG today
    • Current and future trends in LNG supply
    • LNG demand outlook
    • Key country profiles and forecasts
    • World LNG supply outlook

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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 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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  • Gas Storage Course
  • Gas Storage Course

    We will explain the need to store gas and look at the different types of storage facilities available. You will gain an understanding of how to buy storage capacity, trade gas using storage, and the whole economics of gas storage. You will look at how to build storage, examine a case study and explore the future of storage.

    The course covers:

    • Why store gas?
    • Types of gas storage facilities
    • How storage is sold
    • Storage economics
    • Building gas storage
    • A case study of a current storage project
    • The future of gas storage

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  • Framework Agreement with IGEM for the Provision of Technical Training
  • The IGEM Academy

    Over the last few years MJMEnergy has worked closely with IGEM to prepare and deliver technical training for engineers, both in the UK and overseas. Typical examples have included the following:

    • Introduction to the UK gas industry and its market.
    • Asset integrity management.
    • TGas market safety, legislation and regulation.
    • Engineering ethics – doing the right thing.
    • Safety, risk & reliability management.
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  • Cambodia Energy Security Seminar
  • Cambodia Energy Security Seminar

    MJMEnergy prepared a series of training seminars, which were delivered at the Asean Energy Security seminar in Cambodia. The seminars covered several topics including gas market liberalisation, energy balancing, scheduling and tariffs.

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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.

  • Liberalising Gas Markets in Europe
  • Liberalising Gas Markets in Europe

    In this ground-breaking report published by Petroleum Economist, Mike Madden and Nick White reviewed the state of the gas market in each of the then 15 EU states and considered the impact of the EU Gas Directive on companies, markets and suppliers.

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  • 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 Gas Trading Manual
  • The Gas Trading Manual

    Edited by MJMEnergy associate David Long, with Geoff Moore and Gay Wenban Smith, the Gas Trading Manual (GTM) established itself as a leading information source on the international gas market. Compiled from the contributions of some of the most senior and widely respected figures in the trade, this edition provided detailed and accurate analysis on all aspects of this complex business from the geography of gas through to the markets, trading instruments, contracts, gas pricing, accounting and taxation.

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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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  • LNG in Transportation
  • LNG in Transportation

    LNG in Transportation

    This report explores the role of LNG in marine, road and rail transport and is divided into three parts:
    1) Technology and drivers for LNG as a transport fuel.
    2) Growth projections for LNG as a transport fuel.
    3) Data on LNG as a transport fuel.

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  • LNG Supply Handbook
  • LNG Supply Handbook

    LNG Supply Handbook

    This report containing 28 in-depth country profiles framed within a detailed analysis of the global LNG market and its developing trends and drivers will provide strategists, decision makers, policy makers and analysts - amongst others - with the perfect resource to ensure you are well-informed.

    The 28 existing and potential exporting countries examined are:
    Algeria | Angola | Australia | Brazil | Brunei | Cameroon | Canada | Colombia | Egypt | Equatorial Guinea | Indonesia | Iran | Israel | Libya | Malaysia | Mozambique | Nigeria | Norway | Oman | Papua New Guinea | Peru | Qatar | Russia | Tanzania | Trinidad & Tobago | United Arab Emirates | United States of America | Yemen.

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  • LNG Supply Handbook Country Chapters
  • LNG Supply Handbook Country Chapters

    This report provides the background chapters as well as the profile for the country you have selected. Framed within a detailed analysis of the global LNG market and its developing trends and drivers it will provide strategists, decision makers, policy makers and analysts - amongst others - with the perfect resource to ensure you are well-informed.

    Country profile of country of your choice from one of the following:

    Algeria | Angola | Australia | Brazil | Brunei | Cameroon | Canada | Colombia | Egypt | Equatorial Guinea | Indonesia | Iran | Israel | Libya | Malaysia | Mozambique | Nigeria | Norway | Oman | Papua New Guinea | Peru | Qatar | Russia | Tanzania | Trinidad & Tobago | United Arab Emirates | United States of America | Yemen.

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  • Underground Gas Storage and LNG Storage Market in the World
  • Underground Gas Storage and LNG Storage Market in the World

    "The Underground Gas Storage & LNG Storage Market in the World 2015-2035" builds on the CEDIGAZ Underground Gas Storage Database, the only worldwide Underground Gas Storage database to be updated every year, and on the CEDIGAZ LNG Service, a comprehensive service dedicated to the LNG market.

    This report is divided into three parts:

    Part one: - analyses current and future trends in the storage market to 2035 (UGS and LNG storage).

    Part two: - is specifically dedicated to the EU UGS market. The analysis reviews key economic and regulatory factors that are reshaping the EU market.

    Part three: - includes in-depth analyses for 49 countries worldwide.

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  • A Lot of Hot Air?
  • A Lot of Hot Air? To What Extent Could Gas Lose Ground in the Heating Market in Europe

    MJMEnergy researched and wrote this analysis paper for Cedigaz, exploring the role of gas in the heating market in Europe, and considering the potential for replacement by alternative heat sources, including heat networks and heat pumps.

    The study included detailed analysis of the current market, changing demographics, technological and political developments, and market development, with case studies and forecasts to 2050 for the UK, France, Germany, Poland and the Netherlands.

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Key staff and associates:

  • Mike Madden
  • Nick White
  • David Long
  • Jeremy Bending
  • Chris Le Fevre
  • David Haynes