ECA combines economic and regulatory skills to carry out comprehensive and complex planning, financing and strategy studies along the value chain of gas. Our specialisation is on mid and downstream sectors including transmission systems, gas storage, LNG terminals, distribution systems and market design. We have extensive expertise in gas market regulation and our experts work closely with gas and energy regulators in Europe, Africa and South-East Asia developing regulatory frameworks. This covers the design of gas tariff models to balance social and economic requirements, the provision of training in the applicability of tariff methodologies and the use of tariff models and the drafting of secondary legislation. ECA is also highly experienced in the development of Gas Masterplans, advising established and emerging gas markets on gas utilisation options, export policy, mid- and downstream infrastructure development, gas allocation policy and pricing. A fundamental area of expertise running through all our gas sector services is the quantification of the economic value of gas. We also leverage our public sector expertise to advise private sector clients on the core commercial issues arising from markets, regulation and pricing.
A selection of our projects in the Gas Sector:
Financial projections for UK gas interconnector
ECA was appointed by Ofgem to develop financial models and scenarios of future revenues and costs of gas interconnectors to Great Britain. The models were used to test further scenarios of future interconnector incomes based on differentials between European and GB gas prices as well as assessing the within-year occurrences of these differentials.
Ghana gas masterplan
We were appointed by the Government of Ghana to develop a national medium to long term gas strategy. This included recommendations on an optimised gas infrastructure plan, prioritised gas allocation across exports and domestic utilisation options and a suitable pricing, regulatory and institutional framework for implementation of the gas strategy.
Economic price of gas, Egypt
ECA carried out an economic gas pricing study to assess and evaluate current and future gas production costs in Egypt.
Indonesia gas masterplan
The project developed a new gas development master plan (GDMP) which serves as a guide to the necessary infrastructure investments required over the period to 2025. Given the uncertainty over supply sources and future prices and, hence, demand for gas, the project looked at a number of scenarios for the future market.
Regulation of gas tariffs, Ireland
ECA advised the Commission for Energy Regulation on the structure of tariffs charged for use of the gas distribution system in the run-up to the review of gas tariffs charged by the incumbent utility, Bord Gáis.
Gas to power investments in Sub Saharan Africa
We reviewed the power demand and generation expansion plans of all 47 Sub Saharan African (SSA) countries for use in a power dispatch model, utilised for estimating the demand for gas in power generation in each country through to 2035. A costing model was then used to compare the economics of transmitting power generated at the gas resource by transmission line to gas by pipeline versus power stations located in the demand centres.
Gas to power investment consortium, South East Europe
ECA advised on the design, structure and ownership of a consortium of public as well as private investors for midstream gas and power generation projects in the West Balkans (Albania, Bosnia-Herzegovina, Croatia, FYROM, Kosovo, Montenegro, Serbia).
LNG strategy in Central America
Different business and contractual models were developed to assess the feasibility of introducing LNG for power generation to six Central American countries. The objective of this World Bank project was to advise on an economically and technically feasible option for regasification projects and onwards gas and electricity trade.
Gas transmission and distribution regulation, Israel
Advisory support was provided to the Natural Gas Authority to regulate and develop the transmission and distribution of natural gas in Israel.