ECA SECTORS / NATURAL GAS
ECA combines economic and regulatory knowledge 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 regulators in Europe, Africa and South-East Asia. This covers the design and setting of gas network tariffs, 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 wholesale pricing. We also support on issues of decarbonisation of gas infrastructure including hydrogen economics, biogas and other green gas assessments.
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 commercial and contractual issues arising from markets, regulation and pricing.
Our focus areas include:
- Gas network and interconnector economics
- Contracts and commercial agreements
- Gas tariff and regulations
- Hydrogen and green gas integration
- Gas sector policy and planning
- Gas to power integration
SELECTED PROJECTS INCLUDE >
SELECTED PROJECTS INCLUDE >
Ofgem required support to develop cost assessment methodologies for energy network price controls to come into effect from April 2021. In particular Ofgem sought advice on the approach to econometric modelling, real price effects, regional factor and business support costs. ECA led on developing potential approaches to assessing business support costs.
ECA worked with the Government of Egypt to help establish a consistent approach to manage the process of fuel subsidy reforms over a 5-year period, including specific components on communications and social protection. The key issue for this study was identifying the principles of gas pricing and how they should be applied over time as Egypt reforms its gas sector.
ECA provided sustained support for six months to the Northern Ireland Utility Regulator during a Competition Commission inquiry, leading on key areas of analysis including drafting of papers and attendance at inquiry hearings.
Review of IAP feasibility study assessing the economic and commercial feasibility. Demand forecasts, supply assessments, possible offtake points and cost structures were evaluated to identify the competitiveness of gas transported through IAP and the economic and financial feasibility of the pipeline.
ECA supported MJM Energy in a rapid assessment of alternative sites for a proposed LNG receiving terminal in Myanmar. The country faces severe shortfalls in domestic gas production relative to its rapidly growing demand driven by economic development and increasing electrification. ECA focused on the assessment of the market for LNG and on the potential to alleviate short-term constraints through swaps with neighbouring countries.
Northern Ireland must introduce the EU network codes by 2017 but must also manage the transitional period until then. ECA was engaged to support on a broad range of regulatory and pricing issues. ECA was asked to provide specialised consultancy support to assist the utility regulator to develop spreadsheet modelling to assist with the development of the rules for the introduction of new transmission charges into the NI Tariff Regime.
Assessment of gas sector and infrastructure development in Albania for the World Bank included a financial and economic feasibility of the Vlore power plant, recommendations on different business model for PSP and PPP arrangements, a review of contractual frameworks and regulatory changes.
ECA was part of a consortium assessing the potential for small scale LNG options in Indonesia. The team provided economic and regulatory expertise in estimating demand potential, tariff implications and infrastructure impacts.
The objective of this study was to assist Comisión Nacional de Hidrocarburos in developing a suitable regulatory framework and oversight mechanisms to minimise gas flaring and venting in Mexico.
Support to the Global LPG Partnership and the Government of Ghana in analysis and recommendations regarding the key supply and demand drivers to achieve the national LPG access and use goals. The work provided detailed recommendations to the Ghana Government for realising the national LPG goals.
ECA reviewed the potential size of the market for LNG in Turkey. This required an assessment of the future demand and supply balance, recognising the uncertainties created by Russia’s recent decisions to redirect gas exports through Turkey, the likely price levels and the competitiveness of LNG compared to pipeline imports from Russia, Central Asia and Iran.
ECA analysed the scope for increased gasification in the nine-country region and the potential for it to benefit through greater competition and improved security of supply from imports of Caspian and Middle Eastern gas via Turkey.