Service Type: Physical Commodity Risk Management
Project: Commercialization of LNG Conversion
A client faced risk management, supply chain, and organizational impacts related to the conversion of its delivery vehicles from diesel fuel to liquified natural gas. Undertaking significant aspects of the transformation needed to be completed in the short-run, including developing an understanding of the project risks and engineering the related financial analysis, communicating with senior management, and structuring the risk management strategy.
Approach & Results:
Global energy markets require a thorough and thoughtful approach before committing capital to infrastructure projects. The price relationships between competing sets of fuel and energy sources, infrastructure and conversion costs, and secondary benefits drive economic decision making. Commodity and supply markets are global, impacting local and regional commodity markets. Our insightful commercial and financial assessment of the entire supply chain, combined with actionable initiatives and market management, contributed to the transition of “a good idea” to a successful execution. The end result was a superior return on investment, exceeding expectations.