Market Research

Case Study: #1 Market Research

Background: A confidential client was required by the lenders to two of its gas-fired power projects to demonstrate the competitiveness of its LNG supply agreements. Orchid Group was engaged to conduct the study.

Orchid's Role:

  • Orchid was engaged in 2018 to develop an outlook for new LNG contract prices over the next ten years.
  • The purpose of the work was to demonstrate to the lenders to client’s power projects that their LNG supply agreements would be competitive over the life of the loan.
  • We began by looking at historical supply/demand in LNG markets against evolving long-term contract price trends.
  • From there, we developed an outlook for global LNG supply and demand over the next 10 years.
  • Against the outlook, we assessed the trend for new project financial investment decisions and challenges facing the development of new projects.
  • Finally, we developed an expected price formula outlook for years 1-5 and years 6-10.

Orchid's Deliverables:

  • Powerpoint report incorporating historical analysis, the outlook and pricing expectations
  • Report was delivered to client’s lenders to satisfy obligations under the term loan agreements