Over the past ten years IEC has provided strategic and implementation advice in respect of all stages of the natural gas chain: production, transmission, storage, wholesale, distribution, retail and end-use supply procurement. We have also provided advice to governments on policy issues, regulation and on specific projects such as the proposed PNG to Qld gas project.
Upstream experience includes both offshore and onshore basins and conventional and unconventional gas reservoirs. Enhancing value to dormant or high R/P ratio reserves by accelerating the monetization of such reserves is a key core competency. Additionally, generating and implementing strategies that lower production costs is another proven skill. IEC understands the exploration and production of natural gas and has successfully overcome both commercial and regulatory obstacles in the past with innovative solutions.
Midstream experience includes gas processing, transmission and underground storage. The value of natural gas can be substantially altered due to the costs associated with its treatment and transportation to markets. Additionally the timing of gas sales by a producer or purchases by an end user can be substantially optimized via the use of underground storage facilities. Unlike most other commodities, gas is held hostage to inflexible infrastructure and therefore rewards exist for commercial knowledge in this regard. IEC consultants offer such savvy to IEC customers. We understand the impact of various levels of liquidity to stakeholders and know how to shift such liquidity in a favorable direction.
The distribution of gas by utilities, the purchase of gas by large end users and the conversion of gas into other products by gas feedstock companies is another important focus of IEC. We have substantial experience and success benefiting gas fired power generation, the petrochemical industry, large end users, and gas utilities in the procurement of low cost or more reliable natural gas supplies. IEC has performed this role in both immature and in mature, very liquid markets. The tools and procedures used to optimally procure energy supplies vary considerably from one market structure to another. IEC has assisted gas distribution and retail companies in both Canada and Australia as they seek to either build green field assets or capture market share in an increasingly competitive environment.
Wholesale Marketing, Trading & Retail Sales
IEC consultants have substantial experience with physical and commercial products and services associated with the sale, purchase and trading of natural gas to various members of the value chain. Furthermore, IEC is familiar with a variety of risk management tools and procedures associated with this activity. Mr. Gill has established energy trading desks in Canada for a producer, a marketing company, and the unregulated affiliate of a regulated integrated power company.
Mergers & Acquisitions
IEC consultants have a vast experience with mergers and acquisitions. We assist clients in the due diligence process, bid or sale strategies and the identification of untapped value associated with various assets or businesses. Through our comprehensive knowledge of the energy industries, we are able to identify potential acquisitions and determine synergies and cost saving possibilities of combining the enterprises. Among other things we assist in the data room procedure and the generation of questions or answers, as the case may be.
IEC has supplied litigation support for various clients, including the preparation of expert reports covering commercial issues such as anti-competitive behavior. We help clients develop overall litigation strategies, identify discovery documents, assist in crafting depositions, etc.
IEC consultants have substantial experience in the identification of business risk and the formulation of a mitigation strategy for clients throughout the value chain. This approach utilizes company-proprietary information as well as external market data, industry trends and competitor analyses to help determine the best strategy for a specific organization or project.
IEC has had substantial success assisting clients with the creation and implementation of strategies to capture significant growth opportunities. This involves the application of the creative process and innovation to an industry and business environment knowledge. This service targets clients who wish to create substantial value and competitive advantage in this regard rather than relying on past accomplishments and existing operations.
Regulatory & Energy Policy
Arguably, the greatest risk historically facing the natural gas industry in developed countries has been that of economic regulation and energy policy. The deregulation or liberalization of the natural gas and electricity markets has caused considerable instability among incumbents and a significant growth opportunity among new entrants. IEC consultants are experienced in influencing and reacting to changes in regulations and policy. Among other things IEC has considerable experience in preparing written submissions to regulators and policy makers that make sound argument and are influential on behalf of its clients. Given policy or regulatory changes, IEC consultants have a good track record of developing winning strategies for both incumbents and new entrants. IEC has also assisted various regulatory bodies as they sought to develop and implement sound economic regulations and energy policy.
IEC has successfully assisted both new entrants and established companies or incumbents as they face issues and challenges presented by a number of changing variables, including but not limited to large changes in the structure of the energy industry such as the introduction of a liquid market, market based pricing and competition within a formerly held franchise. IEC has a track record of showing new entrants to a given market place how to lead and exploit changes that erode value from incumbents and transfer such value to them. Conversely, IEC has also successfully advised incumbent market participants how to quickly change their business model in order to adapt to changes in the market place and face greater competition.
Deal Structuring & Generation of Compelling Value Propositions
IEC consistently applies an innovative approach to the generation of value propositions and in the structuring of energy transactions. A customer service orientation is paramount for surviving and thriving in an ever increasingly global and competitive energy market place. IEC consultants understand this fundamental principle and successfully generate win/win solutions that benefit all stakeholders.
IEC has had significant success extracting additional value from various assets throughout the energy industry’s value chain. This approach focuses primarily on the commercial use of the asset in the context of the fundamentals that exist in the regional or continental energy market, as the case may be. An innovative approach to asset utilization and business development has benefited numerous clients in the past. A “project world view” is challenged by a much wider world view in order to fully extract the value of capital intensive assets.