EUROPEAN CONSULTING CASE STUDIES

International Undersea Gas Pipeline Project (North Transgas)

Location:
Europe

Key Objective:
A major European natural gas company needed a strategic, financial and technical evaluation of a potential 2,027 km undersea natural gas pipeline.

Our Role in Project:
Pace Global provided a strategic, financial and technical evaluation of a potential 2,027 km undersea natural gas pipeline from Russia to the United Kingdom via the Baltic Sea, Germany, the Netherlands, and the English Channel. The strategic evaluation focused on assessing market demand, tariff and economic costs, and incremental pipeline routing and sizing comparisons.  Pace Global’s evaluation included an assessment of six potential markets for gas supply from the pipeline: the United Kingdom, the Netherlands, Germany, Sweden, Denmark and Finland. Pace Global analyzed various pipeline configurations and prepared a comparative assessment of alternative pipeline routes for assessing the target markets using detailed tariff and financial models. This assessment included a preliminary estimate of proposed routes, sizing of various pipeline segments and compressor stations, as well as evaluations of construction costs, operations and maintenance ("O&M") costs, transit fees, project financing structures, preliminary financing preferences costs, and other strategic issues.  Pace Global delivered a comprehensive set of recommendations with supporting analysis to senior business development officers, senior finance officers and the entire executive board of the company. The client has advanced the project from this initial feasibility stage to full feasibility and financial structuring.

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