Pace Global

Gulf Coast Natural Gas Storage Market Assessment

Clien Need
Client Need:
A natural gas storage developer was seeking market advisory and valuation services for natural gas storage facilities on the U.S. Gulf Coast.


Our Role
Our Role:
Pace Global provided an independent market assessment and long-term firm and hub services rate forecast for a set of four natural gas storage facilities located on the U.S. Gulf Coast.  The engagement included a detailed natural gas market assessment for both the regional Gulf Coast market and the broader interconnected North American market in order to provide a framework and context for forecasting the facilities’ storage rates. Pace Global developed a reference case revenue forecast, framed by two sensitivities, for each of the four assets utilizing its proprietary storage valuation and hub services model. 


Results
Results:
The in-depth market analysis provided by Pace Global was particularly important in light of the precipitous and ongoing changes in North American natural gas markets as a result of shale gas production and expected LNG export demand. Pace Global’s work assisted the client from a commercial and business perspective to better understand the changing natural gas storage market and identify where current and future sources of value can be found.

Pace Global